{"id":2421,"date":"2024-04-05T18:32:59","date_gmt":"2024-04-05T15:32:59","guid":{"rendered":"https:\/\/lasoft.org\/blog\/?p=2421"},"modified":"2025-08-27T11:51:30","modified_gmt":"2025-08-27T08:51:30","slug":"it-outsourcing-to-ukraine-risk-or-an-opportunity","status":"publish","type":"post","link":"https:\/\/lasoft.org\/blog\/it-outsourcing-to-ukraine-risk-or-an-opportunity\/","title":{"rendered":"Outsource IT to Ukraine: Risk or an Opportunity?"},"content":{"rendered":"

Despite the ongoing unprecedented changes posed by the full-scale war, Ukraine\u2019s IT sector remains operational and thriving. Although the situation is challenging, the country is a testament to the spirit of the Ukrainians and their unwavering commitment to excellence and progress in all professional fields.<\/p>\n

Ukrainian software developers continue to attract clients globally, offering highly skilled experts, cost-effective services, and English proficiency, along with a solid commitment to innovation and change in the global community. Ukrainian software development companies continue to introduce high-quality products to the global market. The secret behind Ukraine\u2019s IT outsourcing success lies in the technical prowess of Ukrainian professionals, their resilience, and adaptability.<\/p>\n

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Quick Review of the Ukrainian Technology Market<\/h2>\n

Let\u2019s review the technology market trends. As we already discussed in our research, there\u2019s a vital need for skilled software developers in the market. Therefore, nearshore outsourcing to Eastern Europe<\/a> has emerged as a solution to these compelling factors. These regions boast an inviting business ecosystem, abundant talent pools, and cultural compatibility, making them highly attractive for companies seeking to outsource software development projects. We aim to provide an honest comparison of the Ukrainian tech industry\u2019s response to the war and that of other Eastern European countries.<\/p>\n

IT Industry Revenue<\/h3>\n

The war has impacted Ukraine\u2019s IT industry, as we may observe a slight decrease in revenue, which shows around $6.45 billion of IT services in 2024 compared to $6.7 billion in 2023. Even with Russia\u2019s full-scale invasion, Ukraine\u2019s greatest export sector is still the IT sector. Ukrainian IT companies continue to attract business worldwide due to their highly qualified staff, affordable services, and cutting-edge products.<\/p>\n

Ukrainian Tech Industry Revenue in Export<\/h3>\n\n\n\n\n\n\n<\/colgroup>\n\n\n\n
2020<\/th>\n2021<\/th>\n2022<\/th>\n2023<\/th>\n2024<\/th>\n<\/tr>\n
$5.0 billion<\/td>\n$6.8 billion<\/td>\n$7.3 billion<\/td>\n$6.7 billion<\/td>\n$6.45 billion<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: Kyivgovtechcentre<\/a><\/p>\n

Popular Programming Languages in 2025<\/h3>\n

The latest results from the annual programming languages survey reveal some insights into the preferences of IT specialists worldwide, particularly in Ukraine. With 7.459 respondents, this year\u2019s DOU vs Tiobe Index surveys offer comprehensive research results.<\/p>\n

Global Information Technology Market Programming Languages Preferences<\/h4>\n\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n\n\n\n\n\n\n
Programming Language, globally<\/th>\nRank<\/th>\nProgramming Language, Ukraine<\/th>\n<\/tr>\n
Python<\/td>\n1<\/td>\nTypescript<\/td>\n<\/tr>\n
C<\/td>\n2<\/td>\nPython<\/td>\n<\/tr>\n
C++<\/td>\n3<\/td>\nJavascript<\/td>\n<\/tr>\n
Java<\/td>\n4<\/td>\nC#<\/td>\n<\/tr>\n
C#<\/td>\n5<\/td>\nJava<\/td>\n<\/tr>\n
Javascript<\/td>\n6<\/td>\nPHP<\/td>\n<\/tr>\n
Visual Basic<\/td>\n7<\/td>\nDB<\/td>\n<\/tr>\n
Go<\/td>\n8<\/td>\nKotlin<\/td>\n<\/tr>\n
Perl<\/td>\n9<\/td>\nC++<\/td>\n<\/tr>\n
Delphi\/Object Pascal<\/td>\n10<\/td>\nGo<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: DOU<\/a> vs Tiobe<\/a><\/p>\n

Ukrainian Startup Ecosystem<\/h3>\n

Ukraine features four cities in the StartupBlink Ecosystem Index, placing its startup scene among the top 50 worldwide. Currently ranked #42 globally, Ukraine has advanced four spots this year, with an impressive annual growth rate of 26.2%.<\/p>\n

With 646 active startups comprising 6% of all startups in Eastern Europe, Ukraine demonstrates steady entrepreneurial momentum, averaging two startups per 100,000 people. Regionally, the country is now ranked 8th in Eastern Europe, having moved up one position since 2024. Ukraine\u2019s ecosystem currently surpasses Romania but remains slightly behind Bulgaria.<\/p>\n

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We present below some successful tech startups of Ukrainian companies that have gained widespread recognition in recent years. Only a few people are aware that some of the unique solutions were first developed by Ukrainian developers, even though they advanced to global scalability due to the additional funding and infrastructure provided overseas. It\u2019s also worth noting that many software businesses opened their headquarters in different cities worldwide after the war.<\/p>\n

#1. Allset<\/a>
\nAllset is a technology company that develops and implements software solutions for restaurants. It has headquarters in San Francisco and Kyiv. With the Allset app, you can reserve tables, pay in advance, leave tips, and order food in advance at restaurants. Allset\u2019s primary focus before the pandemic was scheduling in-person restaurant reservations. After the COVID-19 pandemic, they expanded their menu and introduced contactless delivery for takeout meals. Allset is a startup with Ukrainian roots, funded with $8.3 million, that creates goods in Kyiv and offers services in the United States.<\/p>\n

