How to find a reliable IT outsourcing company in Ukraine?

Last year, Ukraine’s IT industry exported services to 147 countries, with the United States accounting for 37.2% of total exports.

Unfortunately, the war continues, but IT outsourcing services of Ukraine remain resilient: they account for 11.5% of the total exports and 37.4% of service exports.

Why so? Adaptability, a strong talent pool, and the government’s support through the Diia.City program with favorable tax conditions for IT businesses.

Keep reading to find out how to find a reliable IT outsourcing company in Ukraine:

1. Ukraine’s advantages as a top destination for IT outsourcing

2. How to identify and evaluate local service IT companies

3. Key criteria for selecting the right vendor for your business needs

4. Common pitfalls in outsourcing and strategies

Informed means armed. Let’s dive.

Step 1: Define what you outsource and why it matters

Start off by clarifying what exactly you’re outsourcing, why, and what you see as the ideal result. Without clarity, even the best partner won’t live up to your expectations.

Sub-step 1: Determine the scope or the type

Scope: Full-cycle development

You need someone to take your product from idea to launch: develop architecture, outline UX/UI, code frontend/backend, conduct multiple-tier testing, and deploy.

Better serves: For startups, SMEs building MVPs, and digital transformation projects.

Type: Dedicated team/staff augmentation

You already have a product team and roadmap, and just need to hire software engineers to plug into the process.

Better serves: For mid-market or enterprise scaling.

Type: Custom software development

Your business is up and running, but one unique thing doesn’t let you sleep, demanding to improve it. It annoys you because there is simply no solution that perfectly fits your needs. For example, billing automation, logistics optimization, or a new SaaS layer. Then, custom software development in Ukraine is for you.

Better serves: For businesses with ultra-specific requirements.

Type: Maintenance and support

Your product is live, and you need a reliable team to handle updates, fixes, and performance tuning.

Better serves: For post-launch support or tech debt management.

Sub-step 2: Determine required tech stack and core expertise

“I just need a dev team” approach doesn’t work anymore. Keep it specific.

• Tech stack: Python backends devs, React frontend support, Full-stack Node.js engineers, Cloud-native DevOps on AWS or GCP — if you are not that tech geek, take a consultation with experts and eventually determine everything that will be under the hood of your software.
• Specialized talent: Do you need them at all? You can make it with Launchlemonade or Cursor, or do you really need experienced AI engineers and data scientists?
• Industry fit: Look for vendors with experience in specific industries: healthcare, fintech, etc., depending on your project.

Sub-step 3: Choose the right pricing model for your roadmap

Fixed price

For small, well-defined builds, as you know exactly what you want, and the vendor scopes, builds, and ships.

Watch out: Change requests cost time and money.

Time and material

Pay per sprint or per hour. Ideal for evolving roadmaps or products still in discovery mode. Gives you flexibility, but you need active project ownership.

Dedicated team

A long-term engagement where a full team works exclusively on your product. You manage the team like your own, with vendor support on staffing and admin.

Pro tip: Start with T&M for a 4-6 week pilot sprint. If velocity and chemistry are strong, switch to a dedicated team model for stability and better economics.

Step 2: Find the best software development companies in Ukraine

If you started with Google search, we have bad news for you. If you started with “GPT-ing” about Ukraine and a local software development company, it’s way better. Insufficient, though. Not a big deal, but still — add these channels:

Review platforms

• Clutch: Collects detailed client reviews, service focus breakdowns, and verified ratings.
• GoodFirms: Includes company profiles, portfolios, and client feedback.
• DesignRush: Features curated lists of agencies specializing in various technologies and industries.

LinkedIn and professional networks

Someone might say LinkedIn’s time has passed, but it is still a powerful tool for assessing software outsourcing companies in Ukraine. Here are three advanced tips:

1. Check endorsements…on AI: Searching “software development Ukraine”, reviewing related posts, and endorsements of companies found, make sure the latter wasn’t generated by AI.

2. Don’t shy away from using mutual connections: Identify if any of your contacts are connected to the company and request introductions or insights.

