What to Expect from IT Outsourcing in Ukraine in 2024?
Global enterprises seeking specialised software development mainly opt for Ukraine. Approximately 20% of Fortune 500 corporations operate online engineering groups in the country. The full-scale invasion has undeniably affected Ukrainian software companies.
When evaluating the Ukrainian IT companies' performance during warfare, many are struck by how robust the local ecosystem is. In 2022, IT services were the country’s only growing sector. Further, we will focus on emerging trends and what to expect from the industry in 2024.
Skilled workforce and educational landscape of Ukrainian software development
The ground base of every talent is solid and high-quality education. Ukraine places a high value on STEM education, resulting in a workforce that is not just technically adept, but also inventive and adaptive to emerging technology.
The government also supports information technology education. The Diia Osvita initiative, spearheaded by Ukraine’s Ministry of Digital Transformation, intends to train 6 million Ukrainians in digital skills.
Local developers have expertise in many languages, Java, JavaScript, and C# usually take the first place with Python, PHP, Kotlin, and many others to follow. There’s a specialist for every need.
Despite the popular belief that people work in IT because of high paychecks, 78% of Ukrainian professionals state that their passion for technology was the driving force behind their decision to pursue a profession in technology.
What are the Ukraine outsourcing rates?
Regarding cost savings, outsourcing companies in Ukraine stand out as remarkable vendors in terms of excellent service and prices. Take a look at the comparison table of hourly rates in the IT sector in Ukraine compared to the US and UK.
The below numbers are median salaries. Of course, it would depend on the company, benefits, and seniority level. However, even regarding the above rates, it is clear that software development in Ukraine offers impeccable service at quite affordable rates.
Apart from salaries, local professionals perfectly balance cultural and language barriers. IT experts register as private entrepreneurs to take advantage of the minimal tax system, which consists of a 5% income tax plus a minor social security contribution. Such advantageous tax laws make Ukrainian IT professionals incredibly cost-effective.
Future outlook and growth predictions for outsourcing software development in Ukraine
Ukraine’s programming businesses have emerged as a popular location for outsourcing IT needs, as indicated by the rising number of globally known companies seeking their assistance. Google and Huawei have already set up offshore R&D facilities in Ukraine.
In reality, despite the ongoing war, Ukraine’s software outsourcing is thriving, with the country’s IT exports anticipated to exceed US$3.70 billion by 2024. Analysts predict the full recovery of local IT by the beginning of 2024. However, the key aspect here is war. Upon its end, the business will retrieve much faster.
As to the emerging trends of software development companies in Ukraine, the focus on defence technology will be critical. Cybersecurity and FinTech will also grow in importance. If there are no limitations on AI, medical businesses will continue to innovate. Start-ups will introduce new solutions to assist in health management, oriented for certain diseases.
Summary
The last two years were truly hard for the country and business in particular. However, it was not destroyed, continued to work, and started to show a positive growth dynamic. Despite all the consequences, Ukraine’s IT outsourcing providers found ways not to interrupt business operations and not give up on clients and partners.
Local professionals are still highly competitive and offer far better costs, combined with highly effective skills. The beauty and the power of the country lie in its people, so as a result the world has witnessed incredible resilience, loss cover, and growth.
Should you wish to find the solution to your business needs and get the best outcome? Simply contact JEVERA’s dedicated team to get things done.