Outstaffing vs. Outsourcing vs. Managed Services: Differences and Benefits

Terminology is a tricky thing. In various organizations, outsourcing and outstaffing can mean very different things. In Ukraine, the majority of small and mid-size IT companies call themselves IT Outsourcing. 

On the other hand, large and public companies tend to position themselves as in IT outsourcing, but only in the Product Development Services and Managed services areas. As time goes on even small companies reject “outsourcing” positioning using “custom software development” instead.

So let’s look under the covers of outsourcing and product development services based on what we know about the IT sphere and IT market. We’ll also go over the outstaffing practice further in the article.


Outsourcing vs. Outstaffing: What Is The Difference And What To Choose?

I enjoyed working in several companies, including startups, small private IT development Shops, and large enterprises with tens of thousands of people on board.

Playing different roles on a different level, I have had multiple challenges regarding the differences between outstaffing vs outsourcing, as well as what differentiates Managed Services. In the end, each business practice has its advantages and disadvantages, so there’s no universal answer to the “outsourcing or outstaffing” question.

Let’s take a look at the following summary table, and then go one by one starting with outstaffing and building our way up.



Product Development Services


Team Extension

Business Function

Technological Partner





Quality Ownership








Source of revenue


Operational Excellence

Intellectual Product

Outstaffing services

Software outsourcing and outstaffing are sometimes used interchangeably. However, those two practices are completely different. Basically, outstaffing is the most straightforward model to understand. Many companies are shorthanded and need a development team to help their house developers. Outstaffing comes in handy when the client’s needs mean increasing the software development team’s capacity and jumpstarting the development process. In the case of outstaffing, offshore employees for remote software development are officially employed by another client to speed up the development process.


With the outstaffing approach, the client has full control over management. The outstaffing software development team inherits the existing methodology, processes, tracking tools, and communication approaches. The repository, environments, and automation tools are usually on the client-side or administered by the client. This factor is often considered among the main outstaffing pros.

Quality ownership

The outstaffing projects are also frequently called Staff Augmentation.

  • The outstaffing company augments their remote employees with the client’s existing house team. 
  • The manager is responsible for the terms, product, and budget. 
  • The outstaffing manager is an employee of the client’s company.


The outstaffing model is a time for money trade. So, there are no cons of outstaffing from this perspective. You can imagine it in the form of the hourly rates or cost+ model. Clients buy an hour of work; the vendor gets their profit from hours sold.

Consider that the required organizational complexity here is low. There are many competitors, and competition is based on the price. Many vendors are competing around small-sized clients, so the market’s invisible hand keeps the costs low.

One of the primary sources of revenue is the workforce. The key to making more revenue in the outstaffing area is to sell more hours. The more people – the more money. That’s what the outstaffing model is about.


Development Outsourcing

Within the outsourcing vs outstaffing paradigm, software outsourcing means when companies delegate one of the business needs to a third-party service provider. Apart from software development, a company can turn to outsource to help with their manufacturing, accounting, software development, testing, support or call center, and other digital activities.

Speaking about the tech area, a development team can be employed by another company to perform testing, product management, maintenance, and support, along with software development outsourcing. The outsourcing model also applies to different technologies, and an integrated software development function. Let’s continue with the outsourcing vs outstaffing comparison related to three core points.


Outsourcing project management may have a complex structure. Usually, management is done on the client-side (Product management, Program management), and the outsourcing provider is responsible for proxy management (Project Manager, Team Leader, proxy product ownership).

Quality ownership

Depending on the management structure, the outsourcing vendor commits to the quality of the outsourcing function. Quality standards and formal development methodologies are applied to measure quality and results. Having managerial positions allows contractor companies to use standards and measurements and perform control over them. Furthermore, it brings an obligation to comply with standards and achieve the KPIs.



Processes, web development guidelines, prebuilt solutions and pipelines, and much more – are the solution accelerators. By keeping standard things standard, the company can avoid reinventing similar wheels for multiple projects. Lower costs with improving operational excellence give extra margin. Therefore, revenue is among the major outsourcing pros.

