Consider This If Hiring Ukrainian Developers in 2025

Ukraine’s tech sector is rewriting the rules of resilience. Software development in Ukraine already makes up 6% of the country’s GDP—a sharp rise from 4.2% in 2021. Despite russia’s full-scale invasion, tech product companies are not only returning to Ukraine but also choosing it as a launchpad for new ventures. Over 2,600 new businesses have emerged since 2022. Is now the perfect time to collaborate with Ukrainian talents?  

I am Dmytro Ovcharenko, CEO of Alcor, a next-generation tech R&D accelerator. By combining Employer of Record (EOR) services, Silicon Valley-caliber hiring, and 360-degree operational support, we build high-tech teams in Eastern Europe and LATAM, helping software engineering companies scale from 10 to 100 developers within a year. 

In this article, you will learn about the current state of the software development industry of Ukraine, gain insights into relevant Ukrainian software developers’ salary rates, and explore the most efficient and safe ways to collaborate with local tech talents. 

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Key Takeaways

1. Today, the Ukrainian tech market remains resilient: tech services exports have grown by 54.5% compared to the pre-war period, while tech outsourcing has been expanding by 8% annually since 2021. 

2. Several factors make Ukraine stand out among other destinations for hiring developers: five innovative tech hubs, competitive salary rates, attractive tax conditions, and a business-friendly environment. 

3. A typical Ukrainian developer is a specialist in their mid-30s, holds a higher education degree, has an upper-intermediate level of English, and possesses a strong tech stack that includes Java, Python, C#, TypeScript, and PHP. 

4. To hire Ukrainian developers, you’ll need to plan your team, shortlist vendors, review their services, prepare job descriptions, align with recruiters, provide feedback, handle offers and counteroffers—and finally, welcome your new hires. 

5. The best alternative to traditional outsourcing is to set up your own R&D center with comprehensive support that will guide you through all EOR aspects, build a powerful tech team, and assist with all necessary operational processes. 

Software Development Industry in Ukraine

Before the beginning of the full-scale war, the Ukrainian IT sector had been a go-to offshoring destination for both tech giants and startups. This growth solidified Ukraine’s position as a top outsourcing destination, earning it the title of #1 choice by the Global Sourcing Association. 

Despite the ongoing war, the Ukrainian software development industry continues to demonstrate resilience. From 2019 to 2024, tech services exports grew by 54.5%, making the sector the largest service exporter in Ukraine and a major contributor of foreign currency to the national economy. Computer services now account for 37.4% of the country’s total service exports, primarily directed to the United States, Canada, and Western European countries such as Switzerland and Germany. 

Moreover, the European Business Association (EBA) reports that 77% of its member businesses plan to continue operating in Ukraine regardless of the duration of the war. In general, Ukrainian tech companies generated $6.4 billion in revenue in 2024 —a figure that not only remained stable but even increased compared to 2021.  

The forecast for the future is also quite promising; the Ukrainian software development sector is expected to reach $5.6 billion by 2029 with a 5.9% annual growth rate. In fact, the tech outsourcing segment alone has been showing a yearly growth rate of 8% since 2021 and is forecasted to surpass $1.2 billion by 2025. 

All these factors point to one conclusion: outsourcing tech services to Ukraine continues to grow. Still, businesses seeking cost-effective scaling solutions need to know…  

Is Ukraine a Good Choice for Your Business to Outsource Software Developers?

Ukraine is an Eastern European country that has 302K tech specialists, with an additional 25,000 people graduating from tech universities every year. In the midst of the war, the Ukrainian tech sector is growing thanks to high-tech education and top universities ranked in the QS World University Rankings 2025.  This strong educational foundation feeds directly into the country’s software development landscape, which is characterized by thriving tech hotspots spread across its major cities.

Ukrainian software development hubs

The country boasts a solid number of tech hubs, with Kyiv, Lviv, Dnipro, Odesa, and Kharkiv being the most prominent ones.   

 According to the 2024 survey by DOU: 

• 46% of local tech specialists live in Kyiv,  
• 18% — in Lviv,  

• 6% — in Dnipro,  

• 4% — in Odesa,  

• 4% — in Kharkiv.   

