Ukraine vs Azerbaijan - Where to Set Up an Offshore Development Center

Making the right choice with a software development outsourcing destination is always a challenge. Let’s compare the perspective Ukraine and Azerbaijan open up for project owners.

Establishing an Offshore Development Center - Ukraine vs Azerbaijan

While Ukraine is a globally recognized software development destination, it isn’t the only country that offers great prospects to project owners. Let’s take a deeper look from a different angle and reconsider Azerbaijan as a pretty competitive choice to outsource your project to. Compared to Ukraine, this country may become an even more winning choice when it comes to establishing an offshore development center, and here is why.

Talent Pool

The availability of a talent pool is the first point to review when it comes to choosing a software development outsourcing destination. Make sure the specifics of the tech talents match with the specifics of your project. 

Ukraine

There are 200,000 software developers in Ukraine. This number covers Junior, Middle, and Senior specialists, along with those working in the digital field - for example, designers, QAs, and project managers. The most popular technologies Ukrainian developers work with are JavaScript and PHP, creating the projects for mostly eCommerce, fintech, and healthcare industries. 

Azerbaijan

The development pool in Azerbaijan grows as well. Given the fact that this is a less popular destination, there are no precise statistics and studies. However, there are still several reasons to establish an offshore development center in Azerbaijan. compared to Ukraine, Azerbaijan offers less competition when it comes to recruiting and hiring. The developers from this country aren’t spoiled with the abundance of offers so they will be glad to collaborate on mutually winning conditions.

Education Level

Next, let’s compare education levels in Ukraine and Azerbaijan. Indeed, not always the presence of a diploma makes a developer outstanding but if your project requires deep and specific expertise, it is still better to hire tech graduates.  

Ukraine

Ukraine has long been famous for its strong engineering tradition, and an exceptionally wide choice of universities with tech branches. The quality of education is also high but unfortunately, the corruption in Ukrainian universities is blooming as well. What does it mean in practice? It means that the diploma isn’t an indicator of knowledge and vice versa. Pay closer attention to the practical experience and the personality of the developer when hiring them in Ukraine. 

Azerbaijan

The level of high education in Azerbaijan is pretty high as well. There are more than 21 tech universities in this country, and the opportunities for young people have become more equal in recent years. Most of the universities also allow the students to get an education in English, which is one more benefit when it comes to hiring a tech team and establishing an offshore development center in this country. 

Political, Cultural, and Business Environment

Considering these factors is also important when choosing a software development outsourcing destination, especially when you are going to run an ODC. In the latter case, choosing a country with a stable and calm environment is half the battle for seamless business operation. 

Ukraine

The economy of Ukraine is growing, especially in the IT sector. Most of the tech-leading cities have dedicated IT hubs so that the business owners and development vendors can meet each other. However, the political situation in Ukraine can hardly be called stable because of the strained relations with the Russian Federation. 

Azerbaijan

In contrast, both economical and political situations in Azerbaijan are stable. The government of this country has recently developed an innovative policy aimed at building an equal society and green economy. Azerbaijan also welcomes the growth of an IT sphere, attracting investments for building innovations in this country. It also creates policies for making Azerbaijan a competitive player on European and global political and economical landscapes.

The Cost to Run an ODC

The cost to create an offshore development center is crucial for newly created companies but with far-reaching scalability prospects. So, you have to take this factor into account as well. 

Ukraine

Ukraine is a top outsourcing destination. To put it simply, it already doesn’t need advertising which explains the relatively high cost to build the software in this country. The average developers’ salary is still lower compared to the US and UK, for example, and this is one of the factors that allows Ukraine to win the race for foreign projects. 

However, for newly created companies and startups, the average wage of $7,500-8000 per developer per month is too high. When it comes to creating an ODC, this figure can become ten times higher because of the need to hire the whole team, plus rent an office, pay related taxes and expenses. 

Azerbaijan

As we have already said, there is less competition for the best talents in Azerbaijan. Given the quality of education they receive, no language barrier, and practical experience with foreign projects, these programmers can become a winning choice at a reasonable price. The cost to hire a developer in Azerbaijan is $6,000-6,500 per month. Compared to Ukraine, the difference becomes significant when you need to hire a large team. That’s why the opportunity to save without sacrificing the quality of the final product is one of the top benefits of setting up an offshore development center in Azerbaijan. 

The Ease of Getting Started

Lastly, let’s pay attention to the practical side of the issue - getting started with establishing an offshore development center in Ukraine vs Azerbaijan. 

Ukraine

There are a lot of software development vendors in Ukraine, and this is the case when more choice options make the final decision even more difficult. Some of the companies have niche-tailored expertise, while others provide all-inclusive services. There are a lot of companies from the Fortune 500 list, and the cost of collaborating with them is pretty high. 

Azerbaijan

There are not so many companies providing software development outsourcing services in Azerbaijan. However, they managed to gather the top tech talents under their roofs and established the best practices for collaborating with foreign customers. SpaceBus is one of the development vendors with a well-validated tech team, practical experience in establishing an offshore development center, clear communication practices, and transparent pricing.

Conclusion

There are several winning software outsourcing destinations. Both Ukraine and Azerbaijan are among them. While the first country is more suitable for mature companies, establishing an ODC in Azerbaijan is a cost-effective tactic for startups. We, at SpaceBus, are ready to help you with this task right now, supporting you along this path, sharing our expertise, and creating market-disruptive solutions in your offshore development center.