Ukraine is one of Europe’s largest country, with Kieve as its capital and largest city, The current economic and social conditions in Ukraine may be related to its turbulent historical past that created fault lines and its geographical location that even on ecological maps show the physical divide (known as steppes) between southern and eastern parts of Ukraine.
- Political and Economic
- Business Overview
- Priority Areas to attract investments
- Current Economic Overview
- Vacation Periods/Duration
- National Holidays/Festivities and Significant Events
- Office and Business Hours
- Time Zone
- Ease of travel/Visa Requirements
- Currency
- Language Skills
Ukraine is in the process of initiating reforms to address its pressing socio-economic concerns by carrying out large scale privatization of thousands of state-owned industries numbering about 3,000 enterprises. The goal of the privatization process, to be done under transparent conditions, is to bring in not only investments but also new standards, new ways of managing companies and a new investment culture.
The macroeconomics and politics of the country will remain of crucial importance, but the IT market is fast recovering after a sharp decline, and is now experiencing a post-crisis growth with a continuous record of double digit growth rates. Ukraine ranks first among European countries in the field of IT outsourcing and software development and is in the top 10 outsourcing countries in the world. The cities of Kiev and Lviv have been included in the top 100 outsourcing destinations, with the city of Kharkiv being touted as a technological magnet for the entire country; other popular IT cities include Dnipropetrovks, Odessa and Vinnytsis. Ukraine has one of the highest number of IT specialists with more than 200 IT firms employing about 100,000 IT specialists (14,000 software developers), with the number expected to doube in four years. Ukraine is headquarters of big-name American and European clients, including Israel, and with over 100 R&D centers of world high-tech companies like Cisco, Oracle, Rakuten, and Samsung.
The demand for of IT specialists from Ukraine, especially IT engineering workforce is expected to double up to 200,000 by 2020. Among the top universities and institutions graduating the most IT human resources are:
- National Technical University of Ukraine, Kieve.
- National Aviation University, Kieve
- Mechnikov Odessa National University, Odessa
- State University of Telecommunications, Kieve
- Ukrainian Engineering Pedagogics Academy, Kharkiv
- Kyiv National Taras Shevchenko University: was among the top 10 programming universities worldwide based on international competitions
The rich history of scientific and technological advancements of Ukraine are significant factors that have greatly contributed in making it today as the most developed and dynamic IT outsourcing markets in Eastern Europe. Because of its technological background and contributions in the industry, Ukraine became the Silicon Valley of the Central Eastern Europe (CEE), with the highest Information Technology Outsourcing (ITO) market value. Two of its most important cities in the development of the IT industry are the capital city, Kyiv (or Kieve), considered to be among the 25 safest cities for offshore/near shore services, and Kharkov, which has been at the center of scientific and technological innovation.
Outsourcing software development to Ukraine gives considerable cost savings without sacrificing the quality control of products. Factors that have helped propel the IT industry of Ukraine:
- Access to IT talent: large pool of highly skilled specialists and top notch technology talent
- Strong educational system, numerous universities, scientific schools and R&D centers
Ukrainian universities offer quality education and technical expertise in distinguished software development and engineering programs; there are about 5,000 graduates annually joining companies specializing in software and application development services
- Cost saving without losing innovation: lower development and labor costs
IT service providers offer competitive pricing with excellent technical expertise and innovation; wage difference gives a saving of 40-60% on in-house development costs
- Favourable location: Ukraine outsourcing cities are conveniently located and easily reachable from EU cities. It takes on average 3 hours to fly from most European cities, and about 8 hours to fly from USA’s East Coast. Ukraine is located in the Eastern European Timezone (UTC+2). The time difference is easily manageable and the working hours overlap with many North American companies
- Cultural and geographical proximity and Western mentality: Ukraine has a strong Western-oriented mentality due to its geographic location and because of its cultural ties and business values. Cultural proximity has made it easier for many foreign companies to operate within Ukraine and to directly communicate with Ukrainian software developers and outsourcing service providers. Due to similar business values, foreign companies have facilitated the management of offshore contracts, allowing for better performance and successful project results.
