If you're looking for an effective way to increase your business potential, IT outstaffing in Ukraine may be the solution you need. By outsourcing IT services to Ukrainian specialists, you can reduce costs, access a wider pool of talent, and enjoy numerous other benefits. In this comprehensive guide, we will explore what IT outstaffing is, how it works, and what benefits it can offer your business.
What is IT Outstaffing?
IT outstaffing, also known as staff augmentation, is a model of outsourcing that involves hiring remote specialists to work on your projects. Unlike traditional outsourcing, where you delegate entire projects to external companies, with outstaffing, you retain control over the development process and manage the remote team directly.
For instance, you require an employee for a specific project, but you are constrained by time and funds to hire a specialist. In this scenario, the contracting company hires a team of professionals from a third-party organization to carry out the project or specific services and tasks.
Outstaffing in Ukraine has gained popularity due to its efficiency and affordability in building a project team, whether by finding a whole team or strengthening an existing internal one. This option has enabled many businesses to produce their goods at a lower cost.
If you are still thinking about whether you need IT outstaffing, you can use this checklist:
- You don't have enough resources (money, time, people) to start a project on your own.
- You do not want to solve unnecessary legal problems in connection with opening a business in another country.
- You need professionals to implement the project urgently.
- You need highly qualified specialists in narrow fields.
Are Outstaffing and Outsourcing the Same Thing?
No. They might seem similar at first glance, but they're actually quite different.
The main difference between outstaffing and outsourcing is how they handle business processes. With outsourcing, a company takes care of specific tasks without the client's involvement and gets paid based on the outcome. With outstaffing, on the other hand, the client hires personnel to work on a project or for a particular period.
Secondly, outstaffing is usually a temporary arrangement with terms that depend on the specific project. In contrast, outsourcing can lead to a long-term contract extension.
Of course, you need to remember about the working place: outsourcing companies get to decide where the work gets done, while outstaffing happens at the client's location.
Benefits of Ukraine IT Outstaffing
One country that has emerged as a top destination for IT outstaffing is Ukraine. So, let’s explore the advantages of IT outstaffing in Ukraine.
Highly qualified IT specialists
Ukraine is home to a large pool of highly skilled IT specialists, making it an attractive destination for IT outstaffing. The country has a strong education system that produces over 36,000 IT graduates every year, and many of these graduates are proficient in English.
Additionally, Ukrainian developers are known for their excellent technical skills, which are often at par with their Western counterparts. This means that businesses can tap into a talented pool of IT professionals who can provide quality work.
One of the most significant advantages of IT outstaffing in Ukraine is the lower cost of development. The country offers competitive rates for IT services, which can be up to 60% lower than in Western Europe and the USA. These cost savings can help businesses free up their budgets and invest in other critical areas of their operations. Additionally, Ukrainian developers work on a full-time or project basis, which means that businesses can scale up or down their development teams as needed.
Comfortable time zone
Ukraine's geographical location is another advantage of IT outstaffing. The country is situated in Eastern Europe, which makes it an ideal destination for businesses looking to expand their operations in Europe and beyond. Ukraine is also in a convenient time zone for businesses in the US, allowing for easy communication and collaboration between teams.
Ukraine has a well-established legal framework that supports IT outstaffing. The country has a favorable tax system that encourages foreign investment, and there are also no restrictions on foreign ownership. Additionally, Ukraine has strict laws protecting intellectual property.
Direct and Easy Communication
One of the advantages of IT outstaffing in Ukraine is direct and easy communication. When outsourcing IT projects to Ukraine, companies have direct communication with a team of specialists. This allows for faster and more efficient collaboration, resulting in quicker project delivery times. The time difference between Ukraine and other countries is also an advantage as it allows for round-the-clock support and faster issue resolution.
Increased Investment Attractiveness
Another advantage of IT outstaffing in Ukraine is increased investment attractiveness. Ukraine has become an attractive destination for foreign investors due to its low taxes, and cost-effective services. This has resulted in the growth of the IT industry in Ukraine, with many multinational companies opening their offices in the country.
Potential Dangers of IT Outstaffing
If you are reading this article, you have thought about the risks associated with outstaffing. But these potential problems only concern unreliable providers. So consider these as tips on how to choose the right partner for your business.
First, there is a possibility of a misunderstanding between the client and the contractor. The reasons can be varied: lack of understanding of the project parameters, poor communication, lack of understanding of the client's business processes and lack of technical awareness can all contribute to this problem. The way out is simple - coordinate and agree on the goal, schedule, and budget of the project between both parties to avoid any disappointments.
The next thing to pay attention to is the lack of experience in a certain niche. This can lead to project delays, missed deadlines, poor quality, and additional costs. Untrusted vendors often overestimate their developers' programming skills and knowledge of frameworks, leaving you with a contractor who doesn't have the necessary experience to build the solution you want. To prevent this, choose only reliable partners.
Also, pay attention to the security of your data. There are several problems that arise most often: theft of your intellectual property and source code; lack of compliance certificates; unauthorized disclosure of personal data of customers to third parties. We recommend separately providing for these points and sanctions for their violation in the contract.
Having explored the advantages and hazards of outstaffing, let us now delve into why Ukraine has become a prominent player in the IT outstaffing scene in Europe.
Why Should You Choose Ukraine?
Ukraine has become a highly sought-after destination for IT outsourcing due to its thriving tech industry. With over 1,600 certified software development companies, 200,000 IT specialists, and 870 app development firms listed on Clutch, Ukraine boasts an impressive IT sector.
In recognition of its excellence, the Global Sourcing Association (GSA) named Ukraine the "Outsourcing Destination of the Year" in both 2017 and 2021. Furthermore, the Ukrainian market constantly sees the entry of new specialists, with over 40,000 engineerings and ICT graduates annually. The IT services sector in Ukraine is also highly developed, offering competitive pricing. As a result, many global technology companies, including Microsoft, eBay, Samsung, and Skype, consider Ukraine to be a top outsourcing or outstaffing partner. Key Factors to Consider When Selecting an IT Outstaffing Partner in Ukraine
When seeking an IT outstaffing partner in Ukraine, there are several key factors to consider to ensure a reliable and successful collaboration.
Firstly, look for a partner with a strong track record of delivering high-quality work and meeting deadlines. Check their portfolio and reviews from previous clients to get a sense of their expertise and level of service.
Secondly, make sure the partner has a highly skilled and experienced team of IT professionals who can meet your specific project needs. Verify that they have the technical skills and knowledge required for your project and can work with the tools and technologies you use.
Thirdly, communication is key, so find a partner that has a good understanding of your business goals and can provide regular updates and progress reports. Choose a partner who can communicate clearly and effectively in English or your preferred language.
Fourthly, ensure that the partner has strong data security measures in place and adheres to international standards and regulations to protect your intellectual property and sensitive information.
Lastly, consider the partner's cultural compatibility with your company and team. Look for a partner with a similar work ethic and values and who can work collaboratively with your team to achieve your goals.
Overall, finding a reliable IT outstaffing partner in Ukraine requires careful consideration and research, but with the right partner, you can benefit from the country's thriving tech industry and highly skilled workforce.