Ukraine Software Testing Outsourcing: The State Of The Market In 2023

Anna Khrupa by Anna Khrupa on 03/13/2023

Ukraine Software Testing Outsourcing: The State Of The Market In 2023

The Eastern Europe software testing market has been growing steadily for over two decades now, with many Western countries quickly realizing the benefits of outsourcing their software testing needs to Eastern Europe.

Countries like Ukraine, Poland, the Czech Republic, and Romania, have become major technological hubs in the region. Everything, from the number of IT specialists to the quality of their services, has been on a swift rise. 

But with the recent global changes, including the full-scale war in Ukraine launched by Russia and the recession that is now becoming more and more apparent in different parts of the world and different industries, we felt like it was time to reassess the Ukraine software testing outsourcing market and decide whether it’s still a good idea to outsource software testing to Ukraine.

The state of the software industry in Ukraine

In more than two decades, the Ukraine software testing outsourcing market and software testing industry as a whole has gone through many significant changes. Here is what the industry looks like in 2023:

  • Ukraine may be considered the largest country providing IT outsourcing services in Eastern Europe, or at least can share this title with Poland. With over 5,000 companies providing IT services in Ukraine, ranging from under 50 to over 10,000 employees, the dominance of the Ukrainian IT sector in the European market is evident.
  • 90% of companies engaged in outsourcing are providing software testing and QA services, among other things.
  • After an understandable drop in revenue in the first quarter of 2022, Ukraine has quickly regained its momentum, growing for most of the year and ending 2022 with a record profit.
  • The move to a different work schedule because of the war — which includes work from home or hybrid office work wherever it was possible — did not turn out to be a shocker to the software testing industry in Ukraine, as 87% of companies were already practicing it since the beginning of the Covid-19 pandemic.
  • At the moment, 331,000 Ukrainian citizens work in the IT sector, and this number has been growing steadily for years now. Almost 50,000 of them are involved in software testing.
Ukraine Software Testing Outsourcing_ The State Of The Market

 

  • Top 3 cities in Ukraine by the number of software engineers include Kyiv (99,000), Kharkiv (44,000), and Lviv (35,000). Other cities with a dense population of IT specialists include Odesa and Dnipro. Kropivnitsky, Poltava, Ivano-Frankivsk, Uzhhorod, and Ternopil, are also currently among the up-and-coming centers of IT services.
  • Almost half of the software engineers in Ukraine (47% to be precise) are fluent in English and can therefore freely communicate directly with customers. Most of the remaining specialists are actively learning English as well and are at least at the intermediate level.
  • Over 80% of companies that outsource software testing to Ukraine are from the United States. Other world regions using software testing Ukraine capabilities include Western Europe, Australia, Canada, the UK, and the Middle East.
  • With hundreds of tech-related university programs in Ukraine, the IT talent pool increases by roughly 15,000 new specialists every year, and that is not counting self-taught testing engineers. By 2024, the number of IT professionals in Ukraine is expected to grow by 23%.
  • Companies that continue using Ukraine software testing outsourcing services go to great lengths to demonstrate their unwavering support, including extending deadlines, renewing their contracts, helping refugees adjust to their temporary locations, and providing flexible schedules.
Ukraine Software Testing Outsourcing: The State Of The Market In 2023

Eastern Europe software testing outsourcing: Top options

Eastern Europe has traditionally been a popular destination for companies seeking reliable software outsourcing partners. The benefits of outsourcing software testing to Eastern Europe are pretty much similar to the usual reasons why organizations outsource their IT needs:

  • Access to a wider talent pool and a variety of software services, including more exotic ones;
  • The IT industry in Eastern Europe developing at a rapid pace, ensuring the impeccable quality of the services and predictable results;
  • Being able to build cooperation on the company’s terms, from the duration of the project to the legal peculiarities;
  • Lower cost of testing simply due to how local software market works and the average salaries of IT specialists in Eastern Europe being lower than those in the US and Western Europe, sometimes 4 to 5 times lower;
  • Lack of overhead costs, such as hiring, training, onboarding, office space, and benefits.

Now let’s look at the key Eastern Europe software testing outsourcing options besides Ukraine.

Poland

Alongside Ukraine, Poland is the leader of the Eastern Europe software testing market, with over 700 companies operating in this segment, according to Clutch.co. Poland has also housed several Ukrainian companies fleeing from the war, and there is a substantial share of Ukrainian software testers who made Poland their temporary home in the past year. With almost 30,000 QA engineers currently working in Poland, this country is one of the top destinations for software testing in Eastern Europe.

Czech Republic

While still technically operating in the Eastern Europe software testing market, the Czech Republic is equally close to Eastern and Western parts of Europe. With just under 100 software testing companies and a little over 10,000 QA engineers, the Czech Republic offers slightly higher rates compared to Ukraine or Poland. This country can be a good choice for a company looking for a similar mentality and business ethic, which results in a smooth cooperation.

Romania

Romania is another country that is frequently featured among the best places to outsource software testing to Eastern Europe, and for a good reason. With over 190,000 IT professionals overall and around 25,000 being involved in testing, Romania is an attractive outsourcing destination in many regards. It has hard-working people, favorable laws, and highly competitive rates for top-notch IT services.

Hungary

Hungary is currently thriving as an Eastern Europe software testing destination for the same reasons as other countries in the region. Hungary has around 8,000 QA engineers and over 150,000 software engineers overall. Over 100 Hungarian outsourcing companies advertise their services on Clutch.co, and many more cooperate with clients directly without third-party platforms and directories.

Belarus

Before 2022, Belarus was one of the leading destinations for Eastern Europe software testing outsourcing, with many Western companies cooperating with Belarus-based testing teams on a long-term basis. There were over 150,000 tech specialists overall and around 15,000 working specifically in the software testing segment. However, due to its role in the Russian invasion of Ukraine, and the subsequent sanctions, Belarus has definitely lost its co-leadership role, with many foreign organizations choosing not to work with Belarus for ethical reasons as well.

Ukraine Software Testing Outsourcing_ The State Of The Market

Should you outsource software testing to Ukraine?

Safe to say, in the past year, Ukraine has had its own share of challenges to navigate, along with the challenges that were felt globally. In February and March of 2022, when there was a lot of uncertainty about the war and where Ukraine may end up as a result, the software testing Ukraine industry was in somewhat of a limbo. 

Between offices shutting down due to safety concerns, workers fleeing from Kyiv, Kharkiv, Mykolaiv, Odesa, Donbas region, and other areas affected by the invasion the most, to Western Ukraine and Europe, and many IT specialists joining the Ukrainian army in some capacity to help fight off the military aggression, the software testing services Ukraine industry went through a few difficult months.

However, for a year now, beginning in the spring of 2022, the software testing market in Ukraine has been steadily returning back to normal.

The country’s IT segment proved its resilience and shock-proof status time and time again. Thousands of companies and individual software testing engineers have successfully relocated with their families. Companies developed and unveiled contingency plans that helped them continue providing services to their customers without interruptions. As a result, 77% of software testing Ukraine companies have kept most of their contracts and clients.

And even the energy blackouts due to Russia’s targeted attacks on the Ukrainian energy infrastructure, while unexpected and shocking at first, quickly seized to be major obstacles. With companies equipping their offices with generators and Starlink stations, the efficiency of Ukraine software testing outsourcing has remained at the same high level.

So, all things considered — the expertise level of Ukrainian software testing engineers, the updated and foolproof work ethic, and the still very reasonable rates — the decision to outsource software testing to Ukraine can be the single greatest decision you make for your project in terms of quality, reliability, and budget.

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