Let's discuss the prospective nearshore software development partners for startups, their services, and the best ways to learn more about them before signing the contract. Small outsourcing companies are harder to find, as the media rarely mention their names. Clutch.co, GoodFirms.co, and UpWork.com are the best websites for selecting a Ukrainian web application development company with 250 employees or less.
To develop a list of 100 top outsourcing companies in Ukraine, I used these criteria:
- Ukraine-based headquarters
- Up to 250 employees
- The development services range including:
- Web development;
- Mobile development for iOS and Android;
- UI/UX Design;
- Quality Assurance.
The corporate website traffic analysis for the hundred companies using SimilarWeb and SEMrush indicated that less than 25% of Ukrainian IT outsourcing vendors possess monthly traffic of 250+ unique users. The average traffic rate is 20 to 50 users per month, most of them come from direct jumps. These numbers prove that 75% of small Ukrainian IT companies do not use the corporate website to attract new clients.
The in-depth traffic research of the remaining 25% of Ukrainian IT outsourcing vendors demonstrated common trends:
- Ukrainian IT vendors utilize two traffic generation strategies:
- Organic traffic generation through frequent content posting on multiple platforms;
- Offshore software development services advertising to attract clients seeking software outsourcing partners.
- January and February are the lowest traffic months, which means the low workload for IT vendors. As a result, this time of year is perfect for starting a new project at a low rate or getting discounts for the ongoing projects. Most companies are willing to negotiate a price when they have no other pressing tasks.
- 5% of the researched 100 companies spend over $1,000 on advertising per month. The cost per click (CPC) varies from $3.5 to $27.5.
- Only 10% of the chosen vendors get over 1,000 of organic users per month.
- Only 35% to 60% of organic leads belong to the target audience. Target regions include the USA, Canada, Australia, and Western European countries that make up the vast majority of Ukrainian outsourcing providers' clients pool.
- For over 75% of small Ukrainian IT outsourcing vendors UpWork and personal connections are the only available customer acquisition channels.
With these numbers in mind, let's take a closer look at the companies from the top 25% of the list. For this analysis, I have chosen seven vendors:
- Yalantis (Kyiv and Dnipro-based, est. 2008, 150 employees);
- RubyGarage (Dnipro-based, est. 2013, 150 employees);
- Cleveroad (Kharkiv and Dnipro-based, est. 2011, 150 employees);
- SteelKiwi (Odessa and Vinnitsa-based, est. 2011, 100 employees);
- FreshCode (Zaporizhzhya-based, est. 2014, 110 employees);
- GBKSOFT (Kyiv and Zaporizhzhya-based, est. 2011, 100 employees);
- IT CRAFT (Kharkiv-based, est. 2001, 150 employees).
I concentrated on the companies that are based outside Kyiv, as regional development agencies offer lower rates. 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 web app development services.
I have selected these outsourcing software development companies because they have significant experience and employ enough app developers in Ukraine to suit the startup's needs. All seven of the providers outsource iOS development, produce turnkey Android and Web solutions, and offer ongoing support and maintenance after launch and deploy.
Each of the seven companies has completed 100+ projects for clients from all around the world, including the USA, the UK, Canada, Australia, Germany, France, Switzerland, Belgium, Austria, Denmark, Israel, UAE, Sweden, and more.
Over the last four years, UpWork competition has seen a dramatic increase along with the availability of vendors willing to offer low rates. As a result, Ukrainian companies looking for clients exclusively through UpWork waste an opportunity to get more orders. The web and mobile application development company shortlist I have chosen for the analysis concentrate their efforts on turning websites into customer acquisition tools.