Hiring Software Developers in Ukraine: Top 10 Reasons to Consider

1804 Updated 01.11.2023
Vasyl Polych

Founder & CEO at Northell

5/5

Table of contents

The popularity of the Ukrainian IT sector continues to flourish, becoming an attractive place for many companies from the US and Europe to hire Ukrainian developers. Reasonable costs, a broad tech talent pool, high-quality services, and extensive experiences and technology expertise across the leading industries, such as Healthcare, Retail, FinTech, EdTech, and Real Estate, boost overall popularity and move the IT sphere development forward.

Despite the recent notorious events in Ukraine, the Ukrainian IT community has already adapted to the new reality and found practical solutions to continue living and working productively.

In this article, we will discuss where to hire developers in Ukraine, why Ukraine is a top software development outsourcing destination, and what potential risks you may encounter, as well as refresh your knowledge with up-to-date information about the hiring market in Ukraine. Also, you will be able to get familiar with the average cost of hiring developers in Ukraine and learn experience-based tips for attracting and managing Ukrainian developers from Northell experts.

10 reasons why hiring developers in Ukraine is in high demand

10 reasons why hiring developers in Ukraine is in high demand

10 reasons why hiring developers in Ukraine is in high demand

Economic efficiency, tech talent diversity, high-level IT education, favorable business environment – all these are the reasons why Ukraine is considered to be a hotspot for building long-term cooperation. However, below, we’d like to highlight the main reasons why hiring developers in Ukraine is a great idea.

Deep tech talent pool

The size of the Ukrainian tech talent pool is constantly growing each year. According to the report on Innovation Technologies, the Ukrainian IT industry consists of more than 4,000 local IT service companies, and more than 110 of the world’s leading companies have subsidiaries in the country. The number of dedicated Ukrainian software developers has reached 240k in 2022, with a prediction to increase up to 23% by 2024. So, the local talent pool grows by 20-30% each year, with multi-skilled tech graduates joining the IT community.

This tendency is a proven incentive for many Western businesses to hire software developers in Ukraine. What’s more, Ukraine holds the 8th spot on the list of the world’s top countries with highly skilled developers.

Technologies diversity

IT outsourcing companies from Ukraine are highly exposed to cutting-edge IT innovations, regularly performing at world tech events and conferences. Ukrainian developers are proficient in a broad spectrum of the latest technologies, programming languages, frameworks, and other tools, including JavaScript, Node.js, Python, PHP, Java, AI, AR/VR, Big Data, and IoT.

Popular IT products such as GitLab, Ring, Grammarly, People.ai, TripMyDream, Cardiomo, etc., demonstrate competence in various technologies and the ability to contribute to product development.

Ukrainian developers stay in tune with the latest technologies and trends while paying much attention to self-education. According to Clutch, Ukrainian software companies have real experience working with companies from various industries, such as Healthcare, Real Estate, EdTech, Retail, e-commerce, etc. They have all the necessary competencies and resources to take on projects of any size and ensure successful results.

Cultural fit and time zone compatibility

Since Ukraine’s geographic location is in the central part of Europe, it combines Western and Eastern values, creating a space for transparent communication and smooth cooperation. That also means that the attitude toward management, conflict resolution, and teamwork is similar to the Western mentality.

Also, Ukraine’s time zone is 1-2 hours ahead of most European countries and 7 hours ahead of the East Coast. However, reliable IT software outsourcing providers offer optimized communication plans and suggest suitable work schedules.

Reasonable quality-to-cost ratio

Hiring developers in Ukraine implies a reasonable quality-to-cost ratio for a wide range of software development services. Local IT companies provide different pricing models and wide-ranging services, allowing European and US businesses to pay for the specific service they need.

Also, the average hourly rates of Ukrainian programmers range between $25- $60, while the same skill sets in North America and Western Europe will cost a project from $100 per hour. Thus, the in-depth technology competency and reasonable costs make Ukraine’s programming community the most cost-efficient hiring option.

Find out more about IT outsourcing in Eastern Europe: Why Should You Outsource to Eastern Europe in 2023? (Price, Pitfalls, and Mistakes)

Suitable business environment

Despite the unfolding war in Ukraine, Ukrainian developers and IT outsourcing companies continue to work, pay taxes and support the economy. The IT outsourcing cluster is one of Ukraine’s most strategically developing countries.

