Software Development Team in Ukraine
We hire and operate. You get your own software development team in Ukraine.
You build your product. We have your back.
- Our tech talent is your perfect match that stays for good
- We employ, you own. 100% compliance, no exceptions
- Delegate your operational hassle, focus on what matters
- Expand rapidly if needed. We hire 10+ developers a month
- Save costs up to 40%, no buy-out or hidden fees
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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!
Why Tech Companies Migrate
from a Software Team Model to Alcor
- Right talent from the right markets Your requirements and individual vetting, access to the optimal candidates, free replacements
- People as a strategic asset Grow, invest, and retain tech talent. Build trust, boost performance, and benefit from long-term relationships
- Your team Complete transparency and control over your remote team, no go-between, only your culture and rules
- Transparent costs, predictable for years Set and revise individual compensations, understand every dime & get contractual volume discounts
- No exit barriers No exit fees, immediate and free IP transfer, audited and proven by publicly-traded companies
Software Team in Ukraine
- Entry-level talent, seniority inflation Wrong seniority mix, ungrounded titles, bench-focused project staffing
- No capitalization on knowledge Little/no control over engineers’ allocation, sudden moves to other clients
- Not your team Black box approach in compensation, motivation, performance, and individual contribution
- Untransparent & ever-rising costs Tricky rate cards or expensive pricing wrappers, regular cost increase with no visible returns
- Fence-based business Ridiculous notice periods and exit fees, legal obstacles to insourcing key contributors, and retaining knowledge
We Offer Cost-Efficiency for Your Long-Term Growth
Build top-talent software development team in Ukraine and effortlessly scale delivery
- $ 70,000
- $ 60,000
- $ 50,000
- $ 40,000
- $ 30,000
- $ 20,000
- $ 10,000
- 0
Budget for your team, not provider’s EBITDA
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Outsourcing company
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Alcor
- $ 70,000
- $ 60,000
- $ 50,000
- $ 40,000
- $ 30,000
- $ 20,000
- $ 10,000
- 0
- Engineer’s compensation
- Recruiting cost
- Provider’s uplift
We Build Software Development Teams Fast and Efficiently
2-6 weeks
to close a vacancy
80% of candidates
are approved by clients
98.6%
probation pass rate
2.5 years
average tenure
8 CVs
to get 1 accepted offer
5 business days
to send you first CVsReinvented Software Development Team Model
A reliable partner accelerates your expansion risk- and hassle-free
- Navigates you through tech market landscape
- Covers compliance, payroll, procurement, office lease
- Communicates, adapts, supports, takes action
- Always delivers
Key Things About Software Development Teams in Ukraine
Ukrainian IT industry overview
Ukraine has matured into one of Eastern Europe’s most attractive destinations for software development industry. Ukraine’s technology sector is marked by consistent growth, high-value exports, and a robust talent pipeline.
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 software 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.
Robust Startup Ecosystem
While the Ukrainian tech industry mainly focuses on IT services, its startup ecosystem is rapidly expanding. With over 1,500 startup companies, Ukraine is among the top 50 countries for startup development and offshore attractivness. This thriving environment is attracting a plethora of software product companies and investors to the region, enticed by the promising opportunities for innovation and advancement.
Strong Tech Community
Ukraine hosts many popular tech events in Europe, including meetups, conferences, workshops, etc. Every year about 1,000 events take place for software & QA engineers, top-level managers, venture investors, and non-technical professionals in the IT industry. The largest of them are:
- SaaS nation
- Lviv IT Arena
- iForum
- Year-End Summary Finance & Legal Conference for IT business
- IT Weekend Ukraine
- City Investment Forum
- ITEM
- .NET Fest
Ukrainina IT companies are members of different communities and local clusters. The largest union of software product and service companies is the IT Ukraine Association, which aims to build a dialogue between the local IT companies and the government (to create a comfortable business environment for doing IT business in Ukraine).
Government Support for the Tech Industry
The IT industry in Ukraine enjoys tax incentives. When properly employed as independent contractors, Ukrainian developers pay just 5% of taxes from their monthly salary (instead of the traditional 30-45% in the EU or USA). Hence, employers save on payroll tax, and software engineers earn more, which is mutually beneficial.
Reasons to Hire Ukrainian Software Development Team
Cost-Effectiveness
The combination of highly skilled developers and cost-effective pricing makes Ukraine a winning destination for businesses looking to scale. While businesses in the US, UK, or Western Europe may face increasing pressure from rising labor costs, Ukrainian software development teams offer a perfect balance between affordability and high-quality delivery.
For example, while a full-stack developer in the US can make around $153,000 annually, the same developer in Ukraine may earn approximately $73,000, offering a major savings opportunity. Moreover, the cost-effectiveness of Ukraine extends beyond salary rates, as there are fewer overheads such as office space or recruitment fees compared to operating in Western markets.
