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Denis Grankin Head of Sales Department
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How to hire software developers in Ukraine [Comprehensive Guide 2021]

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hire software engineers in Ukraine in 2021

Ukraine has been a hot spot in terms of IT services for many years. In 2017, it was named the United Kingdom's "Offshoring Destination of the Year". Moreover, the same year, 13 Ukrainian IT companies made the Global Outsourcing 100 list by the International Association of Outsourcing Professionals (IAOP). Impressive, isn't it? And this is just the beginning.

We've put together a comprehensive guide on why Ukraine is so attractive in terms of IT services and why you should hire Ukrainian software developers in 2021. Let's cut to the chase.

Where to start when hiring a development team

Start with the basics.

Today, when information technology and data are considered the new black or, if you like, the new oil, Ukraine has an unprecedented chance to take the lead in the global technology arena.

It is already deservedly called the country that codes:

  • There are about 200,000 software developers out there. You can hire the best of those.
  • Ukraine is among the 50 most innovative countries in the Global Innovation Index.
  • It holds the honorable 4th place in the world by the number of engineers by Colliers International.
  • Ukraine is ranked #1 in "Outsourcing market in Eastern Europe" by Outsourcing Journal.

hiring a development team

Here is what the reasons why you should hire Ukrainian software developers look like. Do you want us to continue? Let's move on.

It should be honestly admitted that Ukraine's pool of technical talent is not the largest in the world. Nevertheless, its technological base and high level of education are enough to make it a worthy competitor to companies providing IT services at the global level. In many respects, such a high quality of IT services provided by Ukrainian developers is ensured by national history.

In the ambiguous political and economic situation during the whole history of the country, engineers had to urgently find solutions to constantly emerging problems and grow as professionals to remain competitive in the labor market. But is the future of the Ukrainian IT industry promising? Why should you hire Ukrainian software developers? As you keep reading this comprehensive guide, you will soon learn why Ukrainian engineers are worth hiring rather than those from other countries. Follow us.

Educational background of Ukrainian software developers

tech education for Ukrainian software developers

According to a 2017 report, 23,000 engineering graduates annually in Ukraine. At the same time, there are more than 1,500 companies providing IT services and more than 4,000 technology companies in the country. The volume of exports of IT services reaches about $4.5 billion.

What about the educational system? Some figures to consider when deciding to hire software developers from Ukraine:

  • 83% of IT professionals in Ukraine have a higher education;
  • 56% of Ukrainian developers have a computer science degree;
  • Technical education of students in Ukraine in 2017 was provided by 150 universities;
  • In 2018, Ukraine ranked 4th in the International Mathematical Olympiad and has remained among the top 30 countries in the world for the past 10 years;
  • According to recent studies, Ukraine is considered one of the countries with the highest literacy rate. In 2015 it reached 99.72% among the adult population;
  • Ukraine ranks 4th on the World Bank Enrollment Index and 38th (out of 50 countries) in the ranking of National Higher Education Systems (2018).

If we go deeper into this issue, we see that the educational system of Ukraine has deep roots and rich history. Isn't this yet another reason to hire Ukrainian software developers? The very first educational institutions on the territory of modern Ukraine date back to the X-XII centuries when the very first schools were opened in Kyivan Rus'. The first higher educational institution in Ukraine appeared between the XVI and XVII centuries. It was Ostroh school.

Today, the education system continues to develop, producing qualified specialists. Higher education, according to the Constitution, is available to every citizen of the country. It is part of the Bologna Process, which aims to ensure the comparability of standards and quality of higher education qualifications in Europe.

Due to the growing demand for technical talent, more and more companies are looking for young engineers to hire. As a result, the number of IT schools is growing with 43k+ graduates per year. Most schools offer traditional courses such as PHP, Java, Python and mobile app development. New graduates are already specializing in niche languages and new technology stacks such as Big Data.

As for the engineering tradition, it is also a long-standing and well-established one in Ukraine. Just look at these facts:

  • Ukrainian engineers are known for their developments in air, land and electric transport (Ukrainian engineer F.A. Pirotsky invented the world's first electric tramway);
  • Ukrainian inventors discovered the method of bloodless blood analysis (scientist Anatoly Malykhin);
  • They are world-famous in the industry of aviation and rocket-space engineering (rocket engineer Sergiy Koroliov).