Tech product companies in Ukraine are concentrated primarily in the bustling cities of Kyiv, Odesa, and Dnipro. At the same time, cities like Lviv and Kharkiv tend to specialize more in outsourcing and outstaffing services.   

Pro tip: When choosing a new location, it’s essential to understand the local tech market. That’s where a tech-focused provider with deep expertise and a proven track record comes into play. With Alcor’s EOR for tech and high-quality hiring services, you can navigate local regulations and talent pools with ease.  

Thriving startup ecosystem

As of today, Ukraine’s startup ecosystem is among the three fastest-growing in CEE and ranks as the #4 largest in terms of ecosystem value. The current startup landscape features over 2,600 active Ukrainian ventures, with valuations tripling since 2020.  

Notably, 90% of all startups see high growth potential in the future, while 46% of them, despite the ongoing war, believe that the ecosystem is still operating at an average level. Despite the ongoing war, several Ukrainian-founded startups—including Grammarly, GitLab, and Creatio—have reached unicorn status. According to the report, at least 10 other startups are also approaching this milestone.   

Pro tip: To succeed in Ukraine’s growing startup ecosystem, you need a partner who can assist with market entry and employer branding. That’s how Sift approached its tech expansion into Eastern Europe. As a result, the company experienced a snowball effect—a 15% increase in response rates and offer acceptance, while also building its own R&D center with 51 top-notch tech engineers.

Life in Ukraine

After more than 3 years of ongoing war, Ukrainians have adapted to new realities. Having endured daily missile strikes, massive blackouts, communication outages, and constant uncertainty, Ukrainian tech specialists currently rank #18 globally in the National Cyber Security Index, upholding Ukraine’s reputation as one of Europe’s top countries for tech services.  

A typical favorable location in the country for Ukrainian programmers is now defined by key factors: being at a considerable distance from the frontline. This mainly applies to cities in the western and central regions like Lviv, Uzhhorod, Chernivtsi, Vinnytsia, and the well-protected capital city, Kyiv. Ukrainian software engineers are gravitating towards these safer cities for relocation to ensure smooth task execution and productive workflow without interruptions. 

Pro tip: High-quality equipment is vital for stable performance in such an environment. Make sure your remote team is well-equipped—or turn to Alcor, which provides full office setup and hardware procurement services for tech specialists. 

Legal Aspects

Hiring developers in Ukraine is relatively straightforward, with several available models: 

• FTE contracts: This involves setting up your own legal entity in a foreign country and officially hiring developers as full-time employees. In this case, employers face minimal risks of employee misclassification and enjoy lower turnover rates, while developers benefit from stronger labor law protections. 

• B2B contracts (private entrepreneurs): Developers work as independent contractors or sole proprietors, signing a business-to-business agreement with a tech company. This model offers flexibility, low administrative overhead, and cost optimization due to the absence of social benefits and employer tax obligations. Today, around 275,000 Ukrainian tech specialists are registered as private entrepreneurs. 

• Gig contractors: Flexible employment as an alternative to traditional employment. This hybrid model sits between full employment and freelance work. Currently, 13% of IT specialists in Ukraine are engaged under gig contracts. 

 Pro tip: Companies ensure that tech outsourcing or offshoring is successful by utilizing legal and compliance services in Ukraine. Alcor guarantees that your tech business is 100% compliant with local and your home country laws, handling everything from your intellectual property protection to business visa support for your Ukrainian developers.   

 Taxation system and accounting

Ukrainian software developers who work under the B2B model benefit from tax incentives introduced by the Ukrainian government. They are subject to a simplified taxation system, namely group 3, and should pay only:  

• 5% income tax once a month,  

• 22% social security tax of a minimum monthly salary in Ukraine once every three months,  

• 1% military tax.  

Companies often cover the taxes of their outsourced or offshored developers in Ukraine. This sum is so small that it even helps companies save up to 70% of costs.  

Pro tip: In order to be efficient in terms of tax planning, paying, tax returns preparation, as well as financial management, document maintenance, bookkeeping, and other operational functions, companies take advantage of payroll and accounting services in Ukraine. By relying on a trusted EOR provider, such as Alcor, to handle these and other administrative functions, companies save tens of thousands of dollars and free their teams from extensive paperwork. 