Considering government incentives for rapid digitalization, taxation simplicity, and a favorable business climate, Ukraine offers a comfortable business environment for potential Eastern Europe and Western investors.

Simplified and favorable taxation

The Ukrainian government authorizes simplified taxation for the IT market. Ukraine’s tax system offers single-tax and classic employment models with plenty of VAT exemptions. For example, in a typical single-tax model, IT companies work with IT professionals as independent contractors who pay only 5% of their income and a monthly unified social tax.

Thus, hiring developers in Ukraine is a strong incentive for different enterprises to look for cooperation opportunities. Simplified taxation and lower personal tax for IT specialists create an attractive economic zone in Ukraine.

Compliance with international security standards

Any trustworthy software development company in Ukraine maintains the confidentiality of sensitive customers’ data by signing NDA. In addition, software product development often requires strong data security and international regulatory compliance. Thus, Ukrainian IT companies work with major security compliances across various industries, including HIPAA for Healthcare projects, PCI for FinTech, ISO certification to prove information security management, SCORM for EdTech, etc.

English proficiency

Another important reason for the booming interest in Ukrainian developers is English proficiency. More than 80% of software engineers in Ukraine have strong intermediate (B1-B2) and higher levels. Moreover, Ukrainian IT companies like Northell often regularly encourage improving English skills and offer in-house English lessons. So, building open communication with international investors and partners is not a problem.

High-level IT education

According to the World Economic Forum, Ukraine is among the top 10 countries worldwide, producing around 130,000 graduates annually with IT-related degrees. Ukraine has a highly developing IT community and offers various educational opportunities for students at universities and colleges. Besides, local IT companies often sponsor IT courses with a potential for further employment.

R&D centers

Ukraine has over 100 R&D centers running in the country. Also, many global companies like Microsoft, Oracle, Samsung, and Huawei have established R&D centers in Ukraine. It makes Ukraine a globally recognized and reliable technology partner in the international IT arena.

Consider the above aspects when hiring developers in Ukraine to find the best specialists for your project. For more information on recruiting, hiring, and managing software professionals, read our guides:

Full Cycle Software Development in 2023: Team, Process, and Pitfalls

How to Build a Software Development Team in 2023?

How To Hire An App Developer Without Mistakes? [Complete 2022 Guide]

Where to hire developers in Ukraine?

Customers can hire Ukrainian developers in several ways. Whether you’ll be doing it online or offline, below, we’d like to highlight the pros and cons of each option.

Hire developers in Ukraine by scanning online platforms

One of the most affordable options to start hiring is to go to job search websites and aggregator sites to find top-rated companies and freelancers worldwide. These online resources contain enough information (e.g., portfolios, client testimonials, industry experience, costs, etc.) about IT companies and freelancers so you can quickly analyze their profiles and consider further cooperation. Check out the list of useful websites and online platforms below, and evaluate the pros and cons of hiring freelancers and outsourcing agencies before signing a contract.

Platforms for hiring freelancers

  • Upwork
  • Freelancer
  • Fiverr
  • LinkedIn

Platforms for hiring IT providers

  • Clutch
  • GoodFirms
  • TopTal 
Pros Cons       Pros                              Cons
  • Direct access to a pool of diverse candidates from Ukraine
  • Numerous free hiring platforms 
  • Technical knowledge for an interview required
  • Possibility of language barrier
  • Security threat
  • Risk of improper commitment
  • Need for constant management
  • Open to the global pool of IT vendors
  • No micromanagement
  • Improved cost-efficiency
  • No recruiting and onboarding hussle
  • Fast project launch
  • Possible language barrier and time zone difference
  • Risk of improper commitment

As you can see, hiring an offshore development company is a highly accessible and widespread option suitable for any project size and needs. Depending on the relationship type, software outsourcing offers staff augmentation, dedicated teams, and project-based cooperation models.

Project-based models are widespread in Ukraine. That is a form of cooperation in which most of the responsibility falls on the outsourcing provider. Your outsourcing provider completes your development projects based on your requirements from start to finish.

