IT Outsourcing to Ukraine: Insights from Companies Who’ve Been There

There are hundreds of articles praising IT outsourcing in Ukraine. Most of them talk about good English proficiency and the convenient time zone and while it’s true, let’s face it—these points are not enough to make the right decision on outsourcing to Ukraine.

Yes, Ukraine is home to many exceptional developers, and it’s no coincidence that globally recognized startups like Grammarly, GitLab, and Ahrefs have roots there. But the main question is left hanging: Is Ukraine a solid choice for outsourcing software development today?

The best way to answer this question is to learn from those who’ve outsourced to Ukraine. Our team scoured the ultimate treasure trove for unfiltered opinions — Reddit — to gather honest feedback and real concerns about IT outsourcing to Ukraine.

But before diving into real-life feedback, let’s take a moment to explore the key numbers to see the current state of Ukraine’s IT market.

The IT industry in Ukraine isn’t just holding its ground, it’s growing despite a tough geopolitical situation. Revenue in this sector is expected to show an annual growth rate of 9.68%, reaching $1.73 billion by 2029, according to Statista.

Statistics are clear: Ukraine remains one of the top outsourcing destinations globally. But numbers alone don’t paint the full picture. What do people think about software outsourcing in Ukraine? Are businesses satisfied with outsourcing companies in Ukraine or could they do better?

To find out, we turned to the most honest source out there: Reddit forums.

We skimmed through tons of Reddit discussions to uncover what people really think about outsourcing to Ukraine. Five key categories emerged as top priorities for those considering software development outsourcing:

Here’s the feedback for each of these aspects.

Development rates

One of Ukraine’s standout advantages in software engineering outsourcing is its cost-effectiveness. But don’t get the wrong idea, it doesn’t mean that Ukraine is the cheapest option among outsourcing destinations. According to Reddit users, Ukraine offers a good value for money compared to other Eastern European countries.

Some consider outsourcing in Ukraine a good option in terms of quality, but not necessarily costs. While there’s a large pool of freelancers available, many businesses opt for collaborating with third-party development companies instead, as they provide better structure, reliability, and scalability. Freelancing can be an option for smaller tasks, but for larger projects, outsourcing companies remain the preferred choice.

If we look at the numbers, the median salary for a software developer in Ukraine was $3,500 per month in 2024, according to a report by DOU, a trusted source on salaries in Ukraine. The top 10% of developers earn over $6,400 per month, and the top 1% surpass $11,000.

For comparison, in the United States, the average annual salary for a software developer in 2024 was $102,968, with total compensation often reaching $132,332, according to Glassdoor. That’s over $8,500 per month on average. Naturally, if US companies choose to hire locally, the cost is significantly higher, that’s one of the reasons why many choose software development outsourcing in Ukraine.

Being a Ukraine-based software development outsourcing company, we at Kultprosvet can claim cost savings of up to 75% compared with building a team in the US. For example, for Gifted, an early-stage startup that looked to scale in the US, we assembled a team of 12 experts and achieved the growth stage in 5 years. If Gifted had hired in-house talent in the US, it would have cost them $1,487,487 annually. By partnering with KPS, they paid only $365,040, saving 75%.

In Western Europe, salaries are also higher than in Ukraine. For example, in Germany, the average salary of a software engineer is $67,000/year (~$5,583 per month). In the United Kingdom, the average salary of a developer is $52,000/year (~$4,333 per month). So the rates of Ukrainian developers are still far more affordable than in the US or Western Europe, and that’s one of the reasons why companies keep outsourcing to Ukraine.

Cultural fit

Another concern business leaders have when outsourcing is whether the teams will "click", and Ukrainian developers often meet expectations in this regard. Many businesses praise Ukrainian teams for their ability to effortlessly integrate into European and American projects.

But what’s the secret? For starters, Ukrainians share many of the same professional values, such as a commitment to meeting deadlines, delivering quality work, and taking ownership of projects. Сompanies in Eastern Europe usually approach work with a problem-solving mindset, which resonates with clients. 

Plus, the majority of IT professionals in Ukraine have extensive experience working with international clients, which makes it significantly easier for companies in Ukraine to integrate into the workflows of global companies.

At KPS, for instance, we have been providing outsourcing services to US and European companies for over 11 years. Thanks to this wealth of experience, our developers seamlessly align with client teams. When we collaborated with Rooya, a UK-based AI-powered fleet management and insurance startup, our developers handled the front end while Rooya’s in-house team focused on the back end.

The project required close collaboration, particularly for enabling AI-powered features. Our team streamlined data collection from smartphone sensors and ensured its seamless transmission to the AI-driven backend for processing. Finally, this allowed Rooya to integrate AI capabilities and deliver a compelling proof of concept to attract investors– and this is just one of the examples of how seamlessly our developers cooperate with clients’ teams.

Level of technical skills

Regarding technical expertise, clients are unanimous in their opinion: Ukrainian developers deliver good-quality work.

One of the key reasons for this high level of competence is Ukraine’s strong focus on technical education. The country produces a large number of graduates in computer science, engineering, and other STEM fields each year, many of whom go on to become leaders in the tech industry.

Some reviewers also add that for a better evaluation of the technical skills and overall work quality, platforms like Clutch can be a great help.

You can browse developer ratings, read client reviews, and explore project portfolios to make a well-informed decision.