In other words: with the right attitude for the client, it won’t matter if developer John switched the whole project and QA Pete automated his tests. As long as the dedicated software development team produces the results they are committed to, no one cares whether it’s software outsourcing or any other hiring practice.

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Product Development Services

Apart from outsourcing – outstaffing models, there are also product development services. When I got to know the PDS term for the first time, I worked in a 10+ tech outsourcing company. The company initiated a series of events to educate its personnel about the PDS Delivery model. One example for developers was, “you stop thinking that the business wants this button painted in red: You start thinking, how would the end-user like to see this button.”

The main difference between the approaches mentioned above and PDS is that the latter means, first of all, a shift in mindset. Mature companies realize that, besides technical assignments, the company can provide their expertise and advice. The evolution from doers to thinkers to become a technological partner with the client’s business. Commit to the product and give the product more than just the hours spent. 



To provide the Service of Product Development, the provider company shall acquire the competencies of Business Analysis, Project Management, Product management, and domain knowledge of the industries their clients are working at. 

The PDS project is usually expected to have a Project Manager, Product Owner, Stream, and group leaders among the team members. In some cases, those roles can interface or mirror the respective roles on the client’s side. In other cases, they can be positioned as provider-side roles only. Additionally, the company establishes competency centers and practices – the non-production people responsible for acquiring and growing the competency and domain knowledge.   

This gives the vendor much more autonomy and freedom. Dedicated software development teams can arrange convenient processes and adapt the methodology of choice. 

Quality ownership

Having Product and Project Management on the provider side also means having Ownership and Responsibly on software end product delivery so that the quality ownership is entirely on the vendor side. 


On PDS projects the company still makes more money with more people. But that becomes a side-effect. The PDS source of revenue is an intellectual product that can take different forms. The form of higher hourly rates for engineers with higher qualifications, and additional knowledge of industry and business. The conditions of phases for generating intellectual outcomes: Solution Design, Technical/Process Audit, Marketing research, etc.

Generally, as the vendor takes more risks and responsibility, the more revenue it generates. 

What solutions can we offer?

Client View

As an IT company, we are a supplier for our clients; an IT Service Provider. There is a traditional categorization of suppliers.

Let’s go through the classification:

a traditional categorization of suppliers
  • Commodity: for suppliers who provide low-value or easily available products or services, which could be alternatively sourced relatively easily. 
  • Operational: for suppliers of functional products and services. These relationships would usually be managed by junior operation management and would involve infrequent but regular contact and performance reviews. 
  • Tactical: for those relationships involving significant commercial activity and business interaction. These relationships would usually be managed by middle management and apply for regular contact and performance reviews, often including ongoing improvement programs.
  • Strategic: for significant ‘partnering’ relationships that involve senior managers sharing confidential strategic information to facilitate long-term plans. These relationships would usually be managed and owned at a senior management level.

Being in outstaffing, the vendor falls into the Commodity category. No significant risks are associated, and alternatives can be found and engaged fast enough.

Outsourcing can be either Operational or Tactical suppliers, depending on the importance and impact. Taking more ownership, and providing more value, is the key to progress toward strategic partnership.

By practicing the PDS approach, the vendor company can achieve a strategic partnership with a client.


Cost of moving ahead

Staying in ‘commodity’ keeps prices (and in turn salaries) limited by the market. Too many Outstaff service providers competing to maximize the revenue can exhaust the labor market and lower the entry criteria. That’s pretty much what is happening in the Ukrainian IT labor market. And like anything else in this world, all approaches have their pros and cons. 

To bid for providing services as a strategic partner, the company must understand the client and contribute to the client’s business success better than other competitors. That requires investments into:

  • Management – improve governance, consistency of deliverables, communication, and reporting
  • Practices and competencies – acquire unique selling points in the form of a group of people with “know-how”
  • Sales – change of focus from “selling standard services at a low price” to “provide complex technological consultation and analytics”
  • People – attraction and retention of talents. Utilization of bench programs, internal and external education, improved work conditions

Value of Moving Ahead

Better sales, dedicated remote team, more extensive projects, more considerable challenges and impact, higher salaries, and much more room for professional growth in almost any direction; All of these at the cost of ownership and responsibility. 

