Software Development in Belarus, Poland, Ukraine, Romania

Software Development in Belarus, Poland, Ukraine, Romania

Key report insights

  • Software development market in Ukraine, Poland, Belarus and Romania grows x4-5 faster than globally, with US and EU being the main customers
  • Over 700K professionals serve the market. However, the availability of talent remains main bottleneck to faster growth
  • The market is highly fragmented with many small companies and just a handful reaching USD 200M mark in annual revenue
  • Largest players are likely to become IPO candidates within the next five years
  • The sector presents hot market for M&A activity, with over 70 deals in 2015-2018


The region in numbers: 47+ companies generating $5B in annual revenue

  • $13B+ Total IT Exports generated by Belarus, Poland, Ukraine, Romania
  • $5B+ Revenues generated by 477 companies in the four countries covered and analyzed in the report
  • 700K+ Software development and technical specialists
  • 60K Technical graduates from 200 local universities and collages
  • 74 Numbers of IT Service M&A transactions in four countries in 2015-2018

Salary analysis: one of the top value-for-money destinations

Amid the growing demand, the salaries have been on a constant rise for the past decade with its strong technical education traditions, the region, however, continues to offer one of the best price-to-quality ratios globally.

Among the four countries, the salary rates are similar with Belarus being a slightly cheaper talent market.

Salaries range from $500 for Junior Developer to nearly $5,000 for a Team Lead, all depending on the skill and experience level.

Ukraine: country overview

Population / employable population: 42.5M / 24.5M

Nominal GDP / GDP per capita: USD 112B / USD 2,640

Capital city, population: Kyiv, 2,9M

IT export in 2017 / 2018F: USD 3,6B / USD 4,5B

Analysis of IT developers on the Ukrainian market

Consistently, the AOG.jobs administration forms from 70 to 90 demands for the choice of center and senior pros of various innovation levels.

To discover an applicant inside 24 hours, we are in contact with 25 thousand autonomous IT authorities, just as more than 1300 IT accomplice organizations. Collaboration comprises in the program of powerful utilization of HR of one organization to assist another. Their masters effectively close different undertakings until they are briefly occupied with their present work. And this without depleting hunts, experimentation of the client with getting an exceptionally talented entertainer.

What specializations and innovations are basically considered for outstaffing? Generally, about 80% of solicitations are designers: backend, full stack, frontend, portable, and furthermore QA engineers. The staying 20% ​​are: chiefs, fashioners and heads.

AOG.jobs has prepared for you wonderful channels according to your wishes:

Aog_remote our telegram channel with vacancies for remote projects;

FullTimeITJobs here you can find a suitable candidate for long-term tasks;

Subcontractors UA in viber and telegram. You can always turn here when you need a resource for a subcontract.

It’s also very easy to subscribe to ours: Facebook

Or contact by mail: nd@aog.jobs

IT ecosystem. International companies with R&D in Ukraine

LLC is the most wide-spread business structure which makes up 45% of total number of legal entities in the country.

Many international companies that have R&D centers in Ukraine (Samsung, Siemens, Sitecore, Aricent) have started with one office and later either expanded the number of employees in one office, or opened one/several new offices in one of Ukraine’s major IT hubs.

Main software development hubs: Kyiv, Kharkiv and Lviv

While IT companies are located in all regions of Ukraine, the concentration hubs of outsourcing talent and companies occur in Kyiv, Kharkiv and Lviv.

The ample distribution across regions is induced by a spread network of technical universities and is supported by IT clusters that develop and nurture local IT ecosystems.

Close to 50% of the companies are young firms between 5-10 years of operation, and another 33% are between 10 and 15 years old.

Rapid expansion of IT outsourcing industry in Ukraine

The export value of IT during 2015-2018E has shown a 19% CAGR

The share of IT Services in overall exports has risen form 3rd place in 2017 to a 2nd place in 2018E.

More than 50% of IT Services revenues come from the USA. The UK the second place.

Employee demographics: the majority is employed by outsourcing companies

Out of 170K, 44% of IT professionals are employed by IT Outsourcing companies followed by Product and Outstaffing companies.

Almost a third of the IT force has over 6 years of experience.

Amid expanding market, the number of junior professionals is growing as an answer to the unmet demand from employers.

Almost a quarter of IT professionals are women and their share is growing year-on-year.

Among all sectors, the IT is one of the youngest with the average employee age being 26 years.

Salaries: Kyiv offers the best access to talent at the highest cost

Kyiv offers the highest level of salaries that comes along with the fiercest competition and access to the most abundant talent pool.

Salaries are about 11% lower in the regions on average. However, the talent pool is more limited especially for niche experts, senior technical and advanced business professionals. Most drastic differences in Kyiv vs Regional salaries are in management positions. Project managers in Kyiv are more expensive by about 22%, Team Leaders by 19% and Senior Project Managers by 3%

As the demand greatly exceeds supply, companies cannot compete only with salaries. Such factors as strong HR brand, compelling employee perks and benefits (including modern office spaces, flexible working schedules, appealing food and, most importantly, challenging projects) gain more importance.

Ukrain IT companies on average generate $50K in annual revenue per employee

The surveyed companies, which have more than 90% of Ukrainian employees had an average revenue per employee of USD 49,36 thousand per year, and the companies with less than 90% of Ukrainian employees – USD 55,09 thousand per year.

The average billing rate per hour among surveyed companies is $34

Ukrainian IT companies get majority of revenues from web/mob apps

Ukrainian IT service companies offer a wide range of services. An absolute majority does web and mobile application development, followed by architecture consulting and testing services.

What is AOG and how is it useful?

Alongside the clasic administration redistributing organizations, Ukraine has various IT Outstaffing organizations that give transitory rental administrations to IT staff and profoundly qualified engineers for 3-6-12-year and a half who work remotely full time on your tasks.

One of these suppliers is AOG which has organizations with 25,000 abnormal state IT experts on 68 distinctive IT innovations and 1,200 IT accomplice organizations that give their representatives to AOG customer ventures.

If you want to find the best IT talents for outstaffing subscribe to the channel and get real-time information.