Dedicated Development Team in Ukraine
Choose a seamless expansion to Ukraine.
We build and operate top-10% software development teams in Ukraine, and deliver:
- Your own tech team hired from scratch
- 30+ senior developers in Ukraine in 3 months, 100+ in a year
- Cultural fits for your company
- Up to 40% cost savings
- No buy-out costs or hidden fees
- No need to set up a local legal entity
- Fully managed back-office
Mexico
Colombia
Argentina
Chile
Poland
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Ukraine
BulgariaYour Own Up and Running
Development Team in Ukraine of
developers in the 1st month
developers in 3 months
Can a Dedicated Teams Provider Guarantee
2.5 years
average tenure of developers
Cultural alignment
with your company values
Pricing transparency
no hidden or buy-out fees
Legal & compliance
and other needed operational support
Exceptional dedication
it’s literally your own team
Long-term partnership
shared responsibility & commitmentKey Things about a Dedicated Development Team in Ukraine
Why Hire a Dedicated Development Team in Ukraine
Amid global demand for engineering talent, a dedicated development team in Ukraine offers one of the best value-to-quality ratios. In 2025, Ukraine’s IT exports are projected to exceed $8 billion, making it a top destination for tech nearshoring. With over 320,000 engineers, world-class STEM education, and salaries 2–3 times lower than in the US or Western Europe, more companies are turning to Ukrainian software developers to build or extend their teams.
Hiring a dedicated development team in Ukraine is a strategic move for companies seeking skilled software engineers, cost optimization, and long-term value.
Lower Costs Without Compromising Quality
Ukrainian developer salaries are up to 60% lower than in the US and Western Europe. For example, senior full-stack developers earn around $70,000 in Ukraine versus $150,000 in the US. These savings extend beyond payroll: office space, benefits, and hiring costs are also significantly lower.
But lower cost doesn’t mean lower quality. Ukrainian developers consistently rank in the global top 20 for coding skills. Their affordability results from regional market conditions, not weaker expertise.
Access to a Vast Pool of Senior Talent
Ukraine is home to 320,000+ IT specialists, with over 25,000 STEM graduates joining annually. The country offers experienced engineers across all major tech stacks, including AI, cloud, mobile, embedded systems, and blockchain.
Companies like People.ai and Grammarly successfully built dedicated teams in Ukraine through Alcor to access high-level engineering talent unavailable in their home markets.
Strong English Proficiency and Cultural Fit
Ukraine ranks #35 globally in the EF English Proficiency Index, with most engineers working at a B2+ level. Western business culture, flat hierarchies, and agile methodologies are well understood and adopted by Ukrainian developers.
This alignment ensures seamless communication and cooperation with US and EU-based product teams.
Favorable Time Zone for Europe and the US
Ukraine operates in GMT+2, allowing convenient overlap with both EU and US time zones. This enables:
- Same-day responses for US-based teams
- Real-time collaboration with European offices
- 24/7 development cycles for faster delivery
Time zone synergy is a critical factor in managing a remote dedicated development team in Ukraine efficiently.
Resilient IT Market Despite Geopolitical Challenges
Despite ongoing geopolitical risks, the Ukrainian IT sector has proven remarkably stable. In 2023–2024, Ukraine’s tech exports grew by over 7%, and major companies continued to scale operations.
Most developers work remotely from secure locations in Western Ukraine or abroad. Providers like Alcor offer continuity plans, data security protocols, and legal protections to ensure business resilience.
Ukrainian IT Industry Overview 2025
Ukraine has matured into one of Eastern Europe’s most attractive destinations for dedicated software development. Its technology sector is marked by consistent growth, high-value exports, and a robust talent pipeline. This overview highlights the key economic and structural drivers of the IT market in Ukraine.
Export Figures and Market Value
In 2025, Ukraine’s IT services exports are projected to exceed $8.1 billion, accounting for over 5% of the country’s GDP. The local software development market continues to expand at a CAGR of 7.5%, with more global companies opting to hire a dedicated team in Ukraine for both long-term and project-based needs.
Over 200 global tech brands—including Microsoft, Samsung, Ericsson, and Siemens—operate in Ukraine via either direct teams or outsourcing providers.
Key Tech Hubs: Kyiv, Lviv, Kharkiv, Dnipro, Odesa
Ukraine’s developer talent is concentrated in five main cities:
- Kyiv – The capital and largest IT hub, with 1,000+ tech companies.
- Lviv – Known for high English proficiency and nearshore-ready infrastructure.
- Kharkiv – Strong in embedded software, IoT, and R&D services.
