Why the US outsource software development to Ukraine: 5 main reasons

What do you know about the USA? Well, we can safely say that this country is always trying to gain the lead in all innovations. They create high-quality hardware, software, robotics, and other various technologies. As for software, US can boast about a strong IT field where such companies like Google and Apple occupy this niche and provide users from all over the world with first-rate mobile operating systems and a range of other tools. Nevertheless, US also considers the question of software development outsourcing to other countries. Ukraine is one of the countries that meet all requirements of US customers. Let’s see main reason why the US chose Ukraine.

Giant world companies do business in Ukraine

Ukraine became the business place for many large companies that outsource software development to Ukraine. For example, Intel, eBay, Nokia, Apple and other giants order the development of new software from Ukrainian programmers. In addition, Ukrainian programming specialists are considered to be high-quality masters of their craft. US companies open their branches in Ukraine and hire local developers. Great potential and serious set of skills are one of the reasons why Ukraine is a good country to work with.

Ukrainian software engineers are engaged in the development of IT solutions both for the domestic market and for foreign market as well. It is worth mentioning that US outsource to Ukraine almost 80% of IT projects. Figures tell for themselves. It makes it possible for Ukrainian specialists to use and learn all new technologies and tools. Thus, it increases the quality level of the development.

Outstanding projects from Ukraine

This country in Eastern Europe can provide you with not only excellent executors but also create something unique and really crowd-pleasing. The list of the following startups will prove it.

Looksery startup from Ukrainian developer allows users to edit videos and images in a real-time mode. This project gained a great popularity among users and Snapchat acquired it in a while. But a dozen of Ukrainian developers along with developers from other countries keep on do their best to improve this service.

Augmented Pixels. Using it, you can create fascinating VR and AR effects. In addition, this platform even lets you create VR games. As a result, this project became the part of Silicon Valley since it gained great popularity.

Well, this list is far from being full. All Ukrainian win-win startups can become the part of a separate article. As you can see, Ukraine is the country that has got talented software engineers and cooperation with US companies is the proof to it.

Ukrainian laws are loyal towards foreign customers

The Ukrainian government has simplified the process of business cooperation between foreign and native IT companies. It made it possible for both parties feel protected and do business easily and fruitfully.

  • The first one, all foreign companies that order software development from Ukraine don’t need to pay VAT in Ukraine;
  • Intellectual Property Court in Ukraine allows both parties to settle all issues which may arise upon IT software development completion;
  • All foreign companies can create their branches in Ukraine provided that their business strategy complies with Ukrainian laws.

High tech skills

Ukrainian universities have very strong education basis and every year thousands of high-skilled graduates in the technical field are ready to create new IT solutions for foreign markets. Good legislation and simplified taxation facilitate this process.

Besides that, Ukraine is the country where all language barriers are being nipped in the bud. We can safely say that majority of IT companies pay a lot of attention to the English language learning to make it possible for programmers to converse with foreign customers without any problems.

So about 45% of Ukrainian software developers can speak English fluently, and almost 40% have an intermediate level of English.

For today, the number of software developers in Ukraine comes to 100,000. And this number is increasing by 20% every year.

Optimal development cost

As we said above, IT specialists have good taxation from government and they need to pay only 5% tax on their income.

It is worth mentioning that experts say that outsource app development cost in Ukraine is rather low among other European countries, but the quality is very high. That is the last but not the least reason why Ukrainian IT specialists are in high demand in the US. The development cost in the USA is much higher than that one of Ukraine, so why pay more? All the more so the Ukrainian quality doesn’t give in to US software development quality.

Thus, Ukrainian programmer has $30 - $50 hourly rate, whereas US developers get $120 - $170 hourly rate.

So, it is up to you. Nobody will make you change your mind, but if you are looking for first-rate software developers and acceptable price - pay your attention to Ukraine where talented specialists are always at your disposal. Your product will get an attractive product that will help your business flourish and get profit.

About Author

Nataliia Kharchenko

Nataliia Kharchenko is a Technical Writer at Cleveroad. It is web and mobile app development company in Ukraine. We are focused on helping startups, small, and medium businesses create competitive and winning software. I enjoy bringing a digital world closer to people and writing about technology, mobile apps, innovations, and progressive management models.

5 Responses to “Why the US outsource software development to Ukraine: 5 main reasons”

    • Moderator

      Thank you for your comment. What is meant here is that 80% of IT projects outsourced to Ukraine come from the USA.

  • scotty

    You’re absolutely right. She probably wants it like that. Unfortunately, Ukrainian culture facilitates embellishing the truth, on any subject matter, with little or no thought of reluctance for being dishonest. They think nothing of it and have no conscience about it. On the upside, when you do find honest Ukrainian people, they are extremely reliable and very well skilled in their chosen professions; especially information technology.

  • Hris

    Thank you for the thorough article! Business executives aim to cut their costs, so finding low-cost workforce and investing in countries which offer software development services at more affordable rates seems like a great opportunity. Currently, among the most attractive outsourcing regions stand out Europe and Asia. India, China, and the Philippines have had a huge impact on the global IT and Business Process Outsourcing market. But, it seems that the differences between these two regions are noticeable. While Asia tends to offer services at more affordable labor rates, European companies are well-known for providing skillful developers, high quality and agility of work, reliability, data protection, and last, but not least – cultural and geographical closeness. As you’ve mentioned, the difference in the hourly rates of US and Ukrainian programmers is significant. If you would like to learn more about the differences between the two major outsourcing regions, you may read the following article: https://www.bgosoftware.com/blog/software-outsourcing-europe-asia/

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