Ukraine: Software Developer Rates and Other Benefits for IT Outsourcing

If you are a business in IT outsourcing development to Ukraine or just consider the possibility, here you can find useful information and reasoning for choosing Ukrainian software developers.

 

Despite the war, Ukrainian companies like Onix continue to deliver high-quality software products and acquire new clients. If you contemplate a project, need assistance with your existing product, or have questions, please don’t hesitate to contact us!

InnerAI, a mobile app leveraging AI for personalized meditations — one of Onix’s recent projects

 

Whenever people speak of Ukraine, outsourcing rates come up as the primary perk. For example, Onix’s minimum hourly rate of $35 is even lower than in neighboring Poland or Romania. However, there’s more to it than just saving money: 

 

• a wide choice of IT talent proficient in various programming languages and technologies
• Ukrainian software engineers’ consistently high expertise, professionalism, and extensive experience of working for global clients, ensuring excellent quality
• adherence to international software development and data security standards and best practices
• favorable business conditions and convenient time zone for collaboration with European and North American clients

 

This article answers critical questions like

 

• How much does it cost to hire developers in Ukraine?
• How to find the best price/quality ratio?
• Why does Ukraine remain a viable option for outsourcing software development?

 

How Much Does It Cost to Hire a Software Developer in Ukraine?

If you plan long-term cooperation, you need to look into monthly salaries. Platforms like DOU, Glassdoor, and Payscale may give you an idea.

 

For instance, in July 2024, Glassdoor indicated $3,500 per month as the average pay rate of a software developer in Ukraine. DOU published a report with an average outsourcing companies’ rate ranging from $900/month (for junior software engineers) to $4,260 (for senior SEs).

 

If you need a small project executed quickly, it will be helpful to know the specialists’ hourly rates. The average Ukrainian developer hourly rate is $25-$55. For instance, Onix’s rate ranges between $35 and $45 per hour and can be negotiated. 

 

Generally, the cost of hiring Ukrainian software developers depends on several factors. 

 

1) Type of technology and skill level

For example, if your existing software’s back-end is written in PHP or Java, you need to look specifically for PHP or Java developers. Here are some of the software engineers’ monthly salaries in Ukraine in summer 2024:

Source

 

If you don’t know yet what technologies you will need, a proper product discovery with experts will be helpful. They will recommend the most suitable tech stack to look for. 

 

 

Custom software development rates also vary depending on the specialist’s programming language skill set and their years of experience:

 

1. A junior developer receives a minimum wage for 1-4 years while they accrue expertise and prepare for more complex projects. 
2. A middle developer with at least 3-5 years of experience usually knows several programming languages and can handle more challenging tasks.
3. A senior developer, after 5 years of work, is normally proficient with practically any technology they use and can perform more complicated tasks, design system architectures, and supervise the work of others.

 

The gap between a novice and a senior developer working with the same language is often greater than between different languages. Here are the monthly salaries of some of the most in-demand specialists in summer 2024:

 

* DOU did not report some of the junior developers’ monthly salaries.

 

Your project cost estimate should account not only for the estimated number of hours and selected technologies but also for the required level of the development team members.

 

2) City/region of the country

In Ukraine, IT outsourcing rates also differ between regions. As a rule, software engineers’ salaries in big cities are often higher than in smaller towns like Onix’s headquarters Kropyvnytskyi.

 

 

According to the same DOU report, the capital city of Kyiv is still the most expensive; software engineers there earn $3,900 per month on average.

 

Developers based in two other significant hubs, Odesa and Chernivtsi, earn $3,000/month. In Khmelnytskyi, one of the smaller towns in the “safest” part of Ukraine, software developer rates seem to be the lowest — $2,175/month. Still, the “bigger city, higher salaries” rule doesn’t always apply to each technology.

 

The rates of specialists working in outsourced development companies also tend to be lower than those at outstaffing companies. 

 

Learn more: Outstaff vs. Outsource: Which Suits Your Business Best

 

3) Outsourcing pricing model

You will most likely choose between the following cooperation models: 

 

Hiring freelancers

You may find individual Ukrainian specialists on freelance platforms like Upwork or Freelancer. The payments will likely be calculated based on the specialists’ hourly rates. 