- Mature IT/BPO market with continues and rapid development
- Advanced infrastructure
Many Ukrainian companies aim to develop business culture that is similar to companies in the West. They aim to provide the level of service on par with their Western counterparts, and use latest methodologies, such as Agile, to deliver better results with flexible development processes.
- Information and communication technologies: The number of companies in Belarus producing intelligent products which are in demand around the world has grown rapidly (i.e. World of Tanks, a multiplayer online game developed by the Belarusian studio Wargaming.net)
- Applications for communication (i.e. Viber software development is implemented in Belarus)
- Solutions for business. Among the automated ERP class (enterprise resource planning) in the CIS countries, the largest developer in the region of ERP-systems is the “Galaxy” corporation, headquartered in Minsk. To date, the company’s software is used by more than 6,000 enterprises of CIS countries, representing various sectors of the economy.
Of the more than 100,000 developers in Ukraine, about 15,000 work in large companies (like Samsung, NetCracker, ISD, Miratech, Wargaming, Playtika, Win Interactive, Terrasoft, MacKiev, CS), with the majority working of IT specialists in the outsourcing industry. 45% of developers are based inKiev, 18% in Kharkov and 9.3% live in Lviv. The next largest IT-oriented cities are Dnepropetrovsk and Odessa. Majority of the specialists have higher educational degree and have a high English comprehension,
The demand is higher for specialists for enterprise, web and mobile development. Due to the crisis, the average salary decreased but does not mean that experienced specialists are getting paid less but is indicative of the fact that there are more specialists willing to take a lower pay since the average salary of highly specialized developers remained the same. The percentage of specialists hired on the basis of their expertise is as ff:
Project Manager 3%
Ruby 4%
HTML 2.9%
QA 12.8%
Python 5.9%
IOS 7.6%
C++ 6.9%
Android 7%
C3/NET 12.7%
Java 11%
PHP 12.3%
JavaScript 14%
The development of IT in the next year depends on two factors – internal and external. The demand for Ukrainian IT specialists will depend on US and European market growth. If the development continues, the industry will continue to grow, with more companies opening and more job vacancies. Otherwise, the number and growth will likely decrease. The other factor is the conflict in the East of the country. If the situation stabilizes, companies will be able to secure more contracts.
The best time to visit Ukraine is in late April up to the first weeks of June when temperature is moderate, and in early September to mid October. Summers (June-August) are extremely hot months, while winter (December-February) could become unbearably cold for visitors. Spring (March-May) and autumn ((September-December) have moderate temperatures. Summer season in Odessa is a bit unpredictable with days ranging from overcast, thunderstorms and bright days within a week’s time. Winter is for ski enthusiasts and other similar activities.
Date | Holiday name | Holiday type | ||
Jan 1 | New Year’s Day | National holiday | ||
Jan 7 | Chhristmas Day | National holiday, Orthodox | ||
Jan 8 | Christmas Day Holiday | National holiday, Orthodox | ||
Jan 14 | Orthodox New Year | Observance, Orthodox | ||
Jan 16 | Special Working Day | Observance | ||
Jan 22 | Ukrainian Unity Day | Observance | ||
Jan 25 | Tatiana Day | Observance | ||
Feb 14 | Valentine’s Day | Observance | ||
Mar 8 | International Women’s Day | National holiday | ||
Mar 20 | March Equinox | Season | ||
Apr 1 | April Fools | Observance | ||
May 1 | Orhtodox Easter | National holiday, Orthodox | ||
May 2 | Orthodox Easter holiday | National holiday, Orthodox | ||
May 2 | Laor Day | National holiday | ||
May 3 | Labor Day holiday | National holiday | ||
May 8 | Mother’s Day | Observance | ||
May 9 | Victory Day/Memorial Day | National holiday | ||
May 21 | Europe Day | Observance | ||
May 22 | Cultural Workers and Forl Arts Day | Observance | ||
May 29 | Kiev Day | Observance | ||
Jun 19 | Orthodox Pentecost holiday | National holiday, Orthodox | ||
Jun 20 | June Solstice | Season | ||
Jun 20 | Orthodox Pentecos holiday | National holiday, Orthodox | ||
Jun 28 | Constitution Day | National holiday | ||
Jul 7 | Kupala Night | Observance | ||
Jul 8 | Family Day | Observance | ||
Jul 28 | Baptism of Kyivan Rus | National holiday | ||
Jul 31 | Navy Day | Observance | ||
Aug 24 | Independence Day | National holiday | ||