Knowledge transfer

Some clients have noted challenges in knowledge transfer during the outsourcing process which can lead to a dependency on the outsourced team.

While this can happen in certain cases, the real issue often lies in unclear processes and a lack of collaboration from the start. In KPS's experience, such problems never happen because we are committed to helping clients grow instead of making them rely endlessly on us. But unfortunately, sometimes we have to close gaps created by previous teams.

To draw an example, we can take BetterCare, an Israel-based management platform for elderly care facilities. When the company founder, Naomi Rubinstein, approached KPS to modernize BetterCare’s legacy technology, we found ourselves in a typical scenario — a project left by a previous team that hadn’t put any effort into knowledge transfer.

While Naomi was focused on the business side of the product and entrusted development to a tech partner, the ex-provider fell short of their responsibilities and didn’t document the development information properly. As an outcome, the founder was left without essential access credentials, a clear understanding of the project’s current state, or the onboarding details necessary for a smooth handoff.

As KPS was working on the project, we also conducted comprehensive technical onboarding to ensure Naomi could avoid such problems in the future and effectively manage her technical teams. Now, understanding the technical side better, BetterCare’s founder can now manage the project more effectively, and build a solid development strategy. Ultimately, we not only modernized BetterCare’s legacy platform but also provided technology consulting services so that our client could tackle the common issue of poor knowledge transfer.

Geopolitical situation

Now comes the main concern many have about IT outsourcing in Ukraine: the ongoing war against Russia. Yes, blackouts and air raid sirens are part of the Ukrainian reality. But what’s equally true is that Ukrainians don’t give up — they adapt.

Ukrainian software development companies have taken proactive measures to ensure uninterrupted work, even under extreme conditions. Many have invested in alternative power sources, such as diesel generators, EcoFlow systems, and Starlink for stable Internet connections. At Kultprosvet, we’ve also made these investments to ensure smooth workflow and reliable communication.

Our clients confirm, our communication and project delivery remain seamless, despite anything.

Many Ukrainian IT companies have expanded internationally by opening offices in countries like Poland, the Czech Republic, and even the United States. This allows them to hire Ukrainian specialists through B2B contracts, providing businesses with a straightforward and flexible way to access top-tier talent. These international setups also simplify legal and administrative processes, ensuring compliance with local labor laws and tax regulations. As a result, companies can collaborate with skilled Ukrainian developers, regardless of their location.

So, based on the wisdom of Reddit users, it’s safe to say that outsourcing software development in Ukraine is a good choice in multiple cases, especially for American and Western European companies looking for a reliable partner.

Now, let’s shift our attention from the current state of events to the future. Will Ukraine continue to be a top destination for outsourcing in 2025 and beyond?

Despite the challenges of recent years, we at KPS believe that Ukraine’s IT outsourcing sector will continue to evolve. And we have sound reasons for that.

Take the U.K.-Ukraine TechBridge, for example. This initiative, launched at the Ukraine Recovery Conference in 2023 by the UK Prime Minister, will strengthen the resilience of the Ukrainian tech sector. 

This initiative is built on four key pillars: skills, innovation, trade, and investment. It supports the development of both technical and business skills, offering training and guidance to help Ukrainian tech talent grow and stay competitive on the global stage. Through workshops and collaborations, the program facilitates the creation of innovative technology across sectors such as cybersecurity, health tech, telecom, AI, fintech, and more.

Another great example of Ukraine’s pro-digital approach is the Diia, a groundbreaking e-government tool. Diia connects 7,5 million Ukrainians to over 70 public services, including 11 digital documents like ID cards, driving licenses, and birth certificates. All documents in the app have the same legal force as their paper or plastic versions. Users can even share digital copies of documents, pay fines, or settle debts—all in a few clicks. The main goal is to make 100% public services available online.

With Diia's launch, Ukraine has become the first country where a digital ID is valid nationwide and among the first in Europe to launch a fully functional digital driving license.

But the growth doesn’t stop there. Tech companies from Ukraine are now entering new markets like Africa, Latin America, and Japan. This shows how adaptable the Ukrainian outsourcing market is and allows Ukrainian developers to work with a wider range of clients, beyond already established relationships with the US and Europe.

Ukrainian software developers have earned a reputation as the gold standard in software development outsourcing, and here's a funny twist: some companies have reported cases of Russian developers claiming to be Ukrainian just to land jobs. It goes to show how Ukraine has cemented its status as one of the top outsourcing destinations in the world.

But this kind of mistake can’t happen if you work with an experienced Ukrainian outsourcing company. At Kultprosvet, we’ve got you covered on all fronts, be it finding the right Ukrainian software developers, offering tech advice, taking charge of your project, or scaling it.

Partnering with Kultprosvet is more than just hiring developers—we build a custom team that works seamlessly with your company. Being more than a decade in the software development industry, we’ve designed a hiring process under B2B contracts that’s smooth, transparent, and remote-friendly. We handle everything—from sourcing top talent to creating an engaging and supportive work environment.

What sets KPS apart is our transparent pricing system and loyalty discounts. You only pay the transparent developer's salary, plus a monthly service fee for our management and support services—nothing more.

Whether you need a single developer to fill a skill gap, a dedicated team for long-term projects, or a fully managed software solution, we’ve got you covered. We’ve already helped over 80 companies worldwide, from startups to mid-sized businesses, save up to 70% on development costs without compromising quality and we would be glad to help you with your development needs.