How to choose the best offshore software development company in Ukraine?

Ukraine has long been recognized as a thriving hub for offshore software development, offering a unique combination of highly skilled tech professionals, a dynamic tech community, and a well-developed infrastructure. Even despite the temporary slowdown caused by the full-scale Russian invasion in 2022, the Ukrainian IT industry showcased remarkable long-term resilience. By establishing new offices and relocating employees to safer regions, the majority of Ukrainian tech companies sustained a 95% service delivery level, reaffirming their reliability to clients. Therefore, Ukraine remains an attractive destination for IT outsourcing, and offshore software development in particular.

What are the other benefits that make Ukraine stand out among offshore locations? And, most importantly, how to choose a reliable offshore software development company in Ukraine among the myriad of tech vendors? Let’s explore the key factors to keep in mind when selecting among Ukrainian offshore IT companies to ensure a successful partnership.

Why opt for offshore development in Ukraine?

The resilience of Ukraine’s IT industry is closely linked to its thriving IT hubs, which continue to support and attract relocated talent even amidst the challenges of war. According to DOU, the majority of Ukrainian IT professionals are urban-based, with 83% living in major cities. Kyiv and Lviv are the top choices, followed by Dnipro, Odesa, and Kharkiv. After the significant relocations in 2022, more and more tech experts are now choosing to return to Ukraine. The Relocation Survey by DOU has shown that the number of IT specialists abroad intending to return has slightly declined, from 13% to 10% in the first half of 2023. Nevertheless,41% of developers are planning to come back.

Due to the high concentration of skilled tech workforce and developed infrastructure, Kyiv, Lviv, Dnipro, Kharkiv, and Odesa are Ukraine’s most prominent IT powerhouses, according to DOU. These cities are home to R&D centers and offices of many global tech giants and Ukrainian enterprises. Among the top international companies that have facilities in Ukraine are Oracle, Ring, Siemens, Cisco, and Samsung. This presence of global tech leaders, combined with the strong network of Ukrainian IT companies, drives progress through healthy competition and fosters a culture of innovation and collaboration.

Another reason for partnering with an offshore software development company in Ukraine is a large talent pool of skilled engineers and ICT professionals. The country is home to around 300,000 tech experts, approximately 50% of which work for IT outsourcing and IT outstaffing vendors. In addition, local engineers are well-recognized in the industry due to their profound technological expertise. Ukraine ranks 7th on TopCoder’s global ranking of the best programmers, outpacing Poland, Romania, and many other CEE countries.

Cultural compatibility and time zone overlaps with North America are key factors that make businesses partner with an offshore software development company in Ukraine. Ukrainian tech experts are known for their strong work ethic, effective communication skills, and ability to collaborate seamlessly with Western clients, aligning well with the cultural expectations of North American businesses. Additionally, Ukraine's time zone (GMT+2) allows for substantial overlap with North American working hours, facilitating smooth and efficient collaboration across borders.

Offshore development companies in Ukraine: Market overview

Ukraine has the second largest number of offshore software development companies in the CEE region, losing to Poland only. There are around 2,300 tech companies on the market, over 1,000 of which are listed on Clutch. Even though the lion's share of these vendors are small firms with up to 50 employees, Ukraine still leaves many CEE countries behind in terms of the number of midsize and large companies. As of January 2025, Ukraine has more than 50 midsize IT outsourcing vendors with more than 250 tech experts on board—more than in Romania and Bulgaria combined. In addition, the country is home to 15 large tech companies that employ over 1,000 IT specialists. 

Over the past year, the landscape of employment for Ukrainian IT professionals has undergone a significant shift. For the first time, the share of IT specialists working in product companies (44.5%) surpassed those in outsourcing companies (36.1%). 12% of local tech experts are employed by outstaffing firms, while 4.2% work for startups.

Ukrainian companies also have wide and versatile industry expertise. The сountry is an appealing choice for enterprises seeking specialized software development services and compliance with industry standards. Among the top five industries serviced by Ukrainian offshore development companies are financial services, information technology, healthcare, ecommerce, and business services. 

But how to find the offshore software development company in Ukraine that suits you best among more than 1,000 vendors of different shapes and sizes? What criteria are the most critical ones? And how to make your partner selection process smooth and safe? To help you navigate the diverse vendor landscape and make an informed decision, we’ve prepared a step-by-step guide.

How to select the right offshore development company in Ukraine?

1. Create a long list of companies

Whether you are a CTO, PM, or procurement manager looking for a list of companies that can help you solve your business problems, the route is pretty much the same. 