I hope you liked the article. It’s challenging to cover outsourcing or outstaffing the development process and its pros and cons fully in one piece. Please share your experience, questions, and comments. It’s always exciting and motivating to get feedback.


Decided On a Team Model?

Unparalleled Web & Mobile Development Services for all Markets

The importance of a fully functional and responsive website or mobile app cannot be overemphasized especially in this day and age where the majority of your customers can be found on the internet. Thanks to the advancement of technology, a large percentage of the world population have benefited from a quality, affordable and effective means of acquiring information from the web through internet-enabled, portable devices. This has enabled the sharing of information through the internet much quicker and effectively due to the already existing audience.

With that, the importance of effective web & mobile development services for any business that seeks to have an upper hand over its competitors cannot be underrated. 

Steps to Achieving Effective Mobile App Development

The influx of mobile app developers in the market has its upsides and downsides. One major advantage is the availability and ease of finding a mobile app developer in your location. Nonetheless, the major disadvantage is that a good number of these app developers and web development companies claim to do what they cannot achieve.

The same issue has also been experienced in mobile web development where few service providers who claim to offer top-notch services can actually measure up to their promises. The problem with these companies is the fact that they are more focused on the end as opposed to the means of achieving their objective. The consequence of this is ineffective mobile app development.

On the flip side, The APP Solutions (TAS) technologies have a different approach to how it relates to its clients. With a customer-centric approach, we are able to analyze customer needs before giving appropriate solutions to meet the said customer demands.

Critical Steps Taken by the APP Solutions’ Web & Mobile Development Gurus

TAS takes into account customer needs before embarking on its problem-solving mission. This process entails analyzing customer needs in-depth first, to establish how these demands can be executed in a proper manner. Thereafter, we analyze the company’s competition to determine what extra capabilities can be added to outdo their business rivals. When all is said and done, mobile app development gurus and web developers kick in to offer their foreseen solutions.

Everything is pre-planned and achieved within the stipulated time-frame to suit the customer’s needs.

Requisites of an Effective Mobile & Web Development Process

TAS approach to offering quality services is subdivided into different categories namely: proper business analysis, web, and mobile development, time-bound execution and launch of projects, effective and meaningful support services, systematic development process, pegged on well thought of UI/UX and architecture of the mobile app and website.

Business analysis is important as it helps to iron out issues surrounding market competition and brings out never-seen-before ideas that may be essential for your business. TAS puts a lot of emphasis on business analysis in mobile web app development and desktop web development to identify blocks and holes in the market. That way, they can help your business capitalize on these fissures to attain success.

We place an equally important focus on UI and UX. User experience is crucial to the success of any app or website as it increases conversion rates, bolsters customer loyalty, and minimizes the company’s expenditure. Simply put, your customers will be willing to settle for your services depending on the experience they get from the platforms you have set out for them. This relation between UI and UX is what TAS strives to achieve through market research.

Similarly, TAS mobile app developers and website designers maintain a high level of focus on architecture as it plays a huge role in the appeal factor of their work. Website and app look and feel is an important part of user experience. This therefore boosts and bolsters your chances of attracting customers due to the usability of the platform. Moreover, architecture also has an influence on your page rank and the reliability of the information.  

The development stage is by far one of the most important parts of coming up with a functional app or website. Our mobile app developer and web designer take a pre-planned approach to ensure the product comes out as envisioned by the customer. This also goes hand in hand with the launch of the product since it has to coincide with the set dates for the launch of the product. The release date of the product is vital since it determines whether the company will be able to achieve its objectives based on the dynamics of its market.

Lastly, The App Solutions customer support framework acts as the heart of the company, which keeps its customers going even after the completion of the project. TAS support services are essential in ensuring your app and website is running effectively without hitches. In turn, this ensures your business does not experience any downtime as a result of either your website or app being down.