Want more? There you go.

  • A model of the first electronic digital computer was made in 1942 by inventor J. Atanasoff, which was based on the work of Ukrainian mathematician M.P. Kravchuk.
  • Ukrainian scientists ranked third in the world (after scientists from the United States and the United Kingdom) on the invention of the electronic computer.

It can be said that the potential for further development of technology in the modern realities was set a long time ago. Nowadays this tradition continues to develop in various fields, including information technology. Below are a few more compelling reasons to hire Ukrainian developers.

Business climate

Ukraine is interesting not only in terms of hiring software developers. Thanks to the government's efforts to improve the business climate, Ukraine is now seen as an attractive investment destination. For example, in the first half of 2018, the country attracted $1 billion in foreign direct investment. Investments are also observed in the IT sector.

The most notable investments in the last few years are as follows:

  • $130 million was invested in Gitlab;
  • $110 million was invested in Grammarly;
  • $110 million was raised by BitFury;
  • $10 million went to the Petcube project;
  • and $7 million went to People.ai.

Ukrainian IT market in numbers

Ukraine's IT industry is growing by 30% annually, showing stable development and prospects for the industry. With the digital boom, information and communications technology (ICT) is the third largest service export. At the same time, the number of technology companies has grown to 4,000 and the number of professionals employed in the industry reached 172,000 in 2018.

  • Of the 170+k, 44% of IT professionals work for IT outsourcing companies;
  • Nearly a third of IT professionals in Ukraine that you can hire have more than six years of experience;
  • The annual number of IT graduates is 23,000;
  • The total number of companies providing IT services is more than 750;
  • As the market expands, employer demand remains unmet, leading to an increase in the number of Junior specialists;
  • The IT sector is one of the youngest, as the average age of an employee is 26;
  • In 2015, for the first time in history, Ukraine was officially recognized as the #1 IT Outsourcing and software development center;
  • Ukraine is the largest exporter of IT services in Europe. In 2025 the Ukrainian export of IT services will amount to $8.4 billion;
  • In the list of countries with the best developers, Ukraine ranks 11th according to HackerRank;
  • The country is ranked 24th in the world as the best country for software development.

Ukrainian IT market in numbers

Interestingly, with the rapid development of the industry, the collaboration model is also changing. Gradually, companies are shifting from selling man-hours (Outsourcing collaboration model) to creating their own products, aided by the corresponding microclimate of legal norms in the country. There are different cooperation models for you to hire Ukrainian developers.

Let's take a look at the related data:

  • Outsourcing - 49%;
  • Product - 31%;
  • Outstaffing - 10%;
  • Non IT company - 4%;
  • StartUp - 3%;
  • Freelancer - 3%.

More than 100 international companies and startups opened R&D offices in Ukraine (related to games, e-commerce, Internet of Things, artificial intelligence and big data). Huawei, Microsoft, Apple, IBM, Skype, Magento, and others are among them. The largest partners of Ukraine are the United States (45% of partners), the European Union, and Israel.

Reasons you should hire Ukrainian developers

The main reasons to hire Ukrainian software developers may seem too convincing, so be careful. That was a joke, but now let's get to the really serious stuff.

Educated, tech-savvy

In addition to general higher education, Ukrainian developers pay a lot of attention to self-education to keep up with the emerging technologies. In Ukraine, you can find specialists using the following programming languages:

Reasons you should hire Ukrainian software programmers

Given the political and economic conditions the country has been experiencing for many years, educated professionals are looking for the best opportunities to earn a decent wage and successfully apply their knowledge and skills. To remain competitive and get hired, Ukrainian software developers regularly improve their skills, attend thematic events, and travel abroad to exchange experiences with their colleagues. They also broaden their range of skills, not only in technical matters but also in the humanities, allowing them to grow as successful negotiators and entrepreneurs.

