To outsource or not to, that is the question. Discover the impact of the recession on outsourcing and its potential benefits for your company.
The workforce is one of the most valuable investments that any company makes during its lifecycle. Yet there is considerable competition in this attentive and lasting hunt for the best talents. According to Korn Ferry, by 2030, enterprises worldwide might lose around $8.4T in revenue due to the lack of skilled experts. Many world-known corporations and profitable startups have already found a way to avoid this misfortune. Outsourcing opens new possibilities for the companies that enrich their talent pool and enhance products. Due to the rise of the IT sector in this region, Eastern Europe remains one of the most dynamic destinations for the software development field. Countries like Ukraine, Poland, Czech Republic, Romania as well as Baltic: Estonia, Latvia, and Lithuania have already defined IT as a significant stimulant for their sustainable growth and technological improvement. Besides the vast talent pool, outsourcing solves such issues as business management, cost and time efficiency, and cultural match.
Outsource in Ukraine
Ukraine is the leader in offshore software development and is known to be one of the fastest-growing destinations for software development. As the IT industry progresses annually, Ukraine offers a vast talent pool of experts with various expertise and strong tech education. Its convenient geographical location allows it to stay in touch with European, CA, US, and AU capitals despite differences in time zones.
In Ukraine, there are over 11,000 companies that offer diverse IT services, and more than 890 are represented on Clutch. In 2021 the Ukrainian IT industry recorded a growth of 36%, from $5 billion to $6.8 billion in exports. Due to that, the number of specialists increased from 244,000 to 285,000. Ukrainian IT professionals have developed substantial expertise in all demanded industries such as fintech, healthcare, photo & imaging, logistics, print, automotive, workforce, government sector, and more, which allows them to maintain a competitive advantage in the global IT market.
More than 60% of all tech experts in Ukraine work for IT outsourcing and IT outstaffing companies. The largest cities where most IT outsourcing companies are located are Kyiv, Lviv, Kharkiv, Dnipro, and Odesa. Together they form IT hubs and clusters, but due to russian full-scale invasion of Ukraine, most of the eastern hubs like Kharkiv, Chernihiv, and Mariupol moved to the west. Nowadays, Ukrainian authorities and enterprises do everything in their power to make the Transcarpathian region, where most IT experts currently reside, into a Ukrainian Silicon Valley. This region has great potential and all the needed resources to build great businesses for life.
Ukrainians can undoubtedly be claimed as skilled and highly educated specialists in their sphere. The literacy rate of its citizens is reaching 100%, and 70% of Ukrainians possess a secondary or higher education. Most tech specialists know English well, and top management knows it on an Advanced level. Among the best Ukrainian tech universities in engineering education are Lviv Polytechnic National University, Taras Shevchenko the National University of Kyiv, National University of “Kyiv-Mohyla Academy,” the Academy National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute,” and Ukrainian Catholic University. Every year, Ukraine has around 130,000 engineering graduates. Due to the great demand for specialists, the Ukrainian government cooperates with IT companies and together launches innovative labs and tech programs at universities. As a result, there is a great velocity of qualified specialists learning and growing in the company.
As stated in the recent Coursera Global Skills Report, Ukraine is in the TOP 10 for technology. In 2021 Ukraine took its rightful place in Gartner’s TOP 20 offshoring centers in the EMEA. The potential of Ukrainian tech specialists is surging every year, and you can ensure it. The average developer rates of junior software development specialists in Ukraine begin at $26 per hour. Rates of specialists of higher seniority depend on the tech stack, skills, and type of cooperation.
Outsourcing in Poland
According to HackerRank, Poland is ranked number 3 in the world of the quality of software developers and 22 on the Bloomberg Innovation Index. SkillValue’s 2019 Report ranked Poland #3 Globally based on over 550 technical assessments. As a country with a large tech talent pool, Poland has become an R&D hub for business giants such as Google, Amazon, and Microsoft. Poland is also known for its fast-growing economy, making it an attractive destination for software development among other Eastern European countries.
The country has an impressive tech talent pool of 450,000 IT professionals. 40% of all tech experts work for IT outsourcing companies, the lion’s share of which is involved in global business services, business processes outsourcing, and other types of companies. Poland has the largest working population in Central Europe, mainly people under 34 years old. By 2022, the IT industry is expected to generate $13 billion in revenue, representing about 8% of the country’s GDP.
Polish universities stand out for their high and demanding educational standards, and around 20 thousand developers graduate annually. As stated by the National Science Board’s Science & Engineering Indicators 2018 report, 43% of citizens in Poland aged 25–34 have university degrees. Among the best Polish tech universities are Jagiellonian University, University of Warsaw, Warsaw University of Technology, Adam Mickiewicz University, AGH University of Science and Technology, and Wroclaw University of Science and Technology.
Polish rates are on the same level as all of Europe. The average developer rate of a junior software development specialist in Poland starts at $30 per hour. Among Polish software engineering vendors, there are many European companies with development centers or offices in Poland. Such outsourcing companies as Proffiz – a Ukrainian company headquartered in Lviv with a development center in Krakow, Poland.
Eastern Europe region keeps growing and developing in software development, multiple rewards, and successful cooperation proving that. Annually, the IT sector brings impressive sums to both companies and local governments. If you are still wondering whether to set up a software development team in Ukraine or Poland, contact us, and we will advise you on the most efficient solution.
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