Studies show that companies that develop effective platforms for their customers do not have to worry about their customers being loyal to the brand. TAS helps your business achieve this by offering groundbreaking web and marketing solutions for your company.

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Best App Developers for Hire

Probably, you are aware of the fact that there are lots of app developers around the world nowadays. Actually, all they can be hired, though app development cost varies dramatically. 

There are few main types of these specialists and different levels of trust for them. They can be individuals and young students, hobbyists, and professional companies.

Our company has some really experienced app developers with a great number of completed projects. So let’s check out what is needed to hire app developers smartly.

Looking for the best app development company

You can do simple research by searching the internet for “best app development company for hire” or “find app development company”. You can be sure; you will find thousands of companies. Also, you can go to some trustworthy craigslist. There are lots of individuals from all over the world. Besides that, you will find there some students and hobbyists. Their experience is lower than the big companies have. Also, you can visit a few websites for freelancers to post there your job.

This point can be great, but, if your task is too big and complicated, you will need to hire more than one specialist to get your job done on-time. In that case, you can just forget about your cost savings for your project. Also, there should be some constant communication between you and these freelancers.

Also, there are guarantees that you will get the result you were expecting on. That can cause a real discrepancy for you and your worker.
Our company did lots of tasks for an app that were done wrong by some inexperienced developers before. The apps were built totally incorrect or just stopped because of the money extortion by the developer. Thus, an outsourcing app development company is not as easy as you would think. 

Tips for hiring an app development company

There will be lots of different prices and levels for your app developers. But, you should not look just for a small price of app development, actually. There should be some golden middle for your quality, speed, experience, and price.

Some prices can be really high, but you should not be tempted by some low ones, actually. You should beware of such companies. To understand and measure the level of a developer you should ask them a few simple questions:


  • You should ask them about some average experience for each team member.
  • You should know if these people are direct employees of the company or if they are just freelancers with no actual responsibility.
  • You should ask the company representatives about their location. It is good if they can work clearly for your location with your team.
  • You should have some really dedicated product manager. This person will deal with the whole process of developing your app. Another way, this job will be in your hands.
hire app developers


  • You should know if the company is real or if it is a group of individuals
  • What is the number of mobile apps that were delivered to the app stores? Was there any hybrid, tablet, or web apps?
  • You should know what platforms are they working with. For example, our company can deal with Windows Phone, iPad app development, iPhone, BlackBerry, HTML5and, of course, web apps.
  • Is there any opportunity and experience for them to do some interface for your app?
  • It is good for you if the company has deployed in the app stores
  • You should learn their business model. It is good if the company has its own apps for sale. But, you should be very careful because of the conflict of interests.
  • The ownership of the product should be very clear.


  • The company should have some recognizable names for their customers.
  • Ask them to provide you with simple references for their best clients.
  • It is good if the company has at least one app that reached the number one point or has some awards.
  • You should ask them about their own insiders at the biggest companies like RIM, Google, Microsoft, and Apple. This will help your app to get noticed.
  • They should have a portfolio to show their apps.


  • Their testing services should be included in the estimate.
  • You should know everything about the devices for your app testing. What is the number of devices, their models, and OS versions?
  • Ask them about some test-driven development and automated testing.
  • Ask them about their server, known as continuous development. 


  • You should have a really detailed plan for your app development process. Learn what are the deadlines and what will it take to design and to develop it.
  • What will be the schedule for your status updates?
  • You should have some opportunity to organize and visit different meetings about design and the entire project status.
  • Learn about their tracking system to control the entire process progress.
  • You should have some apps to test them on your smartphone as often as it is possible.
  • They should have some safe place for your data. Ask them about passwords and other testers to protect your information during the whole developing process.
  • Ask about in-person meetings with your developing team.
  • The design of the interface should be done by the company itself with no outsource workers. Another way, you should be informed of that fact.

App Developers for Hire

So, you should be prepared to have a great variation of answers. Also, there will be a really great number of companies that will not be able to answer even half of them.

And what about us? Our company is always ready to answer any questions you have.

