Outsourcing and offshoring are both the most popular strategies that involve delegating specific tasks or projects to external teams located in different countries. But the main difference between these two types of strategies is that offshoring development teams means the creation of an off-site team to enlarge your in-site software development team. While outsourcing is about the practice of contracting out certain tasks or services to external third-party companies or service providers.
Further I would like to reveal the subject of offshoring development teams, particularly in Ukraine.
Offshoring refers to the practice of setting up software development or IT centers in other countries with low level salary taxes that allows reducing costs and gaining access to a larger talent pool. Offshoring a development center to Ukraine can offer several advantages. Here are some of the potential benefits:
Cost-effectiveness
Ukraine is known for its competitive labor costs with up to 50% cost savings compared to many Western countries. Offshoring to Ukraine can lead to significant cost savings on salaries and operational expenses while maintaining high-quality output.
Highly skilled IT talents
Ukraine has a strong tradition of STEM education, and the country produces thousands of IT graduates each year. This highly skilled workforce is proficient in a wide range of technologies, including programming languages such as Java, Python, .NET, and others.
Cultural compatibility and English proficiency
Ukrainian professionals are often praised for their strong work ethic, dedication, and adaptability to Western business practices, as well as excellent English proficiency making them easier to integrate into international teams.
Government support and strong tech ecosystem
The Ukrainian government has taken steps to promote IT and software development as a priority sector, offering various incentives and support programs to attract foreign investment and foster the growth of IT businesses in the country. As a result Ukraine has a thriving tech ecosystem with numerous IT companies, startups, and research institutions. This environment fosters innovation and can provide access to cutting-edge technologies and solutions.
High Security standards
While data security concerns exist in any offshoring arrangement, Ukraine has improved its data protection regulations in recent years to align with European standards, making it a safer destination for outsourcing compared to some other regions.
It is important to mention that offshore development team works under the same brand as the head office and follow common corporate policies. It means that your offshore team works like any in-house team and brings the same business value.
Also offshoring your development team you don’t need to hire operation and administrative staff. It is enough to delegate all the responsibilities to a local provider who will take care of all the local intricacies such as legal support, accounting, payroll, tax responsibilities, adaptation of your policies and recruitment.
Offshoring your development team in Ukraine is an attractive option for businesses looking to save on costs without sacrificing quality. FLH-services will be your reliable partner who will help to explore the possibilities and unlock the immense potential of the Ukrainian IT market for your business.
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