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Ukraine Ranks 1st Among Software Development Outsourcing Providers in CEE

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In January 2019 Kyivpost, Ukraine’s famous English-language newspaper, published a report with the most recent data on the growth of IT industry in Ukraine. 

According to the report, IT industry in Ukraine became the 2nd largest export industry in 2018. In 2015 Ukrainian IT exports made $2,6 billion, this number increased to $4.5 billion in 2018, showing a 20% year-over-year growth. According to UNIT.City, Ukrainian exports of IT services are expected to reach $5.4 billion in 2020 and $8.4 billion in 2025.


The growth of IT industry exports in Ukraine 

This type of growth facilitates the sharp rise of software development companies. Here are the latest-available statistics:

  • In 2009, the number of Ukrainian software development companies was 940 that number grew to 1050 in 2011. As of now, the number of companies ranges between 1391 and 1650
  • According to the CEE Software Development Report 2019 presented by AVentures, Aventis Capital and Capital Times, 50% of companies are young, with 5-10 years of operation experience, and 33% are 10-15 years old. 
  • Over 60% of IT companies are headquartered in Ukraine while the biggest industrial players choose international headquarters with a Ukrainian subsidiary. (CEE Software Development Report 2019)
  • 18 Ukrainian companies have already entered the Global Outsourcing- top 100 ranking. 
  • The main revenues of Ukrainian IT companies come from software/hi-tech vertical (73%)

The future growth of the IT industry in Ukraine, according to the CEE Report 2019, will be determined by a strong focus on a particular industry or technology domain.

How Many Software Developers are in Ukraine?

The estimated number of Ukrainian software developers in 2015 was 74,000, by 2017 this number reached 166,000. According to the latest update, there are 184,700 IT professionals. By 2020 the number will rise to 200,000 and in 2025 Ukraine is expected to reach an astonishing 242,000 IT specialists. Yet, it’s not only about the quantity:

  • Ukraine ranks 11th among the top 50 countries with the best software developers
  • Ukrainian freelance engineers take 7th place globally based on high-performance, quality and efficiency. 
  • Ukrainian developers take 6th place according to Programmers Activity by TopCoder Report 2018
  • Ukraine took 8th place among the Best Programmers according to the SkillValue Report 2018
  • Ukraine took 4th place at the International Math Olympiad 2018
number software developers ukraine

The number of software developers in Ukraine

The figures above demonstrate the growth and development of Ukraine as a tech destination with Microsoft, Wargaming, ABBYY, Samsung, Huawei, Siemens and other tech giants having their development centers in Ukraine.

How to Choose an Outsourcing Software Development Company in Ukraine | 5 Tips

Outsourcing cooperation model

First, decide: What cooperation model are you planning to work with? 

Within the project outsourcing model, you execute the entire project to the outsourcing company, which takes responsibility for all aspects of the software development: assembling the right people, team management, quality control, etc.

By utilizing the extended team model, you are building or expanding your own software development team, rather than substituting it.  At Daxx, we decided to operate according to this model (it is also referred to as outstaffing or team augmentation). This approach combines the positive aspect of classical outsourcing and opening your own offshore software (R&D) centers, yet discarding the negative aspects, such as lack of control and administrative or legal hassles.

Security and quality standards

Security and information protection lie at the core of every effective business strategy. Make sure that the company maintains data integrity and copyright protection of computer software. Ask: 

  • Do you have a security manager?
  • What security measures do you use to ensure that sensitive data is protected?
  • How do you ensure GDPR compliance?
  • Do quality management and information security comply with the following regulations and audits? Namely:
  • ISO 9001:2015 – Quality Management Standards
  • ISO 27001:2013 – Information Security Management Standards
  • Do you have an established process to deal with security breaches?

It’s not the first thing to check, but to get the evidence of a good reputation, check if the company enters Clutch, Goodfirms ratings or has reliable competency certificates. Remember, if the quality isn’t there, outsourcing is not a good option.

Also, we recommend reading our Guide on Outsourcing to Ukraine. It leads you through the process and gives useful hints that will save your resources.

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Service delivery capabilities

It encompasses design, development, deployment, operation, and retirement. Reveal the following:

  • How fast is the company able to find the required staff?
  • What is their position on the market?
  • How big is the database of potential candidates?
  • Does the company provide the specializations and services listed on their website?
  • What administrative and value-added services do they additionally provide?
  • Why should you choose them as a software development partner? 

Reliability & company maturity

Companies with 10-15 years of experience on the market tend to have a clearer understanding of what their customers need, have an established team and enough experience to manage the processes and create successful software development projects. Check:

  • Whether they have established business operations?
  • Have a transparent financial system in order to understand what you are paying for.
  • How many years of experience do they have?
  • Do they demonstrate company growth? 
  • Can they provide references working with companies like yours? 

With 20 years of experience, Daxx understands all the needs of the customers and offers transparency, flexibility, and cost efficiency. We work with companies from many industries, including fintech, travel, telecommunications, e-commerce, health, and education

The location

Choosing the right location is one of the main challenges businesses face when making outsourcing decisions. This decision influences variable costs, skills availability, market potential, IT environment, etc. Despite the fact that IT companies are present in all regions of Ukraine, according to CEE Software Development Report 2019, the main tech hubs are Kyiv, Kharkiv, Lviv, Odesa, and Dnipro.

Largest number of software development companies in Ukraine

Ukrainian cities with the largest number of software development companies 

Why Choose Daxx as an Outsourcing Software Development Partner?

  • Qualified Tech Specialists

With access to 185,000 web and mobile developers from our database, our recruitment team will find the candidates with the required experience and tech skills within approximately 5-6 weeks.

  • Quality and Information Security Systems 

Our information security manager implements effective technical and organizational measures to improve the security and reliability of our services and restrict access to sensitive data.

  • All-around Support

Daxx experienced Human Resources Specialists, Client Managers, and Service Delivery Directors ensure that everything goes smoothly throughout each stage of the development life cycle as well as share expert advice on the best remote team management practices.


Juliya Mankovskaya

Juliya Mankovskaya is an avid Outreach Specialist at Daxx. She is passionate about Digital Marketing, IT and modern technologies. Juliya is responsible for Daxx social media promotion and external publications.

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