Our work is entirely clear, and all the process, development, design, estimates, and tests are transparent. So, you can be sure you’ll get the best app developing partner for yourself if you hire our specialists. We are working to satisfy you totally.

You can contact our support team to know your free project estimate.

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Web & Mobile Development Outsourcing Risks and How to Avoid Them in Your Business

Mobile application development is the most frequent type of software development outsourcing process. According to Computer Economics Research, more than 40% of companies that use outsourcing services are to increase the amount of outsourcing workload. Wherein most of the clients are satisfied with their outsourcing contractors. Whitelane Research proves this fact with an 89% positive response.

KPMG research confirms that app development outsourcing is one of the best practices if the client is focused on reducing costs without loss of quality. Moreover, the reasons are:

  • For 26% of customers the main reason is cost savings;
  • 21% stand for quality improvements;
  • For 19% skill access is critical;
  • 11% of outsourcing app development clients explain their choice with financial flexibility opportunities.

Speaking of cost-saving, the average iOS or Android app developer`s cost depends on the origin. The chart below shows the rates of developers in different regions:

app dev rates

However, money-saving is not the only reason to outsource app development. Sometimes you can get much more than just a good price. I am speaking about the extremely client-oriented and sophisticated service when you can get even more than you have asked for.

Indeed, there are also some risks, which we will discuss further. However, with the right team and experienced project manager, these risks can turn into additional advantages. This article here is to help you be aware of hidden obstacles and teach you to benefit from outsourcing.

So, you have got a killer app idea, you have chosen the type of funding, now it is high time to start your outsourcing app development process.

READ ALSO: How to outsource app development

However, your choice must be considered and deliberate. Just like any other type of service, software development outsourcing has some risks, which can be ignored, prevented, overcome, or even turned into additional opportunities.

I want to outline five such scenarios and give you some tips on how to deal with them.

Risk #1. Time zone differences

The Internet has turned our world into one global marketplace and made the outsourcing process possible itself. There are still hurdles to overcome, though. Imagine the situation, that you have an urgent question, but all your team is currently offline. So the issue can be solved only on the next day. Such delays can influence project deadlines dramatically.

It is possible to overcome and benefit from this threat by using the “follow the sun” working model. The team takes the client’s tasks when it is a night on the customer’s side and returns the result the next day when it is morning. It helps to speed up the process and reduce response time.

At The App Solutions, we use the Agile development process as the most rapid method of the software development process. Since Agile divides the process into sprints, the whole workflow is more planned and flexible at the same time. Also, we bring the high transparency of the development process by connecting the client to the tracking system. We also maintain constant communication with all stakeholders.

Risk #2. Poor technical documentation

The importance of technical documentation is hard to overestimate. Basically, this crucial stage determinates the further course of the project and helps to avoid threats and extra spending.

For your outsourcing team, technical documentation becomes a roadmap for the project. The more detailed and thoughtful it is, the more result will be close to your expectations as a client. Make sure that technical documentation is written in your language and don`t hesitate to ask clarifying questions. At our company, we pay much attention to this stage and bring to it not only the technical writer but also a business analyst.

To sum up, technical documentation is a document set that defines all the requirements of your mobile app idea. Such specification is used when a contract is signed and used to fulfill it.

There is no general formula. The structure can vary in any company and even between projects at the same company. However, here is the general formula:

  1. Introduction
  2. Overall description
  3. Specific Requirements
  4. Supporting information
  5. Concerns and Assumptions

Risk #3. Insufficient business analysis

Few more words about the necessity of having a professional business analyst. BA should be involved in the project at the earliest steps. Also, the sooner, the better. He will help to save time and other resources on further development stages as he foresees threats, risks, and potential conflicts between planned functionality and the business interests of the client.

Indeed, the business analyst “owns the requirements process.” Actually, there are so much more responsibilities beyond gathering requirements:

  1. At the early stage of the project, BA may be the person, that scopes the entire project together and maintains the communication among all stakeholders.
  2. BA helps to interpret the client’s business requirements into a decent task for developers. He also translates the future development works to the language that the client can understand and make adjustments if needed.
  3. Together with other stakeholders of the project business analyst conducts test and validation of the project.