If you decide to start hiring on your own, you will also need to pay a fee for posting your vacancy, perform a lengthy search and go through thousands of unsuitable resumes before you find the perfect match. Let’s summarize the pros and cons of this option.

Pros of online searches Cons of online searches
  • Cost-efficiency 
  • Access to thousands of resumes
  • Time-consuming process 
  • Recruiters may be needed

Hire developers in Ukraine based on recommendations

This option many customers find reliable and quick. Based on the recommendations, it is easier to contact the right outsourcing agency or freelance developer and quickly establish cooperation. But, in this case, know many people in your industry to help you suggest a particular developer or company.

Pros of hiring by referrals Cons of hiring by referrals
  • Getting valuable contacts in a snap
  • Acquiring credit of trust to a potential contractor right at the start
  • Suitable for businesses with a vast professional network 

Hire developers in Ukraine by networking at international tech events

The next option is suitable for businesses with a vast professional network. Industry experts frequently attend IT professional conferences and web summits to gather valuable contacts, consider partnerships, or find the right talents.

These technology events bring together thousands of developers, IT companies, and leading industry experts to redefine the global technology industry and share their vision and expertise with the wider community.

Pros of networking at tech events Cons of networking at tech events
  • Meeting potential partners in person 
  • Getting valuable contacts 
  • Time-consuming
  • Risk of delaying the search for the right software provider

How to hire Ukrainian developers in 8 steps?

The professional Northell recruitment team has prepared a ready-to-follow list of steps for hiring developers in Ukraine. By following it, you’ll be able to quickly find the right-fit candidates in the Ukrainian IT market for your project.

How to hire Ukrainian developers in 8 steps?

How to hire Ukrainian developers in 8 steps?

Step 1. Decide on a service you need

When you hire developers in Ukraine, the first task on your to-do list is deciding on the type of service you need. When making this choice, you should keep project specifics, management requirements, and other company preferences in mind.

For example, Northell provides different cooperation models, design, and development services. Whether you need team augmentation or a project-based dedicated software development team, we can recommend a specific cooperation type to best fit your project requirements (e.g., mobile, web development, design, software consulting, etc.), budget, and timeline expectations.

Step 2. Estimate your budget limit

Next, you should double-check your project requirements and budget limits to choose the most suitable pricing model.

This step is critical to hiring a team that fits your budget and delivers the expected value. For example, if you’re hiring freelancers, ensure they can handle your project’s needs and validate their experience and skill sets beforehand. If you contact an outsourcing agency, ask for a preliminary project estimate so you can see if they can make a suitable offer that fits your budget.

Step 3. Research dedicated platforms and make a vendor list

Choosing to collaborate with Ukrainian IT outsourcing companies, you should first make a primary analysis and find out as much as possible about your potential vendor. To do this, perform a filter-based search based on actual clients’ reviews about their work (on Clutch or GoodFirms), pricing, experience, skills proof, and services and validate the company or individual candidates. This is good practice that will allow you to align the quality of work, schedule, and budget with your expectations.

If several vendors fit your initial rquirements, make a vendor list (up to 5-10) to learn more about their services, the technologies they are skilled at, and the specifics of the development process.

Step 4. Check vendors’ websites, portfolios, and case studies

Continue evaluating shortlisted vendors by going to their websites and exploring their portfolios and case studies in detail. The company’s website is the so-called business card, reflecting the core values ​​and approach to work. So, pay attention to the information hierarchy and overall design, access site performance, and accessibility to ensure the potential Ukrainian provider is trustworthy.

Then, go to the case studies page to understand the experts’ domain and check which industries they have experience in.

So pay attention to the projects’ descriptions, applied tech stacks, challenges, and solutions provided by the vendor for different projects. This can help you find suitable qualifications and relevant niche experience faster.

Step 5. Share your project needs

The next step is to contact the right-fit companies and share as many details regarding your project as possible. You should also describe your values, workflow approach, etc., to ensure your potential vendor matches them. Moreover, if you’re willing to hire developers in Ukraine, you should also discuss it with your potential partner. In our practice, clients often require too many or fewer developers than they actually need for their projects.

Step 6. Ask for preliminary estimates

Before moving on to legal considerations, you should also request an upfront project cost and timeline estimate to ensure the vendor doesn’t hold any additional terms behind the scenes. This way, you will get a clear idea of ​​the preliminary cost range and agree on costs with all project stakeholders.