Ukrainian Software Developer Portrait

• Age: According to the most recent analysis conducted by DOU, Ukraine’s largest software developer community, the majority of local software developers are typically in their early thirties, with over half of them being middle and senior-level specialists.  
• Tech education & skills: Approximately 96% of software engineers hold Bachelor’s and Master’s degrees in STEM and continue enhancing their skills and qualifications even after completing their studies. The most popular programming languages and technologies among Ukrainian engineers are JavaScript, Java, Phyton, C#, TypeScript, PHP, Kotlin, and others.  
• English proficiency: A strong command of the English language, with over half of the qualified workforce attaining Upper-Intermediate or Advanced-level proficiency. According to the EF English Proficiency Index, Ukraine ranks #13 in the region in terms of language skills. 
• Company type: As of 2024, 45% of tech specialists were employed by product companies, surpassing the other 36% working in service companies. 

• Soft skills: Ukrainian developers are remarkably adaptable. 85% of tech professionals managed to keep working full-time, proving their resilience in the face of war. Apart from that, local programmers excel in teamwork, communication, critical thinking, creativity, problem-solving, and time management.  

Ukrainian Developer Salaries

The main reason why business leaders choose tech outsourcing to Ukraine is the salaries of local programmers. They are 1,5 times lower than in Western Europe and 2 times lower than in the US.  

In the table below, you can find the gross annual salary salaries of full-time senior software developers with different tack stacks and roles according to our jobs market research.  

Median annual salary, USD	Senior	Lead
Java developer	72,000	84,000
Phyton developer	72,000	84,000
PHP developer	60,000	72,000
C++ developer	69,600	81,600
Ruby developer	72,000	84,000
Data Science developer	42,000	66,000
AI engineer	75,600	90,000
Cloud engineer	50,400	60,000
Blockchain developer	60,000	72,000

However, it’s important not to overlook key factors such as employment costs and benefits packages: 

• Employment cost: This is a one-time fee charged as a percentage of the IT specialist’s annual compensation, payable to your provider upon hiring. In Eastern Europe, this percentage typically ranges from 15% to 25%, depending on the position and tech stack. In the US, the fee is slightly higher—around 25% to 35% of the developer’s annual salary. 

• Basic benefits package: In the US, the cost of a basic benefits package is approximately $15,400 per year per developer. Meanwhile, in EE, the budget for a basic benefits package is more than twice as low—about $6,350 per year per tech professional. 

Bottom line: When estimating the average budgets your tech company might spend on engineering contractors, the figures are approximately $125K–$288K per year in the US, compared to $43K–$144K per year in Ukraine. 

Your Own Software R&D Center: a Turnkey Business Solution

If you’re looking for a reliable partner to team up and enter the Ukrainian market, Alcor is at your service. $1 billion+ valued company Ledger has already scaled with us! 

At Alcor, we help Western tech companies establish their R&D offices in Eastern Europe and Latin America. Through partnering with us, they receive: 

• Comprehensive EOR for tech: Management of all aspects of developer employment—from FTE and B2B contracts, onboarding/offboarding, to compliance with local labor laws—ensuring 100% compliance, payroll processing, and employee benefits management, freeing you to focus on scaling your business. 

• Top-notch tech recruitment: Access to the top 10% of tech talent, with the first role filled within 2–6 weeks. Plus, 98.6% of our hires pass probation and stay with our clients for an average of 2.5 years. 

• Vital operational support: Assistance with everything from finding offices and co-working spaces with Starlink, renting them, and procuring hardware to providing comprehensive tech services with 24/7 in-country support, ensuring smooth operations from day one. 

And here’s how it works in practice: within just a month, the US-based company People.ai, which decided to expand its operations to Ukraine, launched a brand-new office while Alcor’s tech recruiters handled hiring developers for its team.  

Alcor helped People.ai hire more than 25 Ukrainian software engineers, including specialists with rare skills. We also provided the client with legal compliance and transparent payroll. As of today, People.ai’s office performs very well while the company builds ambitious plans for the future.   

10 Steps to Hire Ukrainian Engineers

Going to a country like Ukraine to engage talent might seem frightening if you haven’t worked with remote teams or adopted team extension models before. Whether you’re hiring freelancers or establishing a local office, the challenge lies in finding and convincing local talents to work with you. You have two options:  

1. source talent independently; 
2. partner with a local agency.