At The App Solutions, we provide clients both with deep analysis and with free consultation for all potential customers. To order one, please, contact our managers.

Risk #4. Not protecting your idea or code source

Even if your app idea is not innovative or unique, you should still protect it. Don`t assume that all outsourcing mobile app development companies do it by default. Some countries do not have such laws at all.

When signing an NDA agreement, you can think about splitting up the source code into independent sections, limit access to a database, and control the sharing of confidential information. Of course, this is not a universal solution. Every situation requires a different approach. As a US-based company, we adhere to the laws for intellectual property protection at all development stages.

Risk #5. Outsourcing to Countries or Companies That Are Behind on Trends

If the team of your outsourcing mobile app development company has outdated methods and is behind on trends, you can see it first of all in design and user interface/user experience (UI/UX). You need to choose a team that understands technological trends, uses best practices and tools, and understands the culture of your region.

Our company has a competitive advantage over other app development companies. As a partner of investment company Digital Future, we have access to the latest trend studies, cutting-edge technologies, and fresh startup ideas.

FYI: Want to find out your web development cost? Click here.

There is also one important detail you need to know. Some companies offer their clients technologies that they know better instead of ones that are cheaper for these projects or fit better. We have a different opinion on this matter and always try to provide our clients with solutions, which will bring the best results and help to save resources.

Speaking about trends, it might be interesting to take a quick look at the latest trends.

  1. Data analysis
    Back in 2012 the daily amount of data that was generated on all devices reached 2.5 billion GB. According to the Cisco analytics report, by 2020 this number will reach more than 30 Exabytes per day.
  2. IoT
    Internet of Things is one of the most popular fields of mobile app development. To illustrate this trend, I can say that year the IoT revenue is expected to reach $1.5 billion only in the US. (Check out our latest IoT project)
  3. Cloud computing
    It comes without a doubt that 2015 was the year of Cloud-based solutions among enterprises and we expect the domination of this trend in 2016 and further.


Once you have found a reliable outsourcing app development company, you will benefit first of all from the cost-saving. I mean both the price for the team itself and accompanying expenses for the office. Also keep in mind that while outsourcing you do not pay for office distractions, only for actual hours spent on your project.

Another important feature is that you get a chance to bring brilliant experts to your project without having long-term commitments.

Outsourcing your mobile app development does not bear more risks than any other type of mobile app development. You just need to keep in mind those entire particular nuances in mind while collaborating with your team.

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Why IT Companies From Ukraine Are So Popular in Norway (Travel Notes From a Business Trip)

The process of globalization opens up new opportunities for all kinds of companies, especially for high-tech ones. Technologies reduce distances and communication gaps and create new practices for efficient performance. The business model that opens up significant benefits is outsourcing. In particular, enterprises that consider outsourcing IT projects win in efficiency and cost reduction. The key ingredient here is to pick up a reliable IT outsource company.

Lately, Ukraine has become one of the top spots for outsourcing development and was named an “Outsourcing Destination of the Year.” Ukraine Digital News and Aventures have recently published research with a few figures that explain the popularity of Ukraine and describe some IT outsourcing trends:

Among traditional consumers of Ukrainian services are the United States, Canada, and such European Countries as Norway, Germany, Netherlands, etc.

The App Solutions Company has established an excellent and reliable partnership with Norway. Throughout the lifetime of the company we have launched a vast amount of projects from Norway and previous year, we became a member of the association “Norsk Ukrainsk Handelskammer/Norwegian-Ukrainian Chamber of Commerce” (NUCC). On the 26th of January, our team has visited Oslo for the Networking Meeting hosted by KPMG. We were there the only representative of the Ukrainian IT industry and received an exclusive opportunity to learn more about the market specifics that Norway company face while operating in the Ukrainian market.

During this trip, we also met up with our friend and possible partner Khurram Ali, one of the top managers of the communication agency Dinamo.

