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BUSINESS, 7 MIN READ

THE HOW AND WHY
OF CHOOSING UKRAINIAN
WEB DEVELOPERS IF YOU
ARE ON A $10,000 BUDGET

July 23, 2018 (updated January 10, 2019)
SERGEY STUKAN
Today I would like to take you on a journey through the Ukrainian IT landscape. As reported by the IT Ukraine Association, the developed IT market became the 3rd biggest share in country's GDP in 2018.

With its pool of more than 1000 app development companies, about 166 000 certified specialists and product-centric approach, Ukraine is one of the main nearshore IT centers in EMEA. It is among the top software nearshore destinations according to the International Association of Offshore Professionals (IAOP).

We will discuss one of the biggest questions every startup faces: whether freelance developers are better than a web or mobile app development company. And I will prove that Ukrainian developers are at the top of the worldwide IT offshore rankings.

WHY CHOOSE UKRAINIAN IT OFFSHORE COMPANIES?

Ukraine is the No1 choice among offshore software development countries for startups on a $10,000 budget. IT companies in Ukraine rival competitive providers from India, Russia, Belarus, South America, and Africa in a number of critical ways.

Favorable cost and high standards

If you want to hire a programmer, the average Ukrainian rate will be of $22-40 per hour. It is 3 to 4 times lower compared to any software development company in the UK, the USA, etc.

High-quality development efforts are commended by industry experts and clients alike. While Asian countries celebrate lots of religious or ethnic group holidays, Ukrainians have only 11 celebrations with paid time off. It's even less than in other European countries, where employees have from 13 to 19 public holidays.
IT OUTSOURSING SERVICES: AVARAGE HOURLY RATES BY REGION


Skill diversity and modern technologies

Сompanies offer the full range of software development offshore services, provide turnkey solutions, IT consulting, ongoing maintenance, and support. App developers in Ukraine have worked on projects for Intel, Siemens, IBM, HP, Google, Philips, etc. They have competence in Java, C#, JavaScript, PHP, Python and other widespread technologies.

Most Ukrainian developers create Unity 3D games or are C++ engineers. MS.net, Objective-C, React, Scala, and Magento are also popular among programmers. Other technologies are Node.js, ASP.NET, Ruby, Symfony, Typescript, Clojure, GraphQL, Meteor and Xamarin. Ukrainian technical universities provide an extensive theoretical background in Computer Science for future IT specialists. So, you can easily find a team for app development, as well as custom software development.
TOP PROGRAMMING LANGUAGES IN UKRAINE BY MARKET SHARE


Comfortable environment for cooperation

Software development in the country ensures easy access and allows for visa-free travels to EU. You can look at Ukraine time zone and see that it is convenient for European and most American clients. The Internet is quite fast and cheap in Ukraine, so you will be able to have detailed calls and meetings online. Middle and senior level developers are fluent enough in English for comfortable communication.

In addition, Ukrainians have some cultural similarities with western countries. They prefer more collaborative and flexible methods of cooperation, like agile software development. It helps to establish more reliable and successful relationships between the customer and the project team.

Ukrainian legislation is loyal to companies from other countries and provides full protection of intellectual property. Contract security is often ensured by as earned payments.
ENGLISH PROFICIENCY OF UKRAINIAN DEVELOPERS


Variety of companies and a vibrant tech community

There is a variety of capital and regional offshore providers with different expertise and rates of web application development. The country's government intends to create a favorable business climate and make Ukraine attractive for foreign investors. It makes a positive influence on the local IT community, which is constantly growing at the spheres of web and mobile app development.

Home of numerous thematic events, branches of big international companies and many successful startups, Ukraine can offer any type of modern IT services. Due to western-oriented values, accountability and resilience, Ukrainian IT studios help foreign clients to build their business easily and fruitfully.

Ukrainian developers prove themselves reliable partners as compared to specialists from other countries. For example, one of FreshCode's clients had to terminate the contract with an Indian software company that failed to provide high-quality results and missed the agreed upon deadlines. As a result, our team was chosen to work on the project that resulted in success for our client and a positive review for our portfolio.

So if you have a groundbreaking idea and a small budget, FreshCode is ready to provide a free consult about web development services. We will share our insight on providing an estimate, turning an idea into a product, and answering all questions. Call us or use the contact form to get in touch.

FREELANCE DEVELOPERS VS WEB DEVELOPMENT FIRM

Startups with limited budget face the choice between an IT offshore provider and freelance developers, regardless of their country of origin. Both approaches have shown promising results for established enterprises and aspiring businesses. However, there are certain aspects of hiring an offshore team you should know to make the right choice for your business. Let's consider each approach.

