Nearshore team in Ukraine: 6 pros of hiring a remote developer
Nearshoring Companies Help Power Startups to Success
Did you know that over 25 successful startups were built with outsourced software development, including Slack, GitHub, and Skype? Many businesses in the West now know that going abroad is one of the best ways to get software development done. Ukraine has arisen as a premier nearshoring destination. Below, we show you the advantages of nearshore development teams in Ukraine. As we will see, IT nearshoring in Ukraine could boost your entire software development model and help your team be more effective than ever before.
Things You Should Know About Software Development Outsourcing
Over the last decade, outsourcing has become a very popular business practice among companies. The reason for such popularity is in the specific needs and possibilities, which appear every year. Some particular positions cannot be easily found in the national market. And the startup ecosystems have provided founders and entrepreneurs with the possibilities to reach top talents on the international level.
On outsourcing basis a company hires another company or a specialist to provide special services, perform tasks and handle operations instead of the company’s own employees. The outside company or individual is known as a third-party or service provider. People on outsourcing can perform tasks at the external locations or on site at the company’s own facilities.
Benefits of outsourcing:
- Complete tasks faster. Outsourcing IT for small companies is a way to get everything done quicker by passing tasks, which require a lot of time to the external companies or freelancers.
- Focus on the most important processes. Passing tasks to the external performer, you get the enhanced freedom. You free time to concentrate on improving and strengthening the core processes in the company.
- Simplify work relationships. A small company is often similar to a group of the best friends. And it might be difficult to manage a team of friends. With employees on outsourcing you minimize work relations to the laconic arrangements and reports.
Disadvantages of IT software outsourcing:
- You lose some control. Arranging some tasks to the external experts you lose control and ability to monitor how those tasks are performed. The issue disappears, when you fully trust people you are hiring.
- You can meet the hidden costs. Generally, outsourcing is cheaper than hiring in-house developers. However, some agencies can charge extra costs for some kinds of work or extra hours, or extra iteration of testing, etc.
- The data can be endangered. It is especially important when you use and pass your customers’ personal data. Pay more attention to the privacy of customers and business security, hiring people on outsourcing.
Startup and business owners hire software developers on outsourcing using different types and methods. The choice of cooperation method depends on your goals, business processes, and needs.
You can choose from such types of outsourcing, depending on your business goal:
- Professional outsourcing. A business owner purchases externally specialized professional services. For example, using an accounting firm service to handle the finances of a company instead of hiring in-house accountant.
- IT outsourcing. Offshore outsourcing of IT development is popular among small startups and big companies. It is quite cheaper and faster than searching for in-house specialists. If you need to develop an app, technology, or software – in these cases it is easier to hire a remote expert.
- Manufacturing outsourcing. If you have no means to start your own production of the physical goods – use manufacturing outsourcing. This type is also good if you need to find an option for cheaper outsourcing.
- Project outsourcing. If your company needs help in a particular project, but not for a full-time – outsource a full project. It is a useful option when you need to write an e-book, manage a PR campaign, or update a website.
So, if you’ve decided that you want to outsource, it is time to consider how you are going to do it. Choose different outsourcing methods and check, how they can suit your objectives:
- Outsourcing – passing of a section of the business process to the external worker or team.
- Out-tasking – adding an extra specialist to the team for delivering specific services.
- Multi-sourcing – engaging of various specialists or a range of partners to different elements of the business.
Outsourcing is popular in different spheres of business. Thanks to modern technologies, more sectors are using it instead of hiring new employees for their regular teams. Nearshore offshore outsourcing is popular in customer support, tax preparation, web design, data entry, manufacturing, accounting, computer programming, legal, creative and healthcare services.
In general, companies are using 3 types of outsourcing, The cooperation is based on the location of the external performer or service provider. You can search the programmers on outsourcing in the close or far country: the main reason here is not the location, but the professional skills and work experience of the candidate. For example, you can consider outsourcing und offshoring as close notions – offshoring is outsourcing to a distant country. Types of outsourcing:
- Offshoring. The company cooperates with professionals from far countries – even from overseas countries. For example, when the company from the US or Germany hires the coders from Ukraine.
- Nearshoring. The company cooperates with the developers from the neighboring country. It is useful, because of the language and cultural similarities. And it is easy to travel for a face to face meeting. For example, the business from Poland hires programmers from Ukraine.
- Onshoring. A type of outsourcing services to the companies or performers from your country. In such cooperation, it is easy and comfortable to communicate with the coders from your country. However, it might be difficult to find a proper specialist in your region.
