July 20, 2020 10 minutes read   by Vitalii Vystavnyi
Ukraine IT Outstaffing: What You Need to Know Ukraine IT Outstaffing: What You Need to Know

The Ukrainian IT market has been growing for 20%-25% a year since 2014. In 2020, the IT sector holds the thirds place on the GDP volume of the country, right after agriculture and mining. The popularity of IT outstaffing in Ukraine wasn’t unexpected, though, as there are multiple reasons behind the high quality and moderate price of services provided by Ukrainian software developers

Many international companies have discovered the benefits of working with IT specialists from Eastern Europe and have already established their offices and R&D hubs in Kyiv, Odessa, Lviv, Kharkiv, and Dnipro. However, even more of them have opted for remote development via hiring freelancers, outstaffing, and outsourcing in Ukraine. Let’s figure out what is the key difference between these hiring models and what will better work for your project.

IT outstaffing in Ukraine

How Outstaffing Model Differs from Outsourcing

If you choose for your project a company providing services in outsourcing or outstaffing in Ukraine, you get the main benefit of these models: high-quality software development by the large pool of IT specialists at a reasonable price. What is more, the reliable contractors will take upon themselves obligations you would otherwise have towards your staff, including human resources management, accounting, social insurance, paying taxes, and providing workplace and office necessities.

With this being said, outstaffing and outsourcing are not the same as they require different levels of your participation in managing your team and offer you different levels of control over the working processes. We have put the main peculiarities of both models in a table to make things clearer.

Outstaffing: pros and cons

Outsourcing: pros and cons

You hire particular specialists according to the requirements of your project. You directly participate in the hiring process which helps you to evaluate the technical skills of the person you’re going to work with. You also get better control over your specialist in the future. You pick up a whole team who is dedicated to working on your project. You describe your business goal to the contractor and the company of your choice offers you a solution. This means that you cannot control the hiring of every specialist. If your contractor isn’t transparent, sometimes you might be sold a Middle as a Senior or an HTML coder as a Full-stack specialist.
Outstaffing companies hire specialists specifically to your needs and this might take more time. On the other hand, you will get a developer with the exact stack of skills you need which means you won’t have to overpay for having several experts who are fit for your project only when combined. Outsourcing companies cooperate with a large number of coders and can combine for a working unit, depending on your needs. As a rule, by hiring an outsourcing company, you receive an accomplished team faster.
When you hire a dedicated specialist for your project, you make sure that you have a connection and can interact efficiently. When you’ve invested some resources into hiring and have found a perfect coder, it’s better to stay with them for the rest of the project. Outsourcing hubs have many specialists to offer and sometimes their cooperation with some vendors can last for no longer than six months. Hiring the team for whom your project is only one of a hundred can lead to lower engagement in your product.
Outstaffing means that you hire a particular expert, but you are the one who sets tasks, communicates with coders, and tracks their progress. Thanks to better communication between you and your technical specialist, you can expect a better engagement of the coder into your project. As fewer people work on your project, the costs you pay are lower and more transparent. Outsourcing means that you hire a team, including project managers, business analysts, etc. This means that your remote coders don’t have to be fluent in English or have good communication skills (which makes the hiring process easier). The minus is, you will have to pay wages to the administrative personnel too, not only to the technical specialists.

The main difference between the two models is that by opting for outstaffing, you receive an extended team and your in-house specialists can work in close collaboration with over-sea coders, while by choosing an outsourcing company, you delegate your entire project to the remote team and have less control over the working process. Both options will help you to optimize your business and your choice of a collaboration model should mostly depend on your budget and the ambitions of your project.

Some Facts and Myths About Ukraine

Like every country, Ukraine has a bunch of superstitions and beliefs surrounding it. And though we cannot deny some peculiarities of Ukrainians as a nation, we still can bust some myths about Ukrainian coders and the Ukrainian IT market.

outstaffing Ukraine

Myth #1: Ukrainians don’t speak foreign languages

In reality, a foreign language (English, as a rule) is a must in every Ukrainian school’s curriculum. What is more, according to the 2019 survey, more than 80% of Ukrainian tech specialists have an intermediate or higher level of English proficiency and most IT companies in Ukraine provide their staff with free English lessons. 

Myth #2: Most of the Ukrainian IT specialists are the newcomers who have only finished 2-months IT-courses

In reality, only 8% of IT engineers are Junior specialists with less than a year of experience and the rest are of Middle, Senior, or Lead level. More than 57% of coders have a degree in STEM disciplines.

Myth #3: Ukraine is an economically unstable country

In reality, even though the political situation in some regions is extremely difficult, the economy of Ukraine shows the tendency to growth and thus is attractive to investments. Here is some research made by the US Department of State about the investment climate in the country.

Core Benefits of Hiring a Team of Remote Developers in Ukraine

Why Ukraine, as there are Chech Republic, Indonesia, India, China, and many more countries with great specialists and a moderate hourly rate? Check out the main reasons below.

