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Developex

There’s new report of ITO about outsourcing tendencies and rates in 2012 in Ukraine

Source: “Exploring Ukraine. IT Outsourcing Industry”, Ukrainian Hi-Tech Initiative

This report is really big, more than 100 pages and very interesting to read. If you want to see full version of report, click here.

We will try to extract most significant changes since the time of previous report of 2010 and show you briefly the situation on IT outsourcing market in Ukraine.

Since the year 2000 Ukraine has become a leading participant in the software development space, and has been outranked at the top of IT outsourcing service providers in the worldwide market. More and more companies come to Ukraine choosing it as a preferable destination for their R&D businesses office. Strong engineering education, popularity of engineering professions among the youth, and rich history of the software development industry make Ukraine one of the most attractive EU destinations for the IT outsourcing and computer software development businesses.

Snapshot of Ukraine’s IT Outsourcing Industry

Ukraine represents the largest IT outsourcing industry in Eastern Europe.

  • IT outsourcing industry growth rate for 2011 — 20 %
  • More than 1,000 IT outsourcing companies
  • 25,000+ specialists involved in the IT outsourcing industry
  • Ukraine has more than 800 universities and colleges
  • Majority of Ukrainian IT specialists (est. 70 %) work for American or European customers

A number of government initiatives introduced to support and promote the Ukrainian IT industry.

Fig. 1. Outsourcing market volume from 2003 to 2011, Mln USD.
Fig. 1. Outsourcing market volume from 2003 to 2011, Mln USD.

Software Development Rates in Ukraine, 2012

Information on the average rates – development companies in the Ukrainian market charge for specific expertise help provide an impartial assessment of the volume of projects and the overall expense of outsourced IT projects.

The figure below shows the rates for the following specialists: Project Manager, Senior Developer, Middle Developer and Junior Developer, QA Tester, Application Architect, Business System Analyst.
Rates are calculated based on the amount the end customer pays for the services of an IT specialist per hour, inclusive of salary, taxes, facilities, etc.
To calculate the maximum average rates, the average value of 15% of a maximum rate for a Project Manager was used. To calculate minimum average rates by country, the average value of 15 % of minimum rates for a Junior Developer was used.
To calculate the average market rates, sources used included data on average rates by position.
The average rates were calculated using the following formula: 10% of average rates for a Project Manager in the country; + 20 % of the average rates for a Senior Developer in the country; + 50 % of average rates for a Middle Developer in the country; + 20% of average rates for a Junior Developer in the country. Ten developers was the average number of members in a typical team used for this formula.

Service Rates US$/hour

2012 rate, USD 2010 rate, USD
Average Market Rates
(maximum – minimum)
42 (max) – 14 (min) 24
Average Market Rates 25-26 24
Project Manager 34 32
Senior Developer 29 27
Middle Developer 25 23
Junior Developer 20 18
QA Tester 22 20
Application Architect 36
Business System Analyst      37

In fact, there’s a small grow since last year.

As you can see, average development rates are growing steadily every year. But current rates for development services in Ukraine far less than same level developer rates in USA or Canada.
Of course this rates are almost the same as in India or Vietnam, but the level of developers in Ukraine and India are very different. Ukrainian professionals are well-educated persons, most of them have bachelor degree and have great learning abilities.

Main IT Outsourcing Services Provided by Ukrainian Companies

Considering that IT support and BPO services are closely related to offshore software development services, there is great potential for further developing these segments. In addition, the recent strengthening of Ukrainian legislation to meet European standards for the protection of personal data is a strong, positive step for the development of IT support and BPO services in Ukraine.

