Once, in the office of one of our sales managers, there was a moment that we have thought about many times.
After presenting a potential client with a commercial offer, we received a response that was very unexpected – “Your services quoted are at least 50% lower than what would be considered normal in our country. Because of this, Ukrainian providers do not usually enhance our company image. Prestige within this industry must be considered. So, unfortunately, we must decline your offer.”
This raises a couple of questions: why is it that Ukrainian IT service providers have such a successful market and how do we form competitive pricing for the provision of development services?
Below we will find the answer to these questions.
Where it all starts – education
Most Ukrainian cities have technical universities that produce more than 30,000 technical professionals each year for our industry.
They earn far more than the average Ukrainian worker. Thus, more and more make technology-based education their prime target. There is a healthy competition between future students who choose IT as their career of choice.
Each year, Ukrainian IT shows a growth of 20%, this is more than the average growth worldwide. By the end of 2018, Ukrainian IT had taken second place in the IT services export market.
Last year we expanded by taking on a further 20 designers, developers, and managers. We opened an extra office in Western Ukraine and a further office is planned for the end of 2020.
Do you speak English or how to understand each other
Learning English is an integral part of the Ukrainian educational system at all levels.
Before entering the university, students must pass a unified state test in English.
Having a corporate English teacher who conducts regular classes with employees is also a common practice for most IT companies in Ukraine.
It means that the vast majority of IT employees speak English at least at the Intermediate level. No need to mention that top managers and team leads, who usually take on most of the communication with the client, speak fluently.
Source: N-iX research report, 2019
Why so cheap?!
In most countries of Western Europe, income tax is significantly higher than in Ukraine. In Germany, it is 30%, in France – 33%, in Belgium – 34%. In Ukraine, the income tax is 18%.
It needs to understand that $5000 in Europe and $5000 in Kyiv per month are two very different salaries that can provide a very different level of living.
A favorable taxation system, as well as the state support for the private enterprise sector, allows keeping salaries for IT workers at a high level. Here, maintaining the average market value of services for customers remains the primary target.
Source: Numbeo research report, 2018
Cultural features of Ukrainians or why we eat lard with garlic while drinking German beer and watching a British series
Ukraine is a unique country owing to its cultural features.
The free movement of people, exchange of goods, ideas, and culture gives us a chance to absorb something new. Being open minded Ukrainians adopt traditions. It’s a requirement for rapid development and modernization.
Its location in the very centre of Europe allows us to follow the trendiest movements of Germany, Britain, Sweden, Denmark, and other countries.
This will undoubtedly have a positive effect on business relationships. Being on the same wavelength is what really matters.
And another nice bonus
Having made acquaintance of business affiliate from Ukraine, you “risk” not only closing a couple of projects but also successfully expanding your knowledge of our Slavic culture.
If you have a chance to visit Kyiv, Lviv or Odesa, tasting Ukrainian home cuisine, admiring the views of the Carpathian mountains, or enjoy modern art.
We at EVNE Developers always offer our customers a small city tour following a meeting in our Lviv office. Our goal is not only to conclude the project to an ideal level but also to create a truly impressive experience! Contact us anytime to get the Impressive Experience from our cooperation.