Difference Between Outsourcing and Offshoring
Countries like Ukraine in Eastern Europe have enabled Western businesses to easily conduct nearshoring. This has led to the development of a strong tech sector. In Ukraine, for example, according to TechRepublic, IT technology now accounts for 3%-5% of GDP. This is because the sector provides essential development and support services to businesses from Western Europe, USA, and other nations.
You might be wondering how nearshoring differs from traditional outsourcing. When considering remote teams definition, both models still involve a team developing remotely. The key difference is that nearshoring goes beyond mere outsourcing to prescribing a formula for how outsourcing is to be done.
Whereas outsourcing merely prescribes the need to hire dedicated developers overseas, nearshoring prescribes how. The reason is that not all forms of remote development are the same.
Nearshore Team Considerations
In particular, different versions of remote development will yield different results. You should be paying attention to the quality of the software you get in order to evaluate the process by which you develop your software. Factors that will be important to consider include:
- Time – Developing software more quickly saves you money overall. In addition, deploying software faster can give you an advantage in the market.
- Language Barriers – Going abroad, you often encounter barriers from language differences. While English is commonly spoken around the world, its uptake is not spread evenly. You’ll want to hire developer with knowledge of your business language versus a rent a coder outsourcer who cannot communicate effectively.
- Expertise – Certain regions of the world, such as Eastern Europe, have a higher concentration of expert developers. This is not the case, for example, in parts of Africa and Latin America, where talent is harder to find.
How to Hire a Web Developer for Developing Remotely: Nearshore Software Outsourcing
In order to get the right mix of conditions for your software development, the IT outsourcing Eastern Europe model often proves to be a superior model. Nearshoring does not change remote location meaning entirely. In nearshoring, you develop remotely, but with the following important factor adjustments to the process of remote outsourcing:
- Location – In nearshoring, you tap talent from an area in close proximity to you. This can reduce the latency in communications that plague remote development projects.
- Language – To move faster, you optimize for a common language with your development team. Not only project managers, but, preferably, developers as well, will speak your business language.
- Technical Culture – You want to have a shared technical standard with your nearshoring team. Their effectiveness has to match or potentially surpass what you are able to accomplish internally.
As you can see, there are many nearshore advantages. The model raises the bar on what remote software development needs to look like.
Build a Remote Team in Eastern Europe vs Offshore Destinations
There are some important differences between nearshoring in Eastern Europe and offshoring in India or Asia. These differences are stronger for clients in Western Europe, but they also affect American business organizations.
First, Eastern Europe is much closer to Western Europe than offshore destinations are. This has a profound impact on productivity for your software projects if you are based in Western Europe.
The close proximity of Eastern Europe to Western Europe creates ideal conditions for rapid communication. Since the time zone difference is minimal, within an hour or two, the communication latency is reduced drastically. Communication between Western clients and offshore developers, on the other hand, often takes much longer.
Sending responses back and forth can take long. On a project that requires speed of development and speed of communication, the disadvantages of outsourcing for example to India are most starkly felt. Going with a remote full stack team in Eastern Europe, however, does away with this big problem.
In addition, East European developers offer a great mix of experience and cost. For example, we’ve documented the cost advantages that Ukrainian developers have over USA, German and UK developers. The cost of hiring a programmer is lower in Ukraine, while the developers have solid experience.
They are some of the best developers in the world, and they have experience working with some of the biggest businesses in the world on software. You can easily find an experienced remote Scala Developer or remote Rails Developer for specialized projects. Other specialties are available as well. Unlike in Asia, where a lot of the talent is coming straight out of university, in Eastern Europe you can get plenty of experienced developers.
These are mid-level to senior-level developers who have worked on multiple large projects. They are well-versed with algorithms, data structures and other advanced coding topics. To back it all up, they have portfolios of world-class apps and websites that they have built.
Find a Developer in Ukraine for Nearshoring
One of the leading countries for nearshoring in Eastern Europe is Ukraine. For companies looking to develop software using nearshoring, Ukrainian developers offer some of the biggest advantages. This is reflected in the burgeoning Ukrainian tech scene. According to KyivPost, Ukraine now has 18 companies in the Global Outsourcing Top 100. This figure has grown rapidly in the last several years as a reflection of the country’s performance in providing IT and software development services.
1. Ukraine’s Ease of Doing Business
Doing business in Ukraine is quite easy. There are few barriers to doing business and the government is tasked with improving the ease of doing business. Other locations in the world, especially in Asia, might not have the same standards when it comes to commerce.