 

The developers’ rates may vary, depending on a freelancer’s specialization, skill level, and geographical location. Still, in any case, they tend to be higher than a fixed salary for a project or per month. The platform’s commission is a “hidden cost.”

 

Fixed-price contract

A fixed-price contract is possible when all project requirements, deadlines, and budgets are known. You may contract an individual software developer, but most often, outsourced development companies and teams are contracted to realize a project from A to Z. 

 

VR medical training prototype — an example of fixed-price projects realized by Onix

 

The price will likely be calculated based on the team members’ hourly rates and include some extra hours the developers may spend if an initial estimate proves incorrect or an issue pops up (typically around 20% of the budget). 

 

Time-and-material, a.k.a. hourly rate contract

Each specialist is paid for the work they do according to their fixed daily or hourly rate. This model is often used for ramping up a team temporarily, filling a skill gap, or completing some extra work the in-house team can’t handle.

 

It’s also applicable to tasks with unclear or fluid requirements when engineers cannot estimate the exact timeline.

 

The T&M approach allows the client to make as many changes to the requirements as they need, which is critical for startups and businesses that must quickly respond to changes in a highly competitive market.

 

However, since the hourly rates are higher than monthly rates of dedicated developers, this is not the best option for long-term cooperation.

Adoric — one of Onix’s oldest dedicated teams, working on the project since 2013

 

Dedicated team

The vendor (a company like Onix) will assemble a dedicated team based on your project requirements, considering the programmers’ skills and experience. The team will be focused on that project full-time. As a client, you can define the number of developers and their workload and control the processes.

 

Learn more: How to Hire an Offshore Development Team in 2025

 

The monthly payments will include each specialist’s salary plus the vendor’s fixed service fee that covers the vendor’s costs: the office in which the team works, their employment taxes, accounting, etc.

 

This model lowers outsourced software development costs by 20-30%, and the developers’ rates are usually negotiable, so hiring a dedicated development team in Ukraine is a top-notch outsourcing IT practice.

 

IT Outsourcing to Ukraine: 5 Main Reasons

 

1. Ukrainian software developer rates are super attractive.

The outsourcing rates in Central and Eastern Europe are generally higher than in India or other low-cost destinations and comparable to Latin-American ones.

Source

 

However, a median Ukrainian developer hourly rate is more competitive than even in neighboring Poland, Bulgaria, or the Czech Republic. So, if you’re interested in cheaper software development, Ukraine clearly remains an attractive option.

 

2. The vast pool of Ukrainian IT talent. 

Ukraine is an outsourcing destination “with incredible depth of talent and capability.” There are approximately 346,000 IT professionals currently (the number has grown during the war).

 

A typical Ukrainian IT worker has a higher, typically technical, education, speaks English at a level no lower than Intermediate, and has at least a couple of years of experience.

 

Some 400 local educational institutions produce around 20,000 tech graduates annually. IT companies also invest in training new tech talent.

 

For example, our company runs Onix Academy where our team members share their knowledge and mentor trainees for free. It’s a win-win for all: the mentors give back to the community, people obtain high-paying jobs, and Onix may hire talent trained according to its requirements.

 

Over five years, 500+ interns have taken various classes, and 100+ have joined the Onix team!

Ukrainian IT companies also sponsor events like tech conventions, hackathons, etc. Hundreds of industry conferences, meetups, hackathons, workshops, and webinars are held annually.

 

Read also: Onix at the Global Game Jam: Creating a Game with Unity in a Week

 

The huge tech talent pool means not only more choices for clients. Stiff competition among software development companies and developers in Ukraine’s labor market promotes the provision of high-quality IT services at fair prices.

 

3. The professional qualities of Ukrainian software developers.

Over the years of work, Ukrainian software engineers have proven themselves creative, trustworthy, and reliable. They are increasingly tech-savvy and interested in innovations and IT best practices in more advanced economies. They travel to Europe and the U.S. on vacations and to attend technical conferences. 