Going solo may lead to a lack of understanding of the local market and developers’ interests, making recruitment agencies a more efficient choice. 

How to choose and work with one? The whole process will look the following way: 

1. Plan your team 

First of all, you should identify how many specialists you will need for your Ukrainian development team and what skills and tech stacks they must possess. This will help you see the scope of the work.

2. Shortlist several vendors 

Pick 3-5 local recruitment agencies that offer recruiting services and understand how to hire Ukrainian developers. To create this list, you can use either review websites like Clutch or the recommendations of your friends and colleagues.   

3. Research the services of chosen agencies 

After creating a shortlist of companies, thoroughly research their operations, services, experience, work processes, pricing, and support for tech interviews and English proficiency checks. Ensure they offer guarantees, like candidate replacement for three months or commitments to hire a specified number of developers within a set timeframe (e.g., first 5 developers in 4 weeks, as we do in Alcor).  

4. Prepare a job description 

In your job description, offer detailed information to attract top talent who will help you bring your product to the next level. That’s also when you should come up with the benefits you’ll offer to your new hires. And in case you need assistance with this, turn to the help of local recruiters.   

5. Sync up with the recruiter 

Make sure that you’re in tune with recruiters and that they understand all your requirements. At this stage, discuss the number of interview stages, the interviewers, and the additional candidate information you require beyond their CV.  

6. Conduct interviews 

Working with a recruitment agency gives you the chance to conduct interviews on your own. The recruiters may provide you with the best candidates, but you will assess their skills. Moreover, it completely depends on you regarding the number and type of interview stages.   

7. Share feedback 

After you’ve interviewed the candidate, share your opinion with the recruiters. They need your feedback to know what to say to the candidate as well as to understand if they need to fine-tune something.   

8. Make an offer to appropriate candidates 

Once you’ve found a software developer for hire, think thoroughly before making a final decision. At the same time, avoid unjustified delays while you’re considering so that your candidate doesn’t accept another offer meanwhile.  

9. Work with counteroffers & offer rejections, if any

At this point, you may encounter counteroffers and rejections. It happens when the candidate’s current employer tries to retain them with better pay, position, or other benefits. Professional recruiters often address counteroffers by discussing the developer’s motivations and goals, emphasizing how your company aligns with them. 

10. You’ve got a hire and can start working. 

The process is quite straightforward and brings outstanding results if you find a vendor who can perform to the promised standards. 

As you can see, this process is quite lengthy if you work through a traditional recruiting agency. However, you can significantly minimize the timeline by working through the R&D model, where the provider handles interviews, makes offers, deals with counteroffers, and ensures a smooth and easy onboarding process.  

So, work smarter, not harder. 

Where to Look for Developers in Ukraine

1. IT communities & marketplaces

Nowadays, it’s easier to hire developers in Ukraine than ever before since the country has well-developed tech communities like DOU and tech marketplaces like Djinni and dev.ua. They give employers access to software developers from over 20 tech clusters in Ukraine, including those in Kyiv, Lviv, Kharkiv, Dnipro, Odesa, Zaporizhzhia, Vinnytsia, and others.  

2. Freelance platforms

You can also find local developers on Ukrainian and global freelance platforms like Freelancehunt, Freelance.ua, Upwork, Freelancer, and Toptal. Yet this method is best for finding short-term team members for specific tasks and projects.  

3. Job boards

Job boards are a popular option for finding Ukrainian developers, with classic choices like Work.ua, Robota.ua, Jobs.ua, Jooble, and more. To attract the right candidates, it’s essential to create a compelling job ad, have a strong EVP, and establish a distinctive employer brand in the Ukrainian market.  

4. R&D providers

Another way to work with Ukrainian developers is to hire them with the help of R&D providers. Such companies have large tech recruitment departments and internal networks with hundreds of thousands of candidates. At Alcor, we have a database of 253,000+ highly skilled, pre-vetted candidates, from which we select those who will create the perfect match for your team. Moreover, an R&D vendor typically handles the entire hiring process, but the final decision is still up to you. 

So, it’s time for the final question: Are you ready to hire Ukrainian A-players with Alcor?