  • Custom software development – 92%
  • Software testing / QA – 67%
  • Application maintenance / Application management – 55%
  • End user support / Application user support – 44%
  • System administration / Database administration – 42%
  • SaaS services – 39%
  • Box/ Licensed software development – 36%
  • IT consulting / Project management – 34%
  • Helpdesk support / desktop management / IT service desk – 25%
  • Game design and development – 25%
  • System integration / Integration IT services – 15%
  • Enterprise application management – 14%
  • Security management / On-line monitoring / Antivirus support – 12%
  • IT strategy / IT architecture services – 12%
  • Network infrastructure support – 7%
  • Hardware maintenance / Infrastructure services – 4%
  • Application hosting / Application housing – 4%
  • IT training – 1%

As you can see, outsourcing market in Ukraine grows year by year very well. Most Ukrainian IT specialists are well educated and are true professionals in their fields.

As more and more companies try to lower their development spending, outsourcing to Ukraine can be really pleasant solution to you and your company.

Source: ITOnews.com

As you can see, the language on this site is not pure English, but with some Ukrainian accent. We decided, that it is not effective to hire native proofreaders every time we update the site.

It is the same language here that we use in communication with customers. So, you can decide, if there is language barrier problem or not.

These guys are rock stars!!

Our project required building a dashboard system with very demanding user-interface requirements. The system needed to provide very fast performance at the same time as it displays hundreds of thumbnails and supports powerful search, preview, and grouping features. Furthermore, the system required the implementation of an extensive set of database triggers. DevelopEx once again exceeded expectations and delivered an incredibly well-designed and well-built solution that is truly impressive.

Marius Moscovici Metric Insight Inc.

Developex saved me a lot of time and energy on this project.

Their technology recommendations solved the most complicated issue out of the gate, and he executed very well. Tweaks and changes were addressed quickly, with a polished final product.

The job was executed with expertise and commitment. They showed great patience after they encountered an issue with my set-up. When I was able to solve the issue, and evaluate work to date, some minor issues were addressed quickly, and communication was fast. I will use Developex again. Brad Bowyer CB Engineering, Canada

Alex and his team did another great job – I am very satisfied.

I would like to mention that they are very attentive to additional requests (which can be really confusing) and numerous changes to requirements.
He also shows very healthy attitude when being criticized and does his best to make the customer happy. Michael Collectsys

DevelopEx is not only an outsourcing option, but a quality business partner!

Their excellence comes from an astute understanding of our business goals giving them the ability to execute our plan to our specifications, exactly. DevelopEx was extremely available for Skype meetings whenever we needed him. We will definitely be using them for future enhancements, products and modifications. SpotHawk

Excellent company to work with, must be one of the best as we have seen many others.

Grasp the details fast and make useful recommendations as well as introduce and implement ideas that benefit the project . Patiently work on frequent project changes when needed without increasing the budget. Very professional with lots of attention to details. Great personal skills. AWA Inc.

Developex did an excellent job on a very complicated project.

If you are looking for very good Windows developers that create very nice GUIs, Developex is the place to go. CyberLink Labs

DevelopEx is as professional as they get according to my experience.

Prompt smooth communication. I would surely recommend to others. I plan to use this company again. Range Consulting

Developex made a sensational good job.

It was a pleasure to work with those guys. They delivered what they promised, they are fast, very friendly and also with their beta version we had no hazzle. M. Neumer SoftENGINE GmbH

Very nice people to do business with.

What I appreciated most was that they stood by their work and fixed every bug with patience at no extra cost. Nick Amazia LLC

Highly recommend Developex

Excellent communication and great work! The Benefit Partnership

US Biometrics has worked with DevelopEx on a number of projects.

Our experience is that they provide excellent service. They managed most of the difficulties with outsourcing very effectively, and their work product was delivered, quickly, on time and of the highest quality. They showed a very high level of flexibility and adaptability to our changing environment. I would highly recommend them to others. Fraser Orr Chief Technical Officer, US Biometrics Corp.

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Excellent in all aspects. WebConference.com

LeanDo started working with Developex on 2010

LeanDo started working with Developex on 2010, and since then we have experienced a professional, serious and effective partnership, enabling us to provide distinctive services to our own customers. Pedro Gama LeanDo Technologies