In this article, we’ll explore software outsourcing to Ukraine in 2024: Is it safe to invest in this country and establish an R&D office there? Is it still easy to find and hire software developers in Ukraine? Are Ukrainian offshore app developers as proficient and reliable as they were considered to be before the war?
Let’s sort out the most important aspects of outsourcing software development in Ukraine…
We appreciate the world-class talent and adaptability of our Ukraine-based engineering staff. Despite the obvious risks, Ukrainian developers have done everything possible to ensure client projects are executed and delivered on time.
Our Ukraine 🇺🇦 team consistently and successfully assists one of our largest 🇺🇸 U.S.-based clients—referred to here as “Travel Nurse Healthcare” (the company’s name is protected by our NDA policy)—in enhancing their combined web/mobile time and task management system for travel nurses.
First of all, let’s address a pressing and unsettling question: With the ongoing aggressive war that Russia has waged against Ukraine and its citizens, is it safe to outsource software development to Ukraine?
💪🇺🇦 Numerous offshore software development companies in Ukraine strategically positioned their teams in cities far from the front lines. Thanks to significant distances and effective protection offered by anti-aircraft systems, most of Ukraine’s territory remains safe for IT businesses to operate and flourish. Additionally, many Ukrainian developers also work from abroad, further ensuring the continuity and resilience of IT operations.
| Main Cities for R&D | Kyiv, Lviv, Odesa, Dnipro, Ivano-Frankivsk, Vinnytsia, Chernivtsi, and others. |
| Popular Tech Stack | .NET, Node.js, Vue.js, Angular, Python, PHP, React, Ruby on Rails, Swift, Kotlin, Django, Flask, TypeScript, SQL, MS Azure Development, Custom AWS Solution Development |
| Hourly Rates & Annual Salary for Developers | $30-60 per hour $30-50k+ per year |
| English Proficiency | Moderate to High |
| Industry Focus | R&D for global corporations, fintech, healthcare, blockchain, e-commerce, gaming, enterprise solutions, drone tech, military tech, and more |
| Interesting Facts about the UA IT Sector | The share of women in IT has tripled over 12 years. Today, women account for about a quarter of the professionals in the Ukrainian IT sector: as of December 2023, they made up 24% of respondents. 👩💻📈 |
Thus, even though many cities, especially in the eastern part of Ukraine, require enhanced protection and safety measures, other areas are considerably safe. This includes the capital city of Kyiv—home to approximately 3 million people and protected by U.S.-made Patriot systems—as well as many smaller cities in the western part of the country, making them ideal for establishing your dedicated development team in Ukraine.
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Let us delve into the myriad reasons behind Ukraine’s popularity in the IT outsourcing sector, exploring its skilled workforce, cost-effectiveness, and the evolving IT landscape…
Ukraine’s IT industry presents a dynamic offshore tech ecosystem: a total pool of over 300,000 seasoned software engineers, mobile app developers, and other IT specialists, along with hundreds of well-established offshore development companies, are ready to undertake projects for the U.S. and other Western clients.
Many Ukrainian developers have a rich background in corporate settings and freelancing, bringing a wealth of experience from numerous client projects. They are known for their adaptability, readily enhancing their skills or switching technologies to meet project needs.
With notable strengths in custom C# .NET stack development, Node.js, Vue.js, Angular, Python, PHP, and many other technologies and frameworks, software outsourcing to Ukraine has become a smart choice for complex projects.
Ukraine’s educational system, emphasizes engineering and computer sciences and produces over 16,000 IT graduates annually. Key institutions contributing to this tech talent pool include:
These universities, alongside numerous boot camps and professional courses, ensure a workforce proficient in the latest technological advancements. For example, Coursera’s 2022 report places Ukraine among the top 21 countries globally for expertise in Data Science.
Despite war-related challenges, Ukraine remains one of the most cost-effective countries in Europe, contributing to relatively affordable development rates.
Most offshore developers in Ukraine earn around $30-50k+ annually (*rates may be somewhat higher for senior developers with in-demand tech stacks), which is significantly more favorable for potential clients compared to the compensation expectations of over $100-120k per annum for U.S.-based software engineers.
It is also easy to engage IT specialists without facing legal or administrative burdens. There are many options available, including…
You can explore some of the successful projects executed with the assistance of our R&D branch deployed in Ukraine including offshore full-stack web development:
The leading American healthcare companies benefit from working with us.
Check our case studiesThe IT sector in Ukraine is distinctively marked by its high English language proficiency. The emphasis on learning English from a young age, along with targeted language skill development within the IT industry for global market engagement, means that a large number of IT professionals in Ukraine are well-versed in English.
| Aspect | Details |
| Educational Emphasis | Early English education |
| Industry Focus | Enhanced language skills for global markets |
| Global Interaction | Effective interaction with international clients |
| Technical Documentation | English as the primary language for technical documentation and courses |
Ukraine’s geographical location offers a convenient time zone advantage to businesses in Europe and a manageable overlap with North American companies, enabling real-time collaboration and ensuring project agility. This makes software development outsourcing to Ukraine a more convenient option than several other potential locations for offshore software development, including Southern Asian countries.
| Region | Overlap with Kyiv’s 9 AM – 6 PM EET |
| Kyiv (EET) | 9 AM – 6 PM |
| Western Europe (CET) | 8 AM – 5 PM (1 hour behind Kyiv) |
| East Coast USA (ET) | 2 AM – 11 AM (7 hours behind Kyiv) |
| West Coast USA (PT) | 11 PM (Previous Day) – 8 AM (10 hours behind Kyiv) |
*It’s important to mention that for Western European clients from France, Great Britain, or Germany, Ukraine is considered more of a nearshore software development destination than offshore, due to cultural and territorial proximity.
