Software Development for Financial Services Companies: Should You Outsource to Ukraine?
Software development, particularly from scratch, can be costly. Outsourcing lets financial providers get the desired result at a comparatively low cost. Still, there are many questions to ask yourself. Will this affect the quality? Can the developers ensure the security of information? Will there be a language barrier?
In recent years, Ukraine has become one of the primary destinations for outsourced development in Central and Eastern Europe. Its finance software development services range from mobile apps to data hub platforms. Will its talent pool suit your business?
Full Spectrum of Services
Delegating development the right way will not only reduce costs. It can also shorten time to market without affecting quality, so your company will get a competitive edge in the rapidly evolving fintech industry. In Ukraine, available solutions cover the entire spectrum of digital finance, including:
- online banking systems (e.g., platforms, apps, security, etc. )
- blockchain and crypto (e.g., ICO launch, crypto transactions, identity verification)
- digital wallets (e.g., P2P, digital payments, and money transfers)
- AI and ML (e.g., data mining and analytics, predictive and recommendation systems)
- online and mobile trading (e.g., AI-assisted automatic systems, digital brokerage, smart contracts).
- Robotic Process Automation (RPA) (e.g., account reconciliation, account reviews).
Other Reasons to Outsource to Ukraine
Entrusting a vendor overseas with such a challenging task may seem daunting. Yet, the market is growing, and around 78% of businesses feel positive about their partners. Ukraine is one of the most prominent destinations. About 90% of all IT services are delivered to other countries. They are provided by around 12,000 companies, most of which are found in the biggest cities — Kyiv, Kharkiv, Dnipro, and Lviv.
Multinational tech giants like Microsoft, Samsung Electronics, Apple, IBM, Boeing, Ericsson, Siemens, and Oracle have R&D centers in Ukraine (110 in total). It also boasts a robust fintech sector supported by the Ukrainian Association of Fintech and Innovation Companies. Today, over 100 companies of this kind operate in the country. Local developers keep track of emerging technologies like artificial intelligence, blockchain, robotic process automation, and big data.
End-to-end development is popular with companies in need of dedicated teams. For example, banks may hire software vendors to update core banking systems. Dedicated teams may be scaled up or down relatively quickly.
There is also staff augmentation — hiring Ukrainian developers to fill skill gaps within in-house teams. Many financial companies lack expertise or resources for different reasons, so they augment their IT departments.
High level of expertise
Ukraine is famous for its standards of engineering education and expertise. Around 32,000 graduates with tech skills become part of the local industry every year. Many of them start working while still at university, which gives them a head start. About 100 companies included in Fortune 500 have outsourced software development to this country.
The IT sector employs over 200,000 specialists, so it is not difficult to find developers with suitable skills and backgrounds. For example, a company interested in RPA solutions needs an engineer with experience in similar projects, rather than payment gateways for retail. Ukrainian teams pay close attention to their clients’ business logic.
Ukraine is just one hour ahead of most countries in Europe. It also has a 7-hour difference with the East coast of the US. This ensures more overlapping hours in comparison with outsourcing to the Philippines or India. Ukraine has fewer public holidays than other popular outsourcing locations in Europe, such as Poland or the Czech Republic. Finally, local developers have no problem organizing their schedules, engagement models, and matrix based on the clients’ requirements.
The majority of IT specialists (85%) speak English at least at the Intermediate level. Fluency is vital, as it prevents miscommunication and misunderstandings that hinder progress. Most local firms organized courses for employees to help them develop and maintain their command of written and spoken English.
Ukrainians are known for being good-natured and easy-going, but they also share the business principles and values of Western clients, such as open communication and personal involvement in projects. It is easy for a foreign customer to find common ground with a Ukrainian provider.