Daxx, the Netherlands-based software development company with development centers in Ukraine, conducted research on software development in Central and Eastern Europe. The research highlights the growing potential of the CEE countries and the overall value of the CEE region for the global tech industry.
The whitepaper’s key findings are:
- 87% of global companies report facing skill gap challenges. Central and Eastern Europe bring the fastest alternative to meet the world’s tech talent shortage challenge — by providing their top-notch engineers and high-quality service.
- The cost-efficiency of doing business with the CEE, alluring the US and Western European businesses, is now complemented by the tech and business expertise of the CEE providers. In 2021, global businesses see their CEE providers not just as performers of tasks, but as strategic IT partners for long-lasting business relationships.
- Sustainable growth of the tech industry in the CEE countries attracts local and foreign investors. There’s an elevated interest of financial and strategic players to acquire IT service companies in CEE including Ukraine. Nearly 30 deals happened in the region in 2020 – a testament to the region's attractiveness despite the pandemic year.
- Booming Central and Eastern European startups are navigating their way to become members of the conventional startup club with hotbeds like Germany, Sweden, and the UK. Grammarly, Infobip, Brainly, GitLab — these are just a few of the world-known ventures that originated in CEE.
- Kyiv, the capital of Ukraine, ranks in the top ten best-performing cities in Europe for startup ecosystem maturity, along with such well-established spots as London, Berlin, Amsterdam and others.
- Poland (401K), Ukraine (200K), Romania (139K), Czech Republic (130K) and Hungary (105K) are leading CEE countries in terms of the tech talent pool.
- Average software developer hourly rates jumped up in all CEE countries with a $30-$69 margin depending on the country, specialization and seniority level.
- Ukraine is well on its way to developing into a global tech powerhouse, taking 11th on the list of top offshore software development countries in the world. Young, well-educated, and thriving professionals are the most important asset of the country.
Compared to other CEE countries, Ukraine stands out for its sustainable IT export growth by 20-30% annually while keeping high-end delivery quality and competitive pricing for the top-level expertise. To date, our key advantage is a high density of tech talents with 6-10 years of experience in the IT industry which makes us fast in jumpstarting new and scaling up existing IT projects,— commented Kostiantyn Vasyuk, Executive Director at IT Ukraine Association.
Strategic IT partnership, business consulting, advisory — this is where the aspirations of all progressive Ukrainian tech service companies are. Today, we understand their clients’ businesses more deeply as we have accumulated expertise in different industries. Thus, we can provide high-end solutions based on our experience and achieved business results.
The full version of the whitepaper “Software development in CEE: closing the tech gap for Western Europe and the USA” is available here.
Daxx is the Netherlands-based software development and technology consulting service provider and is part of Grid Dynamics (Nasdaq: GDYN). We build dedicated teams with top Ukrainian developers and solve business challenges for companies operating in digital media, healthcare, education, e-commerce, high tech and other domains. In addition to high-end software development, we provide value-added services spanning Quality Control, Security Testing, DevOps, UI/UX, Process Consulting and IT relocation.