Explore the local IT industry landscape and its leading players

Explore the IT industry dynamics in the region to get helpful insights into the local IT market and discover the top offshore development companies in Ukraine. To do this, you can use such local resources as DOU, MC Today, IT ID Lviv, etc. They will help you to find vendor listings, companies’ websites, as well as info on industry recognition, reputation, and employer brands of Ukrainian offshore software development companies.

Read more: How to hire a development team in Ukraine: Ultimate guide

Check vendor directories

Another reliable source of info on offshore development companies in Ukraine is dedicated vendor listings such as Clutch, Manifest, GoodFirms, and others, which base their rankings on meticulous research and a defined set of criteria. Such lists will help you find the companies that offer offshore development services in Ukraine and around the world. You can filter them by the services they deliver, the number of employees, industry focus, as well as the size of their clients. Moreover, large directories, like Clutch, present verified clients’ references, which dwell on different aspects of partnerships, from their technical expertise to the ability to collect a team promptly and project management skills. 

Browse companies' websites

Any great offshore software development company in Ukraine (or CEE) will pay attention to their website and present as much information as possible.  Look for the following key elements:

• A company overview page with the basic information about the company, its history, mission, and core values;
• Office locations and global presence, as this can indicate their operational scale and talent sourcing capabilities;
• A list of their services and technologies that showcases their expertise and alignment with your project needs;
• Industry-specific experience to assess their understanding of your domain’s unique challenges and requirements;
• Portfolio of successfully delivered projects, complete with case studies, client testimonials, or measurable outcomes, to verify their track record.

Additionally, consider these important factors:

• The vendor’s size as a large or midsize offshore development company with more than 250 experts on board can help you quickly access the right tech talent, enabling faster project launches. Moreover, larger tech vendors usually have optimized development processes.
• Long-term partnerships: A high number of sustained collaborations indicates their ability to deliver lasting business value and maintain client satisfaction.
• Talent development initiatives: Look for an offshore software development company in Ukraine that has professional development programs, certifications, and employee retention strategies, as these reflect the vendor’s commitment to maintaining a skilled and motivated team.

Look for partnerships, certifications, and awards

When evaluating an offshore development company in Ukraine, consider their partnerships, certifications, and industry recognition. Reputable companies often collaborate with major tech partners and comply with international regulations and security standards. Certifications like ISO 9001 and ISO 27001 demonstrate their commitment to quality and data security, while PCI DSS certification is crucial if they provide payment or financial transaction solutions.

If you are looking for a reliable tech company for your cloud project, check for partnerships with leading cloud hyperscalers such as AWS, Google Cloud, and Microsoft Azure. These partnerships highlight the provider's expertise in cloud computing, migration, and related services. Additionally, a partnership with SAP highlights the company’s expertise in implementing and managing enterprise resource planning (ERP) solutions, including advanced cloud technologies like SAP S/4HANA, to streamline operations and enhance decision-making.

Industry recognition serves as a powerful indicator of a company's credibility and expertise. Pay attention to industry awards like the Global Outsourcing 100 by IAOP, which celebrates the top outsourcing companies worldwide. In 2024, N-iX was included in the IAOP top 100 list for the eighth consecutive time.

Related: Software development outsourcing to Ukraine: An ultimate industry overview

2. Shortlist the initial pool

Now, it is time to narrow down the list of offshore software development companies in Ukraine. There are a few simple steps to shortlist potential vendors:

Send out RFIs

Knowing what questions to ask your potential vendor is critical. Pay attention to these aspects of a potential partnership with an offshore software development company in Ukraine:

• Service offerings: Ensure the vendor’s service offerings align with your specific project requirements and long-term goals.
• Talent availability: Ask about how quickly they can provide skilled professionals to meet your project needs.
• Agile development approach: Ensure the vendor follows Agile practices to maintain flexibility, encourage collaboration, and deliver results efficiently through iterative progress and regular feedback.
• Pricing and cooperation models: Understand the options they offer, as these can significantly influence your project’s total cost.

Assess their communication level

First interactions with a potential vendor matter a lot. If you see that it takes them ages to reply, they show little to no interest in your company, or they don’t seem enthusiastic about working with you, it might be better to avoid a company like that. 

However, if you need an answer ASAP, make sure to include important details to reduce the time required to process your request. It may include your business needs, your domain, the size of the team you will need, and the technical stack you will require. This will help an offshore development company in Ukraine (or anywhere for that matter) to understand whether they can help you with the services you need. 

