If you are outsourcing a portion of your firm’s development responsibilities to a third party then you will want to make sure that doing so is a cost-effective process. It makes no sense to choose providers from countries which will be just as expensive to develop if you kept things in-house, which is why Ukraine is quickly becoming a top development destination. Here are a few key reasons behind its affordability.
Salaries. The typical salary for an IT specialist in Ukraine is an average of five times lower than an equivalent developer based in the US. The cost of living is also lower, which means the salaries go a lot further. This makes it cheap to run an offshore development team in Ukraine and still get the same level of service as you would receive from a firm based in Western Europe or North America.
Taxes. Aside from lower salaries leading to more cost-effective outsourcing opportunities, IT service providers in Ukraine benefit from tax breaks offered to them to help foster this growing and valuable industry. Even compared to other countries in the Commonwealth of Independent States, Ukraine is more amenable to IT firms and these savings are passed on to customers.
Maintenance. IT companies operating in Ukraine are modern and forward-thinking, appreciating the need to keep employees satisfied with their working environment, and endeavouring to create an atmosphere which rewards hard work as well and efficiency.
Renting office space here is inexpensive, and fees for everything from accounting to utilities are low when compared with the US. Meanwhile employees benefit from access to excellent on-site facilities including free refreshments, discounted social activities, and access to complimentary language training to improve their English skills. And all of these advantages will of course be felt by clients that decide to use dedicated development teams in Ukraine.
If you are going to run an outsourced development team, enabling clients to augment their internal staff with skilled external specialists, then careful planning and management are required. Here are the most effective approaches to take in this instance.
Adequate Information. A remote team is much more effective if it is well informed and kept up to date with the requirements of the client. This means that communication of relevant information should occur regularly and with as much clarity as possible.
Positive Feedback. When a team achieves a good result, it pays to hand out praise for their good work, because this will not only reinforce their confidence but also strengthen the bonds between members. This should allow them to work together well on future projects.
Career & Training Opportunities. Providing team members with the opportunity to further their careers, through both training and a clear path of progression, is another good way to enhance their effectiveness. When a job does not seem like it is going anywhere, ambivalence can set in, so avoiding this with the promise of advancement is vital.
Resource Provision & Streamlined Working. A remote team will only be as effective as the resources that are at its disposal, so giving them the right tools to get the job done, as well as enabling them to communicate with one another, should be a priority. Disruption is undesirable, so relying on a resilient IT set-up will help to overcome obstacles.
In the past half decade the IT industry in Ukraine has truly blossomed, with significant growth enabling it to become one of the world’s top 10 providers of outsourcing. There are a number of key advantages which it offers over other nations, enabling its rise to prominence and making it a good place for companies to flourish.
In 2011 it was recognized by the European Outsourcing Excellence Awards as being the ITO (information technology outsourcing) destination of the year. Since then it has continued to foster the talent necessary for a vibrant and successful business community, with over 40,000 people working in outsourcing alone, and 16,000 IT graduates entering the job market annually. Current figures suggest that by 2020 there will be 120,000 IT specialists in Ukraine, increasing its viability as a hub for offshore development.
Because it is based in Europe, there is no need to worry about the impact that time zones might have with your ability to collaborate with remote development teams in Ukraine. It is also easy to book a flight between Ukraine and other major international destinations, which helps when building relationships with overseas clients. Meanwhile value for money is assured because while the talent pool available is significant, salaries are often less than half those commanded by equivalently experienced employees in Western Europe and North America.
There are other advantages to outsourcing IT responsibilities to Ukrainian companies, including the fact that most specialists in this field are at the younger end of the spectrum, aged under 35. This gives them much more flexibility when it comes to working hours, enabling them to commit to projects that might not be viable in other regions. Developers in Ukraine are known for their creativity and enthusiasm, as well as their deep knowledge of popular platforms, ranging from smartphone solutions like iOS and Android, to web-based systems like Java.
Ukraine is a forward-thinking, outward-looking country in which the IT outsourcing industry is becoming a major part of the economy. This is all because it offers a great environment for offshore development firms to operate.