Ukraine Developers: 5 Things to Consider When Hiring

Elen Muradian

Last updated on May 12, 2025 | 17 min read

IT marketIT RecruitmentOffshore

Ukraine has long been a key player in the global outsourcing market, known for its skilled workforce, competitive pricing, and strong IT infrastructure. Despite the turbulent period in Ukraine’s market in the last few years, the country’s IT industry remains resilient and is projected to continue its growth trajectory, with expectations to reach an impressive $1.72 billion in revenue by 2029.

This growth is driven by Ukraine’s thriving tech ecosystem, which includes a vast pool of developers with expertise in a variety of programming languages, frameworks, and technologies. Ukrainian developers are highly sought after for their technical proficiency, problem-solving abilities, and work ethic. The country’s IT hubs are expanding, offering access to not only qualified developers, but also business services that can help companies scale their operations.

However, hiring offshore developers requires careful planning and awareness of potential challenges. These considerations range from understanding the current state of the industry to navigating legal requirements and assessing salary expectations. In this article, we will explore 5 key things to consider when hiring developers from Ukraine, helping you make informed decisions when expanding your development team offshore.

Industry landscape

The country’s software development industry has seen an impressive, steady growth in recent years. In 2025, the software market in Ukraine is projected to generate a revenue of US$4.11bn. By 2029, the revenue is expected to reach a volume of US$10.53bn, with a CAGR of 26.54%. As the IT sector continues to expand, Ukraine is set to reach $5.49 billion in software development exports by 2028, with an impressive annual growth rate forecast of nearly 12%​.

Major IT hubs

Ukraine is home to several key IT hubs that serve as major engines for the country’s tech industry. The largest of these hubs is Kyiv, which hosts around 36% of Ukraine’s IT specialists. The capital city is an ideal location for both product companies and outsourcing firms, thanks to its large talent pool, business infrastructure, and range of available resources. Kyiv is home to numerous R&D centers for international companies, as well as a substantial number of local tech startups and large enterprises that contribute significantly to the country’s economy.

In western Ukraine, Lviv has emerged as a central hub for outsourcing and outstaffing services, hosting 18% of Ukraine’s IT professionals. Lviv’s reputation as a tech-friendly city has grown in recent years, largely due to its proximity to EU markets. This concentration of tech talent and supportive infrastructure makes Lviv particularly attractive for companies that prioritize outsourcing.

Dnipro, located in central Ukraine, holds a strategic place in the IT landscape, with 6% of Ukraine’s IT talent. The city is known for its strong presence of product-oriented tech companies and software development firms. Its position between Kyiv and the eastern cities also makes it a natural gathering point for professionals who require accessible, centralized locations for business operations.

Further south, Odessa captures around 4% of Ukraine’s tech talent. It has a mixed-tech ecosystem that includes both product and service-oriented firms. Finally, Kharkiv, which has traditionally been a stronghold for IT talent, currently hosts 3% of Ukraine’s tech professionals. The city has long been a focal point for outsourcing services, supported by a network of educational institutions that supply a stream of skilled professionals.

In recent years, some Ukrainian IT professionals have temporarily moved abroad to popular destinations such as Poland, Spain, Germany, and Portugal. However, recent trends show that the majority are willing to return to the country. Cities such as Vinnytsia, Ternopil, and Ivano-Frankivsk, along with the capital, have become favorable locations for IT professionals.

Legal aspects and taxation system

When outsourcing or offshoring IT services to Ukraine, most companies establish cooperation with developers registered as private entrepreneurs (PEs), which is equivalent to independent contractors in the US. Private entrepreneur developers operate under service provision agreements, which offer businesses a flexible and legally secure framework. Such agreements allow companies to avoid complex employment contracts while ensuring that collaborations remain compliant with Ukrainian law and international business standards.

Ukraine offers a simplified taxation system for private entrepreneurs. This system makes the environment particularly attractive for IT services. Developers registered under this model pay a 5% income tax monthly and a minimal social security contribution (22% of the minimum monthly salary) thrice a month. These rates are significantly lower than in Western countries, where employer taxes often range from 20% to 40% of the salary. This arrangement allows businesses to save up to 70% in operational costs compared to employing full-time staff in regions like the EU or the US.

Developer’s portrait

Ukraine is home to a highly skilled and educated software developer community, with the majority of professionals in their early thirties. Ukrainian developers benefit from a robust educational system, with an impressive 80% holding Master’s degrees, predominantly in STEM fields. The country’s universities, coupled with non-formal learning platforms such as specialized courses, lectures, and training by top tech firms, ensure a continuous learning culture. This dedication to skill enhancement has made Ukrainian developers proficient in a wide array of programming languages and technologies, including JavaScript, Java, Python, C#, TypeScript, PHP, and Kotlin.

Additionally, Ukraine ranks 40th out of 116 countries in the EF English Proficiency Index, ranking above countries like Italy and France. Over half of its IT professionals demonstrate Upper-Intermediate or Advanced English skills, making communication seamless for international clients.

Ukrainian tech professionals are also celebrated for their problem-solving abilities, critical thinking, creativity, teamwork, and time management. These attributes contribute to their strong reputation among global tech companies seeking reliable partners.

Salaries

One of the key factors that make Ukraine a top destination for IT outsourcing and offshoring is the competitive salary range for local developers. Compared to their counterparts in the United States and Western Europe, Ukrainian software engineers earn 2-3 times less, offering significant cost savings for businesses without compromising on quality. Beyond lower salaries, Ukraine’s cost of living is also significantly lower than in Western countries.

