In the last decade, Ukraine has become an attractive destination for software development outsourcing and outstaffing. Highly-qualified tech talents, convenient geographical location, and cost-effective prices make the country a promising tech hub. However, choosing a tech partner abroad is always a challenging process. This article outlines key points one should consider when hiring a Ukrainian tech partner.
Tech market size in a city
According to the latest reports, 67% of all Ukrainian tech professionals live in three cities: Kyiv, Lviv, and Kharkiv. A number of midsize cities, including Ivano-Frankivsk, Vinnytsia, Zhytomyr, etc., are also seeing a surge in tech specialists. The biggest number of tech professionals (about 90k) is located in Kyiv, and respectively, the highest salaries concentrate in the capital too. With 492 tech companies and a $2100 median salary of mid-level software engineer, Lviv is the second-largest tech hub in the country. Lviv boasts an active tech community driven by Lviv IT Cluster, lower office and apartment rents, and an extensive low-cost flight network. If you want to hire a tech partner in Ukraine, we advise you to make thorough research on which city suits your interests best.
Cost of living
Even though Kyiv hosts the biggest number of tech companies and specialists, the city is relatively expensive. When comparing the ratio between average salaries and cost of living, Lviv is a more reasonable destination. According to Numbeo, without rent, Lviv is 10.33% less expensive than Kyiv. Rent in Lviv is, on average, 39.15% lower than in Kyiv. Correspondingly, office rent, eating out and related activities are also cheaper in Lviv. These factors might be important if you are considering relocating temporarily to Ukraine to explore the tech market better, or you’d like to open an office there.
Tech partner’s expertise
Most likely, you will use English as the language of communication with your potential partner. Make sure the partner’s team speaks English fluently to avoid any misunderstandings in the future. While Ukraine is ranked 4th in the Global Skills Index 2020 in tech skills, the country’s English proficiency comes in 44th place according to EF. However, the internal survey by DOU reports that 81% of the Ukrainian tech professionals have an intermediate and higher level of English. English proficiency is a basic requirement at most tech companies, many of them also host internal weekly English classes to ensure smooth communication with the client.
Such global companies as Samsung, Google, Siemens, Huawei, etc. opened R&D centers in Ukraine. Over 100 Fortune 500 companies picked Ukrainian tech services for their projects, which shows general satisfaction with the tech expertise of Ukrainian engineers. However, when deciding between a few prospective partners, check the previous cases they worked on as well as references from former clients if applicable. A decent partner definitely has a wide portfolio of past projects, with information conveniently available via the Lviv Tech platform.
Choosing a vendor abroad is a long-term process that requires a lot of research. Hopefully, this article will be helpful for any of you embarking on such a journey. Remember that via Lviv Tech you can browse available partners, filter them by area of expertise and connect easily. Make your business thrive with a trusted partner from Lviv!