- Dnipro – Specializes in fintech, logistics tech, and mobile apps.
- Odesa – A growing center for product startups and web development.
Each city offers access to senior developers and bilingual specialists suited for global teams.
Education and Engineering Graduates in Ukraine
Ukraine produces over 25,000 IT graduates annually, supported by more than 150 universities with engineering programs. These institutions supply the talent for dedicated software development teams in Ukraine, trained in disciplines like computer science, cybersecurity, data science, and AI.
Additionally, the country has 500+ private IT academies and bootcamps that offer accelerated training for junior developers—helping companies scale teams fast.
How to Hire a Dedicated Development Team in Ukraine
Building a dedicated development team from Ukraine requires a structured approach to ensure access to top-tier talent, legal compliance, and operational efficiency.
Step 1. Define Requirements & Ideal Candidate Profile
Start with a detailed job description. Clarify:
- Tech stack and project type
- Experience level (middle, senior, lead)
- Soft skills and cultural fit
- Time zone overlap and language needs
Step 2. Choose the Right Vendor or R&D Partner
A reliable partner is key to successful hiring. Consider:
- Industry specialization
- Access to local talent networks
- Service scope (recruitment, legal, payroll, office setup)
- Transparent pricing and guarantees
Vendors like Alcor provide full-cycle support for hiring a dedicated software development team in Ukraine, including legal compliance and operational setup.
Step 3. Vet and Interview Ukrainian Developers
The best practice is to combine:
- Tech screening
- English proficiency evaluation
- Soft skills assessment
- Final client interview
Most dedicated team providers in Ukraine can pre-screen candidates for faster delivery. Alcor, for example, achieves a 4:5 CV-to-interview ratio by vetting top 10% talent.
Step 4. Sign Contracts, Ensure Legal Compliance
You must structure legal agreements that protect:
- Intellectual property rights
- Non-disclosure and confidentiality
- Employment terms aligned with Ukrainian labor law
- GDPR compliance (for EU-linked companies)
Use local legal experts or rely on your provider’s in-house legal team to avoid risks and ensure enforceability.
Step 5. Onboard and Scale Efficiently
Once the team is hired:
- Provide structured onboarding
- Assign local HR/account managers
- Implement tools for remote collaboration
- Monitor performance via KPIs and regular syncs
A reliable Ukrainian dedicated team vendor can also support team expansion, benefits management, and performance reviews, helping your company scale smoothly.
Choosing the Right Engagement Model for Your Business
The success of your dedicated software development in Ukraine depends on selecting an engagement model that aligns with your goals.
Dedicated Team Model vs Outstaffing vs Outsourcing
Dedicated Development Team
You directly manage a team of full-time developers working exclusively on your product. This model provides full control, higher loyalty, and better long-term outcomes.
Best for: Product companies scaling long-term engineering capacity.
Outstaffing
You “rent” developers from a vendor to augment your internal team. Less control over team engagement, and higher churn.
Best for: Short-term projects with limited hiring bandwidth.
Outsourcing
You delegate an entire project to a third-party vendor. Minimal control, opaque pricing, and potential quality risks.
Best for: Non-core projects or early-stage MVPs.
Outstaffing and outsourcing may seem flexible but often introduce IP risks, low developer commitment, and limited visibility into performance.
Why the R&D Model Works Best for Long-Term Growth
An R&D model—often implemented via a remote dedicated development team in Ukraine—offers full-cycle recruitment, legal, payroll, and operational support under your brand.
Key benefits:
- Full ownership of product and IP
- Transparent pricing, no buyout fees
- Higher loyalty and retention
- Integrated communication and agile delivery
- Fast scalability with pre-vetted talent
Companies like Grammarly and People.ai used this model to scale from 10 to 100+ engineers in under 12 months.
Key Features of a Dedicated Software Development Team in Ukraine
Opting for a dedicated software development team in Ukraine means more than hiring remote developers—it’s a strategic investment in a custom-built engineering unit tailored to your product.
Full-time Engagement Under Your Brand
Unlike freelancers or outsourced teams, Ukrainian developers in a dedicated setup work exclusively for your company. They follow your roadmap, use your tools, and align with your delivery practices.
This approach enhances:
- Ownership over tasks
- Long-term loyalty
- Seamless integration with in-house teams
Transparent Pricing and No Hidden Costs
When you hire a dedicated development team in Ukraine through a reliable partner, you pay for:
- Developer salaries
- Provider service fee
- Optional back-office or legal support
There are no extra markups, and all expenses are clear upfront—unlike many outsourcing vendors who bury costs in ambiguous invoices.
