It happens when the candidate’s current employer tries to retain them with better pay, position, or other benefits. Professional recruiters often address counteroffers by discussing the developer’s motivations and goals, emphasizing how your company aligns with them. Before the beginning of the full-scale war, the Ukrainian IT sector had been a go-to offshoring destination for both tech giants and startups.
R&D in Ukraine: Why Establishing an R&D Lab in Ukraine Is So Beneficial for Foreign Companies
The Alcor team can prepare availability and salary reports for you to have a better understanding of the local market. In 2022, Microsoft invested approximately $13 billion in OpenAI, which was a substantial financial commitment that highlights the company’s focus on advancing in AI technology. This partnership infused OpenAI with considerable resources and led to the integration of OpenAI’s advanced AI technologies into Microsoft’s products, further solidifying Microsoft’s position as a leader in the AI domain. Partially, this is due to government initiatives that make this country attractive to such companies as Bosch and Intel, among others.
Let’s discuss all the benefits of opening your R&D center in Ukraine!
The salaries in Poland are much lower than in neighboring Germany and Lithuania. In a new job market, prime candidates often reject offers from expanding companies. In fact, 60% of job seekers decide against accepting a position due to a company’s poor employer brand. This typically occurs when candidates are unfamiliar with the company’s values, culture, and growth opportunities, leading them to choose other options instead. The past several years have seen Ukraine be a fast-growing and flourishing IT and Tech hub and nearshoring in Europe. Ukraine is home to numerous top IT development service companies as well as home to global brands like Jooble, Petcube, and Grammarly.
Poland
Even the most experienced developers might do something that will have negative outcomes. Nobody likes an unexpected loss, so you must set a sum you are ready to spend on research and development. However, you still have to make the budget flexible in case the team comes up with a unique solution that must be immediately considered. A project manager who will keep the budget on track and monitor the team’s progress is also necessary.
Outsourcing is not enough? Consider R&D in Ukraine to get more!
The services we provide for creating global R&D centers have transparent pricing and are discussed in detail at the start of our cooperation. The investment required to establish an R&D center for software development amounts to hundreds of thousands of dollars, says former board member of InAU, Oleksandr Hlushchenko. The final amount will depend on the need to purchase full-stack developer equipment and the size of the development team.
- Book a call with MWDN specialists to find out more about our R&D capabilities and the ways we can help you cut costs.
- Our BPO company Alcor can provide you with all the needed support to establish your R&D office in Ukraine–from tech recruitment to legal & accounting.
- For example, the development of medical technology makes it possible to diagnose and treat diseases more effectively, and the development of transport technologies makes travel more convenient and safer.
- Besides, even if the workforce in a certain country is much cheaper than in another one, keep in mind the travel time and accessibility.
- R&D centers can participate in open innovation by collaborating with external companies, start-ups, and innovation communities.
How much other companies spend on R&D
Ukraine is an attractive location for these purposes since it has a vast pool of professional programmers, a developed tech community, and lower RnD center wages/taxes. Pick 3-5 local recruitment agencies that offer recruiting services and understand how to hire Ukrainian developers. To create this list, you can use either review websites like Clutch or the recommendations of your friends and colleagues. The forecast for the future is also quite promising; the Ukrainian software development sector is expected to reach $5.6 billion by with a 5.9% annual growth rate. In fact, the tech outsourcing segment alone has been showing a yearly growth rate of 8% since 2021 and is forecasted to surpass $1.2 billion by 2025. Around 86% of the country’s IT resources are focused in top 5 cities – Kyiv, Kharkiv, Lviv, Dnipro, and Odesa.
After more than 3 years of ongoing war, Ukrainians have adapted to new realities. Tech product companies in Ukraine are concentrated primarily in the bustling cities of Kyiv, Odesa, and Dnipro. At the same time, cities like Lviv and Kharkiv tend to specialize more in outsourcing and outstaffing services.
- The fight against COVID-19 continues to fuel research efforts alongside a focus on broader healthcare innovation.
- There are also numerous tech events being held in Ukraine, including Agile Eastern Europe Conference, PyCon Ukraine, iForum, IT Arena, and DEV_Challenge, and 60% of developers regularly attend such events.
- So, in this article, we decided to consider offshore software development in Ukraine, a country with great potential that seeks to be one of the world leaders in IT outsourcing.
- In the last few years, the Eastern European digital landscape has witnessed significant progress, with its hubs moving to the forefront not only in the region but also globally.
This growth solidified Ukraine’s position as a top outsourcing destination, earning it the title of #1 choice by the Global Sourcing Association. Another exciting trend is that technology is becoming a key driver of investment in the Eastern European tech market. In 2023, Poland attracted over $7.4 billion in FDI, including Intel’s $4.6 billion investment in a semiconductor facility near Wroclaw. But what’s driving the rapid development of the tech industry in Eastern Europe?