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why outsourcing development from Israel to Ukraine is your best choice ?

Ukraine is a hot spot for start-ups and it’s easy to understand why, with a low cost of living, simplified tax system and a strong emphasis on tech education many founders are choosing to capitalize on the opportunities in Ukraine.

Specifically, there’s a huge opportunity to take advantage of the high quality range of Developer talent even if you don’t intent on basing your company in Ukraine. We dug deeper to take a look at why outsourcing Development from Israel to Ukraine is a great choice in 2018.

Picture credit : Ukrainians at TECH EVENTS of the WORLD

Here is our TOP 5 key points :


1. Pay Scale

Israel is also a hot start-up Ecosystem and destination of choice for R&D with over 300 R&D centers from global brands situated in Israel,
but it’s also expensive and there’s a lack of Developer talent in the country with only 8% of the Israeli workforce in the high-tech sector. This shortage of skilled workers is driving up the average wage and increasing recruitment competition beyond measure.
Developer wages in Ukraine average out between 6000 – 13,000 NIS per month,
whereas in Israel you’re looking at 14,000 – 30,000 NIS per month for skilled developers trained in Java, Javascript, C#, PHP, C++, Python or Objective C.

2. Market Examples

Many major companies chose Ukraine over the last couple of years, including Israeli companies like Wix and MyHeritage that have their R&D centers in Ukraine.
Another example is tech start-up, Ring, developers of the Video Doorbell, bought by Amazon for $1bil earlier this year and whose largest Development center is in, you guessed it, Ukraine.
More examples are Luxost that acquires IntroPro and snapchat thats bought Looksery in $150 million Dollars,
Few know this but the developers of services like WhatsApp and Paypal were born and raised in Ukraine, and it’s also home to Grammarly and PetCube; each company has millions of users worldwide

3. Location

If you choose to develop in Kiev, you have the benefit of being on the same time-zone; making communication easier but if you do need to make a visit you can find flights from €100, the flight is only around 3 hours long and door to door from the airport to the top CoWorking space in the city; just a 40 minute drive.
Also as an Israeli you don’t need a Visa to visit for up to 90 days !

CoWorking spaces in Kiev :


4. Ecosystem

The question is, what makes this ecosystem a strong platform for tech?
Aside from the before-mentioned simplified tax system for start-ups, low cost of living and large number IT graduates (15,000+ annually) entering the workplace, there is a very supportive culture that surrounds Graduates and Start ups alike.
A great example is who call themselves ‘a platform for growth’ and have developed a campus for innovation including their own IT school boasting over 800 students, 38 currently resident companies, 5 accelerator programs for Start-ups and more relevant, on campus, events every week than you could possibly attend. They’ve created a community for Fintech, AgriTech, AR/VR and more that provides talent, support, innovation and a social life all in one location.

5. How To Start

As a UX UI Design Agency in Tel Aviv, we meet start-up founders on a daily basis and hear about their challenges on finding talented but cost-effective Developers who can bring our UX Design to life.
If we take the relationship between Israel and Ukraine as an example, our main advice is to first find a senior developer that meets your needs, create a solid POC (Proof of Concept) with them so you can understand whether they are the right outsource for you. When it’s time to expand the team, your senior developer will be best placed to recruit other talent and manage the overall delivery.


Useful info

UTEW – Is a FB community of tech people for the exchange of their experience of attending global tech events in order to find investors or partners, to get on a radar of international media, to expand the network and to declare their product.
The main goal of UTEW is to connect IT ecosystem representatives around global tech events. Stay updated on Ukrainian events by following (Ukrainians at TECH EVENTS of the WORLD). This will help you tap into the Ukrainian Tech Scene and connect with talents!

Check Global logic, a digital product development services company with both an Israeli branch and an Engineering Center in Ukraine.

Sigma Software – has been listed among the TOP 100 best outsourcing companies according to the yearly rating by the international Association of Outsourcing Professionals

For any Project Outsourcing and even creating your own teams

CoWorking spaces in Kiev
Co Working in Kiev


Good luck from us at muze !

Eyal Talmon
Eyal Talmon Talmon

Co-Founder at Muze, UX Expert, Client side developer .

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