1. A huge pool of specialists

Up to date, there are more than 220,000 IT specialists working in more than 1,600 companies in Ukraine. The stack of technologies known to Ukrainian engineers is huge, and according to some research, Ukrainians are the best in C++ and web security. In addition to this, various research ranks Ukrain among Top-5 talents suppliers worldwide.

2. Lower salary expectations

As the cost of living is relatively low, the salaries expectations are much lower in Ukraine compared to the EU or the US. In 2019, for example, the average annual salary of a software engineer working on Java composed $26,400 while in the US, an expert of the same level on average could claim $92,800 per year.

3. High-quality education

Every year, 400+ Ukrainian institutions of higher education boast more than 36K of specialists in IT and closely-related fields. What makes these graduates valuable among international companies is that Ukrainian polytechnical institutes provide their students with a variety of basic knowledge most of the European and US colleges have dismissed from their curriculum. The broader spectrum of technologies available to Ukrainian students makes them more successful in the future. As a prove, there are multiple startups created by Ukrainian talents, including GitLab, Viewdle (bought by Google), Grammarly, and TemplateMonster to name a few.

4. Cultural background

The reason why international enterprises decide to look for an IT outstaffing company in Ukraine instead of other countries is the specific cultural background of Ukrainians, as Ukraine shares European values. 

5. Time zones

Ukraine is +7 GMT compared to the US, and on average +1 or +2 GMT compared to the European countries. This makes communication between you and your remote team easier and more convenient.

IT outstaffing companies in Ukraine

Top-6 Ukrainian Outstaffing Companies

There is a huge variety of outsourcing companies in the country, including international giants like Luxoft, Ciklum, SoftServe, and EPAM. Ukrainian outstaffing companies are less known to the public but quite popular among startups and large enterprises. Here is our top-6 list, composed according to the number of projects in the companies’ portfolios, their staff, and the average satisfaction rate of their customers.

  1. Flytika
  2. Mobilunity
  3. DAXX
  4. Smart Solutions
  5. AOG
  6. AllstarsIT

Pricing on Outstaffing Developers from Ukraine: Comparative Table

picture with check

These are the average salaries per month of Middle-level specialists in Kyiv according to the survey of the local platform DOU held in December’19. The prices are slightly different when you cooperate with outsourcing or outstaffing companies, as in these cases you hire specialists dedicated to your project and pay them according to their hourly rate. However, you have to keep in mind that by paying $35 to $45 per hour to your expert, you receive a person who is fully engaged in your project during these pre-paid hours.

Position, technology

Salary per month

Software engineer, Java

$3,000

Software engineer, JavaScript

$2,700

Software engineer, Ruby on Rails

$3,000

Software engineer, Python

$2,900

Software engineer, PHP

$2,500

QA engineer

$2,150

Business Analyst

$2,500

DevOps

$3,500

HTML coder

$1,500

How Flytika Can Help You to Hire the Best Team of Developers

Thanks to more than 14 years of experience on the market, we have found out how to keep our fee relatively low and provide IT outstaffing service in Ukraine of the highest quality. Up to date, we have more than 80 IT experts in our staff working with various technologies, including PHP, Python, Ruby/Rails, C++, and C#, JavaScript, and its most popular frameworks. 

Our Key Values

  1. We offer custom solutions to your needs and hire specialists that correspond to your requirements in full.
  2. We guarantee transparent accounting and by hiring us you always know what you pay for.
  3. We are dedicated to providing cost-effective service of the highest quality.
  4. We keep our fees relatively low as we want to stay affordable for as many projects as possible.

Our Approach

First of all, we do the hiring. The level of your participation in this process depends solely on your wishes. 

Secondly, we take care of the onboarding of your developers or complete a working unit out of several experts if you’ve decided to hire a full team to work on your project.

Thirdly, we make sure that your developers have everything they need for efficient work on your product, including the working place, social guarantees, and transparent and legal wages.

Fourthly, we manage your team for you and grant efficient communication between you and your remote developers.

Our Expertise

We can help you with almost every idea you might have, but there are particular spheres of development we are leaders in.

picture about projects

  • We conduct a detailed market analysis to provide business-oriented development
  • We are experts in UI/UX and create a catchy and user-friendly design for your applications
  • We offer hybrid mobile solutions and make sure your application would work on any platform you need
  • We guarantee flawless work of the final product delivered to you thanks to the team of experienced QA specialists who work with both manual and automated testing
  • We do web development and make it compliant with search engine demands
  • We are experts in medical software: starting from medical signals and up to document management

Conclusion

Outstaffing in Ukraine is one of the best choices for your business in 2020. The superiority of Ukrainian developers is proved by multiple surveys and successful projects that were implemented thanks to the pool of IT talents Ukraine offers to the world. To get the maximum from hiring a remote IT team in Ukraine, you should carefully select a reliable contractor. Choose an outsourcing company if you wish to fully delegate your project to the dedicated team in Ukraine or opt for outstaffing services if you want to extend your own team with some remote talents. 

Flytika can become your trustworthy partner and help you with your project as it has vast experience in software development and can offer you a variety of IT specialists. Our company will take care of every aspect of your developer’s work in Ukraine and your efficient communication with your dedicated team.