Khurram Ali started a Norwegian SEO agency Digitalfjord.no in 2014 that was acquired by Dinamo in 2016 and rebranded to Dinamoperformance.no. From April 2017, Khurram Ali will provide SEO services to three new cities, New York, Toronto and London under the following brand names NewYorkSEO.Agency, SEO Toronto.Agency and SEO-CompanyLondon.co.uk.

4 Reasons Why Norway chooses software development companies in Ukraine?

The primary driver for software outsourcing to Ukraine is a cost-efficiency. This statement is also confirmed by the Ernst & Young research among other factors as the expertise of research and development professionals, access to tools and knowledge.

Moreover, over the last few years, Ukraine has become one of the most fast-growing startup communities in Europe. Here are just a few names of the companies that you for sure know and that have their origins in Ukraine: Grammarly, Looksery (was acquired by Snapchat in 2015), DepositPhotos, BMPOnline, MacPaw, Jooble, Petcube, and others. Some of them even after being developed globally still have their R&D offices here, in Kyiv. And they are right.

The chart below illustrates today’s outsourcing trend in Norway:

Reason 1: High-quality labor

Among other IT outsourcing countries, the Ukrainian IT market is one of the most developed. According to NUCC Guide to Doing Business in Ukraine, over 90 000 professionals are working in the industry, and about 30 000 of them have international Brainbench Certificates (World`s leading online certification in IT). All this brings Ukraine to third place in the Top 50 Countries with the largest number of certified IT professionals right after the USA and India.
Another important detail is that every year the country graduates over 150 000 students and 36 000 of them have degrees in technical studies.
The market of Ukrainian outsourcing companies is consolidated in the biggest cities like Kyiv, Lviv, Kharkiv, Odessa, and Dnipro.

Reason 2: Cost efficiency

For sure, cost efficiency is one of the primary drivers that affect the solution of outsourcing. Norwegian companies can expect to save up to 60% of their expenses while working with Ukrainian IT partners. The experience of Dinamo Сompany confirms it.
First of all, the salary rate is one of the lowest in Europe. The chart below illustrates the average wage rate for mobile app developers:

At The App Solutions, we offer the best quality ratio and provide clients with clear estimations. We also help to choose the most efficient payment scheme that fits each particular project.
Check out our rates:

Besides, IT taxes are also lower. A vast amount of developers is hired as independent contractors. Such a scheme ensures substantial tax and comfortable reporting. According to it, an employee pays a fixed rate of 4% of his earnings. Add to this the lower costs for maintenance like office rent, bills, coffee breaks, and so on, and so far.

Reason 3: Same time zone & Low travel expenses

The time zone of Ukraine compared to Norway is only one hour ahead, which is very handy for communication. Also, if you need to meet your team, the whole trip will take up to 2-3 hours from any European airport. Also, there are airports in all the leading Ukrainian cities, and European citizens don’t need an entry visa for up to 90 days of the visit.

Reason 4: Western Business Approach

Customers from Norway find it very easy to communicate with their outsourcing team from Ukraine. Firstly, Ukrainians share both European values and business approach. That means that clients get a clear estimation, transparent project management, punctuality, and fundamental task performance. Secondly, unlike lots of other popular outsourcing destinations, Ukrainian developers, project managers, UI/UX designers, and QA, all of them have an intermediate and higher level of English.

Takeaway: How to Outsource IT Services successfully?

Besides all of the above, there are also some strategic drivers that help to delegate some tasks to carry out some in-house value-adding activities.
Of course, the outsourcing process has its risks, but with the right company and team, you can even turn them into benefits.

For those, who are considering outsourcing IT services, we have prepared a quick checklist. These are some critical areas that are to be kept in mind:

  1. Choose your outsourcing vendor carefully.
  2. Approve the goals and objectives of the company and with an outsourcing partner distinctly.
  3. Create a strategic vision and a plan.
  4. Provide careful management of the project and open communication between project stakeholders.
  5. Work through and structure commitments of the parties and the payment scheme.

In case of any questions, book an appointment with our manager and business analyst to get more details. Have a nice outsourcing experience!

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