August 2020 – the 5th month of the crisis on the market. The IT Talent market is slowly renewing after a high decrease. A lot of companies got back to the business and started hiring.
In July, the forecasts for the previous month were confirmed. The vacancy market continued its active growth and reached the pre-crisis level. Companies started actively recruiting new employees – the number of companies that are looking for specialists has grown. 5 largest Ukrainian IT companies returned to search for employees.
In terms of hiring, not a new concept for a lot of companies worldwide to establish a development office in Ukraine. The level of salaries, cost of living, etc, allows European and American companies to decrease their costs by outsourcing. But where could you find IT talents in the most efficient way? Here are the 2 most popular channels:
– Direct hiring;
– Outstaffing (Remote Consultants).
Considering the potential interest of the international businesses that would like to establish an IT business with Ukrainian developers we decided to review the analysis of the monthly rates of Ukrainian developers and compare them with the rates of remote developers that companies can hire today using an Outstaffing model as an option.
Ukrainian Developers Salaries – summer 2020 according to DOU.ua
Software Engineer’s salary movement 2012 – June 2020
According to a survey for June 2020, the average developer salary in Ukraine is $2,300 per month (after-tax). There was no significant growth compared to December 2019.
In terms of positions, there is a drop in salaries for System Architect by $200 and Senior SE – by $100. And also a $150 increase in Team / Technical Lead salaries. For Software Engineer and Junior SE, the average salary has not changed for the third consecutive survey.
Average Salaries by Tech Specialty
Junior SE, programming Java, C and C ++, has the highest salary at $800. For SE and Senior SE, the most paid languages are Scala and Go ($2400-2700 and $4400-4500 according to the position).
Average Salaries by Programming Language
The highest average salaries are for Node.js ($2200), Angular/Angular.js ($2179), and Express ($2100) developers.
Java: Average Salaries by Frameworks
As for the situation with Java developers, over the past six months, the dynamics of average salaries for SE and Senior SE has been negative, there was a decline of $200. The highest average salaries – those who use Play and Apache Spark.
PHP: Average Salaries by Frameworks
In recent years, PHP developers’ salaries have dropped by $300 for a Senior SE, $100 for a SE, and $50 for a Junior SE.
C#/.NET: Average Salaries by Frameworks
The highest average salaries (in addition to standard platforms) – React.js ($2600) and .NET Core ($2750) developers.
Average Salaries for Senior Software Engineer: 1 Quartile and 3 Quartile
Let’s take a look at the situation with pricing for Remote IT Talents as an alternative. What hourly rates could you expect if you decide to try outstaffing as a solution for your business? The results of the analysis are based on pricing for the Senior Software Engineer with 5+ years of experience in the requested field.
Hourly rates by tech speciality: August 2020
The highest salaries are in Data Science and Machine Learning where experts are in high demand these days. The lowest rates are for QA.
Hourly rates by technical skills
And finally, we would like to present the average graph of the spread of monthly salaries for remote specialists.
Monthly salaries by technical skills
Thinking about hiring remote IT Talents, companies often try to reduce their costs, even though the price for remote consultants sometimes is higher than for direct hiring. However, it is necessary to take into account several additional costs, as well as time spent, which the company faces while hiring an expert in the office. Hiring remote IT engineers on the Outstaffing business model the company receives the required expertise and the solution that is needed at a particular moment.
Summarising our review we’d like to highlight a few important things you should need to take into consideration when you are evaluating pricing for hiring IT Talents:
– Purpose of hiring – what goals the company solves by hiring a developer, for what tasks and at what level projects;
– The level of a candidate in terms of his technical skills is one of the main pricing factors today. Having a product-oriented mindset and soft skills differentiates more valuable candidates in terms of efficiency and business value;
– Portfolio of projects – a key component of candidate assessment;
– These days’ proficiency English and its sufficient level for communication with clients is a necessity, not a competitive advantage;
– The hiring model defines the way a company does business. Hiring a remote consultant for a specific project has long established itself as an effective hiring model that allows you to reduce costs and pay only for the value that a candidate brings to your project. Direct recruitment is effective in the long run, but it takes away the flexibility to make decisions and access the best talent on the market.
If you are thinking about Remote IT Engineers as an option for your business and you need to compare the price with your expenses for direct hiring, we would be happy to answer your questions in terms of salaries and ready to provide you with required examples of available profiles.
In the next review
We will describe the concept, advantages, and insides of Outstaffing – as an outsourcing hiring model. You’ll find out what companies this model is suitable for and what goals it helps you to solve.