Remember that no experience, portfolio, or expertise can make up for the lack of communication and customer approach. If they ignore you at the beginning, what makes you think they will change it later? 

Discuss the pricing model

Selecting the right pricing model is a critical step in aligning your outsourcing partnership with your business needs and ensuring cost efficiency. Each model offers different levels of control, scalability, and budgeting approaches, making it essential to understand which best suits your project requirements. 

The Fixed price model is ideal for small to medium-sized projects with a clearly defined scope, stable requirements, and set deadlines. This model ensures cost predictability, as clients pay a pre-agreed amount for the entire project, regardless of time or resources used. While it minimizes budget risks, it offers limited flexibility, as any changes to the scope of work may lead to additional charges or delays. This approach is most effective for projects with detailed planning and minimal expected changes.

The Time & material model is the most flexible option, making it suitable for projects with evolving requirements or unclear scopes. Clients pay based on the actual time and resources used, which allows for adjustments throughout the project. While this model provides greater adaptability and control, it requires active oversight from the client to avoid scope creep and manage costs effectively. This approach works well for dynamic projects where iterative development is required.

Dedicated development team is the best choice for long-term projects requiring specialized expertise or additional development capacity. A managed team can act as an extension of the client’s in-house team, seamlessly integrating with their organization. This model offers flexibility, scalability, and direct access to top talent without the time and effort required for in-house hiring.

Clarify legal details

Contract signing is the final stage in the vendor selection. However, any promising cooperation may turn into a disaster if the companies run into legal obstacles.

While shortlisting the pool of potential vendors, make sure to discuss legal aspects such as liability, intellectual property ownership, timeframes of partnership, and other clauses. This will help both you and your potential vendor prepare for drafting a contract. And while the final contract always differs from the first draft; it is important to understand whether cooperation is possible at all.

Continue reading: Offshore development in Ukraine: How to avoid contract loopholes

Bonus tip: Prioritize knowledge transfer and communication

Effective knowledge transfer requires mutual effort and a well-structured plan. Look for a vendor that provides a robust knowledge transfer plan and has an established culture of knowledge-sharing. A strong knowledge transfer plan should address three critical elements:

• What knowledge is transferred: Define the information to be collected at individual, team, and organizational levels.
• Who is involved: Clearly identify the stakeholders responsible for transferring and receiving knowledge.
• How it’s done: Outline the methods for knowledge sharing, such as Q&A sessions, live demonstrations, or tech talks.

Establishing efficient communication practices is equally important while offshoring software development. Reliable vendors maintain transparent collaboration by offering consistent communication channels and project management tools, ensuring clients stay informed and involved. To tackle time zone differences, schedule meetings, status updates, or reviews during overlapping hours, and easily monitor the project’s progress.

Wrap-up

Offshore development in Ukraine is a great way to turn your vision into long-lasting business value. However, it works only if you do it right. To ensure a smooth and effective collaboration, keep the following steps in mind:

• Clearly define your budget, business KPIs, and expectations for an offshore software development company in Ukraine. Create a long list of companies based on the predefined set of criteria.
• Narrow down the list based on the detailed vendors' profiles.
• Discuss the legal and procedural aspects of cooperation before signing the contract.
• Oversee the knowledge transfer and first weeks of the partnership.  

After all, the time and attention you pay to the selection process will pay back, and you will find the best offshore development company in Ukraine that will help you bring your business to the next level.

Why choose N-iX as your offshore software development firm in Ukraine?

With numerous outsourcing vendors in the market, what makes N-iX stand out? Here’s why businesses worldwide trust us as their reliable offshore development company in Ukraine:

• Proven expertise. With over two decades of experience in the industry, N-iX experts have honed their expertise in a wide range of technologies, including cloud, data analytics, IoT, AI, Machine Learning, and embedded software. Having more than 2,200 seasoned tech experts on board, N-iX can meet any gap in your skillset
• Global talent access. N-iX has a strong presence across Europe and Latin America, enabling access to top-tier tech talent. With a robust R&D center in Ukraine, we build high-performing engineering teams quickly and efficiently, providing access to a large pool of skilled developers.
• Strong track record. N-iX has partnered with leading enterprises and Fortune 500 companies such as Lebara, Currencycloud, Gogo, OpenText, Fluke Corporation, and others, delivering innovative solutions that drive tangible business outcomes.

Partner with N-iX to leverage our proven expertise and deliver exceptional results tailored to your unique business needs. Reach out to our team to discuss how our experience can be of service!