Proficient in English

About 80% of Ukrainian IT specialists have a high level of English, 45% of IT specialists are fluent in English. Such a high level of foreign language skills is due to the specifics of the IT industry. Entering the market and applying for a good position, a specialist has to know English to communicate with customers. Also, English is used as the main language for learning, traveling, mastering advanced knowledge coming to Ukraine from the West. In addition to English, some developers who seek to be hired speak French, Spanish, Portuguese and German. Speaking a foreign language, developers and project managers simplify the process of cooperation with customers, making it clear and transparent to all participants.

ukrainian developers have high level of english

Flexible, open-minded

Ukraine is located in the center of Europe, so it manages to combine Western and Eastern values. Ukrainians are tolerant, flexible, and open-minded people.

Communication skills, it must be said, are not as developed as those of their Western counterparts. Ukrainian developers are more introverted, modest and discreet, but they know their value and know how to negotiate competently.

Foreign customers, when deciding to hire Ukrainian software developers, may be concerned with the possibility of Ukrainian developers having a Soviet mentality. We are happy to inform you that there is no Soviet mentality, it is typical for the people of the older generation. The IT industry is mostly represented by people who were born later. They are more flexible, curious, less conservative, they have well-developed critical thinking, environmentally friendly ways of thinking and lifestyle.

Driven by all these traits, the current generation of Ukrainian IT professionals is focused on long-term prospective relationships with their clients.

Modern mindset and culture

Cultural compatibility is one of the key aspects determining whether teams from different countries will find some common ground. In terms of culture, Ukrainian developers are close to their Western colleagues, as Ukraine is located in Europe.

If we highlight the main features of the representatives of modern Ukrainian culture, they include the following:

  • The desire to build a career in technology as one of the promising industries.
  • The striving for stability and confidence in the future, which is caused by the unstable political and economic situation in the country. About 60% of Ukrainian developers who can be hired work more than 40 hours per week.
  • Teamwork over individualism. Ukrainians prefer to solve issues as a team, which allows each member to cover an issue they are good at, while together they can achieve the desired result.
  • Subordination, which is historically determined by the Ukrainian form of government and its political history. As a rule, employees try to keep their distance from management. If they find it necessary, they respectfully voice their opinions and offer their own ambitious ideas.

These aspects influence Ukrainians at work to be structured and well-mannered. The software developers you hire prefer formal communication, collaboration, and expect a long-term relationship with a trusted partner.

Geographical convenience

It is easy and convenient to travel from Ukraine to most cities in the world. All EU citizens can enter Ukraine without a visa with only a passport for up to 90 days out of 180 days, and Ukrainian citizens can enter the EU without a visa.

Additional services

As a rule, Ukrainian tech companies have a large pool of qualified specialists in different fields to be hired. This allows them to offer additional services, such as Quality Assurance, DevOps services, design development, business intelligence, project management.

Convenient time zone

When you are planning to hire software developers from different countries, time differences can be confusing. In the case of Ukrainian developers, such confusion is easily avoided. The working day in Ukraine coincides with the working day in Western and Central Europe - Ukraine is only 1 hour ahead. As for the U.S. and Canada, we must remember that in the U.S. it is morning, while in Ukraine it is evening. However, the time zone in Ukraine is quite suitable for establishing a comfortable mode of operation between the teams.

Salaries of Ukrainian developers

If you want to hire a well-educated and qualified software developer who meets all your requirements and at the same time allows you to save significantly on development costs, Ukraine is the right choice. All you need to do is to find the right software development provider in Ukraine.

At least, hiring Ukrainian developers will definitely cost you less compared to their counterparts from the U.S. Ukrainian tech talent has a more reasonable rating. Their average hourly rate is around $25-$50, while U.S. developers make an average of $150 per hour.

Let's look at the average monthly salary for IT professionals in Ukraine, depending on their experience over the past few years:

Salaries of Ukrainian software developers

Here is the average salary for IT specialists in Ukraine by city:

Salaries of Ukrainian software programmers by cities

The salary rate depending on experience and technology

The salary rate for ukrainian engineers

The average monthly salary for Ukrainian developers who can be hired can vary from a few hundred dollars for beginners to up to $5k-6k for experienced ones. Salary level is influenced not only by experience, but also by the technological stack developers work with.

