Every big company was just a startup once. While some of them managed to survive on their own, other startups grew and prospered thanks to outsourcing various aspects of their business, like design, support, accounting and, of course, software development. Times have changed, and now IT outsourcing to East European countries like Ukraine goes beyond merely cheap offshore software development - it has become a partnership that brings tangible benefits. And young companies can always use a skilled partner they can trust.

If you’re running a tech startup and think that you won’t need any part of your job outsourced, remember that there are plenty of tasks besides coding you have to handle. Outsourcing software development can help you delegate a huge chunk of work that could drag your company down or delay the launch of its product and let you focus on actually developing your startup. Just look at the business problems that can be solved with software outsourcing.

Startup Challenges Solved with Outsourcing

Regardless of whether your startup is a mature or a budding business, it will face certain obstacles at some point. Of course, not all of them can be solved with outsourcing, but offshore software development may help alleviate the most common of them.

photo2.jpgLviv, Ukraine, city of ElifTech HQ

Tight Budget

Yes, this is old news, but it’s true. Unfortunately, the big ideas that startups have often lack the big budgets they need. When you’re tight on cash, you start counting every employee, every workspace, every computer, every coffee machine and so on. Outsourcing software development to countries like Ukraine, where an average programmer’s salary is lower than in other European countries, just might save you some money. Not to mention that equipping your offshore developer with an office, a laptop and decent coffee is going to be your outsourcing partner’s headache, not yours. Now, calculate the tax difference and you have yourself an answer to the question: “Why outsource to Ukraine?”

Lack of Professional Expertise

If you’re a startup, chances are you’re new to the business. Your outsourcing partner, on the other hand, has been building up professional expertise for a couple of years now - that’s why you contracted them in the first place. This is especially true for startups that have a killer app idea but no app developers or business knowledge to bring it to life. A carefully chosen outsourcing partner will lead you through the software development life cycle, help you select the right technologies, explain the difference between Objective-C and Swift development, assure you that no one writes web apps in Web Forms anymore and Angular 4 is much better, set up an Agile development process and explain why this particular case needs automated quality assurance.

Painful Staffing

Headhunting is usually harder than it looks. Think about the competition for skilled developers, the time you spend picking the ones that meet your requirements and the benefits you can offer as a startup to make them leave their current job. And after all this, what if the person you hired is not the professional they bragged to be? Do you fire them? But you’ve spent so many resources to hire them! Let them stay? But that will mean more expenses than income! And what if you simply don’t get along? Is this a reason to say “Goodbye!” to a good employee? Startups that work with software outsourcing vendors, however, don’t have problems like this - all the staffing issues are handled by the offshore partner. Plus, you get to tap into an impressive pool of specialists of all technologies and seniority levels to choose from.

Potential Scalability

Outsourcing software development is your go-to solution if you plan to scale your business fast. Like we’ve said, looking for qualified software developers is hard for big companies, let alone startups. And after you’ve spent months recruiting people, something in your business plan can go wrong and you’ll be forced to let half of the team go. It’s also hard for a young startup to maintain an IT department if it doesn’t bring any profit. Outsourcing lets you scale up and down fast, without having hard feelings with soon-to-be-ex coworkers. Yes, searching for the right outsourcing partner can also be time-consuming, but when you do find them, you’ll be able to start working with a professional team of developers right away and suspend your cooperation whenever needed.

Low Efficiency

With outsourcing, you have the time zone advantage that allows your startup to operate around the clock. If you’re running out of time to get everything ready for launch, having an offshore software development team that works while your in-house team rests is priceless. Also, if you’re new to a technology, it will take you more time to do the same work that a specialized outsourcing team would do more quickly. Overall, recruiting an extended team is what’s going to make your startup more efficient by doing more work in less time without the loss in quality.

photo4.jpgVinnytsa, Ukraine, city of ElifTech’s Development Center

Why Outsource Software Development to Ukraine? Here are Some Facts.

The biggest country in Europe, Ukraine has a lot to offer in terms of custom software development and outsourcing to both startups and business giants. Ukraine’s IT potential has been building up for more than 20 years, skyrocketing in the last decade. Now, Ukraine sounds like an excellent software outsourcing destination for companies from Europe and the U.S.

Ukrainians are a nation of talented workaholics, and Ukrainian software developers embrace both of these traits. More than 90,000 skilled IT professionals are currently working in Ukraine, and thanks to the quality of education in Ukrainian universities, the number is expected to rise to about 200,000 in 2020. According to the German Outsourcing Association, this will rank Ukraine as the top IT destination in Eastern Europe. Ukrainian software and app developers are also eager to invest into continuous education and training to be at the forefront of technology.

Business advantages of outsourcing software development to Ukraine include lower taxes and overall expenditures, as well as intellectual property protection. Compared to its neighboring EU countries, Ukraine’s GDP and economic standing promise reasonable prices to foreign clients. In other words, you get excellent quality for less money when outsourcing to Ukraine. As far as safety and confidentiality are concerned, you can be sure that your intellectual property is under protection by a special Intellectual Property Court, which is a court of first instance for copyright, trademark and patent disputes in Ukraine.

photo3.jpgLviv, Ukraine, city of ElifTech HQ

The target market research of Lviv, one of Ukraine’s biggest IT hubs, and the IT Ukraine from A to Z report shows that large companies, as well as startups from North America, European countries, the Middle East and East Asia, have already created reliable long-term relationships with Ukrainian outsourcing companies. Reasonable software development prices, well-educated programmers and numerous business opportunities make Ukraine one of the best software outsourcing destinations in Europe.

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The stress of running a startup is surreal. There are so many things to take care of, so much responsibility and so little experience that it’s easy to lose control over business development. Luckily, working with a trusted offshore development team can make it easier to focus on your core business values. Like Peter Drucker said: “Do what you do best and outsource the rest.” Over the past two decades, outsourcing companies from countries like Ukraine have proven to be reliable partners in building efficient and competitive startups worldwide. If you are looking where to start, check out YouTeam's guide on how to build an offshore development team in Ukraine.