Ukraine as a Software Outsourcing Destination in Eastern Europe

High Score Labs News   •   May 12, 2019

Ukraine is emerging as one of the top destinations for software outsourcing. Owing to the talent and the cost efficiencies of working within Eastern Europe, the destination is becoming increasingly popular. Many startups are developing core competencies in Ukraine, while having much of the code being produced there. There are also efficiencies in the talent that is present in the region, with flexibility in scale and operations.  

Growth in the market 

How did Ukraine perform in 2018? According to some estimates, Ukraine contributed $4.5 billion from exports of tech services in the year. This figure is up by almost a Billion dollars since last year and is set to reach $8.5 Billion by 2025. A large component of this (around 70%) has been attributed to outsourcing of technical projects worldwide and tax incentives present. The market is growing rapidly, and there is ample talent to cover a wide spectrum of core needs.  

Global companies choosing Ukraine 

More than a 100 Fortune 500 companies have worked Ukraine teams to develop core software products in a variety of projects. From .NET to cloud computing, there is wide scope in the talent found here. Many companies are choosing Ukraine owing to the prior work done in the domain. Companies have been moving away from Silicon Valley due to the cost efficiencies and equally compelling talent found in Ukraine 

Technical skill and innovation 

Some of the top tech companies in Ukraine are working on innovative projects in domains such as AI, Machine Learning and NLP. From a skill perspective, there are multiple advantages to working with a Ukrainian company or individual. Not only are you getting quality talent, but you’re also working with a country that has an innovative mindset. This works out perfectly for companies that are disrupting markets globally.  

Outsourcing Research & Development 

The country has moved from being an outsource development hub, to a more mature R&D centre. New code is being developed every day that is contributing to new features being added to global firms. The global tech ecosystem is viewing Ukraine as being one of the top companies to have your R&D activities placed in. You’re also looking at the market holistically, with Ukraine being the central point of innovation. Companies are relying on Ukrainian developers to produce clearer lines of code and more robust ecosystems.