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,
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
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 :
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 Unit.city 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.
Good luck from us at muze !