#2. Depositphotos<\/a>
\nDepositphotos is among the largest product enterprises in Ukraine. After its founding in 2009, Depositphotos took a few years to establish itself as the stock image platform with the quickest growth. The Depositphotos library contains millions of stock images, movies, and graphics covering every subject. Depositphotos is the best location to find high-quality, high-definition photographs.<\/p>\n

#3. Delfast
\nThe Delfast startup has raised $3.4 million from investors in Ukraine to build an electric bike research center, aiming to meet the rising demand and fulfill pre-orders from around the globe, particularly in the USA and Europe. The Delfast team declares its mission to combat climate change and transform the transportation system by providing crossover e-bikes suitable for both off-road and city riding. To produce electric vehicles (EVs) with zero air emissions and a carbon-neutral environmental footprint.<\/p>\n

#4. Viewdle A Ukrainian-American startup, Viewdle, developed technologies for mobile devices that could recognize faces and objects. The Ukrainian team successfully used face detection and identification technologies. Google purchased Viewdle in 2012; the sale amount was not disclosed.<\/p>\n

#5. People.ai<\/a>
\nWith a fresh round of funding, Ukrainian People.ai has grown to a $ 1.1 billion market valuation. The new business offers an AI solution that gathers and examines data produced by sales managers to provide recommendations and, eventually, assist in closing deals more quickly and effectively. People.ai software can record and analyze sales managers\u2019 phone calls and calendar entries, which can help businesses determine, for instance, how many clients are ideal for a particular vendor.<\/p>\n

Why Outsourcing Development Process to Ukraine?<\/h2>\n

Ukraine\u2019s IT outsourcing market benefits from its high level of technical education, fluency in English, and solid foundation in engineering and science. It\u2019s open to sharing the pool of tech talents, making Ukraine a compelling prospect for companies seeking outsourcing services.<\/p>\n

Cost-Effectiveness:<\/strong> Compared to hiring in-house teams in Western countries, Ukrainian developers offer cost savings without compromising quality. This financial efficiency is one of the leading factors driving businesses towards Ukrainian companies.<\/p>\n

High-Quality Skills and Innovations:<\/strong> Ukrainian talent pool brings knowledge and creativity to various technologies and industries. From software development and artificial intelligence to blockchain technologies, Ukrainian developers have proven their expertise.<\/p>\n

Cultural Affinity and Convenient Outsourcing Destination:<\/strong> European and North American companies find it easier to collaborate with companies in Ukraine due to cultural similarities and convenient time zone differences that allow for significant overlap in working hours.<\/p>\n

How Do We Navigate Threats of Outsourcing Software Development to Ukraine?<\/h3>\n

Yes, there are still some threats, but not due to the situation connected with the full-scale russian invasion. It would be proper to stress that software outsourcing to Ukraine is not devoid of challenges:<\/p>\n

Geopolitical Concerns:<\/strong> Many potential clients consider the geopolitical situation the primary risk for businesses considering IT outsourcing in Ukraine. However, as we mentioned earlier, most IT companies moved offices to safer regions and to Central and Eastern Europe, as well as to the USA.<\/p>\n

Intellectual Property Rights:<\/strong> This threat affects all outsourcing teams, regardless of their country of residence. Businesses use NDA agreements to protect their intellectual property rights when working with nearshore, outsourced, and offshore teams.<\/p>\n

Quality Control and Communication:<\/strong> Managing and communicating effectively with a team requires agile processes for employees, good English, a level of expertise, and a reputation for the software development team. Ukrainian tech companies use the best software engineering practices<\/a> in their work.<\/p>\n\n

Nearshore Outsourcing to LaSoft<\/h2>\n

LaSoft has built a solid reputation. With over 10 years of experience in the software development market, our team has earned the trust and loyalty of clients worldwide. We consistently deliver software solutions to implement each client\u2019s unique business idea. The key advantage of partnering with LaSoft is access to a team of highly skilled and experienced professionals. LaSoft\u2019s software developers are proficient in a wide range of technologies, frameworks, and programming languages, enabling them to tackle complex projects with confidence and efficiency. Check out our developer hiring funnel, we welcome in our team 1 out of 147 interviewed candidates.<\/p>\n

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Examples of Our Ready-to-Use Digital Products<\/h2>\n

Out-of-the-Box Dashboard Constructor by LaSoft<\/h3>\n

The LaSoft team experts know how KPI analysis can drive critical processes and enhance customer interactions. This understanding inspired us to create a tool for effectively evaluating various business processes and outcomes. We have developed a ready-to-use analytics dashboard system that efficiently visualizes data for companies across different industries.<\/p>\n

This solution allows managers to rely on our all-in-one tool to streamline data analysis and decision-making. Our DataPoint dashboard solution<\/a> from Lasoft is a valuable option for companies seeking to implement data-driven insights without the time-consuming and costly custom development process. Featuring a comprehensive widget library, it allows users to customize or modify dashboards as needed, ensuring a tailored solution that meets unique business requirements.<\/p>\n

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AI Assistant For Logistics Companies<\/h3>\n

LaSoft introduces an AI Voice Assistant designed explicitly for the logistics industry. This advanced tool supports brokers by automatically validating carriers and negotiating competitive rates, saving time and optimizing negotiation processes.<\/p>\n

Our expertise lies in creating software solutions that streamline workflows and automate business processes for our clients. The AI Voice Assistant simplifies logistics operations by:<\/p>\n