 

Ukraine has a long history of startups and is home to several unicorns; you will find R&D centers of several tech giants in Ukraine and lots of bright Ukrainians in the Silicon Valley. 

 

89% of Ukrainian IT professionals have an intermediate or higher level of English proficiency. For leading SEs, project managers, and client support, it’s 100%.

Source

 

Learn more: How to Manage an Offshore Team’s Communication in Agile Projects

 

Ukrainian developers also excel in problem-solving and self-management. Regarding work ethics, they are open to new challenges and are inclined to be personally involved in the development projects. Most customers find them friendly, polite, diligent, loyal, dedicated, and eager to understand and prioritize the client’s needs.

 

For example, in Europe and the U.S., employees work “from 9 to 5.” Ukrainians stand out for their willingness to go the “extra mile.”

 

For instance, it isn’t rare for Onix’s development teams to work 10-12 hours daily to meet tight deadlines. The Adoric system was once migrated from Amazon Web Services (AWS) to Google Cloud Platform (GCP) overnight to minimize possible impact on customers, and the Clubhouse platform was launched on Christmas Eve. This diligence and sense of responsibility is also our competitive advantage.

 

 

Much of the Ukrainian software developers’ work ethic seems to stem from a strong sense of family and Ukraine’s turbulent history that taught the people to treasure stability. This has a practical meaning for outsourcing clients.

 

The high retention rate among Ukrainian developers is one of the benefits. Software lifespan  may reach 6-14 years. Suppose software developers tend to change jobs biannually. Then, your project may see 3-7 different teams during its lifetime.

 

It’s hard to quantify the cost of lost knowledge and productivity when each team member leaves, but recruitment, onboarding, and other costs of replacing each developer would amount to thousands of dollars in the U.S. Three rotations of an in-house team result in hundreds of thousands in turnover costs.

 

Outsourcing exempts you from the recruitment costs. Your partner is responsible for filling any gaps caused by a developer leaving the team. Moreover, Ukrainian software engineers are currently more eager to keep their job than to risk an uncertain future.

 

As a result, Ukrainian software development companies’ turnover rates are typically below 10%. Therefore, turnover-related costs, primarily due to reduced efficiency during onboarding, may be reduced by over 70%.

 

 

Simultaneously, Ukrainian IT specialists are endowed with flexibility and mobility. These characteristics are precious now when it is necessary to refocus on new markets and build relationships with new clients.

 

4. Convenient time zone

The location in Eastern Europe makes outsourcing to Ukraine desirable for Western European businesses due to lower travel costs and favorable time zone (GMT+2). The 7-hour time difference with the American East Coast provides more convenient shared working hours than South Asia offers.

 

5. Favorable conditions and convenience for businesses

Overseas business operations are often complicated, but Ukraine has proven to be a positive environment for large international projects. The government has taken measures to secure reasonable IT outsourcing rates, including the prevention of double taxation in outsourcing.

 

The Ukrainian government-launched Diia City, a special legal and tax regime for the IT industry, offers favorable conditions and tools that help companies build transparent corporate structures, attract international investment, and protect intangible assets.

 

Since 2022, the program has attracted 800+ Ukrainian and international companies, such as Lyft, Revolut, and Samsung.

 

As Ukrainian outsourcing companies focus more on establishing long-term relationships than making a fast buck, numerous companies outsource software development to Ukraine long-term.

MisterB&B — Onix’s partner since 2015

 

Individuals and entities outsourcing web development to Ukraine usually do it through a third party that hires IT professionals and manages all the legal issues.

 

Ukrainian IT companies often have management, sales offices, or client relationship officers in the U.S., European Union, and Australia. If issues arise, you can meet representatives in person to resolve them.

 

Customers from the EU and the U.S. can work with Ukrainian contractors in the EU legal field, invoice everything via email, and easily pay from anywhere over the Internet.

 

Lviv IT Cluster is working with the Ministry of Digital Transformation of Ukraine on a unified touchpoint or single point of contact with Ukrainian providers for international clients. This web platform is expected to launch in 2024.

