How to Choose a Software Development Partner in Ukraine?

Historically, in Eastern Europe and, especially, Ukraine, access to higher education has been a top priority. Back in the 19th-century, cities like Kiyv, Lviv, Kharkiv, Odesa, or Chernivtsi established top educational institutions, which adhered to a high level of engineering research in their field.

Ukraine in itself produces more than 20,000 new graduates in Computer Science and Information & Communication Technologies (ICT). Furthermore, the country boasts new and highly-specialized centers like UCU, which is a reference university for data science and data engineering in Europe.

All of these factors, combined with the country’s estimated 200,000 IT specialists, make Ukraine an ideal destination for setting up your software development team.

After years on both sides of the outsourcing industry, we understand how important this decision is for the future of a project. This is why we recommend following the crucial steps listed below:

1. Identify Your Needs

Only you can clearly understand (a) your most important needs, and (b) your motivations for seeking out a nearshore software development company.

As you evaluate your options, it is important to consider factors such as:

• The in-house IT team
• Growth plans
• Talent pool access
• Technical level
• Recruitment capabilities
• The amount of time you can dedicate

This initial evaluation will give you an idea of the collaboration model that will work best for you. Is it a one-time job, an extension of your current in-house team, or a fully-functional one?

Have a clear idea of both the immediate and long-term needs at play. You will have to invest a lot of energy in the selection of a partner, so make sure you won't need to repeat the process unnecessarily!

2. Pre-Select a Few Companies

Most software companies offer similar services and access to the same talent pool when recruiting externally, which makes it difficult to spot the right one solely based on the information available online. However, some indicators can help you to make a more informed decision:

Size Matters

If the vendor chosen is too small for you, there might be difficulties when growing your team or selecting the technology stack.

On the other hand, you can end up as a "low priority" client for big companies - a highly undesirable and unproductive position to be in.

For small or medium companies, search for vendors with about 50 developers and a good track record. This will give you stability and ensure that you are at the top of the queue!

As a very general rule, aim to be 5% to 20% of the vendor’s size. This will give you the right amount of negotiation power, and the stability to forget about this selection process for a very long time.

Tech Stack

Despite the vast number of articles available pertaining to the pros and cons of one technology or another, I would recommend focusing only on the current status of your product.

• For projects with a stable customer base, seek software partners who have proven expertise on your specific technology stack.
• For new products or extensions, find a technology-agnostic partner. Without vias on a specific technology, you will get better advice when considering modern trends.

Vendor's Partnership Network

The reality is that no company can provide all services efficiently; therefore, the optimal approach is to have a reliable partner network.

This is not a common point of consideration, but worth noting nonetheless: check on areas out of the vendor's comfort zone, like hardware development, marketing & promotion, or security. Doing so will grant you much broader access to experts than expected.

3. Meet the right people

Just knowing who is participating in the initial conversations will give you a good idea of how important you are, and the real capabilities of a vendor. It is therefore advisable for you to:

• Meet top management and also understand the culture of the company and their background.
• Meet the experts, understand the tech level of the company, how they communicate to business partners and how they will help you to shape your team.
• Meet your project initiator at an early stage, and make sure that a person who will either be part of your team or supervising it is present. Ensure that you can have excellent communication and understanding with each other - this is the key to having a successful start.

4. Evaluate and Select

At this point, you probably have a good understanding of the pre-selected vendors. This understanding should encompass: their capabilities, company culture, pricing, collaboration models, customer base, and background, with a most-probable winner in terms of overall results.

Remember the items on this checklist:

• Pricing is an important point to consider, but keep in mind that the wrong vendor could cause your project to fail;
• Reaction Time will give you a good idea of your "priority" as a client;
• The quality of Provided Materials is a good indicator of a partner’s software delivery standards;
• Prioritize flexibility on the cooperation model in order to ensure that it can meet your future expectations;
• Find a suitable cultural fit and communication framework;
• Make sure you can trust the people in front of you;
• Finally - and most importantly - follow your instincts!

5. Let's Start Working!

Good news: at this point in this process, the most time-consuming part is done.

In any case, do not forget that an essential part of successfully setting up a remote team depends on how well the first couple of months are handled.

For this purpose, ensure that you at least have the following elements available:

• A "Next Steps" overview
• A Clear communication plan with your team
• Clear escalation points
• Periodical review sessions with the top management
• Well-established tools
• A clear view of the costs involved
• An easy way to receive news from the vendor

It is crucial to make sure that your new partner has a good level of experience with setting up new development teams. Discuss the best practices you have in mind from the beginning, and share any issues you may encounter with your partner early in the collaboration process.

And, finally, with all of the above boxes ticked, the real work can start. At this point, I can say: congratulations (and welcome to Bluepes!)