Offshore Software Development in Ukraine
Better than outsourcing or hiringโbuild with us your own top-10% offshore development in Ukraine, and receive:
- 10+ elite engineers in Ukraine in 2 months, 100+ in a year
- Up to 40% cost savings
- No-entity compliant employment
- Fully managed back-office: payroll, benefits and more
- No buy-out costs or hidden fees
- Your direct management and corporate culture
Mexico
Colombia
Argentina
Chile
Poland
Romania
Ukraine
BulgariaYour Own Up and Running Offshore Software Development in Ukraine
Can an Offshore Provider Guarantee You?
2.5 years
is the average tenure of our hires
Cultural alignment
with your company values
Pricing transparency
no hidden or buy-out fees
Legal & compliance
and other needed operational support
Exceptional dedication
Itโs literally your own team
Long-term partnership
shared responsibility & commitmentWe Hire Any Offshore Experts
Key things about offshore development in Ukraine
Why big tech offshore software development to Ukraine
The appeal behind offshore software development services in Ukraineย lies in 2 main drivers that propel tech companies forward: huge tech talent pools and slashed costs. Thus, technology giants tap into million-sized pools with coders of diverse tech stacks. That, in turn, helps them build products faster and scale while reducing costs due to a stark contrast between software engineersโ salaries from the US and other countries. For instance, if you hire offshore developers, you save from 30% to 70%: just look for an offshore software development team outside the US.ย
Shortage on the US market and talent pool in Ukraine
Tech demand in the US remains strong: there are currently 4.18 million US developers working as IT specialists, while 121,000 IT jobs remain unfilled. As of March 2024, there were 438,000 active tech job postings, with 41% accounting for occupations that require AI skills.ย ย
Overall, the US labor market is still tight. The struggle is ongoing: to find suitable candidates for open positions. Plus, the implications of recent layoffs and hiring freezes are still taking their toll.
Thatโs why, when seeking rare tech talents, companies turn to offshore software development to Ukraine. Here, tech businesses hire developers out of a thriving 346,000 pool. Letโs take a closer look at trending sectors: AI, Blockchain, Cloud, and Machine Learning.ย ย
Software developersโ salaries in the US vs Ukraine
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AIย
A senior artificial intelligence engineer from Ukraine earns around $6,300 monthly, while a software developer with the same level of expertise from the US gets ca. $11,000.
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Blockchainย
Blockchain developers with 5+ years of experience from Ukraine charge $5,000 a month. At the same time, their counterparts from the US get $11,000 monthly.
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Cloud
The Cloud developer salary in Ukraine amounts $4,200 a month, meanwhile Clound engineers from the States earn $14,500 monthly.
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Machine Learning
The Ukrainian tech market offers ML developers around $6,300 monthly, while engineers with the same expertise from the United States get $11,000 a month.
Top software development hubs in Ukraine
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Kyivย
With 460 startups calling it home, Kyiv leads as the top startup ecosystem in Ukraine and ranks an impressive 5th in Eastern Europe. Google, Microsoft, Samsung, and Huawei are among the well-known tech companies that have chosen Kyiv for their software development activities. Additionally, Kyiv hosts esteemed tech universities such as Taras Shevchenko National University of Kyiv and Kyiv Polytechnic Institute.
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Lviv
Lviv, with 59 startups and an impressive 599 tech companies, shines as the second-largest startup ecosystem in Ukraine. The city hosts a vast talent pool of 51,000 IT specialists and is known for renowned tech universities such as Lviv Polytechnic National University and Lviv University, which contribute to its qualified specialist pool each year.
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Odesa
Odesa emerges as Ukraineโs 3rd best startup ecosystem, boasting around 20 thriving startups. Additionally, the city is home to over 150 IT companies and approximately 10,500 developers. Moreover, Odesa is enriched by esteemed tech universities like Odesa National Polytechnic University and Odessa National University.ย
What is an offshore software development center?
An offshore software product development center is your dedicated remote office with a team of software engineers. Usually, tech product companies establish such centers in foreign locations with an abundance of talent and lower labor costs. Imagine it as an extended piece of your in-house puzzle: a reliable partner that offers software development center solutions helps you with attracting, hiring, and employing Senior, Lead, and C-level developers, dealing with payroll, accounting, and taxes, finding and leasing office space, procuring tech equipment, and providing benefits for your team. All this is possible without setting up your legal entity abroad โ ask Sift, Ledger, ThredUp, and other companies!ย ย ย
ย In comparison with IT outsourcing model, where you completely delegate your product development to a third-party team and have no direct control over it, your own offshore software development company in Ukraineย presupposes the hiring and retaining of the right talent without any buy-out fees, forgetting about operational functions that fall on your partnerโs shoulders, and, thus, scaling in a chosen location faster.ย
Your own Offshore Software Team in Ukraine is Better than Third-party
Alcor is an all-in-one place to establish and run a turnkey software R&D center:
- Employer of Record support โ no need to set up your legal entity
- From 0 to 100+ software developers in one key talent pool
- Establish your corporate culture with your own team. โจNo intermediary
- No buy-out or other hidden fees
Your Own R&D Center vs Offshoring to Ukraine
Offshoring software development
- Maximized cost savings Your own software R&D team costs 40% less than an offshore software team in Ukraine. Because you get no buy-out fees & markups.
