Why companies should outsource to Ukraine

Why should companies outsource to Ukraine?

Companies outsource to Ukraine to tap a large pool of skilled software developers and IT talent at lower rates, backed by strong English skills, high education levels, and a time zone that overlaps with Europe.

• Ukraine is a top destination for software and IT outsourcing.
• Rates are lower than in the US or Western Europe.
• Its location suits nearshoring for European firms.

Ukraine is the second-largest country in Europe, next to Russia. It is also a major IT outsourcing destination, second to India, according to Shen. The country suits many kinds of business, not just outsourcing. With Ukraine’s closeness to cities like London, Dublin, and Lisbon, it offers a strong option for its neighbors.

Ukraine is best known for IT and software development. Still, outsourcing companies there also offer back-office support and lead generation. As a result, it has grown into a key player for software development services. When you choose to outsource to Ukraine, you gain access to skilled and inventive developers.

This blog covers the main benefits of software development in Ukraine. It also looks at the strengths of both Ukrainian outsourcing companies and individual developers. So you can see how they drive efficient project results.

Legalities of outsourcing in Ukraine

Ukrainian law does not clearly define “outsourcing.” So it is governed by reference to certain legal standards. In the same way, the law shapes economic activity through these standards. It also holds that everyone has the right to run a law-abiding business.

That said, outsourcing is a legal way to hand off tasks and roles to experts outside your firm. In short, you gain outside help from partners. The practice is now embedded in every corner of world trade and work.

Nearshoring to Ukraine

Some companies prefer nearshoring over onshore outsourcing or offshoring. Nearshoring brings the benefits of offshoring but with fewer risks. This matters most when a partner cares about time zone gaps.

Nearshoring means handing tasks and roles to partners in nearby countries. So it branched from offshoring, and the main difference is location. As part of the wider European market, Ukraine helps steady the region’s economy. It does so by supporting both local and foreign companies. Beyond outsourcing, Ukraine is also known for its strong software development sector.

Services you can outsource in Ukraine

As noted above, Ukraine is one of the most productive outsourcing countries in Europe. Beyond lower labor costs and high quality, most of its workforce holds degrees and certificates. Most firms want staff with such credentials. After all, these prove that a person can work toward a goal over time.

IT outsourcing

Tech firms keep popping up across the country. So it is not hard to find a good IT outsourcing partner. These agencies often provide technical support, helpdesk, and remote troubleshooting. As most people know, India holds first place in IT outsourcing. With high output and low costs, many firms send their IT work to Indian BPOs. For a wider view, see these key areas of IT outsourcing services.

Call center outsourcing

Contrary to common belief, a call center is not the same as a BPO company. As the name suggests, call centers are a contact hub for voice campaigns. Many locals in Ukraine speak English. So firms that outsource call center work often pick places where agents have a mild, neutral accent.

Lead generation

Every sales and marketing team needs strong lead generation support. Without leads, sales staff have no clients to talk to and no deals to close. And without deals, revenue is hard to grow. So when you outsource lead generation, make sure you get the best service. Lead gen is more than pulling names off a list. Instead, specialists work hard to confirm that each prospect is valid. Whether by phone or email, they deliver contacts that can turn into sales.

Telemarketing

Telemarketing rose in the early 2000s, and Ukrainian firms have since scaled it up. They have moved from cold calls to active, warm leads. As a result, they see a higher conversion rate than with cold calling.

Back-office outsourcing

From data entry to report analysis, back-office work is a well-rounded support role. Every front-desk task and client-facing step flows through it. So firms often outsource these roles to partners to cut costs. Learn more about back office outsourcing and why teams rely on it.

Web and app development

As noted earlier, web and app development is one of Ukraine’s most productive fields. Web development is the work of planning and building static and dynamic pages. Together, these create a rich website experience. App development is the work of designing and launching a native mobile app. So it serves phone and tablet users.

Why companies outsource in Ukraine

Firms outsource software development in Ukraine for one main reason. The country has a deep pool of skilled, technical developers. These developers know a wide range of technologies and programming languages. So they are valuable for global projects.

Ukrainian outsourcing companies also offer a strong mix of skill, value, and a friendly business setting. Before we get into more reasons, let’s look at some numbers. Information technology is one of Ukraine’s largest export sectors. In addition, outsourcing programs employ a large share of local degree-holding professionals. The IT market has grown quickly over the years, and it continues to draw global interest.