If you hire software developers through freelance marketplaces and put them together to work on your project, you can expect certain advantages:
  • You can snatch a real expert, if you are lucky, though they are often overwhelmed with orders.
  • You can enjoy a lower rate compared to hiring a dedicated team, therefore, save your project's budget.
  • You can replace any of the developers without risking the project.
  • The team can start working on the project immediately.
  • A freelance software developer has a very flexible schedule.

On the downside, you can't expect:
  • Any guarantees as to the work's quality and timeframe.
  • A chance to raise a claim in case of any problems with the project after it's done.
  • Ongoing maintenance of the project after launch.
  • Any backups in case one of the freelance developers becomes unavailable.
  • Any legal leverage to influence freelancers in case they divulge proprietary information or leave the project without notice.
  • Developers to perform project management tasks, so they will fall on you.
If you hire an IT software offshore company, you may count on:
  • A full range of IT services, from business analysis to finished product development and its ongoing maintenance.
  • A pool of middle and senior-level developers from which you can choose specialists with the skill set and experience to suit your project.
  • Legal arrangements with the company taking full responsibility for the quality of the product and proprietary information confidentiality.
  • A fast replacement for the developers who become unavailable.
  • Reliable advice from the web application development company's specialists ranging from UI/UX design to code architecture.
  • A project manager to coordinate the work of the team and establish transparent and efficient communication.
The disadvantages of working with an established website development company are
  • The rate of custom web development is 10% to 15% higher than at freelance.
  • Some companies establish a minimum budget for their projects.
  • A longer preparation period between the query and the start of the development.
  • Sometimes companies can be booked solid and refuse your project.
  • Some companies have corporate policies clients have to follow.
These are the critical advantages and disadvantages of working with an independent software application developer and an offshore software development company. Experienced business owners are sure to have more pros and cons for both approaches. I would appreciate it if you would share your thoughts on the matter via Facebook or email.

Startups outsource web or mobile application development depending on their technical and financial resources. However, if you are working on your first or second project, if you are not a technical specialist, and if you don't have project management experience, I recommend you go with IT offshore companies. It will make your life so much easier every step of the way and protect you from common pitfalls. Besides, the full stack development company will provide you with a Tech Lead (an experienced developer with a firm grasp of current technologies) to support the development. Moreover, if you need to update or improve the project in the future, the company can provide maintenance according to your requirements.

So answer honestly: are the 10-15% of budget savings worth the time and effort you will have to spare to create and manage the team of freelancers?

If you choose to handpick and hire an offshore team one by one, and manage the project personally, take a look at our useful step-by-step guide.

HOW TO FIND UKRAINIAN IT COMPANIES FOR STARTUPS WITH A $10,000 BUDGET

Step #1 Avoid the capital and pursue regional companies

Large IT vendors will not suit your needs. If your budget is only 10,000 to 15,000 USD, and you have 2 to 3 months to get your idea off the ground, I suggest you steer clear of large providers and concentrate on smaller firms. There are both software consulting companies and software application development studios among them.
DEVELOPER POPULATION ACROSS MAJOR UKRAINIAN CITIES

Kyiv-based companies are not the best choice if your budget is limited. Regional development agencies offer lower rates of custom software development, as they get fewer clients, though their quality is on par with the capital-based companies. Startups should look for partners with up to 150 employees offering a full range of software development services, including

    Step #2 Choose the right search strategies

    There are three ways for you to get in touch with small and medium-scale Ukrainian offshore providers to hire web developer:

    • freelance marketplaces
    • corporate websites
    • other communication channels, networking, roadshows.

    Freelance marketplaces
    For 70% of Ukrainian offshore companies, freelance marketplaces are the only source of clients. You can find dozens of offers on websites like Upwork and Freelancer from small and medium-scale eCommerce web development providers. Freelance marketplaces promote competition, making the development rates manageable for most startups. These websites provide information about the custom software development company's rating and allow you to view reviews from previous customers before contacting a front end web developer or any other specialist.

    Due to competitive conditions, many Ukrainian companies leave Upwork and prefer to market through corporate websites, so you should also review them before making a decision.

    Corporate websites
    Websites provide insight into the company's experience and expertise through blog articles, case studies, and testimonials. To ensure the vendors' integrity and professionalism, check their profiles at Clutch, GoodFirm, Angel.co, CrunchBase, and others. I recommend you read our 6-step guide on choosing the perfect custom software development company to make an educated decision.

    Other channels
    There are several other ways to hire software developers from the offshore company. You can:
    • Reach out to the web development company's CEO or CTO via LinkedIn or Facebook.
    • Visit IT trade shows and conventions to network with local agents of offshore companies from all over the world.
    • Ask your social circle for a recommendation if have connections among the IT crowd.

    READY TO TRY IT OFFSHORE IN UKRAINE?

    Did you enjoy our quick foray into the offshore development market in Ukraine? If so, share the article on social media and subscribe for FreshCode blog updates! While you wait, check out our previous posts, you might find them equally useful.
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