Sep 22 | September Equinox | Season | ||
Oct 2 | Teachers’ Day | Observance | ||
Oct 14 | Defender’s Day | Observance | ||
Oct 30 | Daylight Savings time ends | Clock change/Daylight Saving Time | ||
Nov 21 | Dignity and Freedomm Day | Observance | ||
Dec 6 | Army Day | Observance | ||
Dec 21 | December Solstice | Season |
Working hours begin on Mondays, with most businesses and banks opening at 9:00-10:00am. There is a one-hour break between 1:00-3:00pm, and work finishes at 5:00-6:00pm. On Fridays, most companies slow down work, with employees preparing for a busy Friday night. Pubs and bars get crowded as early as 7:00pm to as late as 2:00-3:00am. Retail shops in central parts of cities usually start early and finish late. Everyday, streets get crowded after 5:00-6:00pm.
Ukraine is in the Eastern European time zone (EET +2 h). Ukraine switches between summer and winter time.
Time zone: EEST (Eastern Europe Summer Time)
Daylight Savings Time: +1hour
Current time zone offset: +03:00 hours
Note:
- Only one type of visa is issued per entry. The primary purpose of entry should be stated in the Application.
- No group visas are provided in the USA
- Invitation Letters are NOT necessary for citizens of USA, Canada, Japan, Switzerland. Slovak Republic, Turkey, and citizen of the countries of the EU
- If required, the authorized staff may ask a foreign citizen or stateless person who is applying for a visa, for an additional interview and any additional documents to clarify the purpose of traveling such as:
Type of Visa/Requirements:
- Transit Visa (indicated by letter B)is issued to foreign citizens and stateless persons for passing through Ukraine to a third destination, as well as for the transit of cargo and for the transit of vehicle passengers.
There are single, double and multiple entry transit visas issued for the period indicated in the supporting documents. However, the period should not exceed one year unless otherwise stipulated by International Agreements of Ukraine. Each transit through the territory of Ukraine should not exceed 5 days.
A transit visa application should be accompanied by one of the following documents:
- Document confirming the nature of travel is transit (such as a visa to the third country if it is required, a ticket etc);
- Short-term visa(indicated by letter C) is issued to foreign citizens and stateless persons if the duration of their stay in Ukraine does not exceed 90 days in a given 180 day period from the date of first entry.
Short-term visas can be single, double or multiple entries for six months or for the period of time indicated in the documents that constitute grounds for obtaining the visa, but not exceeding 5 years.
A short-term visa application should be accompanied by one of the following documents:
- Standardized invitation of a person or entity issued by the regional body or division of the State Migration Service of Ukraine;
- Long-term visa (indicated by letter D)is issued to foreign citizens or stateless persons traveling to Ukraine for a period not exceeding 90 days with the purpose of processing documents that give the right to stay or reside in Ukraine.
The long-term visa can be issued by the Diplomatic Mission or the Consulate General of Ukraine as single entry visa for 45 days, except as otherwise required by law.
A long-term visa application should be accompanied by one of the following documents:
- Duly certified copy of the employment permit for foreigners and stateless persons issued by the state employment service. For foreigners and stateless persons whose employment in accordance with the laws of Ukraine is carried out without employment permit, instead of such a permit an employment agreement (contract) is submitted, and for those who have the status of the person of Ukrainian origin – employment contract (contract) and certificate of the person of Ukrainian origin
- Document confirming that a person is a family member of a foreigner or stateless person who have temporary residence permit in Ukraine (documents issued by the competent authorities of a foreign country should be legalized, unless otherwise provided by law or international treaty of Ukraine, and submitted with a duly certified translation into Ukrainian, and if this is not possible – in English), a copy of the relevant temporary residence permit, and of the standard form, which confirms the proof of sufficient financial means to maintain family members in Ukraine;
Visa Fees
Single entry US$85
Double entry US$130
Multiple entry US$200
The expedited issuance of visa or visa during non-working hours is subject to double consular fee rates.
