Ukraine Vs India: What’s the Best Destination for Software Outsourcing?

Ukraine and India both hold a leading position in their respective regions. So, let’s find out which one is best for fortune-listed companies to outsource software development projects.

4 min read
Nov 8, 2021

Most companies ranking in fortune global list, outsource IT functions to either Ukraine or India. These two nations are the most preferred destination for outsourcing software and product development requirements. Further, as per HackerRank, software developers from Ukraine and India have 88 and 76 average developer score index respectively.

However, such simple scores are not enough to judge the best destination for organizations to conclude where they should outsource. In fact, there are tons of other indicators and factors that play a vital role in determining the ideal nation to outsource your IT projects.

To help potential prospects figure out the best destination, the team at ashutec has tried its best to come up with an unbiased review to choose the ideal outsourcing partner out of Ukraine and India. So, here we go:

Best Destination for Software Outsourcing: India Vs Ukraine

Every year, big players enter the outsourcing market, forcing outsourcing market players to compete with each other. Ukraine has been holding a leadership position in eastern Europe. Likewise, India — the counterpart of Ukraine in Asia — holds a similar position, which is why it becomes tough for many companies residing in the USA, Canada, the UK, and other countries to choose one out of the two. Let’s have a quick look at both nations:

Outsourcing Market In Ukraine

Ukraine is one of the strongest outsourcing countries in whole eastern Europe and shows steady growth in software engineering and development. The country offers over 200k developers and 4000 professional IT firms and 1600 IT service-based companies ready to serve their clients.

Most of the companies are experts in developing healthcare, retail, logistics, FinTech, gaming, and many other domains. The average hourly rate in Ukraine ranges from 40 to 100 USD or more depending on the software niche, industry, and development firm.

Ukraine has been able to establish itself as one of the strongest outsourcing providers due to its global recognition. This can also be seen in the fact the companies like Microsoft, Google, or Samsung have opened their R&D centers in Ukraine.

Outsourcing Market In India

In contrast to Ukraine, India is quite large in terms of population and development firms. India has a whopping number of developers around 2.75 million to cater to global enterprises. Further, India holds a record of serving nearly 18% of the digital development needs across the world.

Thanks to the English-based education system, a large talent pool, and a global business community, India is famous for offering high-quality IT outsourcing services. Moreover, the average hourly rate in India ranges from $15 to $60, making it a highly affordable and cost-effective destination to outsource software development projects.

The nation is known for its rich and diverse culture and developers can adapt to any professional environment easily. With lion’s share in the global IT market, India ranks 3rd for its startup communities in various domains such IoT, healthcare, analytics, and cyber security.

Differences and Similarities: Ukraine Vs India

Even though both the nations are undeniably leaders in the IT sector in their respective regions, still, there are a few differences and similarities one should pay attention to while deciding the destination for outsourcing. Let’s have a look at what those are:

Education Level

In the past few decades, India has witnessed a boom in the technology sector thanks to affordable access to internet services. Further, the digital platforms for education have allowed Indian institutions to reform the whole education network across the nation. This enabled more than 260 million students to enroll in educational institutes, making India one of the largest education networks.

Ukraine on the other hand is not far behind India with 70% of its young population getting through to secondary or higher secondary education. Such easy access to education makes developers from both nations one of the best around the world.

English Proficiency Level

Language proficiency plays a critical role while outsourcing software development as it can ensure a smooth and uninterrupted flow of information and ideas. India is the second-largest country in terms of fluent English speakers. It has one of the largest populations of working professionals with good English proficiency. The English speakers in India stand at a whopping 194 million, accounting for almost 14% of the population.

The same for Ukraine stands at 7 million, accounting for almost 18% of its total population. Even though the country races ahead in percentage, it significantly lags behind in the total English-speaking population compared to India.

Data Safety and Security

Ukraine and India both perform well in this aspect, providing their outsourcing clients with top-notch security and data safety. Most of the development firms have made it mandatory to sign non-disclosure agreements to offer surety to their clients for their data and intellectual property protection. Further, most development firms have conformity with the GDPR norms to deliver outsourcing services.

Still, a lot more infrastructural reforms are needed in both nations to prevent cyberattacks by implementing a nationwide architecture for cybersecurity.

Quality to Price Ratio

Indian IT outsourcing firms hold the first position in offering the best quality software development services and solutions at cost-effective rates. Such rates from Indian developers are linked with their lower lifestyle standards than developed nations, which is why they are the most preferred choice.

Ukrainian developers too offer great quality software development, but their services exceed in price than their Indian counterparts. Still, their prices are much lower than other European countries, making them an affordable choice across Europe. But overall, Indian outsourcing services are cheaper combined with high-quality solutions, which perfectly balances the quality to price ratio.


The final takeaway from this article is both the destinations are great and have their own strengths and weaknesses. India has more options to choose from for outsourcing software and product development services. Further, most companies offer their services at cost-effective rates with balanced quality to cost ratio.

Ukraine is also a great choice for outsourcing IT services, which are affordable than other European countries. In conclusion, both the nations have great education levels as well as English language fluency, which makes it hard to pick one out of the two. Thus, the onus lies on you to decide which country suits you better.

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