Top Talent and Expertise
Ukraine is home to highly skilled software engineers and other IT professionals, thanks to its strong focus on STEM education. The country produces over 35,000 graduates annually from its many tech-focused universities, including renowned institutions such as the Kyiv Polytechnic Institute and Ivan Franko National University of Lviv. This ensures a continuous influx of fresh talent into the market, skilled in the latest programming languages and technologies.
Software development teams in Ukraine are proficient in a wide range of technologies, from traditional programming languages like Java and Python to emerging fields such as AI, blockchain, and cybersecurity. Additionally, the country’s tech workforce is highly adaptable, capable of working across different industries, including finance, e-commerce, healthcare, and more.
Booming Tech Hubs
Ukraine has rapidly become one of the most attractive locations in Eastern Europe for IT outsourcing and recruiting software development teams. The country’s tech industry has been growing exponentially, largely driven by key cities like Kyiv, Lviv, Kharkiv, and Odesa, which have emerged as global tech hubs. Ukraine’s strategic location within Europe, combined with a highly skilled workforce, makes it a prime destination for businesses looking to expand their development capabilities. The country’s strong tech ecosystem has attracted global players and startups alike.
As a nearshoring destination, Ukraine is positioned as a leader in Europe, boasting an impressive number of software development teams across various technological stacks. Whether you’re building a mobile app, an AI-powered platform, or developing a sophisticated web solution, Ukraine offers everything from rare tech stacks to cost-efficient models that align with international standards.
How Local Developers Push Innovation Limits
Software development teams from Ukraine are rapidly gaining a reputation for their exceptional capabilities in cutting-edge technologies such as Artificial Intelligence (AI), Blockchain, and Internet of Things (IoT).
- Artificial Intelligence (AI): Local software development teams are pushing boundaries in AI development, with notable expertise in machine learning, natural language processing (NLP), and computer vision. Ukrainian tech companies have successfully created AI-driven solutions in industries like finance, healthcare, and e-commerce. One standout example is DataRobot, a U.S.-based AI company, which has an R&D center in Kyiv. The Ukrainian team plays a crucial role in developing machine learning models that help DataRobot automate data analysis, predictive modeling, and decision-making processes.
- Blockchain: With Ukraine’s rising prominence in the blockchain space, many local software development teams are deeply involved in building decentralized applications (DApps), smart contracts, and cryptocurrency solutions. Ukrainian developers played a role in launching Bitfury, one of the world’s leading blockchain companies, which has become a global player in the blockchain mining and technology space. Additionally, Ukraine’s capital, Kyiv, is home to several other blockchain startups and is a hub for cryptocurrency innovation. This expertise has attracted several high-profile international projects looking to integrate blockchain into their services.
- Internet of Things (IoT): Ukrainian development teams are also excelling in IoT, with a focus on interconnected devices for operating smart cities, healthcare innovation, and industrial automation. Ukrainian tech companies have worked on cutting-edge IoT solutions for companies in sectors such as agriculture, logistics, and manufacturing, leveraging technologies that improve efficiency, reduce costs, and enhance connectivity across industries.
Additionally, the role of Research and Development (R&D) centers in Ukraine has been pivotal in fostering a culture of innovation within the software development sector.
Numerous global tech giants have established R&D centers in Ukraine, seeking to tap into the country’s innovation ecosystem. For example, GlobalLogic, a U.S.-based product development company, has a large R&D facility in Lviv, where Ukrainian developers work on cutting-edge technologies, including cloud computing, AI, and big data. The Ukrainian team works alongside engineers from around the world to build next-generation software solutions, including AI-powered platforms, cloud-based tools, and data analytics products.
Ukrainian software developers vs. Software engineers from the US
Cost is a major factor for tech companies planning to hire software development team in Ukraine. On average, hiring 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 | $72,000 | $165,000 |
| Game Developer | $42,000 | $126,000 |
| Data Engineer | $57,000 | $108,000 |
| DevOps Developer | $72,000 | $145,200 |
| AI Developer | $69,000 | $171,600 |
| Blockchain Developer | $60,000 | $156,600 |
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: 20% 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 ~$69,000/year, compared to ~$171,600/year in the US. That’s a 60% cost saving without compromising on expertise or productivity.
This cost advantage allows companies to reinvest in product innovation, employee retention, and market expansion.
How Software Development Teams Thrive Amidst War
Software development teams in Ukraine have demonstrated remarkable resilience and adaptability, continuing to thrive even in the face of ongoing war. Local developers have maintained their commitment to delivering high-quality solutions to international clients, showcasing the strength of the nation’s tech sector.
- Commitment to Deadlines: Many Ukrainian software development teams have implemented flexible working conditions to ensure that projects remain on track. Even in times of crisis, these software teams have continued to meet deadlines, with developers working remotely, using cloud-based collaboration tools, and maintaining close communication with clients. This resilience is rooted in a deep sense of professionalism and a strong desire to support their families and communities during challenging times.
