How Ukrainian IT Company Delivers Value to Dutch Tech Businesses?

Daxx is one of the oldest tech companies in Ukraine. In the last two decades, we’ve helped more than 300 clients, 40% of which are Dutch, address tech talent shortage on their local markets. Our Dutch clients have played a big part in making Daxx what it is now. Some of the most important value-added services we offer today had been carefully designed with our Dutch clients to match the specific needs of businesses in the Netherlands. From the words of our clients, the currently cover the following pain points of the Dutch tech market:

Talent Shortage: 54,000 Unfilled Software Development Positions in 2020

We’ve been observing a disproportionate growth of the tech industry and the number of developers in the Netherlands. For instance, just three years ago in 2018, 46% of all opened software developer positions were difficult to fill in. And two years ago, about 40% of entrepreneurs in the Netherlands claimed that talent shortage was the major block to the growth of their businesses.

Ukraine’s 402 tech universities and tech colleges have been generating more than 35,000 entry-level tech specialists every year since 2016. As of now, there are around 200,000 tech specialists in Ukraine who are eager to work on interesting projects and help foreign businesses drive value.

In the last three decades, Ukraine has grown three generations of programmers with the first ones building the first universally programmable electronic computer MESM and the last — creating world-class tech products like Grammarly and PetCube.

High Employer Competition

The talent shortage in the Netherlands causes two other trends - high employer competition and inflated developer salaries. The multinational tech corporations such as Apple, Google, IBM, and others set the employment bar offering remuneration twice and thrice higher than the market salaries not even mentioning the benefits. Consequently, small and midsize tech companies are left with no choice but to seek software developers in other countries.

Being a great nearshore outsourcing destination, Ukraine is getting more popular among Dutch tech companies. With around 4,000 tech companies in Ukraine and 812 of which specialize in providing software development outsourcing services according to Clutch, Ukraine is nothing but a great strategic IT outsourcing destination for Dutch tech businesses. So not only does Ukraine have a big tech talent pool but also the Ukrainian tech companies have accumulated deep expertise in working with foreign clients on remote.

High Average Salaries of Developers and Rigid Employment Policies

Speaking in numbers, the average developer salary in the Netherlands is around $51,268 while in Ukraine, a software developer earns as much as 25,000 to 30,000 a year. Unlike in Ukraine, in the Netherlands, the employer has to pay the release expenses and high employer taxes.

The average software developer salary in the world 2020

The employer taxes in the Netherlands double the expenses on each developer per year. On average, it’ll cost you $88,058 all in all to hire a programmer in the Netherlands while hiring a developer in Ukraine will cost you about $25,000 a year (PayScale). The Dutch employers spend approximately two-to-three times more resources money-and-time-wise as compared to Ukrainian tech companies.

Hiring developers through tech companies in Ukraine guarantees the Dutch tech companies more flexibility and cost-efficiency. Because the majority of programmers in Ukraine work on a subcontractor basis, the hiring and releasing processes are minimized to one or two months maximum.

Afterword

The tech talent shortage is the most influential and long-lasting trend that will only get stronger in the Netherlands. Therefore, it’s quite important for the Ukrainian tech companies to continue addressing the growing issue and improving our range of services. I’d also recommend establishing close relationships with the Dutch clients and listening to their requests closely.