Israeli-Ukrainian Alliance on why Israel is increasingly choosing Ukrainian developers (speka.media)

Updated
2022-02-16

According to the IT Ukraine association, Ukrainian IT exports had gone up 24.7% to $6.8 billion in 2021. Israel is the fourth largest IT exporter in the world, preceded only by the United States, Great Britain and Malta. 


In recent years, Ukraine has tripled its IT exports volumes to Israel. While in 2016 the local companies exported computer services from Ukraine for $94 million, in 2020 the figure was $238 million.




Ukrainian developers are holding leading positions in many Israeli companies, including Payoneer, MyHeritage, Playtech, Wix, Playtika and Plarium. At least 20 Israeli companies have R&D offices in Ukraine.


SPEKA talked with the representatives of the Israeli-Ukrainian Alliance about why Israeli IT companies value Ukrainian developers so much.


Why Israel chooses Ukrainian pros


Approximately 45% of Israeli technology companies that attract international talent choose Ukraine as one of the main offshoring destinations. The reason for that is the rapid development of the technological ecosystem, strong technical education and a talent pool of 200,000 specialists.


Anna Zharova, CEO of the Israeli-Ukrainian Alliance’s Israel offices, says that the demand for IT services outsourcing is growing in Israel. Some firms are not satisfied with their current partners and starting to look at Ukrainian companies.


"Israeli companies are turning to Ukraine for a number of reasons: similar mentality, the same time zone that facilitates communication, the presence of R&D centers of such giants as Microsoft, Huawei, Samsung, Siemens, and Oracle. This allows us to develop talent on par with the international standards,” she said.


The expert adds that the hourly rate of a Ukrainian engineer is no less important, as it is much lower than what you’re likely to get in Israel, Europe, or the U. S. Ukrainian specialists are the best in “value for money” terms, which makes them much more profitable for Israeli companies. Possible savings here are ranging from 40% to 70%.


According to the CEO of the Israeli-Ukrainian Alliance in Ukraine Olga Stolyarchuk, the advantages include the scale and cohesion of the Ukrainian tech community, clusters and organizations. These are the indicators of a strong and vibrant technological ecosystem. Additionally, Ukraine is a venue for many large-scale IT events and conferences (iForum, Lviv IT Arena, Agile Eastern Europe Conference). This allows Ukrainian IT specialists to learn international best practices, follow trends, and promote themselves globally.


"In Ukraine, you can easily find top talent in AI, big data, blockchain, and cybersecurity. Breakthrough technologies (so-called disruptive tech) are also rapidly appearing in the local market. And well-known Ukrainian startups PetCube, Gitlab, YouTeam, People.ai, Grammarly keep working in Ukraine, opening up opportunities for Israeli companies to hire truly unique talent,” she said.


What makes Ukrainian IT companies interested in the Israeli market


The main advantages of exporting to Israel:


rapid development of the tech industry and frequent job openings. Approximately 5% of positions remain open: the industry if almost 15,000 employees short;

free Trade Agreement between Ukraine and Israel thanks to which bilateral trade in goods increased by 10% in 9 months of 2021;

no time difference and regular flights to Israel from Ukraine. It is only a 3-hour flight from Kyiv to Ben Gurion Airport. Which means you can have a few meetings in Israel and still go back home the same day.


Source: speka.media (in Ukrainian)

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Michael Furaev

Strategic partner

Head of Quattrgroup

Visionary leader and designer of synergistic teams

Anna Zharova

CEO of IUA

Entrepreneur and International Consultant, specializes in developing, managing and launching impact projects in commercial and social spheres

Co-founder of nonprofit organization "Israeli Friends of Ukraine"

Board Member in “Pnima” - Israeli organization, uniting public and government leaders

Eddy Dave

Chairman of IUA

15 years of experience in capital markets, investments, business development

Owner of Israeli-Ukrainian outsourcing company: 400 employees, 5 years of operations, offices in Kharkov and Kiev

Managing Partner of Camalia Capital Markets, which was successfully sold to Meitav Dash 5 years ago. Meitav Dash is the second biggest investment house in Israel with more than 50b$ at the disposal

Olha Stoliarchuk

Director of IUA

LL.M., Consultant, Project Manager, Attorney-at-Law

10 years of expertise in International and Ukrainian business and corporate law, energy law and antitrust law

Member of the GS Kyiv Hub community, WEF initiative

Co-founder of investment video blogs - VC ChatrOOm

https://www.linkedin.com/in/olha-stoliarchuk/

Daniil Tsiporukha

Co-founder of IUA

Social Media, Digital Marketing and Paid Ad Expert, Entrepreneur

Skilled in PPC, Analytics, Product Marketing, Start-ups, and Product Development

BA degree in Communications and New Media Studies IDC Herzliya, MA in Law ISU Kyiv

Co-Founder at Draw Days Tel-Aviv, IUA and Echo

Eugene Proskulikov

Communication expert

Design of social, corporate, and business relations by developing and implementing long-term communication strategies and ad hoc campaigns, based on data-driven analyst, creative approach, and coherent content policy

17 years of practice in communications as a strategist, analyst, copywriter, and marketing expert. Provided services for about 200 international and Ukrainian brands in various industries

Mykyta Khodakivskyi

Co-founder of IUA

An independent international expert that has been in software development, in particular, in cross-application development projects in global e-payments, eCommerce and FINTECH for nearly 15 years

Founder of Paris-based DevteamRadar.com, he runs consultancy and software development projects to assure successful launches for new startups and SaaS businesses

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