In case of visa refusal, the consular fee is not refundable and the documents are not returned except for the passport indicating the reason for refusal of issuance of a visa
The official currency of Ukraine is Hryvnia, (or spelled as Hryvna or Grivna. Ukrainian coins are called “kopiyka“. One kopiyka equals 1/100 of Hryvnia.
The most popular foreign currency in Ukraine are the US dollars and Euros, but the use of the US dollars and Euros are not allowed in shops, bars and restaurants. However, there are lots of currency exchange places throughout the city, such as at the hotels, banks and airports. It is a must that tourists’ foreign currency bills are new looking and crisp, as written-on, torn or crumpled banknotes are usually rejected or could only be exchanged at the banks and sometimes at a lower rate. Passports are not required for the exchange of currency.
Personal checks practically don’t exist in Ukraine, but many places in Kiev have started to accept major credit cards like Visa or MasterCard. Travellers’ checks could be cashed at the banks for 3%. American Express does not have an office in Ukraine to replace lost checks.
The official state language of Ukraine is Ukrainian but the preferred spoken language is Russian in most cities in the southern, eastern and northern parts of Ukraine. The languages spoken at home are 40% Ukrainian, 40% Russian and 20% Surzhyk (a mixture of the Ukrainian and Russian languages). Russian speakers are more often found in large cities, and Ukrainian speakers in the rural areas.
In Kieve and many other regions, the use of Ukranian has been increasing and being used as the medium of instruction in schools in Ukraine. The most literary Ukrainian and Russian is spoken by educated individuals in the cities. Large part of the population (i.e. street vendors, laborers, farmers, and many others) speak “Surzhyk” or “Surzhik.”
IT Skills
In recent years, the information technology of Ukraine was booming largely due to outsourcing. Companies transitioned their IT-outsourced operations (from India and the Philippines) to Ukraine which had a vast pool of highly trained IT specialists. By 2012, there were about 4,000 IT outsourcing companies in Ukraine, and the industry was seen growing at 25% yearly, and economists projected that the $2B industry will likely grow by another 85% in the next six years.
The government has initiated measures to reassure foreign clientele to prevent cancellation of investments, such as the awareness campaign to promote the Ukrainian IT industry through social media such as Facebook, Twitter and Linkedin, which encourage interaction with a Ukrainian IT specialist to specifically address IT concerns.
In Bench Games Leaderboard 2013, the international online competition that aims to identify the skills and knowledge of professionals within IT industry attended by more than 11 million participants from 50 different countries, Ukrainian IT-specialists positioned Ukraine to the 3rd place by the number of certified citizens and to the 2nd place by the most MASTER LEVEL certified nation. There were 56 Ukrainian nationals who showed the best results in the individual standings in different programming languages, web frameworks, databases and graphics.
Ukrainian IT pros are already well known in the world as they work for numerous foreign companies and Ukrainian IT outsourcing companies. The skills of Ukrainian developers were used in Hollywood for “Spider-Man” movie, “Quantum of Solace” James Bond movie, for Madonna show, AC / DC performance and others.
Salaries of Web Designers
**Ukraine Median Pay (in US Dollar/annum)
Senior Web Developer $27,610
Web Developer $24,000
Senior Web Designer $18,843
Web Developer (PHP) $12,000
Web Designer $11,720
Kieve Median Pay
Senior Web Developer $38,346
Senior Java Developer $36,625
Project Manager IT/Engineer $30,588
Front End Developer/Engineer $30,521
Java Developer $28,890
PHP Developer $27.359
Software Engineer $27,276
Software Developer $27,000
Odessa
Senior Software Engineer $34,200
Kharkov
Senior Net Developer/Programmer $35,390
*Note:Corresponding rates indicated for posts in cities in the rest of Ukraine other than in Kieve,Odessa and Kharkov whose rates vary for indicated posts.