🚨 If you’re looking to establish a remote R&D office in this country, we’ll provide more recommendations and insights in the next section of this article.
Meanwhile, the best way to start outsourcing software development to Ukraine is by partnering with a company experienced in the local talent market, with representatives on the ground like TATEEDA GLOBAL.
If you have a technical solution in mind and are seeking an efficient offshore team to undertake it for you, please contact one of our representatives today:
Based in San Diego, Slava knows how to design an efficient software solution for healthcare, including IoT, Cloud, and embedded systems.
Ukrainian companies excel in balancing high-quality output, customer goal alignment, and employee satisfaction, understanding the importance of competition. This combination ensures that projects not only meet but often surpass client expectations.
| 📌 In 2022, Ukraine’s IT sector was the only industry to show growth, at 27% from January to May, making up 46% of the country’s total service exports, a significant increase from 37% the previous year, according to Opendatabot. |
😔 Kharkiv, once recognized as one of Ukraine’s premier IT hubs, has unfortunately experienced significant devastation due to its proximity to the war frontlines. Consequently, many local developers and engineers have relocated to Kyiv, Lviv, and Odesa. These cities are homes to flourishing tech communities, innovative startups, and established IT companies, offering:
💼 In Ukraine, global product providers such as Grammarly, AUTODOC, MacPaw, Playtika, Genesis, Readdle, EVO, Ajax Systems, Megogo, Wix, and others, alongside specialized offshore development firms, play key roles in reinforcing the nation’s prominence in the offshore software development sector. These product companies have achieved substantial progress across diverse fields, underscoring Ukraine’s capacity to generate world-renowned IT products.
On the other hand, offshore development companies in Ukraine such as EPAM, Ciklum, Luxoft, and DataArt specialize in providing comprehensive software development and IT consulting services, further solidifying the country’s reputation as a preferred destination for high-quality IT outsourcing.
🏙️ The Diia City initiative by the Ukrainian government aims to foster a supportive ecosystem for the IT industry, ensuring innovation and growth. The project introduces a special legal regime for IT businesses, emphasizing…
Additionally, the initiative offers key benefits, outlined in the table below:
| Simplified Tax System | Reducing labor taxes for IT companies. |
| GIG Employment Model | Blending freelance flexibility with employment stability. |
This approach underscores the government’s commitment to making Ukraine a global tech hub.
🤝 Hiring software developers from Ukraine is both straightforward and secure, making it a preferred choice for companies worldwide. Typically, the process involves partnering with a reputable local vendor that ensures the protection of the client’s data through three critical agreements:
Open Mentality: Cultural differences are often bridged by the adaptability and global mindset of Ukrainian IT professionals. Their extensive international exposure and experience working with diverse teams make them cosmopolitan, ready to navigate the global IT landscape.
Realistic Views: Ukrainian developers and IT specialists are committed to project success, willing to work overtime or walk an extra mile for their clients. However, they prefer dealing with specific, clearly defined tasks through ticketing systems, viewing team-building and lengthy sync meetings as less efficient.
Direct Reward Culture: There’s a prevalent preference among Ukrainian IT workers for straightforward, honest communication and a notable preference for immediate financial compensation over potential long-term benefits like equity in projects.
Communication Challenges: Effective communication is crucial in offshore development. By leveraging modern tools and establishing clear protocols, potential misunderstandings can be minimized, ensuring alignment with project objectives.
How to manage? Through cultural exchange programs and open communication, companies can effectively navigate these cultural differences, fostering a productive and harmonious working environment.
Do you want to start offshore software development in Ukraine?
TATEEDA can help you recruit the best IT talent in Ukraine and swiftly engage them, removing administrative hassles for you. We can organize both short-term staff augmentation and long-term dedicated teams for you.
Acting under Ukraine’s legislation, with supervision from our U.S.-based executives and compliance with international and American regulations, our Ukraine-based offshore teams deliver top-notch IT products on your behalf.
We can build a team that includes software architects, full-stack and mobile developers, UI/UX designers, QA engineers, DevOps, and other specialists.
For those looking to directly engage with local freelancers, most Ukrainian developers are registered as individual entrepreneurs, offering flexibility to enter into contracts with international clients. Taxation, payment methods, and bank account compliance are straightforward, with these contracts typically not requiring social security payments or employment liabilities, making them cost-effective for employers.
However, partnering with an established offshore IT consulting firm in Ukraine is often recommended. This method streamlines the hiring process and provides comprehensive legal support from local experts, ensuring a smooth and hassle-free experience.
Research IT companies with a strong track record in your industry, look for recommendations and utilize platforms that connect businesses with Ukrainian IT service providers.
If a representative of your company wishes to meet your offshore team members, they can travel to Ukraine. Currently, direct air routes are unavailable; however, it’s possible to travel to nearby E.U. countries like Poland or Romania and then visit Ukraine using train or bus services. It’s generally safe to visit the capital city of Kyiv, but it’s necessary to follow government recommendations on visiting bomb shelters during air raid sirens, respecting curfew hours, etc.
Yes, absolutely. We have extensive experience hiring IT specialists in Ukraine and a dedicated HR department based in Ukraine that can manage all administrative hassles for you.
No, Ukraine is not the only destination used by TATEEDA for nearshore or offshore IT outstaffing. We also work with LATAM and several other regions to organize round-the-clock execution of clients’ projects.
Costs vary depending on the project’s complexity, the technology stack, and the experience level of the IT professionals involved. However, Ukraine offers competitive pricing while maintaining high-quality standards.
TATEEDA builds custom software projects and provides IT staff augmentation.