 

How to Choose the Right Ukrainian Software Developers

Here are several tips to help you find a suitable partner for custom software development in Ukraine:

 

• Using a staffing company or online marketplace places you at the mercy of the open market. You can mitigate the risks by partnering with a vendor with solid staff retention.

 

Look for well-established IT outsourcing firms with a broad spectrum of services and reasonable fees. Enterprise-grade partners offer the best chance for successful outsourcing.

 

• Helpful information is available on Clutch or GoodFirms. They provide lists of the best Ukrainian software development companies based on each one’s past projects, designing skills, competence, verified client reviews, total experience in the industry, and market penetration.

• Make sure you consider the outsourced companies’ experience with the technologies that your project requires and previous projects in your domain.

 

If an eligible candidate is pricier than less experienced competitors, think of the cost as an investment in success: the development team’s expertise will help reduce the development time and ensure the product’s high quality.

 

• Hire fast. In-demand candidates may have several options at a time. Don’t let competitors with a quicker decision tree snap up much-needed talent. 

Now, let’s address the elephant in the room. However low a median developer rate in Ukraine, how is it even possible to outsource anything there during the Russian invasion?

 

Is It Worthwhile to Outsource Software Development to Ukraine Now?

Surprising for many, Ukraine’s IT industry, including custom software development companies and offshore outsourcing vendors like Onix, proved to be one of the most resilient and efficient. Here are several facts with explanations.   

 

In 2021, the Global Sourcing Association labeled Ukraine the #1 IT outsourcing destination. Ukraine’s IT market comprised some 5,000 companies — product and outsourcing firms offering a full spectrum of services. Even though the conflict had been slowly burning since 2014, technology sales grew by an average of 27% annually.

 

In February 2022, Russia began a full-scale invasion. Even under extreme conditions, Ukraine managed to increase IT exports by 28% in the first quarter of 2022; the industry generated a record $2 billion in revenue. In the year after the invasion, when Ukraine’s economy in aggregate shrank by almost one-third, the IT sector expanded and doubled its earnings from 2021.

 

After the invasion, venture capital funds have been established worldwide to support Ukrainian startups and the ecosystem, such as the Blue & Yellow Heritage Fund by ffVC, D3 Venture Capital Firm, Horizon Capital Growth Fund IV, and the Ukrainian Freedom Fund (UFF).

 

In 2023, Ukrainian-founded startup Respeecher, whose AI synthesizes voices in Hollywood, raised $1.9 million. AiSDR, with its AI tool that builds customer profiles, creates personalized email campaigns, and books appointments with leads on autopilot, raised $3 million from the Pioneer Fund investors, Y Combinator, and other investors.

 

 

Ukraine’s startup scene saw an increase in 2024; now, it ranks 46th among the best countries for setting up a startup. 

 

Healthtech, electronics, cybersecurity, drone technology, and solutions to logistical challenges like blackouts and connectivity gaps are rising. The urgent need for such products and services drives a far quicker development, testing, and delivery.

 

Onix has also completed several projects for the Armed Forces of Ukraine and humanitarian purposes.

Solomiya — a mental health mobile app for Ukrainian refugees developed by Onix in partnership with 5 German and 20+ Ukrainian healthcare institutions  

 

Even outsourcing companies are increasingly venturing into their own product development and launching startups. For instance, in May 2024, Onix launched Webcam Manager, an innovative Android application that helps discover, manage, and capture video streams from across the Internet.

 

An intuitive interface and extensive features enable users to effortlessly access, organize, and save live events, tutorials, entertainment, and other video content anytime, anywhere.

 

The revenue in Ukraine’s IT services market is projected to reach $3.42 billion in 2024 and grow at a CAGR of 6.11% from 2024 to 2029.

 

One reason is the ongoing global trend toward economy digitalization, which continues to drive the demand for IT services in Ukraine and globally. According to Gartner, worldwide IT spending is projected to grow by 6.8% in 2024.

