Offshore Software Development Teams for Israeli Companies: Interview with a Client

Once Israeli business starts to think of a new tech venture, the question how to hire web and app developers in Israel arise. Indeed, modern startups find it challenging to hire programmers there. Israel is a country that is a top startup producer.

There are tech hubs of most tech giants and hundreds of small companies. The number of developers in the country makes hiring local developers next to impossible. Most skilled developers are already reserved for full-time development jobs at Google, Microsoft, or Facebook in their development centers in Israel.

But does that mean that companies are doomed to failure?

Should they invest thousands of dollars to recruit top software developers?

Can they beat the salaries of tech giants?

Should they?

Not exactly.

A viable option is to hire developers in other countries. They should pay attention to those where the pool of tech talent is large and prices for software development are more affordable than in Israel. For example – hire skilled team of developers in Ukraine.

Let’s dwell on the benefits of this country in terms of outsourcing software development. Let’s see why we suggest it as an alternative to hiring skilled developers locally.

Stas Oskin, a Co-founder Core Dev a Biz Dev at WINGS Stiftung

Earlier, we talked to Stas Oskin, a Co-founder of Core Dev, and Biz Dev at WINGS, a Switzerland company with offices in Saint Petersburg, Puerto Rico, and a small office in Tel Aviv. WINGS is a global international project with huge potential –  a platform that accelerates new companies’ growth. They decided to hire a team of dedicated developers and set up a team. What was important for them and what influenced the decision is cultural match and developed soft skills.

We decided to outsource and to create a software development unit in Kyiv because we were looking for a country with a western way of thinking to outsource our development. We believe that this is a place for it.

Roee Raz – Co Founder & CEO at DrasticFun

Why I chose Ukraine to hire developers for my startup? I had a good experience of working with them [Ukrainian developers], so it was an easy decision for me. I’m sure that a dedicated team model will work for our startup. Earlier we had a developer in Israel, but then I decided to move all development to Ukraine.
Also, here you can boast about strong game industry. Such game dev companies as Plarium, Playtika (those are Israel’s companies) hire many Unity developers, so the market here is well-developed. There are good Unity developers, better than Israeli ones I think. For companies like yours, there is a huge potential for working with the whole Israel market, and not just with the Unity market.

Read full interview here: How to hire developers for a game company: an interview with DrasticFun CEO.

Why do Israeli Companies consider Ukrainian Programmers?

Hiring programmers for startups in Israel is gaining popularity. 45% of Israeli companies have already chosen Ukraine as their top offshoring destination.

And here are some advantages of cooperation between Israel and Ukraine:

1. A large pool of developers

Israel is a small country; its territory and population size are a bit larger than Kyiv city.

Currently, Israel lacks 150000 software developers, mainly Front End and Back End, AI experts, and data scientists.

Any Israeli company will find the range of candidate offers to be impressively wide. In 2017, the number of software and hardware developers in the Ukrainian labor market exceeded 127,000 – an impressive pool to select from.

This variety of choices enables finding a developer and improves the overall project outcomes for any Israeli startup.

Ukrainian outsourcing and outstaffing industry exceeded $3.6 billion in revenues, exhibiting a steady 20% growth from year to year. It’s evident that Ukrainian developers are valued globally. Many foreign companies choose to find developers for startup there.

2. The same quality for less money

Hiring Israeli developers cost a pretty penny now. Let’s look at some figures:

These are just a couple of figures to consider when you look to hire developers; this comparison shows that Israeli businesses may easily get a talented and experienced developer to their team cheaper than they would get a local junior developer.

A really great deal, isn’t it?

3. No language barriers

Most Ukrainian developers are very good at English and speak Russian as their mother tongue.

There will be no problem in project-related communication, while mentality and language differences will hardly hinder the project outcomes.

4. One-time zone
It’s always comfortable to work with an outsourced team in the same time zone; no delays, the possibility of joint online work and real-time communication are valuable bonuses of collaboration with developers.

5. Free trade zone
The FTZ will be created between Israel and Ukraine soon, which means the removal of customs duties. If you wish to find a developer to whom you won’t pay extra for international salary transfers, then it’s the best place.

6. Visa-free regime
No visas are required for Israelis to visit Ukraine and for Ukrainians – to visit Israel.

This means mobility of your development team; your outsourced developers may come to work in your Israeli office or you can visit them in no time if such need arises.

7. Experience
Local vendors of IT outsourcing are highly experienced in matching candidates for startups and large companies. They will help you find programmers for startup of any kind quickly and efficiently by locating the best developers in the market.

8. Soft skill matching
If you collaborate with a vendor, its recruiters select job candidates not only by hard skills you need, but also by soft skills for your project and company, as Qubit Labs does that.

9. Convenient remote employment
It is hard to relocate developers to Israel because of complex documentation, work permits, and other bureaucracy. It’s much more convenient to collaborate with them remotely. If you are mainly interested in relocation, Qubit Labs provides recruiting & relocation service.

10. No legal trouble
Hiring a development team in Ukraine is safe in legal terms; the worker is officially employed in Ukraine, hired and fired by the vendor in case the client deems him/her non-suitable for the job.

The developer can sign your company’s NDA, so all sensitive data is protected. In case the employer wishes to hire the worker full-time, his/her buyout sometimes is possible after some time of recruitment via a vendor.

Development Teams with Qubit Labs

If you plan to hire programmers for an Israeli startup, consider Qubit Labs as a trusted talent vendor. We offer ready recruitment solutions to tech companies needing developers, QA, PMs, and other talent for getting their business operations run smoothly. Moreover, we work with several Israeli startups and have hands-on experience with this market. Clients already appreciated the quality of service we rendered, and here are the reviews from our clients.

You can look for more reviews about us on Clutch.

Hiring developers that will not mess your startup up is a headache. So, if you want to find developers for startup or enterprise, there is no need to address the challenge on your own.

We have been in the market of IT outsourcing for a pretty long time; open for a friendly chat and can provide you recommendations about the market and recruiting here. Contact us to schedule a call to ask any questions!

Download: Top IT Outsourcing Locations in Ukraine

We created a guide that helps you navigate through Ukraine software development market and get a closer look at the opportunities they offer in 2021

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