Step 7. Discuss legal aspects

Hiring developers in Ukraine implies signing several documents to protect customers’ data and ensure transparent communication. Thus, Ukrainian IT companies offer to sign the following documents:

  1. Software requirements specification (SRS) document includes functional and non-functional specifications of the software and outlines the detailed milestones of the software development process and how it will operate.
  2. Non-Disclosure Agreements (NDA) protect confidential information about the project between the customers and vendors. This document should include the definition of confidential information, obligations, terms, etc.
  3. Statement of Work (SOW) that covers cooperation details, schedule, payment methods, acceptance criteria for deliveries, work standards, etc.

As you can see, legal aspects are well-established, so local companies can efficiently resolve any legal concern you may have and ensure a smooth cooperation process.

Step 8. Hire software developers in Ukraine

After you complete all steps, you can start a new project with a dedicated software development team from Ukraine. An IT outsourcing vendor will arrange a briefing where you will meet your team and plan the initial project’s tasks.

Why hire Ukrainian developers at Northell? (5 proven points)

The next crucial point is understanding why Northell meets the selection criteria and can stand out among your potential IT vendors’ list. So, let’s take a closer look at the five proven points why you should hire Ukrainian developers at Northell.

1. Tops the list of the best Development & IT Companies in Ukraine by Clutch

Northell has a team of highly skilled, experienced, and tech-savvy software engineers, UI/UX designers, product managers, BAs, QA specialists, and other professionals on board. We provide professional and custom-tailored services that range from technology consulting to design, development, and digital modernization. We work with any-size businesses and have a proven track record of successful projects across such leading industries as FinTech, EdTech, E-commerce, Healthcare, Real Estate, and more.

Having successfully completed over 160 projects in a couple of years, our team has already been ranked as:

  1. Top 20 Development & IT Companies in Ukraine by Clutch
  2. Top 3 Web Developers in Munich by Clutch
  3. Top 1 Software Developers in UAE by Clutch
  4. Top 10 Design Agencies by the Manifest

2. Has a qualified tech talent pool of any seniority on board

We are proud that our professional software development team has high-level specialists of different seniority levels (junior, middle and senior). That helps us make the development lifecycle cost-efficient and result-oriented because each team member performs a specific scope of work depending on their competency. Moreover, we always keep mastering new skills, attend professional seminars and workshops to upgrade our expertise, and stay in tune with modern technology trends.

3. Hiring developers in Ukraine is easy with professional Northell recruiters

Our experienced recruiters assist in hiring developers in Ukraine without effort. Dedicating this responsible task to our recruitment team allows you to avoid high recruitment costs and lengthy employee onboarding. We can help you find the required specialist at any project stage without slowing down ongoing processes.

4. Offers extensive industry portfolio

We have an extensive industry portfolio across the leading industries, including FinTech, Healthcare, Real Estate, and EdTech. Thus, we apply tried-and-true development and design practices to build feature-rich, compliant, and user-friendly digital solutions and products. With extensive experience gained from previous projects, you can easily understand how the team works and what methods use to solve technical problems.

5. Provides mature and transparent development workflows

Our customers benefit from mature and transparent development workflows. Establishing workflow patterns and transparent communication helps us to be on the same page with all project stakeholders while avoiding project bottlenecks on time. During our cooperation, we set suitable communication channels, reporting mechanisms, and timing.

Looking for the best software specialists for your project? Contact us to build a software development team in Ukraine!

Hiring developers in Ukraine: how to choose a reliable IT vendor?

As we already discussed the reasons to hire developers in Ukraine, it’s time to define the criteria to look for when choosing an outsourcing partner. So, let’s analyze what must-have aspects you should consider before signing a contract with a potential IT vendor.

Hiring developers in Ukraine: how to choose a reliable IT vendor?

Hiring developers in Ukraine: how to choose a reliable IT vendor?

Hire Ukrainian developers with positive track records

To hire a reliable IT outsourcing company from Ukraine, you should first evaluate how the vendor works with customers. To do this, you can read the honest feedback on Clutch and GoodFirms. You can also ask the company for previous customers’ referrals and review the portfolio of similar completed and ongoing projects in your industry. That will help you visualize how the team copes with the development process, what technical problems they have already encountered, and what solutions they can offer.