 

Another reason is the excellent reputation that Ukrainian software engineers have built over decades. Moreover, now they are especially keen to remain relevant and competitive and to deliver high-quality products as reliable outsourcing partners. 

Onix began to work on InnerVR — a meditation VR app — before the invasion and launched it in 2022   

 

Beneficial partnerships and decades-old ties were not easy to sever either. Moreover, many customers have been extremely supportive through these difficult times, and some have even expanded their cooperation and increased orders in favor of Ukraine.

 

Before the invasion, the USA accounted for 40% of Ukraine’s IT services exports and the UK for 10%. Since these countries were not affected by the war, U.S. and UK-based companies had no financial reasons to end their cooperation with Ukrainian IT contractors if they continued to fulfill their obligations. And they did!  

Another dedicated team at Onix continues their work for the UK-based Learning Pool

 

In Q1 2024, Ukraine’s exports of IT services reached $1.59 billion. The largest recipients were still the U.S. (36%) and the UK (9%), followed by Malta (8%), Cyprus (6%), and Israel (5%).

 

Previously, most Ukrainian IT companies concentrated in the big cities of Kyiv, Kharkiv, Lviv, Dnipro, and Odesa. Shortly before and after the invasion, many relocated to the safer and less affected Lviv and Transcarpathian regions in the west of Ukraine.

Some IT companies relocated employees within Ukraine or abroad in advance, others during the war. The experience gained during the pandemic helped distributed IT teams keep their productivity stable. 

 

As a result, most Ukrainian IT companies claimed that the number of clients and projects they worked on remained the same. 4 out of 5 companies have reportedly continued to operate in Ukraine since the invasion. Even in the frontline city of Kharkhiv, out of 511 IT companies operating at the start of the war, 500 are still in business.

 

Onix’s software engineers have also proven they can complete projects without decreasing productivity and quality. Onix helped 62 employees relocate to safer areas and continues to support all its employees emotionally and financially.

 

Relocated specialists did their best to resume work as usual in the shortest possible time not to disappoint our clients, users, and colleagues.

The Onix team launched BetterMe, a fitness Shopify online store, before the invasion and continued the work afterward

 

Employees who joined the Armed Forces of Ukraine retained their jobs and salaries. There were no personnel cuts after the invasion. Moreover, the Onix team has grown by 67 specialists since 2022. 

 

Sometimes, problems with the Internet occur, and air alarms often distract from work. Still, people are generally highly motivated and focused. Effective management paired with individual motivation enabled Onix to reach the pre-war efficiency level quickly.

 

Even Ukraine’s problems can ultimately become beneficial for outsourcing clients, especially small startups and medium-sized businesses. Both individual highly skilled professionals and digital agencies have become more receptive to job opportunities, wages, and contracts that they wouldn’t have considered previously.

 

Large companies may be reluctant to contract Ukrainian digital agencies; some clients are discouraged by the inability to meet with Ukrainian team members in person, problems caused by damaged energy grids, and other war-related risks.

 

However, for others, the benefits of outsourcing web development to Ukraine apparently still outweigh the risks.

 

What Does Onix Offer to Clients Outsourcing Software Development to Ukraine?

Located in the heart of the country, far from the frontline, Onix has been performing complex outsourcing development services for 24 years, including custom software development and full-time dedicated teams working with various technologies, UI/UX design, AR/VR and games, ML/AI, and much more. 

 

 

In 2024, Clutch recognized Onix as a 2024 Global Spring Award winner for outstanding custom web and mobile development services.

 

Our advantages as outsource partners include broad expertise, a variety of software engineers that can make a cross-functional dedicated team, established effective work processes, and flexible and attractive pricing.

 

Onix’s hourly rate of $35-$45 depends on the technology and dev level, and many clients enjoy significant discounts. Dedicated development teams are available without any recruiting, administrative, or training costs to the client.

 

Our clients and partners often note the following advantages of Onix and the Ukrainian work ethic:

 

• Speed: We respond to requests and react to issues quickly, ensuring minimal delays.
• Minimal bureaucracy: Our self-organized and creative experts can make decisions promptly without waiting for management approval, streamlining the process.
• Business focus: The client’s business is our top priority; any development delay is viewed as a business loss.

