Outstaffing in Ukraine
Advantages and how to get started
When people see the words “outsourcing” or “outstaffing”, they often imagine call centers, manufacturing plants, and IT contractors in India, China, or the Philippines. Yet in the digital age companies have expanded their sights to a wider range of industries and geographical locations. Today the fastest growing outsourcing sectors are IT and software development. Notably, the colossal eastern European country of Ukraine has cropped up to become the world’s fourth-largest supplier of tech talent.
Why are more and more companies contracting out to Ukraine?
Ukraine is wealthy in IT specialists; country-wide it boasts 200,000 tech sector workers with 36,000 more graduating from universities every year. These certified professionals form a burgeoning IT community home to over 110 R&D centers for multinational tech giants such as Microsoft, Samsung, Apple, IBM, and more. Ukraine also houses over 4,200 startups; some of today’s successful startups, including Grammarly, GitLab, and Preply, got their start in Ukraine.
What makes Ukraine stand out among other outsourcing candidates is the ease of operations it offers. 80% of Ukrainian developers have at least intermediate level command of English; meanwhile, Ukraine shares cultural compatibility with the west meaning easier professional communication, similar work expectations, and understanding of clients’ needs. It is also simply well-located, with only a 7-hour time difference from the US east coast and at most a 2-hour difference with European offices.
Among all of these advantages outsourcing to Ukraine remains inexpensive. A mid-level software engineer in Ukraine earns a salary of about $30,000 per year as opposed to the US where a professional of an equivalent skillset earns $100,000. Outsourcing to Ukrainian software developers costs a fraction of what it would employing professionals with the same certifications in the US or western Europe.
Outsourcing vs outstaffing
These terms mean something a little different and each company may prefer one over the other depending on the specific needs of their team or project.
Outsourcing means hiring a third party to carry out all management, HR, and administrative activities of a particular project. This means entrusting the entire task of, for instance, a mobile app, to a separate entity. Typically companies outsourcing a project will not have direct access to the team working on it; the development team will also likely be working on multiple projects for different companies at the same time.
Outstaffing involves direct contact between a company and the outstaffed professionals. There’s lots of flexibility in the size or type of team hired. Companies can communicate with team members, identify MVPs, and assign tasks directly. Essentially, it is having an employee abroad. This means the management comes from the hiring company; no middleman is handling the team on-site for them.
How to outsource in Ukraine
The easiest way to build a Ukrainian development team is by hiring an outsourcing agency to outsource or outstaff a team for your business.
At 5w155 we are specialized in building dedicated outstaffed teams for companies that need a flexible and reliable solution for the long term.