Hire Ukrainian developers with transparent workflows and smooth communication

Another criterion worth considering is how the vendor builds the business communication and whether the team shares your values to ensure smooth communication. It’s important to share the same project visions and provide transparent workflows so all project stakeholders will be on the same page throughout the process.

So, ensure the vendor provides a suitable communication plan that includes convenient communication tools (e.g., Slack, Skype, Google Hangouts) and holds regular meetings to help you assess the team’s progress. Also, check what methods the company uses to manage remote collaboration.

Ensure the IT vendor follows security standards

Privacy and data security are one of the most critical issues to check before the project starts. Reliable software development providers should implement robust security practices to deal with customer data and maintain software compliance with industry-specific regulations (e.g., HIPAA, SCORM, GDPR, PCI, etc.).

We recommend checking how the company follows modern security standards, whether they conduct regular software audits, integrate safe communication standards, etc. Request this information before signing the contract and do a little individual research by going to their official website.

Check the tech expertise and assess employees’ backgrounds

Assess employees’ backgrounds to ensure the developers assigned to your project have top skill sets and strong tech expertise. You can ask your potential vendor for developers’ CVs or check employees’ accounts on LinkedIn. During the research, pay attention to candidates’ work experience, claimed expertise, and previous work achievements. This will help you to find the right talent that will work well with your business and contribute to your project’s success.

Hire Ukrainian developers with shared values, and cultural match

Reliable and efficient cooperation with IT vendors is only possible with cultural fit and shared values. If your outsourcing partner understands the value of your project and the mission you pursue, it becomes clear whether the vendor will go hand in hand to drive your company’s success. The cultural similarity will help you get along with your partner from the beginning and ensure easy communication.

Main risks when hiring developers in Ukraine in 2023-2024

Northell is a Ukrainian software development company headquartered in Ivano-Frankivsk, UAE, and the USA. We have successfully adapted to the new reality, reorganized our workflows, and retained customers and contacts during the war.

However, we understand the possible concerns businesses may have towards cooperation with Ukraine living under full-scale invasion.

So, we’d like to clear your doubts by providing experience-based tips on preventing risks if you decide to hire developers in Ukraine. You will also see how our company manages the work in the war conditions, despite the instability in the country and partial blackout.

Work under war conditions

Problem: Unfortunately, the current situation may change the attitude of potential customers and cause objective concerns. Companies look for the sustainability of cooperation in the IT industry despite the war goes on. However, there are possible risks of disrupted telecommunication, unstable Internet connection, and higher exposure to cybersecurity threats.

Solution: Despite the challenges and work reorganizations, we continue to provide high-quality software development services and support our economy. Today, Ukrainians have more motivation to work and ensure delivery stability. Most of our employees have moved to safer locations, while others have developed flexible work schedules to accommodate the changing power outages. Also, our IT specialists are actively involved in helping to prevent damage in Ukraine’s cyber war.

Mismanagement

Problem: It goes without saying the customers expect the software development team will work according to deadlines and get jobs done on time. However, in such complicated circumstances, there can be possible violations of deadlines and delays at work.

Solution: If you hire software developers in Ukraine today, most IT vendors set up proper communication methods for various cases. At Northell, we assign reliable PMs to control the process and support you throughout the project. In addition, we implement best practices to ensure smooth and continuous work with consistent results, taking into account potential bottlenecks.

Team composition alterations

Problem: During the discovery phase, your outsourcing partner defines and assigns the number of specialists that will work on your project, including developers, designers, QA engineers, and project managers. However, many businesses are concerned about the mobilization of software specialists, employees’ mental frustration, and the inability to hire a specialist with the required qualifications without compromising the overall progress.

Solution: At Northell, we provide comprehensive help to our employees to ensure a safe working environment and support mental well-being. Our team can work from anywhere they feel comfortable and productive. We regularly organize group times to build team spirit and organize timely help for any occasion.

How do local IT companies reduce employee turnover after hiring developers in Ukraine?

