Online Calculator: In-House vs Offshore Software Developer Payroll Costs
In the tech industry Ukraine positions itself as one of the most wanted outsourcing destinations. And there are various reasons for this. First, we have a lot of qualified IT specialists, talented developers, and highly professional business managers. Second, local IT services rates and salary expenses are much lower than in other countries. Another reason is that Ukraine is located in the center of Europe so the time difference with the major Western countries does not exceed 10 hours.
One of the main reasons to outsource your web development is cutting the costs. By comparing Ukrainian IT services rates with those in Western countries, you will see significant difference. In the USA and Europe, the salary is just a part of the employee’s total cost. For instance, software developer’s full coverage in Western countries is 40-50% higher than their basic salary. These figures include taxes, vacation, benefits, and medical insurance.
Comparing Ukrainian rates for IT services with other outsourcing destinations, you should also consider time difference, location and travel expenses, as well as cross-cultural differences. Ukraine’s geographical position eliminates cultural and business ethics with Western countries.
Ukraine represents the IT ‘incubator’ with 200+ top American, European, Israeli and Ukrainian companies’ departments and headquarters. The research indicates that Ukraine remains the largest U.S. partner for joint R&D activities. Today, approximately 50% of Ukrainian IT outsourcing companies are from the USA, followed by EU countries and Israel. The most popular outsourcing destinations in Ukraine are Kiev, Kharkiv, Lviv, and Odessa.
There are over 122 tech Universities in Ukraine with over 80% of IT specialists speaking English. Following this, we have 250,000+ IT specialists and have exported over 80% of IT services abroad. Ukraine has a large proposition of the highly skilled employees in both technical and managerial sides of the IT industry.
Ukraine has the European vibe, developed infrastructure, with dynamic cultural and social activities. Our transport system became more comfortable for traveling, as due to our pro European course, out air communication became cheaper and more developed. Lower costs of IT outsourcing services, followed by a high level of quality, made Ukraine one of the top offshoring countries. Cross-cultural differences among US or European countries are not significant as we share the same values and business ethics. Why not choose Ukraine as your next outsourcing destination?
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