In 2020, these numbers were as follows:

Technology/Seniority Level Junior Middle Senior
PHP Developer $500-1000 $1500-2500 $3000+
Python Developer $700-1200 $2000-2500 $3800
Angular Developer $500-1000 $1500-2800 $3000+
Ruby On Rails Developer $800-1500 $2000-3000 $3500+
Java Developer $800-1200 $2000-2800 $3000+
Android Developer $500-900 $1200-2000 $2500+
iOS Developer $500-900 $1200-2000 $2500+
C++ Developer $800-1200 $2000-2800 $3000+

PHP

A Junior PHP developer in Ukraine earns $600 per month. A Mid-level developer gets more, namely from $1500 to $2500 at best. And of course, the developers with experience of 7 years or more earn the most. Their salary is about $3500, while for the work of a System architect of the highest level be prepared to pay $5000 per month.

Python

Python programmers are considered as much in demand as PHP developers. Salary levels are similar: Junior - $700-1200, Mid-level - $2000-2500, Senior -$3800.

Angular

Angular technology is gaining momentum, which leads to an increase in salaries for these specialists. The average salary for a Junior Angular developer in Ukraine is $ 800, with experience the salary level grows and is $ 2700- $ 3000+ per month.

Ruby On Rails

Ruby On Rails (RoR) developers earn slightly more than PHP programmers, and yet the amounts of their salaries are still not shocking. If you are going to hire Junior RoR developers, then you should know their salary is about $800. Mid-level developers make up to $2,500, while more experienced developers make up to $3,500.

Java

For many years now Java has remained one of the most popular programming languages ​​among Ukrainian developers. This trend naturally led to the fact that the average salary level for Java specialists is relatively high: Junior - $ 1000 per month, Mid-level - $ 2650, Senior - $ 3500+.

Android

If you want to hire Android developers from Ukraine, be ready for the fact that their salary level is quite affordable. So, a Junior specialist earns $500-$600 per month, a Mid-level specialist earns up to $2000 per month, while the salary for Senior developers reaches $3500.

iOS

Interestingly, the salary levels for a novice iOS developer and a Senior-level developer vary dramatically. So, the average market budget for Ukrainian iOS developers can reach only $700 per month, while Senior iOS developers can earn up to $3500.

C++

The salary for C ++ developers is approximately the same as for Java developers, namely: a Junior receives about $ 1000 per month, a Mid-level developer earns up to $ 2500, and a Senior - $ 3500 and more.

Since Ukraine is considered one of the most promising destinations for Outstaffing, getting an idea of the range of rates and prices that local programmers charge for their work is quite reasonable.

Ukrainian cities where it’s best to hire software developers

The main software development hubs are:

  • Kyiv;
  • Kharkiv;
  • Lviv.

These cities have a population of about one million people, a developed urban infrastructure, convenient transportation and a large number of technical universities and schools. About 70% of all software developers you can hire are concentrated in these cities. There are also 14 IT clusters as vital market players. Lviv IT cluster is the largest in Ukraine with more than 80 members. It is followed by IT clusters in Kyiv, Kharkiv and Dnipro.

Kyiv

Kyiv is one of the largest IT hubs in Europe:

  • 41% of the country's professional developers work here;
  • Kyiv ranks 25th among the top 30 cities for freelancers.

Besides, most of the largest companies are Kyiv-based, which leads to strong competition for technical talent. Since Kyiv is the capital of the country, it has convenient flight connections to almost any country in the world. As a result, many international companies prefer to create their R&D centers in Kyiv or hire local software developers.

Kharkiv

Kharkiv is the second most populous city in Ukraine. The Kharkiv IT industry is growing on average by 20% per year. There are about 500 IT service and product companies with 26k+ technical specialists. Traditionally the strongest areas of the Kharkiv IT companies are the development of e-commerce and entertainment products, games, travel, banking and fintech services.

There is an interesting situation. Although Kharkiv ranks second in terms of the number of developers to be hired (after Kyiv), the salaries of local specialists are much lower than those of their colleagues from the capital. It should also be clear that Kharkiv is also attractive in terms of engineers' qualifications. This city is considered a student city thanks to a large number of universities, including technical ones.

As for infrastructure, Kharkiv has a well-developed railway station, an airport, and a convenient transport interchange, which makes visiting Kharkiv comfortable.

Lviv

At the beginning of 2020, there were more than 460 technology companies in Lviv. About 19k programmers are working here. The most loved technologies are JavaScript, Java, C++, C#, and Python. Some numbers:

  • 80% of IT-specialists are technicians;
  • 25% of Lviv developers work as freelancers or create their own projects and startups.

