Ukraine and Russia are famous for their scientists and STEM-related higher education, while Poland has access to EU funding for tech research and innovation. The three countries are absolute leaders of Central and Eastern Europe in software development and near- and offshore tech services for Western Europe and the Americas.
The Rocketech Team prepared our expert guide to IT outsourcing to Russia, Ukraine, and Poland. Key facts, statistics, and vital information – here, you will find everything you need if you are looking for a reliable tech partner.
Overview
Poland is one of the most popular outsourcing destinations in Central Europe. The country’s IT services market is expected to reach over $12 billion by the end of 2021. Bloomberg rated Poland 23rd in the list of the world’s most innovative economies. According to the 2019 A.T. Kearney Global Services Location Index, the country is the 24th most attractive IT outsourcing location. And Tholons Top 100 Outsourcing Destinations ranked Poland the 9th.
With its thriving economy and advantageous conditions, Poland attracts investments from industry giants like Microsoft, Google, IBM, Motorola, etc.
Ukraine is a well-recognized gem of the Eastern European and global IT scene. The country’s export volume of IT services reached $4.5 billion in 2018. Global Outsourcing 100 by the IAOP and GSA Global Sourcing Awards are only two out of many awards received by the country and its companies. The 2019 A.T. Kearney Global Services Location Index placed Ukraine in the 20th position.
Tech industry leaders prefer having their Eastern European R&D offices in Ukraine for many reasons. Big names include Huawei, Microsoft, Wargaming, Skype, Samsung, Siemens, and eBay. Moreover, corporations like Nokia, Vodafone, Panasonic, Flixbus, Bosch, and HP chose Ukrainian software development companies to delegate part of their IT tasks.
Russia is a well-established tech outsourcing destination. According to the Russoft Association, in 2018, the country’s IT services export value amounted to $5.3 billion. Remarkably, offshore software development services take up nearly 0.5% of all Russia’s export. The 2019 A.T. Kearney Global Services Location Index ranked the country 18th in the location assessment.
Russia has become an R&D hub for Motorola, Siemens, and Intel, among other large companies. Besides, Danone, Starbucks, and Tele2 chose Russian specialists for outsourcing parts of their software development processes.
Talent Pool and Expertise
There are much deeper reasons behind the decision to delegate the tech tasks to a third-party company than just cutting down the software development cost. Gartner’s survey reveals the tech talent shortage as the most significant barrier preventing the adoption of new technologies. The lack of young specialists in the Western labor markets is another reason for efficient outsourcing to the East.
Central and Eastern European coders regularly win various programming contests and rank their countries high by reputable international sources. For example, the three countries made it to the top-10 list according to Topcoder. The latest HackerRank listing has Russia and Poland in the 2nd and 3rd places, respectively.
According to Statista, the most popular and in-demand programming languages in Poland in 2021 are JavaScript, Java, and Python. The IT Ukraine Association reported the same three languages as top tools for Ukrainian coders. Russian programmers voted for the same languages but in a different order – JavaScript, Python, and Java. These three languages are among the most in-demand programming tools worldwide, according to TIOBE Index and Stack Overflow Developer Survey.
Moreover, HackerRank named countries with the best developers by domain. Here, Russia got acknowledged in eight domains out of fifteen: algorithms, Java, data structures, C++, Python, SQL, AI, and functional programming. Ukrainian professionals turned out to be among the best in mathematics, distributed systems, and security. And Poland was marked for algorithms, Java, tutorials, Python, Shell, and Ruby.
Average Salaries and Rates
There are various ways to estimate the average earnings of a professional. The salary depends on a set of factors, including years of experience, education level, and location. In most cases, residents of bigger cities and capitals expect to have higher paychecks.
According to Arc, the average developer salary in Ukraine amounts to nearly $60K annually, and in Russia and Poland, specialists get $63K and $71K per year, respectively. The same level professionals in the US would expect $97K on average. However, the annual rates imply in-house positions with benefits like paid vacations, sick leaves, and bonuses.
Our experts analyzed multiple data channels and platforms for freelancers’ communities to outline the average rates for offshore specialists in software development in Poland, Ukraine, and Russia.
Average Rates per Hour
Remote employees’ rates are mostly lower on average as companies that choose this working model, exclude expenses for large enough office rooms and extra perks from their budgets. Freelancers’ rates are affected by the situation on the market or dumping and can vary.
Tech Hubs
Local talents open for tech partnership are not centered only in capital cities anymore. Stable development of the Eastern European region provides its residents with more opportunities. Thus, Moscow, St. Petersburg, and Novosibirsk are Russia’s leading and most influential tech hubs. They take up to 70% of the country’s IT services market and host most tech companies. Other important cities include Nizhny Novgorod, Kazan, Krasnoyarsk, and Tomsk.
Ukraine’s top IT outsourcing hubs are Kyiv, Lviv, Odesa, Kharkiv, and Dnipro. While Kyiv is the capital city and the country’s administrative and scientific center, Lviv became a home for 317 IT companies (with 90% outsourcing services), and Kharkiv has up to 65% of all IT exports directed to the US.
Poland’s major IT outsourcing hubs are Warsaw, Wroclaw, Krakow, Poznan, Katowice, and Tri-City (the metropolitan area combining Gdansk, Sopot, and Gdynia). The EU membership has a number of advantages like access to European funding, stable economic growth, and freedom of movement for local workers. However, hiring developers from Poland may be more expensive due to higher expenses and cost of living.
Time Zones
Education
Higher education is still a must-have requirement for tech-related jobs in Central and Eastern Europe. Russian and Ukrainian culture is positively affected by the post-Soviet legacy of a classic education model. And universities in Poland offer plenty of programs in English.
Education Key Facts
Poland
- 43% of Polish citizens aged 25 – 34 have university degrees (the National Science Board's Science & Engineering Indicators 2018 report).
- In the academic year 2018/2019, there were 74,000 IT students (Central Statistical Office in Poland). Leading technical institutions: Warsaw University of Technology, Jagiellonian University, Gdansk University of Technology, and the University of Silesia in Katowice.
- Poland was ranked 11th in the global EF English Proficiency Index 2019.
Ukraine
- 81% of the Ukrainian IT specialists have an intermediate+ level of English proficiency (DOU survey).
- 41% of females and 64% of males hold STEM-related degrees (DOU).
- Leading technical institutions: National Technical University of Ukraine Kyiv Polytechnic Institute, Taras Shevchenko National University of Kyiv, Lviv Polytechnic National University, and the Kharkiv National University of Radioelectronics.
Russia
- The Russian Federation has one of the highest tertiary education rates across OECD countries – 63% of 25-34 year-olds (OECD).
- 35% of bachelor’s level students are enrolled in STEM-related programs (OECD).
- There are 741 universities in Russia, including 29 national research universities.
- Leading technical institutions: Bauman Moscow State Technical University, Moscow State University, Saint Petersburg State University, Tomsk Polytechnic University, Novosibirsk State University.
Final Thoughts
Central and Eastern European countries are popular destinations for IT outsourcing for many reasons. The region is famous for its education, tech specialists, and professional level. Thousands of Western businesses choose Poland, Ukraine, and Russia when looking for cost-effective, yet high-quality IT services.
This research was prepared by ROCKETECH to provide you with factual information about the IT outsourcing potential in the three counties. As our Team consists mainly of developers from Ukraine, partnering with us provides our Clients with a great advantage of working with the best talents from the region.
If your business needs a reliable tech partner working with highly skilled professionals in mobile development, our managers would love to hear your ideas. Contact us today!