Long-Term Loyalty and Lower Turnover
Ukrainian engineers working in dedicated teams stay longer. Thanks to structured onboarding, local HR support, and direct engagement with the client, attrition rates are low—even during turbulent times.
Alcor’s average developer retention exceeds 2.5 years, with 98% passing the probation period.
IP & Data Protection under Ukrainian/EU Law
When working with a dedicated development team from Ukraine, you benefit from strong legal safeguards:
- IP assignment contracts compliant with global standards
- GDPR-aligned data privacy policies
- NDAs tailored to your business type
Most team members work in secure office environments or via encrypted remote setups. Leading vendors also offer additional measures like VPNs, access controls, and ISO-certified data handling.
Alcor’s Expertise in Building Dedicated Teams in Ukraine
Alcor is a trusted partner for Western tech companies looking to hire a Ukrainian development team and scale fast with zero hassle. From IT recruitment to full operational support, we deliver end-to-end solutions to establish your presence in Eastern Europe.
Case Studies: Grammarly, People.ai, Dotmatics, Sift
- Grammarly relied on Alcor to handle payroll, legal support, and ongoing team scaling.
- People.ai built a full R&D center in 4 weeks and hired 25+ AI engineers in Ukraine with our help.
- Dotmatics assembled a team of 30+ full-stack, QA, and front-end developers in under 12 months.
- Sift overcame hiring challenges through an employer branding campaign designed and executed by Alcor, reaching 50+ engineers in Eastern Europe.
These cases illustrate Alcor’s ability to deliver enterprise-grade development teams without the overhead of setting up a local entity.
How Alcor Ensures Top-10% Talent Recruitment
We operate with a team of 40+ IT researchers and recruiters with deep expertise in the Ukrainian talent market. Our method includes:
- Ideal candidate profiling and employer value proposition development
- Multi-channel sourcing strategy (LinkedIn, GitHub, Stack Overflow, referrals)
- Tech screening and soft skill evaluation
- English fluency testing
The result? 80% of submitted CVs get invited for interviews, and most clients receive their first candidates within 5 business days.
Legal, HR, Payroll, and Office Setup Support
Alcor’s back-office solution covers:
- Legal contracts and compliance (NDAs, IP rights, tax planning)
- Payroll and employee benefits management
- Equipment procurement and office lease in major Ukrainian cities
- Ongoing HR support, performance tracking, and retention consulting
This allows companies to hire dedicated team Ukraine engineers and operate at scale—without hiring an internal admin team or taking legal risks.
Cost Comparison: Ukraine vs US Software Engineers
Cost is a major factor for tech companies planning to hire dedicated development team in Ukraine. On average, Ukrainian engineers cost 2–3 times less than their US counterparts—while delivering comparable quality and productivity.
Developer Salary by Seniority and Role
| Position | Ukraine (Senior) | USA (Senior) |
| Full-Stack Developer | $73,000 | $153,000 |
| Front-End Developer | $68,000 | $144,000 |
| Back-End Developer | $69,000 | $157,000 |
| Mobile App Developer | $65,000 | $133,000 |
| Game Developer | $64,000 | $130,000 |
| Data Engineer | $70,000 | $170,000 |
| DevOps Developer | $69,000 | $165,000 |
| AI Developer | $81,000 | $146,000 |
| Blockchain Developer | $84,000 | $180,000 |
Source: Alcor’s proprietary data, converted to USD using mid-2025 exchange rates.
Employment Costs and Savings Breakdown
Beyond salaries, full-time employment costs include:
- Recruitment fees: 15% in Ukraine vs 30% in the US
- Benefits and payroll taxes: ~$6,350/year in Ukraine vs $15,400/year in the US
- Office space: $200–$300/month per person in Ukraine vs $800+ in the US
Example: Hiring an AI developer in Ukraine totals ~$102,400/year, compared to ~$180,000/year in the US. That’s a 43% cost saving—without compromising on expertise or productivity.
This cost advantage allows companies to reinvest in product innovation, employee retention, and market expansion.
- From 0 to 100+ engineers in one key talent pool
- Employer of record – no entity compliant employment
- Comprehensive in-country support
- No buyout or other hidden fees
- Your team from day one. Your management. Your culture.
Your Own Team vs Dedicated Software Team in Ukraine
Your Own R&D Center
- Silicon Valley-caliber talent We recruit 30+ elite senior developers in 3 months. All decisions regarding the team are up to you.