- Long-term commitment Product development and a sense of ownership attract professional developers as bees to honey. Hence, more loyalty.
- Direct control over development You get your team of offshore developers for ideation, innovation, and growthโwithout intermediaries.
- Intellectual property under control With direct agreements, you fully own your product and its source code, keeping unique engineering expertise in-house.
- Easy investment attraction Establishing your own offshore software development center will enhance your appeal to investors.
Offshore software development
- Cloudy pricing With outsourcers, the markup for your vendorโs service might exceed a development rate by 50%.
- Temporary fix Offshore software development teams in Ukraine are loyal as long as the contract lasts and wonโt go teh extra mile to ensure your productโs long-term success.
- Your provider comes first An external development team will report only to your vedor, treating you as the โsecondaryโ employer.
- IP rights transfer complexities When you engage an offshore software development company in Ukraine, the IP rights of your product initially belong to the outsourcing team. So think ahead about the safe transferring of them to you later.
- Barrier to investment attraction Engaging with an offshore development partner means that you delegate your core competencies to developers who will leave your team for good. Not exactly the investorโs dream.
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.
Alcorโs 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.
FAQ
1) Is it cheaper to offshore software development to Ukraine?
Yes, with offshoring software development to Ukraine, you can save from 30% to 70%, while scaling your company at the same time. Hereโs what makes it possible: the difference in salaries & taxes and Alcorโs comprehensive all-in-one-place software R&D center solution without buy-out fees.
In the US, a senior software developer earns up to $180,000 a year, while software engineering experts from Latin America make, on average, $63,000. The regional taxation policies also offer lower tax rates.
Lastly, our approach goes beyond finding software developers. We get you a software team thatโs yours from day one โ cut costs by not paying buy-out fees!
2) What are the benefits of building a development center with Alcor?
With Alcor’s 360-degree model, there’s no need to engage with multiple vendors to establish your R&D office offshore or nearshore. In one place without additional intermediaries, you receive full-cycle IT recruitment services alongside effective Employer of Record support that eliminates the need to establish your legal entity in the target location. Additionally, we assist in leasing office space, providing employee benefits, procuring laptops and other equipment for your team, and much more. Just share your needs, and weโll take care of them all!ย
3) How fast can Alcor build an offshore development team in Ukraine?ย
We pride ourselves on expeditious tech recruitment โ stellar quality within tight timeframes. Alcorโs average time to close a vacancy when hiring a developer is 2-6 weeks. In just 1 day of our cooperation, youโll get blind CVS. In the next 5 days, weโll start sending you CVs of pre-vetted candidates whom you’d want to invite for an interview right away.
4) Can you headhunt C-level management in Ukraine?
Thatโs an ace up our sleeve. Weโve amassed 7 years of experience in the industry and accumulated the best practices in recruiting C-level and Lead specialists! Thatโs why, C-level management positions, such as CTO, CIO, CMO, CFO, and others, come to our recruiters as easy as pie. Our clients attest to it: we hired the Head of R&D for Sift, an online fraud detection application development firm, from the second CV. Other successful cases include the Director of Engineering for Dotmatics and the Deployment Lead for Ledger.
5) What about payroll, accounting, and office lease?
If you hire an offshore application or web development team with Alcor, thereโs no need to establish your legal entity in a target location. With our comprehensive EoR support, we take care of all the nuts and bolts for your offshore software developers. It includes the employment of software engineers, monthly payroll management, tax payments, compliance with all local laws, and even more. With our turnkey solution, you can be assured โ we guarantee 100% compliance while handling all the paperwork.ย
Finally, if you want to pump it up, opt for our R&D services with full operational support, office lease, and equipment procurement.ย
6) What else does the software development center in Ukraineย include?
Apart from the full-cycle IT recruitment process of offshore software developers and EoR support, we offer a wider range of additional services, including IT infrastructure setup, procurement management, employer branding, and other back-office assistance. At Alcor, it’s like Lego: you choose the services to build your software R&D center from 0 to 100 people in 12 months.ย