EXPANDING EUROPE: NEARSHORE SOFTWARE DEVELOPMENT IN UKRAINE
INTRODUCTION
In our blog, we already wrote an article about nearshoring, which you can read at the link (Nearshoring Ukraine), and decided to expand this topic with a slightly new format that will be no less interesting and useful for you, dear reader. And before we start our new discussion, let's remember what nearshoring is.
Nearshoring is a great opportunity for clients to have talented resources in a convenient geographic location with the advantage of neighboring countries, as well as the opportunity to choose for themselves the exact country that will economically and financially meet the requirements of clients. Covid-19, trade conflicts, as well as economic instability in recent years, have shown how vulnerable global supply chains are and that nearshoring is the business model of the future. It cannot be said that nearshoring is a magic pill for everything, but today many companies, to save time searching for employees, interviews, and saving finances, prefer the most prosperous and financially satisfying country for them to choose this business model.
WHY UKRAINE SHOULD NOT BE MISSED
Every year Ukraine becomes more and more the center of attention in the world of IT technologies. Like many other countries, Ukraine has not been spared by the revolution in the IT sector, and now it is one of the most promising countries for developing software and providing IT services. It should be noted that Ukraine is already a major supplier of IT services for Europe and the USA today, and speaking of the main thing, customer reviews are very impressive, because more than 90% of employers that have ever collaborated with Ukrainian dedicated developers were satisfied. Many large companies have already hired a remote team or opened their offices in Ukraine, as well as entered contracts for the provision of IT services. In addition, Ukrainian IT specialists, developers, and programmers are actively involved in the development of products for the world leaders in the IT industry.
But more than one country in Europe can boast of these facts and indicators, Germany for example, and everything would be fine, but there is one small feature that attracts foreign companies so much. To understand what exactly we are talking about, we will give you a clear example. Let's take for comparison Germany, which we have already mentioned, and Ukraine, and to be more precise, their two main aspects - in terms of the quality of work, and in terms of financial benefits. In the first case, both countries are ready to show good results, because they are not inferior to each other in the labor market and are in great demand. But if we consider the second aspect, then Ukraine still occupies a leading position.
Ukraine is exactly the golden mean where you can hire high-quality developers at lower prices without compromising the quality of the product. The main reason for this is the lower cost of living in Ukraine, which we mentioned more than once in our previous articles than in other European countries. This, in turn, contributes to the lower salaries demanded by programmers and developers. Thus, for companies that want to maintain their financial capital, Ukraine will become an ideal platform for placing their business there and hiring Ukrainian specialists.
ONE STEP CLOSER TO EUROPE
Not so long ago, the news spread around the world that Ukraine is on its way to joining the EU. On the fourth day after the start of a full-scale war, Ukraine applied for EU membership, and today has already acquired the status of an EU candidate. In addition, the statistics showed record levels of support from many EU countries, and to be more precise, in the survey, during which more than 30 thousand European citizens were admitted, 66% support Ukraine's accession to the EU, and 74% believe that Ukraine is already part of the European Union. families. In addition, the leaders of the EU countries have repeatedly noted that "the European Union is Ukraine, and Europe is our common home."
Now the country is still working on a full-fledged accession, which may in the near future become a new impetus for the development of its potential. In addition, both before Ukraine itself and before the countries that have already entered the EU, new opportunities will open - access to markets and investments, which will further strengthen this union, as well as increase the prestige of Ukraine in the world of IT technologies.
The future European integration of Ukraine will also have a positive impact on the IT market: Ukrainian and European borders will be erased even more, due to which more foreign customers will come to the country. Also, offices of international companies will begin to open in Ukraine, which will provide jobs for Ukrainians. And this will positively affect the development of competition, the dynamics of wages, and the economy as a whole.
WHERE THERE IS DEMAND, THERE IS COMPETITION
Even without statistics, we see how over the past few years the IT market has become oversaturated with specialists. A good salary, the relevance of this profession, the opportunity to work for yourself - this not only attracts many people who, when choosing a future profession, consider the IT sphere. Let's remember the law known to all of us - where there is demand - there is competition. But why, if we compare the Ukrainian IT market and the American one, then obviously the competition in the first case is not so high?
Firstly, recent studies have shown that only 57% of Ukrainian specialists want to stay to work in Ukraine, while the rest, without waiting for an offer for cooperation from a foreign company, go abroad in search of work.
In addition, in Ukraine, there are 2–3 times fewer IT specialists per 100,000 people than in competing countries. This suggests that we still have a high potential for expanding employment in the IT sector through formal education and retraining. Due to this, the competition is not so tangible, and for young professionals, it feels like a breath of fresh air, and an opportunity to show their skills.
Perhaps this remains the main reason why the Ukrainian market is still not oversaturated with workers. But do not forget that the number of people who want to delve into the field of IT is growing every day, and education or developer skills can now be obtained not only at the university, but also by taking courses, enrolling in an online school, or even learning everything yourself. Perhaps the demand for self-taught specialists will be less, but they should not be underestimated, because in the total amount, the level of competition in the labor market will soon begin to grow.
All these facts testify only to the fact that we are only at the beginning of success. This is facilitated by the talents of Ukrainian developers, the popularity of the profession, the development of educational projects and the large capacity of the labor market in Ukraine. Perhaps this is the very sign that now is the time to hire your own team of Ukrainian developers.
DON'T WASTE YOUR TIME!
Despite the difficult economic situation in the country, Ukraine continues to develop in the IT sector. Thanks to the high level of professionalism of Ukrainian specialists and the availability of modern technologies, Ukraine is already becoming one of the leaders in the world of IT technologies.
In addition, we cannot fail to note that Ukraine is an attractive place for investors due to its high qualifications and low labor costs, which we have already mentioned. Is the country, according to some experts, that will become a major supplier of IT services to Europe and the USA soon, and it is worth investing now, while the competition for Ukrainian specialists is not too high.
We also cannot fail to note the location of Ukraine, which makes it an ideal place to develop and present our services. Moreover, in addition to its location, Ukraine has a well-developed infrastructure and access to modern technologies, and even though, due to recent events, the country cannot use its potential to one hundred percent, in the near future it is the infrastructure that will play an important and decisive role in establishing physical contact between countries.
But wait, enough about the future. We live here and now, and businesses like fast and smart people, and perhaps not everyone has the time and desire to wait. What should companies do then? The answer is very simple - build relationships now. Ukrainian developers are already cooperating with many foreign companies, and for many companies, this symbiosis has become the best investment in the future.
CONCLUSION
Today we are witnessing the phenomenon when for the first time the IT industry is turning from a "niche story" that few people have heard of, into a popular area that many people want to get into. And to sum up this article, let's talk about the relevance of nearshoring in Ukraine once again:
• Economic and financial benefits for clients who want to take advantage of this business model and consider Ukraine as an area;
• Not so overheated IT market and relatively low level of competition compared to European countries and the USA;
• High quality of work, which is already used and satisfied by many clients from abroad;
• Good location, highly developed infrastructure, the possibility of cooperation and provision of its services to the EU countries;
We hope this article was for you, our reader, no less interesting and informative than the previous one, and you will be happy to follow the news of our blog.
If you have any questions or have an idea about hiring a team of professional developers in Ukraine, we would be glad to fuel your business idea with our services: contact.us@gointeractive.co