3. (Don’t) Join groups: Old but gold is to leverage groups on LinkedIn. But in the Ukrainian market, there is little chance of finding deep engagement in groups. Instead, pay attention to online and offline communities that are promoted via the mentioned groups or pages. This is what gains ground.

Attend industry conferences and events

Looking for firsthand insights into companies’ expertise and culture, include the following events in your planning list:

• IT Arena: Held annually in Lviv, focusing on AI, cybersecurity, and innovation.
• AI Ukraine: Dedicated to practical applications of AI and machine learning.
• UAFIN.TECH: Ukraine’s premier fintech conference, emphasizing AI in financial services.
• IEEE CSIT: An academic conference covering computer science and information technologies.
• Ukraine Tech Conference: Focuses on the resilience and growth of Ukraine’s tech industry.

Referrals and word-of-mouth recommendations

Personal recommendations remain one of the most reliable methods for finding trustworthy partners. Reach out to industry peers and business associations to gather insights and referrals.

Step 3: Evaluate and lock in the right IT outsourcing company

Below is the list of key moments to check, assess, and take into account when evaluating shortlisted candidates.

1. Portfolio and case studies

Industry experience: Again, look for similarity in previous experience: your industry, typical features/functionality, equivalent business needs.

Case study depth: The more detailed the IT outsourcing case studies are, the better. Look for challenges faced, solutions implemented (especially this part), and measurable outcomes.

2. Assess technical expertise and certifications

• Certifications: AWS Certified Solutions Architect, Microsoft Certified: Azure Developer Associate, or ISTQB for quality assurance.
• Technical skills: Ensure proficiency in required technologies like Python, Java, .NET, React, or AI/ML frameworks.
• Methodologies: Agile or DevOps practices.

3. Check client reviews and testimonials

• Independent reviews: Consult platforms (Clutch, GoodFirms, Glassdoor, etc.) for unbiased client feedback.
• Direct references: Request contact information of past clients to discuss their experiences.
• Thought leadership: Evaluate the company’s participation in industry discussions (and the participation of their clients in VENDOR’s activities), like podcasts or webinars. Speaks volumes about how these guys are doing business.

4. Evaluate team scalability and flexibility

Resource availability: Determine if the software development outsourcing company can scale the team size up or down based on project needs.

Talent pool: How deep is their “talent pocket”? The vendor that can accommodate sophisticated requirements is the choice.

5. Analyze communication and work culture

Communication protocols: How the potential partner approaches reporting and issue resolution is a bright sign of their level.

Cultural alignment: Ukrainian software developers have a Western-like work culture and, chances are, they will live up to your expectations on that matter.

Step 4: Run interviews and assess technical skills

How to validate candidates’ capabilities in a smart way? The way you run interviews and technical checks will reveal how solid (or shaky) your potential partner really is.

1. Intro calls should target specific roadblocks or objectives

Shamelessly corny advice, but still — prepare for the call. List the top questions that pop up in your mind regarding cooperation and experience, and then dive deeper. Even deeper. From the ability to understand your business domain to product logic and situational problem-solving.

Another banal reminder: check team composition and availability: who they can sign, and who they actually would. Clarify onboarding timelines and whether they can quickly plug into your workflow.

Pro tip: Always involve a senior tech lead and product owner in the call as you’re checking alignment at the strategic level.

2. Conduct a down-to-earth tech assessment

Whether it’s live coding sessions or mini-projects that mirror your actual tasks, avoid typical test-task problems and challenge the vendor in hands-on, real conditions. Pay attention to their thought patterns and the process for solving the challenge.

You can use a tech interview tool (HackerRank, Codility, etc.) — all good. But don’t fall for the temptation of total handover; these platforms can’t provide the core for your decision.

3. Look for a QA- and security-mature vendor

If the vendor doesn’t use manual testing, it’s not always a sign of their maturity and tech literacy. Check if they are proficient in Selenium, Cypress, or even autonomous testing tools like OwlityAI, but discuss QA practices more deeply.