Discovering how to hire software developers in Ukraine is only one side of the coin. Local Ukrainian IT companies create a system of benefits to motivate employees to do their work better and reduce employee turnover. At Northell, we implement the best practices to support our employees and make them understand their job is deeply appreciated. Some of the techniques are the following:

  • Ensure career growth inside the company. To achieve this, we create an action plan that outlines the goals our employees need to complete to reach the next career level and receive a pay raise.
  • Provide interesting projects where developers can learn something new and diversify their work.
  • Develop infrastructure with all necessary hardware and software to cover all our employees’ needs to work productively.
  • Encourage a collaborative and healthy working environment to keep a positive atmosphere within a team.
  • Offer employment benefits and social packages to support employees’ health and avoid professional burnout.
  • Promote education and continuous learning.
  • Regularly set up team-building activities to build a strong team spirit, support, and get to know each other closely.
  • Encourage creativity and participation in a company’s growth despite the employee position.

The cost of hiring developers in Ukraine

The rates of Ukrainian developers depend on the area of expertise, technology, demand, location, and seniority level.

Thus, the cost of hiring developers in Ukraine varies depending on your project needs and technology requirements.

Below, let’s look at the average hourly rates for 2022 based on role and seniority level.

The cost of hiring developers in Ukraine

The cost of hiring developers in Ukraine

For more details, contact us, so we can calculate the cost of hiring developers in Ukraine based on your project specifics.

Hire developers in Ukraine: Key takeaways

Ukraine ranks among the best countries to outsource software development. The reasons are plentiful: reasonable hourly rates, high-quality services, technology diversity, highly developing IT sector, extensive talent pool, favorable business climate, and more. Even though Ukraine works under war conditions, software specialists continue to fulfill their obligations and minimize project disruptions.

At Northell, we can resolve all your concerns and help you build a dedicated software development team. We have over 50 seasoned software specialists on board with proven technical skills and experience across leading industries and projects of any size and complexity. With our total commitment and dedication to our customer’s projects, all potential challenges are mitigated easily.

Reach out to Northell to hire developers in Ukraine for your project and enjoy successful cooperation to produce high-quality digital solutions and products!

FAQ

Why is hiring developers in Ukraine a good choice?

Outsourcing software development in Ukraine is a major IT trend that helps global businesses meet the worldwide crisis and minimize risks wisely. There are many reasons why Western and European clients choose to collaborate with Ukrainian IT vendors. Some are a favorable business environment, affordable rates, a vast number of seasoned IT specialists, high IT education level, technology savviness, a constant influx of new talent, well-developed tech centers and giant IT hubs, similar mentality and attitude toward problem resolution, and more.

What are the leading IT hubs in Ukraine?

There are four major IT hubs in Ukraine that represent the largest concentration of Ukrainian IT professionals: Kyiv, Lviv, Odesa, and Kharkiv.

Kyiv is the capital of Ukraine, with the largest pool of IT talent, plenty of professional communities, world-known tech universities, and the world’s R&D center.

Lviv is the next central tech hub in Ukraine, where you can hire Ukrainian developers with a close location to Europe. It houses 460 IT companies and has over 25,000 software professionals to benefit your software projects.

Odesa is a so-called southern pearl of Ukraine that houses around 150 IT companies engaged in various industries, including AR, Big Data, automotive, etc. It is one of the fastest-growing Ukrainian startup hubs.

Kharkiv is home to over 450 IT companies with over 25,000 software specialists. Its IT cluster is constantly growing due to over 3,000 IT students replenishing the IT community annually.

What are the popular software development companies in Ukraine?

As mentioned, the Ukrainian IT sector houses thousands of thriving IT companies. Some of them are:

Northell is a top-rated digital design and development company located in Ivano-Frankivsk. We have 50+ talented specialists on board at the junior, middle, and senior levels. We provide full-cycle custom software development across such industries as Healthcare, EdTech, FinTech, and Real Estate.
Grammarly - is a company created in 2009 and has already gained over 30 million active daily users to improve English skills.
SoftServe - is a digital consulting and development company founded in Lviv with over 41 offices in 12 countries that advises customers on cutting-edge technologies and help develop digital solutions.
Intellias - is a Ukrainian software development company with offices in Berlin and Krakow.
Yalantis - is a software development company with over 500 software specialists and develops software for IOS, Android, web, and IoT devices.

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