- Adaptation to Remote Work: As the war escalated, many Ukrainian development teams quickly adapted to remote and hybrid work models. With Ukraine’s strong infrastructure in major tech cities, such as Kyiv, Lviv, and Kharkiv, developers have utilized modern communication and project management tools to continue collaboration without physical office spaces. This flexibility ensures that software development processes remain uninterrupted, no matter the external circumstances.
- Innovation Under Pressure: War has, in some ways, propelled software development teams from Ukraine to innovate rapidly. Many teams have worked on critical software solutions to support the national infrastructure, healthcare, and military sectors, helping to rebuild and adapt the country’s systems for greater resilience. It has cultivated a culture of quick problem-solving and creative thinking within the tech community.
- Supportive Work Environment and Global Partnerships: The sense of solidarity within Ukrainian software teams and the support from international partners have been vital. Global companies continue to trust Ukrainian software engineers for their skill set, determination, and dedication. Many international clients have shown their support by maintaining partnerships, reinforcing the commitment of the Ukrainian software sector to stay operational and competitive in a global market.
Key characteristics of Ukrainian software development teams
Opting for a software development team model 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 hired by Alcor, 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 your own software 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
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 98.6% passing the probation period.
IP & data protection under Ukrainian/EU law
When working with a software 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.
How to Find a Well Rounded Software Development Team in Ukraine
Understanding Your Project Needs
Before diving into the process of hiring a development team in Ukraine, it is essential to clearly define your project’s requirements, as well as to choose a cooperation model. Whether you’re looking for a team to handle a specific project or seeking a long-term partnership, understanding the type of work you need and the technologies involved is key. Assess the scope of your project, the complexity of the software, and the level of expertise required.
Selecting the Right Partnership Model
In Ukraine, businesses have several options for engaging with software development teams, each offering its own advantages. These models include:
- Nearshoring: For businesses located in nearby European countries, Ukraine offers a nearshoring advantage with close geographical proximity and time zone alignment. Usually, Western European or Middle Eastern companies seek to hire software development teams from Ukraine due to just 2-3 hours of time zone differences.
Best for: European countries, looking for short-term or seasonal development services.
- Outsourcing: If you’re looking for a team to handle a project from start to finish, outsourcing to Ukraine may be the best option, allowing you to focus on other areas of your business.
Best for: Non-core projects or early-stage MVPs.
- Outstaffing: This model involves hiring Ukrainian tech teams to work indirectly under your management. This approach provides flexibility while still offering cost savings.
Best for: Short-term projects with limited hiring bandwidth.
Why the R&D model works best for long-term growth
An R&D model – often implemented via a your own software 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 Dotmatics and People.ai used this model to scale from 10 to 100+ engineers in under 12 months.
Alcor’s Expertise in Building Software Development Teams in Ukraine
Alcor is a trusted partner for Western tech companies looking to hire a software development team from Ukraine 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 find a perfect software development team in Ukraine and operate at scale—without hiring an internal admin team or taking legal risks.
FAQ
Why should I hire a software development team in Ukraine?
Hiring a software development team in Ukraine provides access to highly skilled professionals at a fraction of the cost compared to Western Europe and the US. Ukraine’s tech talent pool is vast, with developers excelling in a wide range of technologies like Java, Python, blockchain, and AI, making it a prime destination for cost-effective, high-quality software development. Alcor hires software development teams in Ukraine from 10 to 100+ developers with full operational support for your company’s global expansion.
What are the key advantages of building a software development team from Ukraine?
Building a software development team from Ukraine offers cost-efficiency without sacrificing quality. The country has a robust tech ecosystem, producing more than 35,000 IT graduates annually, and is home to thriving tech hubs like Kyiv, Lviv, and Kharkiv, which ensure businesses can access diverse talent and technological expertise.
How does Ukraine’s political instability impact software development teams?
Despite ongoing political instability, Ukraine’s tech industry remains resilient. Many Ukrainian software development teams have embraced remote work models, ensuring projects continue without disruption. However, businesses should consider potential risks and work with trusted local partners to mitigate challenges such as infrastructure limitations.
How do Ukrainian software development teams handle time zone differences with global clients?
Ukrainian software development teams are well-positioned for seamless collaboration with global clients due to the country’s time zone, which is just a few hours ahead of major European and Middle Eastern cities, and provides a manageable gap for US-based companies. This allows for efficient 24/7 development cycles by leveraging overlapping working hours and clear communication channels.
How can I scale my software development team in Ukraine as my business grows?
Scaling your software development team in Ukraine is streamlined with Alcor’s R&D center services. Alcor specializes in building scalable software teams that align with your business needs. Whether you need to quickly expand your team by adding developers or require specialized expertise in areas like AI, blockchain, or web development, Alcor offers a tailored solution. With full-cycle IT recruitment, legal compliance, and back-office support, you can scale your team efficiently while maintaining control over development processes and costs, allowing your business to grow rapidly without the usual hiring challenges.