Compared with pros in the US or the rest of Europe, Ukrainians charge lower rates. Rather than $100 per hour, Ukrainian specialists would work for the rate of $30 to $60 per hour. That is already a good saving on staff costs.

Cost-effectivity

As noted above, cost-effectiveness is a well-known reason firms outsource. Why hire in-house and risk higher costs? Instead, you can hire from outsourcing agencies and save. The practice supports growth and flexibility inside your company. And it does so without the extra overhead.

Time zone differences

Unlike some places in Asia and Australia, Ukraine works closer to US business hours. So if your hours match US standard time, consider your European colleagues. With the right setup, you can extend your office coverage by up to two hours. As a result, your business stays easy to reach.

Workforce diversity

A diverse workforce makes your company stronger. When you have one, no issue feels too big to solve. Experts from different countries and backgrounds bring fresh ideas. So they add a new set of eyes to every project.

Nearshoring possibility

Europe sits fairly close to companies in North and South America. Fatmir Hyseni of Business2Community wrote, “For example, a UK company looking to hire a nearshore outsourcing vendor might look to Europe, where there is minimal time zone difference and a high chance that the outsourced workers will have at least some grasp of English. In most cases, there will be a lot of overlap between customer and vendor in terms of laws, standard business practises, language, and so on.”

How many US companies outsource to Ukraine

Clear, valid sources on which US companies outsource to Ukraine, the Philippines, or India are hard to find. Still, here is a list of well-known brands that outsource or offshore parts of their work to other countries:

• Intel
• Apple
• Microsoft
• Deutsche Bank
• Nokia
• Plarium
• Playtika
• Reuters
• Wix
• Bosch
• eBay
• IBM
• Dell

As you can see, most are SaaS companies and tech firms. This is no surprise to people in the outsourcing industry. Ukraine holds the second spot, just after India, among IT outsourcing leaders. With their literacy rate of 99.7% and their English proficiency of ranking #49 in the world and #29 in Europe, many foreign investors choose to work with them.

Offshoring to Europe

According to Deloitte’s 2016 Global Outsourcing Survey, 65% of companies outsource to Europe. Central and Eastern Europe (CEE) offers a labor pool that is both affordable and highly skilled. Every country in CEE thrives on in-demand skills in software and IT. This runs from Ukraine to the Baltic states.

Offshoring to Europe has been normal since firms first made global links. Another reason companies pick Europe is culture. Often, the cultural gap is small. Most Europeans can speak English, whether Americanized or not. So many businesses can offer multilingual support, such as chat, voice, and IT helpdesk. As a result, a diverse support team earns the trust of non-native audiences.

Europe is one of the leading clusters of nations in the Western Hemisphere. Like their American peers, both local and global firms keep hunting for the next best outsourcing hub. So research will always be part of the job. For a European comparison, you can also explore the benefits of outsourcing to Bulgaria. Good thing we have done much of the legwork for you.

We track the top BPO companies in both Europe and Ukraine. The data is based purely on their impact in each sector. Want to narrow your search to a specific European city? Here is a guide for London-based BPO companies instead. You can also compare call center outsourcing prices before you decide.

Frequently asked questions about outsourcing to Ukraine

What services can you outsource to Ukraine?

You can outsource IT and software development, call center work, and lead generation. Back-office support, telemarketing, and web and app development are common too. IT and software remain the strongest fields.

Why is Ukraine popular for software development?

Ukraine has a deep pool of skilled developers who know many languages and technologies. Rates are also lower than in the US or Western Europe. So firms get strong value for global projects.

How much do Ukrainian developers charge?

Rates vary by skill and role. Still, many Ukrainian specialists work for about $30 to $60 per hour. That is well below the $100 per hour common in the US.

Is nearshoring to Ukraine a good option for European firms?

Yes. Ukraine sits close to major European cities and shares similar business hours. So the time zone overlap makes daily work much easier.

Do Ukrainian workers speak English?

Many do. English proficiency is fairly high, and literacy levels are strong. As a result, communication with global clients tends to be smooth.

Key takeaways

• Ukraine is a leading destination for IT and software development outsourcing.
• Rates are lower than in the US and Western Europe, so firms save on staff costs.
• Its location and business hours make nearshoring easy for European companies.
• Strong English skills and high education levels support smooth project work.
• Common services include IT, call centers, lead generation, and back-office support.