Lviv borders Poland and has an airport, so when hiring Ukrainian software developers you can get to Warsaw in an hour. Compared to Eastern Ukrainian cities, Lviv is more European by mentality, the local tech community is more dynamic and grows faster, offering more and more innovative solutions.

How to hire Ukrainian developers: key ways

To find the right software developers and hire them profitably, you can use one of the ways below:

  • Open an R&D center;
  • Choose Project Outsourcing;
  • Hire a Dedicated team.

Open an R&D center

The creation of an R&D center is best suited for large companies that plan to enter a foreign market with their own products. In its specifics, the creation of an R&D office is very similar to the creation of a full-fledged company. As in the case of a company, you need to rent or buy office space, hire an HR manager, a project manager, an office manager and other key employees. You need about 30-50 people to keep the R&D center running at full capacity.

pros and cons of R&D center

Advantages:

  • Your own business in another country, which means going international;
  • Expanding the market for your products and services;
  • Personal recruitment of top technical talent.

Disadvantages:

  • The problem of finding office space and a large number of employees at the same time;
  • The need to get into the legal system of a foreign country.

Choose a Project Outsourcing

Project outsourcing is the most common collaboration model when deciding to hire software developers in Ukraine. It is suitable for clients with strict technical requirements. The work begins with a statement of your requirements and tasks. Together with the outsourcing service provider, you agree on the terms and budget. From now on, your task is to control the process, while all organizational and working issues are handled by the provider. The provider engages its current specialists to work on your project, manages the project, and resolves any issues that arise in the course of the work.

pros and cons of project outsourcing

Advantages:

  • Fixed and predictable cost of services;
  • Security tasks are handled by the vendor;
  • Project and team management is the responsibility of the service provider;
  • Greater budget flexibility and control;
  • Reduced risk and operating costs;
  • Access to specialized expertise.

Disadvantages:

  • You are not involved in the selection of specialists;
  • Developers you hire may be involved in several projects at a time;
  • Additional costs for project changes.

Hire a Dedicated team (Outstaffing)

Such a collaboration model as Outstaffing is suitable for businesses that are not ready to build their own R&D centers in another country. A dedicated team of engineers works similarly to your local specialists - they become part of your team and work exclusively on your projects. You can contact or visit members of the hired team at any convenient time and apply the best team management practices you like. All organizational issues are handled by your vendor.

pros and cons of dedicated team

Advantages:

  • Security issues are handled by the technical partner;
  • Cooperation is long-term;
  • Specialists are committed to both your management style and the project;
  • You know everyone in person.

Disadvantages:

  • Fixed salaries;
  • Not suitable for one-task collaboration;
  • It's up to you to find and hire developers.

How to get Ukrainian software developers into your project

Cooperation must be mutually beneficial. All participants of the process should see the benefits of a shared journey. This is how you can hire truly worthy software developers.

Provide opportunities for professional growth within the team

Work in IT should provide opportunities for professional growth. If possible, provide room for technical staff to grow and scale within your project. This will help hired developers and managers get involved in the success of your project and the business as a whole with greater commitment.

Keep the project evolving during development and beyond

One of the keys to effective technical staff is the viability of the client project. Like any creator, the developer you hire wants to know that the project he or she created will continue to evolve in the future. Conversely, if the project is put on hold shortly after release, it demotivates programmers.

Be flexible in getting suggestions from hired developers

When working with a team, be prepared not only to set goals but also to be open to suggestions from team members. Being involved in the project and being able to contribute leads to developers being highly motivated and working with more effort.

Stay up-to-date on the latest trends and apply the state-of-the-art technology to your project

Knowing the latest trends and cutting-edge technology will help keep your project efficient and scalable for years to come. On the other hand, the technicians you hire prefer to deal with future-proof projects and modern technology. This keeps them competitive and interested in professional growth, which means they can do their best for your project.

Ensure timely and competitive wages

For Ukrainian software developers you may hire, work-related stability is crucial, which is due to our mentality. When a developer knows that he or she will receive agreed compensation for work done or at the end of the month, he or she feels relaxed. This makes employees more calm and responsible, which leads to much better performance on the tasks at hand.

