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IT developer cost in Ukraine

How much does IT nearshoring cost in Ukraine?
The answer to this question is: it depends on your needs and service business model.

Service Business Models:
1. Sub-contracting
You entrust complete projects or project module to IT development companies in Ukraine on the basis of a sub-supplier (tier 2 or tier 3) agreement. 
PRO: complete infrastructure, established teams
CON: no direct control over the resources you pay for. You pay for the end result or milestones and not for specific team members. You transfer know-how indirectly to your competition (worst case) or at least you are loosing know-how once the project is finished. Also you might have the wrong impression that your IT developer works with employees and a fixed team structure. In reality such companies have a core team of freelancers and hire additional staff on a temporary freelance basis depending on work load, project requirements and time line.
CONCLUSION: great option for specific, measurable, time bound and not business critical outsourcing projects.

2. Temporary Embedded Development Teams
Specialized Ukrainian nearshoring service companies offer you an all inclusive embedded development team for temporary or permanent use in your organisation. Their service includes staff selection, employment (on a freelance basis) and office infrastructure. You can define team structure, skill sets and project parameters and they provide you with the rest.
PRO: On stop flexible solution for limited projects.    
CON: Large IT software development companies are mainly busy with high volume staff outsourcing. Smaller customers are not really the focus. They offer a very high level work environment for relatively low level boring coding work. Multiple teams for different clients are sitting in the same office environment with sometimes many hundreds of programmers. The outsourcing company business culture is dominant and clients find it difficult to integrate their local teams with the outsourcing embedded team culture.
CONCLUSION: good solution for project based work and large customers with purchasing power. Expensive, inflexible and cultural difficult solution for smaller clients with advanced technical needs and limited budgets.

      



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