Confirm data protection policies (GDPR, HIPAA, and ISO 27001), if they use CI/CD pipelines to run regression tests.

Step 5: Structure pricing and contracts

Attempts to hire software developers in Ukraine often go sideways due to price and paperwork. Ensure a well-structured contract that matches your expectations and the right pricing model for your roadmap.

Gather and compare cost estimates

Gather detailed breakdowns and see how much goes into architecture, testing, PM, DevOps, etc.

Don’t be tempted by the price. If someone is 40% cheaper than others, and you want to sign them directly, chances are, you have an incomplete picture.

Value > cost. Productivity, communication, and the ability to ship with quality matter.

Avoid yes-sayers. Those who promise everything but in fact fall short. Real techies ask sharp questions and offer technical alternatives.

Ensure unmovable contract terms

• Scope of work: Document deliverables, timelines, and dependencies.
• Engagement model: Specify chosen model and conditions in detail.
• IP and confidentiality: Use NDAs, work-for-hire clauses, and country-specific IP laws (best software development companies in Ukraine ensure EU-related alternatives to initial laws).
• Payment structure: Ask for milestone-based payments (for fixed-price) or monthly invoicing (for T&M/dedicated team).
• Dispute resolution: Partnership is safe when it is documented.

Create mutual accountability and a visible scope with a joint roadmap as a contract appendix.

Step 6: Build a collaboration setup

Once your outsourcing partner is in place, the next step is creating a collaboration environment that supports visibility and accountability. A big part of that is choosing project management tools that actually fit the size of your team and the complexity of your work — not just what’s popular.

Align project management tools with team size and project goals

• Jira: Mid to large teams managing complex projects with detailed workflows.
• Trello: Small teams or simple projects.
• Asana: Teams without detailed and specific needs. Assignments and timelines are sufficient (for example, Asana doesn’t have a status system, just TO DO and COMPLETED).
• Monday.com: For customizable workflows and integrations.

Pro tip: In Jira, set up custom dashboards to monitor project health. Will get insights into progress, bottlenecks, and team performance. P — proactivity.

Define KPIs and reporting frequency

SMEs, watch these KPIs to gain insights:

• Sprint velocity: Measures the amount of work completed in a sprint.
• Bug resolution time: Tracks the time taken to fix reported issues.
• Deployment frequency: Indicates how often new features or fixes are released.
• Team satisfaction: Assesses team morale and engagement.

Set up communication channels

If you’re running a small PE app, there’s no need to invest in Microsoft 365. Consider Slack, many IT companies in Ukraine use exactly this tool.

Zoom is often the go-to choice for video meetings, gaining its popularity in COVID times. But if you are a larger company with security concerns, choose Microsoft Teams.

Step 7: Four outsourcing mistakes to avoid

Read to save time, money, and avoid frustration.

1. Choosing based on cost alone

Opting for the cheapest option can lead to subpar quality and hidden expenses. Balance cost with the value and expertise offered by the vendor.

2. Skipping client references

Speak with previous clients to check how your potential partner makes business. How reliable they are, how and when they communicate, how they deliver.

3. Missing cultural fit and communication

If you are from Mars and your partner is from Venus, it won’t work out. Poor communication can derail projects: Project Management Institute states that ineffective communication is a leading cause of project failure with about 30% of all cases.

4. Hire 100500 devs. Now!

Rushing is not good in any endeavor. Take the time to thoroughly evaluate and test multiple vendors. You don’t want to pay twice, innit?

Conclusion

The common problem is that foreign business owners read articles about the benefits of outsourcing software development to Ukraine and build castles in the air with unrealistic expectations. And don’t understand that 90% of project success depends on their preparation as a client.

IT outsourcing in Ukraine can match almost any demand, but only if the objectives are clear and measurable.

Before looking for IT outsourcing services in Ukraine, clarify your real needs, exact scope, desired expertise and engagement model. And budget, of course.

Devico helps with all the preparation on the free 1-hour intro call.

Expect no guesswork, nor overhead. Book a slot here and let’s find out what objective we can help you achieve.