- Transparent pricing Detailed invoices help you be in control of your finances. Plus, your tech R&D team is x2 more affordable than an external one.
- Your team & branding You get a tech team with shared values for innovation and growth – 90% retention rate & an average tenure of 2.5 years.
- No setup & buyout fees No setup fee is needed to start building your software R&D team. Plus, there is no buyout process – your team now, free insourcing after.
- Intellectual property under control With direct agreements, you fully own your product and its source code, keeping unique expertise in-house.
Dedicated Team in Ukraine
- Junior/middle-level talent You can’t control the quality of talent. Plus, with planned moves to new customers after 1 year, your A-players will be snatched away.
- High markups Some providers charge up to 50% of talent compensation to earn more without the client knowing about it.
- Not your brand & practices Developers work under your provider’s brand. Thus, there’s no room for your corporate culture, policies, and direct oversight.
- High setup & buyout fees Most vendors require contractual & financial obligations first. Then, you pay 20% of a developer’s annual compensation in buy-out fees.
- Intellectual property risks IP rights over your product initially belong to developers of your provider. You get minimum security and a tedious transfer process.
Companies Scaling with Alcor
Alcor is a reliable partner that meets our hiring needs. We finally hired experienced software engineers in Eastern Europe with strong tech skills and business acumen. Account Managers are awesome!
With Alcor’s all-in-one solution, we got a software R&D office with 15 senior PHP devs and a compliant operational coverage. I really appreciated their transparent pricing structure and deep expertise.
We interviewed a lot of EoR platforms and companies, but Alcor was the only one that provides a combo package of EoR and Recruting offerings. Alcor helped us build a full stack team in 1.5 month.
We wanted to switch from our outsourcing provider, and Alcor has become really game-changing for us. Within a mere 6 months, we got a fully-fledged team of 30 engineers in our own R&D office.
Alcor’s R&D solution eclipses full-cycle recruitment, EOR service, and operational support for our offshore team. Their ‘all-in-one place’ approach is far more cost-effective than I could’ve imagined.
I value their commitment to going the extra mile. We evolved from an outstaff project into an independent company, and Alcor’s support was crucial. They hired and ondoarded 15+ professionals for us.
Thanks to Alcor, we hired four engineers and a designer that strengthened our team. Beside stellar recruitment, Alcor flawlessly handled our payroll. Their approach was seamless and swift.
Alcor closed our 4 QA positions in a month and more than doubled the team in a year! We chose Alcor because of their communication style, cost, scope of services, and ideas to help us be successful.
Expanding our engineering team outside the US with Alcor was a game-changer! They found 15 talented developers and provided seamless EOR & operational support. Great responsiveness to our needs!
Alcor’s flexible model helped us scale from 0 to 30 devs in a year first, and then to 50! No buy-out fees, seamless hiring, and top-tier talent. A hassle-free way to grow without setting up a subsidiary!
FAQ
Is it beneficial to use dedicated development team services in Ukraine?
For short-time projects, leveraging a dedicated development team in Ukraine can offer flexibility, faster project completion, and access to specific skills. Yet in the long run, this approach may not be the most cost-effective or strategic choice for sustained development efforts.
What are the common challenges or pitfalls of using development teams in Ukraine?
Outsourcing software development by dedicated team model poses significant challenges with long-term collaboration, commitment to your product’s success, data leakage, and buy-out fees. That’s why before they decide to hire a software development team in Ukraine, tech entrepreneurs often explore alternative solutions. The most popular options include opting for IT recruitment services or a full R&D office setup with their own remote software development team in Ukraine through a reliable partner.
What are the alternatives to a dedicated software team in Ukraine?
To bypass the pitfalls of this collaboration model, tech companies opt for nearshoring and offshoring via establishing their own software R&D centers. With this approach, you get a software development department with full back-office support, including full-cycle IT recruitment, office lease, Employer of Record services, legal compliance, employer brand promotion, and office maintenance. With Alcor, you can hire a software development team in Ukraine and expect your brand-new office to be launched in just 2 months.
Is my company prepared to use an R&D center, or should I go for a dedicated software team after all?
It all boils down to your business needs. For technology companies, establishing a software development center with an in-house development team proves to be an great solution. This approach enables the retention of core operations under direct control, ensures a long-term commitment from engineers, and facilitates the attraction of investments to scale internationally. On the other hand, for non-tech businesses lacking internal expertise in product design, opting for a remote software development team in Ukraine would be a better fit. Yet, if you want to play the long game and potentially grow your business, opting for IT recruitment services is a great option to start with.