Where is Better to Outsource: India or Ukraine?

Oksana Zabolotna
HBD at Qubit Labs

What is Outsourcing and how IT companies Can Reap the Benefits From It?

Nowadays, people can hardly be impressed by the fact that employees work remotely for companies located thousands of miles away. Outsourcing has made a significant contribution to advancing the popularity of this type of employment. How? Well, looking for professionals who would work in your team, renting an office, paying a salary, and dealing with multiple organizational questions are money and time-consuming processes. As it is known, time is a resource that can’t be restored, so all the CEOs put it as their top priority.

Although IT cost optimization is considered the main advantage of outsourcing, it is not the only one. Flexible schedules, mobility, the opportunity to refrain from a permanent number of employees, and the ability to control all the processes from another country are the “bonuses” of this type of business organization. Moreover, companies can attract skilled professionals who won’t require time for learning new technologies or frameworks; they are “ready to go” and can bring results the moment they start working. Outsourcing has a more extended nature of interaction than freelancers’ services, which are requested more situationally.

Thus, making a strategic decision on outsourcing, the companies get access to the existing business processes, individual systems, and developed infrastructures. They can concentrate on conducting core activities in their company, increasing capacity with expanded market presence. Not only can IT outsourcing companies like Qubit Labs become leaders in delivering such services, but countries as well.

Notably, India, Ukraine, Poland, Romania, Argentina, Vietnam, the Philippines, and Latin America hold leading positions in the area of outsourcing. Nevertheless, India and Ukraine are two counties that are on top of the list, preferred by the largest number of foreign companies. So, how to choose between them and which one will comply with your expectations and introduce efficiently performing employees?

This is what we plan to answer in this article.


Ukraine IT Outsourcing: Advantages, Perspectives, and Popularity

According to the Global Services Location Index, which evaluates countries based on their financial attractiveness, professionalism, and human resources availability, Ukraine is in fourth place. Ukraine developers’ services are now used by various companies, including the giants like Microsoft, Apple, and IBM. Services of IT outsourcing companies in Ukraine are mainly exported. They are in demand in Europe and the USA; some organizations have customers from Asia. This is due to the balance of quality and average rates that Ukraine outsourcing companies can offer.

Ukraine software outsourcing provides a fairly wide range of services. The most popular directions are the following:

  • development of web services – both simple and rather complex solutions for automation and digitalization of work processes, taking into account the specifics of the company’s activities, are in demand;
  • creating mobile applications is crucial for business representatives since finished products make it possible to increase sales and profits;
  • design – detailed drawing of all site or application pages, paying attention to the posted content, their focus, and customers’ wishes. This also includes the creation of a logo and other elements;
  • the layout is a process aimed at obtaining the HTML code structure. All page elements are placed following the approved layout and considering the specifics of display in different browsers and various devices.

The preference for Ukraine IT outsourcing can be easily explained. The thing is that obtaining the same skills and knowledge as, say, American colleagues, demands much lower salaries. However, it doesn’t mean you should be questioning their professionalism; it is more about economic stability in the country, which is lower than in other states. Another benefit is a high level of English and Russian, and, sometimes, other languages, like French or German, among software development Ukraine professionals.

Also, a large number of Ukraine developers have higher education degrees. The quantity of IT specialists in the country grows each year because this area is among the most rapidly developing, promising, and income-generating. Ukraine is located in a convenient time zone for Europeans, having a 1-hour difference, and approximately 7 hours with the USA. Ukrainian top outsourcing companies can easily compete with international ones because they are capable of providing major breakthroughs in their projects, meeting customers’ requirements.

Ukraine technology development can be considered top-notch as the majority of employees understand the level of competitiveness on the market and aim to hold their high positions. The country is in 45th place among the Most Innovative Countries. Indeed, an IT outsourcing company needs to prove its reliability and trustworthiness by presenting several success cases in its activities scope, and Ukraine has an impressive “portfolio”.

It is noteworthy that the number of IT companies in Ukraine is rapidly evolving, as well as the number of specialists. During the last ten years, the quantity of technical experts has increased threefold. The average salary of a specialist in software development in Ukraine is $20 K annually, but it certainly depends on numerous factors, like qualification, industry, and employee skills. Any local IT outsourcing company highly values its reputation, so clients can be confident their data and intellectual property are protected.

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Now, let’s move on to exploring outsourcing to India pros and cons.


Outsourcing to India: Major Advantages, Salary Rates, and Showcases

The changes that took place in India in the 2000s are known as the “Indian IT Revolution”. The “revolution” was accompanied by rapid growth in the number of specialists employed in IT outsourcing India and an increase in the sector’s total contribution to national GDP. As a result, by the end of the 2000s, a situation arose in which a considerable part of the Indian population, having got a job in an office in Chennai or working in the local “Silicon Valley,” Bangalore, actually created projects for clients from San Francisco or, for example, London.

The Indian IT market is characterized by a significant pool of skilled workers and a cheaper local labor force than in other countries. Indian outsourcing is sought-after because of the transparency of industry management, which is characterized by the participation of large players, united under the Nasscom association. Such a system is called a single address and is very convenient for foreign partners. If it is necessary to establish a connection with the Indian IT industry representatives, it is enough to contact the Nasscom association.

India is considered the largest outsourcing market worldwide, being selected by major companies that outsource, including IBM Global Services, HP, and Siemens. As a result of globalization and the development of the international labor market, India has received tangible benefits for the development of IT outsourcing. The country turned out to be located in a time zone convenient for global outsourcing and had the necessary number of qualified programmers with knowledge of several frameworks.

Unlike other countries that are rapidly developing in this area, outsourcing in India allows working with professionals whose second native language is English. Besides, the activities of the large Indian diaspora abroad, primarily in the United States, are of great importance, helping compatriots in obtaining orders for programming and technical support for business from large American companies.

Another cornerstone in the success of outsourcing companies in India is the attitude to education. Many colleges have established connections with popular IT companies that employ alumni, teaching them necessary skills and making them correspond to the market’s demands. Since many students work in outsource India, it’s profitable for employers because junior specialists demand lower salaries and allow companies to remain competitive.

Speaking of finances, the average salary in outsourcing India is $7.993 per annum. Although this number is much lower than the average one in, say, the USA, local professionals, still consider it “good money” because working in IT is the country’s most prestigious occupation. Actually, India is in the first place, according to the Global Services Location Index, offering excellent services by experienced professionals for low-cost.


To Wrap Up 

In the long run, both Ukraine and India are in demand among foreign companies, being top IT vendors. However, the choice is mostly contingent on your needs. For example, if you have a higher budget, demand better programming quality, and do not have time to meet people and pick the most suitable among them – choose Ukraine. In case the time zone is irrelevant, and you need large teams – opt for India. Moreover, the time difference between India and Ukraine and local mentalities play great roles in companies’ performance because the way people understand the tasks and start their workdays significantly influences the final result.


Related Articles:

History of IT Outsourcing in Ukraine

What Is Outsourcing? How Does IT Outsourcing Work?

Software Development Outsourcing Cost

12 US Hiring Challenges That Software Development Outsourcing Can Solve

How Much Does It Cost to Hire Developers in Ukraine?

How to work with your remote team across time zones?

Webinar: Things You Should Know Before Hiring Developers In Ukraine


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Oksana Zabolotna
HBD at Qubit Labs
Oksana is a team leader of sales and marketing team at Qubit Labs.