In Ukraine, however, you can easily find a development partner who can facilitate your software project in a short time. Signing contracts and getting paperwork done is not a giant hassle as in some other countries.
2. Ukrainian Developers Are Highly Skilled
Ukrainian developers are highly skilled and some of their startups have been bought by global businesses. These are world class developers used to working at the very highest professional standards. According to Emerging Europe, some of the well-known startups founded by Ukrainian developers include Grammarly, Readdle, and Looksery.
Ukrainian developers are reputed for their high education and knowledge of mathematics, algorithms and cybersecurity. For any large business in the West, this mix of technically advanced knowledge will be a huge advantage.
In Ukraine, you can often find developers more highly skilled than developers in your Western country or city. They have spent countless hours on code, not just in university, but beyond.
Ukrainian companies actively invest in the skill development of their employees. Developers are prized professionals. The conditions are near-perfect for their professional development. They attend training, seminars and skill-development exercises. By the time a Ukrainian developer reaches the mid-level position, they can often leave their Western colleague in the dust in a coding evaluation.
3. R&D Centers for Big Businesses Contribute to a Hot Tech Ecosystem
Further contributing to the vibrancy of the tech culture in Ukraine are the many R&D centers in the country. Major technical organizations such as Samsung and Oracle have set up these R&D centers. Their work involves cutting edge applications and research.
To meet their work needs, these large organizations have made big investments in Ukraine’s tech scene. Standards are really high in these centers and have led to an improvement across the entire tech scene. Ukrainian developers are at the forefront of these initiatives. They share knowledge through events and technical benchmarks. In this way the entire community benefits. This offers major advantages over outsourcing to a city in India based merely on cost. In Ukraine, you are able to tap a level of technical excellence that competes with the very best around the world.
4. Ukraine’s Universities Graduate 30.000 It Graduates Annually Who Know the World Standards
You might be wondering how tough it will be to get developers from Ukraine. You will be glad to know, however, that Ukrainian universities churn out annually in excess of 30.000 IT pros. These new graduates have knowledge in important areas of IT Their skills include cutting edge programming techniques and languages, including
- Machine Learning
- Data Science
- Business Intelligence
- Internet of Things
The plethora of skills being taught in the universities is dizzying. Young developers graduate with the tools to take on the world of software development. Their trainers impart to them the same skills being used at major companies like Google and Facebook. They are ready to make a bold contribution to the world, and that creates a great opportunity for Western businesses. Rather than starve for talent in the West, they can reach out to this incredible talent pool for help with their software development. Ukraine truly has it all when it comes to technical talent. Whatever your area of focus, this highly educated East European country has the talent for it.
5. Ukraine Has a Cultural Connection to the Rest of Europe, Making Doing Business Together Easy
Unlike some offshore destinations, Ukraine is an integral part of Europe. Its very European identity creates an environment for Western businesses that is difficult to replicate anywhere else. The cultural connection between developers in Kiev and their counterparts in London or Berlin is very strong. They have a shared cultural identity that is rooted in European civilization. The traditions on the continent are largely the same, for example the celebrations of Easter and Christmas.
Communication and cohesion is thus easier to achieve. Ukrainian teams work very well with Western counterparts, and vice versa. This is the big advantage of nearshoring. It gives you a team much like what you would get in your own city. The added advantage is that these will be developers that have seen it all before. They have worked on challenging, technically adept projects. Their skills will allow your business to leapfrog competitors who are only looking locally for talent.
6. Travel Between Western Europe and Ukraine Is Incredibly Easy for Business Purposes
Finally, you will be glad to know that travel between Ukraine and Western Europe is easy and cheap. You can send your senior developers over to Ukraine for important team meetings.
Likewise, you can have Ukrainian developers attend important meetings at your own headquarters. This is all easy to achieve given the proximity of Ukraine to Western Europe. In addition, Ukraine makes getting business visas for your team to travel much easier. You will be able to meet and work on your projects with your Ukrainian developers whenever the need arises.
Moving Business Forward with Ukrainian Nearshoring Solutions
Having a culture that is very close to the West creates great conditions for Ukraine’s developers. They bring many advantages to Western businesses such as lower cost while improving the quality of software.
As Ukraine has become a hotbed of IT development, its development of outstanding technical standards continues to impress. If you are a Western business with not a huge budget and you have a need for software development, you will do well to start with nearshoring Ukraine instead of IT nearshoring Switzerland, Denmark, Germany, France, or UK.