 

Our rapid response to development requests and fixes is a key strength. For instance, we have recently developed and delivered a one-page WordPress site in just eight hours after it had taken their own organization a month to approve it.

 

 

Throughout the current crisis, Onix’s specialists have been completing 25-40 projects annually, managed to attract new clients, and continued to provide a wide range of services:

 

• Product discovery
• Lean inception
• Prototyping
• User experience (UX) and user interface (UI) design
• Brand development
• Web development
• Mobile application development
• AR/VR development
• Machine Learning and Artificial Intelligence
• Salesforce app development
• DevOps services and consulting
• Quality assurance
• Usability testing and validation
• Project management
• Support and maintenance
• UX/UI audit and data-driven improvements

 

If you need any kind of help, please don’t hesitate to contact Onix.

 

Wrapping It Up

Despite slightly rising offshore developer rates due to growing demand worldwide, outsourcing remains a cost-effective solution and has become a competitive imperative.

 

There are two main reasons for their continuing interest in Ukraine: software developer rates and the specialists themselves. The cost of employing one in-house software developer in the U.S. may be the same as that of 2-4 Ukrainian developers with equal or better skills but higher retention rates and lower overhead.

 

For the best deals, clients need to consider not only the developers’ hourly rates but also the variations within the country. Software engineers’ salary levels depend on the tech stacks, years of experience, and location. 

 

The Ukrainian IT industry proved one of the most resistant to the war-induced crisis, and if the industry can grow even now, optimistic forecasts for its clients seem quite reasonable.

 

Businesses that outsource their needs offshore can benefit from Ukraine’s decreasing outsourcing rates and a growing pool of keen candidates. They just should carefully evaluate the risks involved and have contingency plans in place. Well, like they normally do.

 

Onix is a leader in custom software development in Ukraine. We continue delivering high-quality digital products on flexible employment and pricing terms, focusing on regulatory compliance and intellectual property, and providing reliable tech infrastructure and support to international clients.

 

Contact us if you wish to start a mutually beneficial partnership!

 

FAQ

 

How do I hire software engineers in Ukraine?

 

• Define your outsourced software development requirements.
• Choose a suitable software development outsourcing model.
• Search for outsourced development providers, e.g., on popular aggregators like Clutch, GoodFirms, or Tech Behemoths. 
• Contact the candidates, evaluate them, and choose one.
• Run a thorough final background check.
• Negotiate, develop, and sign a contract.

 

Are there any communication and language barriers to outsourcing IT projects to Ukraine?

No. English is widely spoken in the country and used as the primary language for international business communication. Nearly 90% of Ukrainian IT professionals have a good command of English, which minimizes language barriers and ensures clear and effective collaboration.

 

What time zone is Ukraine in, and how does it affect collaboration on software development projects?

Ukraine belongs to the Eastern European Time (EET) zone, which is GMT+2. This time zone is super convenient for collaboration with EU-based clients. For clients in North America, there is a manageable time difference that can be accommodated with some flexibility in scheduling meetings and communications.

 

What types of software development services can I outsource to Ukraine?

 

• Custom software development
• Mobile application development
• Web development
• Product discovery
• UI/UX design
• Brand development
• AR/VR development
• Machine Learning and Artificial Intelligence
• DevOps services and consulting
• Software testing and QA
• Support and maintenance
• IT consulting

 

Ukrainian IT companies are especially good at developing fintech, healthcare, e-commerce, and logistics solutions.

 

How does the military crisis in Ukraine affect outsourcing?

Despite the daily stress, multiple challenges, and uncertainty surrounding the war’s duration, Ukrainian IT outsourcing companies, especially those that worked for global markets, have remained resilient and continue to grow.

 

Most IT companies are located in cities with stable environments and have contingency plans in place. Decentralized staffing, modified client engagement processes, and a commitment to deliver regardless of circumstances have become integral to the Ukrainian IT sector. The Ukrainian government also actively supports its integration into the global market.