Below, you can find a breakdown of software developers’ salaries in Ukraine by position. The figures represent a median salary by experience in USD.

Timezone differences

Ukraine’s time zone (Eastern European Time, UTC+2) offers a convenient overlap with many major tech hubs, making it a strong choice for IT collaboration. With minimal differences from Western Europe and workable hours for North America, Ukrainian developers can effectively align with global teams, ensuring smooth communication and project management.

Here’s the breakdown of the timezone differences:

How to call Ukraine from Abroad

To call Ukraine from abroad, dial your country’s international exit code (e.g., 011 for the US and Canada, 00 for most of Europe), followed by Ukraine’s country code +380. Then, enter the area code (without the leading 0) and the local phone number. For example, to call a Kyiv number (044-XXX-XXXX), dial +380 44 XXX XXXX. VoIP services and messaging apps like WhatsApp, Viber, and Telegram are also widely used for international communication.

DevsData LLC: Your software development recruitment agency in Ukraine

Website: www.devsdata.com
Company size: ~60 employees
Founding year: 2016
Headquarters: Brooklyn, NY, and Warsaw, Poland

DevsData LLC is an experienced IT recruitment agency with over 8 years of industry presence, offering tailored hiring solutions for a wide range of roles, including software developers, data scientists, project managers, and IT specialists. With a strong focus on Ukraine, where they have 5 local offices in Kyiv, Lviv, Ternopil, Vinnytsia, and Ivano-Frankivsk, DevsData LLC provides businesses worldwide with expert recruitment and software development services across multiple industries. Their team of more than 40 senior technical recruiters based in the US and Europe ensures a client-centric approach to recruitment. DevsData LLC collaborates with various organizations, ranging from hedge funds and multinational corporations to innovative startups worldwide, including the US and Israel.

The agency boasts an extensive network of over 65000 pre-screened professionals, including many Ukraine-based specialists, enabling precise matches for technical roles, such as software engineers, DevOps experts, data scientists, and QA specialists. Their recruitment process consists of comprehensive assessments, including a rigorous 90-minute technical interview and problem-solving evaluations, resulting in a 6% acceptance rate.

The company’s commitment to client satisfaction is reflected in its high placement success rate on Clutch and Goodfirms and positive testimonials. Operating under a government-approved recruitment license, DevsData LLC adheres to strict compliance and professional standards. One of their standout qualities is a success-based pricing model, where fees are only charged upon successfully hiring a candidate with a guarantee period. This approach combines affordability with an unwavering commitment to excellence. DevsData LLC’s ability to deliver on complex recruitment challenges further solidifies its reputation.

Recently, DevsData LLC successfully collaborated with a London-based financial firm specializing in algorithmic cryptocurrency trading to assemble a high-caliber engineering team. The client required exceptional candidates with expertise in algorithmic problem-solving and financial systems, with a goal of building a top-tier team capable of tackling complex algorithmic challenges in the highly competitive cryptocurrency market. DevsData LLC assigned three dedicated recruiters, launched a global sourcing campaign, and implemented a thorough vetting process, including coding challenges and live technical interviews. Initially seeking one hire, the client ultimately recruited 4 engineers and established a new engineering branch.

In addition to IT recruitment services, DevsData LLC has an in-house google-level team of software engineers with over 10 years of experience who provide outstanding software development services. As a software development provider, DevsData LLC has experience working with global corporate clients as well as high-growth startups from various countries, including the US and Israel.

Address:
DevsData IT Recruitment Agency, Lviv
Halytska St, 21/4, Lviv,
Lviv Oblast, Ukraine, 79000
ukraine@devsdata.com Copy email

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Bottom line

Ukraine remains a thriving destination for IT outsourcing and offshoring, offering an exceptional blend of expertise, cost-efficiency, and resilience. The local IT industry continues to grow steadily, with a projected market value of $1.72 billion by 2029. Major hubs like Kyiv, Lviv, Dnipro, and Odesa serve as dynamic centers for tech activity. They accommodate a vast pool of highly skilled developers with diverse technical and soft skills. These cities specialize in various services, including product development, outsourcing, and outstaffing, catering to the specific needs of global businesses.

Ukrainian developers are highly qualified, with a strong foundation in STEM education and excellent English proficiency. Their expertise spans technologies like JavaScript, Python, and C#, making them valuable assets for tech companies worldwide. Additionally, the country offers a favorable taxation system with simplified processes for companies collaborating with private entrepreneurs, ensuring cost savings and compliance.

Salaries for Ukrainian developers are competitive, often 2–3 times lower than in Western markets. With a robust legal framework and professional services available for taxation, compliance, and recruitment, companies can seamlessly establish partnerships and maintain efficient operations in Ukraine.

DevsData LLC stands out as a premier partner for tech recruitment in Ukraine, offering personalized and efficient services. By leveraging a global network of recruiters and a meticulous vetting process, DevsData LLC ensures successful placements tailored to clients’ needs. Their ability to deliver exceptional talent, as demonstrated by numerous success stories, positions them as a trusted ally for businesses seeking top-tier tech professionals in Ukraine and beyond.

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Elen Muradian Copywriter and Marketer

As a versatile and accomplished writer with 3+ years of experience in digital media publishing, Elen is skilled in crafting engaging content across various subjects, styles, and media. In her previous experience, Elen worked closely with editorial teams and visual artists to bring content to life. She always seeks opportunities for personal and professional growth and is eager to contribute to the writing field.

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