Recent trends and statistics show that IT firms opt to outsource app development from the UK to UA and other countries. UK companies are rushing to outsource their business, with a 35 percent increase in the number of firms going abroad, according to a survey by Freelancer website. The same research predicts that 43 percent of companies expect to outsource more work to other countries especially, small IT firms.
With its highly educated and skilled developers, Ukraine has positioned itself among the top go-to destinations for IT outsourcing. There are many reasons for this shift; we shall discuss why Ukraine has an advantage over the United Kingdom in IT outsourcing:
High app development cost in UK
App development costs are significantly high, compared to Ukraine. For example, in data collected and publicized by ThinkMobiles, on app development for iPhones and Androids, Eastern Europe ranked way lower than the UK; the rates are $70/$35 for UK and UA respectively. These differences in app development expenses in addition to other costs are making developers seek cheaper alternatives in Ukraine to leverage on profits.
Low cost of app development in UA
Ukraine’s main advantage is the relatively low cost of required skilled labor for app development. With a young population, who are well educated in math and sciences and are IT literate, Ukraine is an ideal option for app developers compared to UK.
Ukraine has a large pool of IT talent waiting to be tapped; the country has focused on technical education and training with the fourth highest number of certified IT professionals after the India, US, and Russia. The fact that Ukraine is not a part of the European Union yet has their IT professionals at home since they cannot move around Europe for work- this offers companies a reduction of 40-60%.
Existing data science and IT development infrastructure.
There is an existing and robust IT development infrastructure in the Ukraine, which offers a favorable business environment and moderate cost of IT services leading great reductions to app development companies cost. The country and is professionals are continually investing in latest industry trends, with operational and advanced data science R&D centers, ongoing seminars and training events for engineers, companies are happy to set up shop here.
Excellent communication skills and English Proficiency
Ukrainian IT professions have good communication skills and are relatively proficient in English; this makes for easy interaction with foreign companies. A survey by dou.ua found that 40.2% of Ukrainian IT professionals are proficient in English and 38.6% possess basic knowledge. English is an essential requirement for IT and data scientists.
Favorable costs of setting up and doing business
The Ukrainian national government actively supports the IT and has come up with an attractive and simplified tax regime offering an environment favorable for IT business. Companies are looking to maximize their profits- with a taxation system that leaves them with more in their coffers; UA is an appetizing setup destination.
Clearly, Ukraine offers a great costs advantage for IT firms, especially the smaller ones who are looking for a favorable home to set up app development centers. The high and increasing cost of app development in UK is the main catalyst for the shift in outsourcing to UA; even though with the rising demand for app development professionals and expansion of IT outsourcing in Ukraine has led to increases in skills costs, it is still cheaper than being in the UK.