Provide a bonus reward system

Fair pay is still one of the factors that contribute to the high quality of work done by hired developers. Also, it makes sense to think about a bonus reward system for goals surpassed, ideas and effective solutions provided, and more, all of which contribute to improving both your project and the business as a whole.

7 steps to take when hiring Ukrainian developers

The stages from finding developers to getting them into your team can vary widely. Especially now, with the pandemic, when businesses are moving online more actively than ever, and the battle for smart heads is getting fiercer.

We've put together a list of key steps to help you find the right developers more easily.

steps for hiring ukrainian software coders

Research the local IT market

Decide in which region and city you will look for a service provider, open an R&D center, or hire freelance software developers. To do this, read local media resources, blogs, find influential representatives of the IT industry in Ukraine. Once you have decided on a particular provider, look at its portfolio, client reviews, blog, social networks.

Check whether your partner meets the requirements of PCI DSS, ISO 27001, HIPAA. Foreign customers can always ask to sign a non-disclosure agreement for security reasons.

Stay in touch with your provider

Contact your service provider to get an immediate sense of their level of communication skills and interest in your project. No matter how experienced and well-known the company is, you still have to deal with real people. Good communication means a lot to the overall success of your partnership.

Deal with the job description and team structure

Describe the requirements for developers you hire in as much detail as possible, so as not to waste both your time and the developers' time. Also, decide how many developers you need. You can start with one and gradually expand the team.

Deal with the legal issues

One of the most important aspects of working with a future service provider is legal issues. This includes ownership of intellectual property, insurance, allocation of responsibility, timelines, budgets, and more. The working terms depend on the collaboration models, each of which has its own specific business needs. Typically, those are dedicated team, outsourcing and fixed price.

Foreign companies that hire Ukrainian software developers do not have to pay VAT. In the case of misunderstandings or difficulties, they will be helped by the intellectual property court in Ukraine. If a foreign company does not agree with Ukrainian legislation regarding business conduct, it may set up a branch of its company in Ukraine.

However, to be aware of the current legal regulations, it is necessary to keep an eye on the latest information on the subject.

Set up the recruitment process

In the early stages, your task is to choose a reliable service provider whose recruitment team will handle the selection of candidates for the development team. Recruiters will make every effort to get you the best candidates for an interview who match your project not only by the CV description but also by their personal qualities. You can initiate the interviews yourself and control the way professionals are chosen. At the same time, you have the opportunity to apply the methods and approaches that are right for you when hiring employees, which makes interacting with remote specialists similar to interacting with local ones.

Provide feedback

If you need to rethink the developer or give negative feedback, do it immediately so the professionals understand the stage they are at. Conduct a follow-up interview if necessary. When it comes to hiring remote software developers, it's important to respond quickly. Experts being hired as remote developers may be considering multiple job offers at the same time. While you're thinking, your competitors may be ahead of you.

Introduce the newcomers to your team and get to work

Once professionals are selected and hired, it's time to introduce them to your core team. If possible, invite them to your office, make your own visit, or set up a video conference to get to know each other.

To meet your team in person and establish closer ties, clients can make a business trip to Ukraine for up to 90 days without a visa. In turn, Ukrainian teams can easily travel to Europe and get visas to the U.S. and the U.K. In 2020, this process was complicated by the well-known situation, but in the coming years, solutions that simplify the situation with travel will undoubtedly appear.

Risks customers face when hiring developers and how to deal with them

When hiring developers, you can go two ways:

1. Hire in-house engineers, spending money on salaries, office expenses, and taxes, which make up a significant portion of business expenses.

2. Choose the Outstaffing collaboration model, paying only for services provided.

Each of these options has its consequences for the company's budget. These risks are particularly high in today's world. Let's take a look at how things are in the post-pandemic business world in terms of costs. All the more so now, as never before, the question of finding additional ways to save money is more acute.

  • 70% of companies say the pandemic has had a bad impact on business.
  • 66% of survey participants said they were going to cut hiring budgets due to money shortages and constant lockdowns.
  • 70% of your company's expenses are payroll costs.
  • 28% of small businesses report spending more than $10,000 per year on taxes, legal fees and related expenses.
  • In its first year, the average UK startup spends £22,756 on organizational and administrative costs (this does not include product development and marketing costs or salaries).

When choosing between hiring local tech talent or working with a foreign company, you need to consider the costs involved.

Compare:

In-house software development team Outstaffing
  • Developer salaries
  • Office rent
  • Other items
  • Software licenses
  • Employee benefits
  • Equipment costs
  • Taxes
  • Hourly rates * number of hours spent

There are different annual costs (including taxes) for hiring a developer for each country. The following are market averages:

  • US - $140k;
  • UK - $74k;
  • Netherlands - $90k;
  • Germany - $80+k;
  • Ukraine - $45k.

Isn't this a reason to think about a remote team of professionals? Moreover, isn't this a reason to hire Ukrainian developers?

It is important from the very beginning to decide on the most appropriate collaboration model. One of the key factors to consider is the cost. When choosing outstaffing, your only costs will be the hourly rate of each developer you hire. By researching various sources that provide data on the cost of development services, we get such results.

How much does it cost to hire in-house programmers (when hiring a team of three experts: front-end developer + back-end developer + QA engineer) in the UK:

  1 month 6 months 12 months
Developer salaries £9,550 £57,300 £114,600
Office rent £5,198 £31,188 £62,370
Accountant and recruiter positions £6,438 £38,628 £77,257
Software licenses £220.15 £1,320.90 £2,641.80
Total £21,406.15 £128,436.90 £256,868.80

Let's see what the approximate costs are when choosing Outstaffing (if you are going to hire, for example, Ukrainian software developers):

  1 month 6 months 12 months
Developer hiring costs £10k £60k £119k

According to another source, this is how much you need to spend to hire UK-based in-house developers:

  Junior Software Developer Mid-Career Software Developer Senior Software Engineer
Annual net salary $39,381 $59,072 $72,199
Taxable sum $23,133 $42,824 $55,951
Income tax 20% $4,626 $8,564 $11,190
National Insurance 12% $2,775 $5,138 $6,714
Auto enrolment pension 3% $693 $1,284 $1,678
Total after-tax cost $47,475 $74,058 $91,781

How much it costs to hire in-house developers in the United States:

  Junior Software Developer Mid-Career Software Developer Senior Software Engineer
Annual net salary $63,735 $106,816 $139,148
Supplementary pay 3.2% $2,039 $3,418 $4,452
Insurance 8% $5,098 $8,545 $11,131
Paid leave 7.1% $4,525 $7,583 $9,879
Retirement and savings 3.8% $2,421 $4,059 $5,287
Legally required benefits 7.6% $4,843 $8,118 $10,575
Total after-tax cost $82,661 $138,539 $180,472

And here's what a developer's annual gross salary including all company taxes looks like:

UK Germany Netherlands US Ukraine
$74k $82k $88k $139k $45k

It should be said that the only cost to you if you choose outstaffing will be the hourly rate of each developer you hire. If we talk about Ukraine, the specified amount includes taxes and the company's fixed fee for providing the team. Speaking of Ukrainian vendors' rates, the fee may vary from $700 to $3000, depending on the services provided. It turns out that all you need to do is to find a reliable provider of IT services, without getting into the employment tax system of our country.

DDI Development is here to help you hire the best Ukrainian software developers

The DDI Development company is your technological partner who takes care of all the organizational and paperwork.

More precisely:

  • Our recruiters will find the most relevant specialists for you taking into account your requirements and the specifics of the project.
  • We will take care of paperwork, insurance.
  • We also take care of office operations, team spirit, and project team management.

Not only will we provide you with a team of qualified technicians to hire, but we will also offer you cost-effective terms of cooperation so that you don't have to waste time, energy and money on tax issues and other hassles. Leave all these worries to us.

Final thoughts before you decide

With all of the above in mind, it might be easier for you to decide on a collaboration model with developers. Nevertheless, it takes a lot of effort to find and profitably hire the right technicians for you. If you want to take a shortcut and find the most suitable development team from the get-go, let us know. DDI Development works on business models such as the Time and Material Model, Dedicated Team, and the Fixed Price Model. But we also consider the specifics of client projects so that the partnership is mutually beneficial and fruitful. We would be happy to discuss your request. Feel free to contact us.

 

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