To Hire Hungarian developers or Ukrainian: What Is More Beneficial?
With the increasing demand for technology development and application support around the world, Eastern Europe has firmly established itself as the best outsourcing provider for software companies. Equally, employers consider hiring developers from such countries as Ukraine, Belarus, the Czech Republic, Poland, Hungary, Romania, and the Baltic region (Lithuania, Latvia, and Estonia), as they have the potential to develop reliable infrastructure. Thus, Eastern Europe has become a big competitor in the market of software service providers and has beaten Asian and Indian countries for a number of reasons. In this article, we will take a closer look at Hungarian IT outsourcing services and how Ukrainian development teams can benefit your business even greater.
Why IT Services Hungary Are so Appealing to Many Companies?
Hungary, as a small country in Eastern Europe, provides a large number of IT specialists. The main advantages of outsourcing IT services Hungary for companies are that the country has EU membership, offers a saturated market of specialists, and programmers know English quite well. At the same time, labor rights in Hungary fully comply with European standards, which simplifies the system of hiring Hungary development team as well as conducting cooperation in general. Software development in Hungary has been one of the outsourcing leaders among the Eastern European countries for the last five years and has attracted interest from large international companies that are looking for outsourcing development services and would like to hire Hungarian developers. For example, the Czech Republic is a neighborhood of Hungary but Czech developer is not so popular.
Hungary Developers vs Ukraine: Demand and Potential Growth
Hungary developers make software for antivirus and IT security services, attracting large companies such as Lufthansa, IBM, EPAM Systems, Microsoft, Nokia, and HP. Besides Budapest, many IT services Hungary specialists are located in the cities of Debrecen, Pécs, Szeged, Miskolc, and Veszprem. If we compare such countries as Hungary and Ukraine, many European countries give preference to Hungary development companies, which has already established itself as a well-qualified market that offers quality services in the field of software development. Nevertheless, numbers of companies prefer to rely on Ukrainian programmers because the development potential of Ukraine rapidly grows. Ukrainian programmers seek to strengthen their positions in the near future, so a lot of startups and corporations are beginning to pay attention and trust Ukrainian companies and professionals. Last years Ukraine became a great alternative to IT nearshoring Hungary.
Although software companies in Hungary are currently considered one of the most stable and high-quality for outsourcing software programming, IT services Hungary have reached its maximum potential in relation to the share of the population and demanding the highest tariffs. In this scenario, in terms of growth rates, Ukraine has more potential in the growth of active labor. The interest in the IT industry and the affordable cost of services make numbers of companies pay attention to Ukraine, as the assessment of economic prestige in the IT industry is constantly growing. Thus, the number of young people and talents to the software development sphere will consistently grow in Ukraine, while in Hungary the amount of Hungary developers is declining. So, how much does it cost to hire Hungarian developers and Ukrainian ones?
Hungary Outsourcing Salary Rates
Hungary is a member of the European Union since 2004, so the level of Hungary outsourcing wages in companies is quite high. Specialists in Hungarian companies need to pay at least $40 per hour to Senior Hungary programmer. According to Payscale, the average salary rates among Hungary programming specialists are approximately equal:
- Web developer – HUF 10,000,000 ($35,107)
- Mobile – HUF 9,600,001 ($33,703)
- PHP – HUF 7,528,897 ($26,432)
- C++ – HUF 7,884,001 ($27,678)
- Ruby – HUF 6,019,664 ($21,133)
Just to compare, Ukrainian programmers in the same areas have the following rates:
Of course, the level of software development Hungary and its programming services, as well as cooperation with numbers of large international companies, makes it possible to dictate a quite high Hungary developer salary. Therefore, Hungary developer cost is much higher than in neighboring countries that are not yet members of the EU, for example, Ukraine. At the same time, for Hungary outsourcing such high salaries are also caused by a high tax on the population, so the net income of a specialist is lower than the amount of money paid. In Hungary, the income tax is 16%, with an additional social tax of 18.5% for employees and 28.5% for employers. Thus, let’s consider the differences in salary rates of Hungary developers and Ukrainian programmers of the same knowledge and experience.
Hire Hungarian Developers vs Ukrainian: Salary Rates Comparison
As mentioned earlier, taxation in IT nearshoring Hungary makes a large part of the value of the work. Thus, for the senior developer in Hungary, along with taxes, the Hungary developer salary will be much higher than neighborhood specialists require. For instance, the cost of IT outsourcing Hungary software developer is higher than finding the same specialist in Ukraine.
If the average rate per hour for a decent IT engineer in software companies in Hungary is at least $39 per hour, in Ukraine for a senior specialist the average rate will be approximately $20 per hour. According to Work.ua, the average salary of a developer in Ukraine is:
- Junior Developer – $650
- Middle Developer – $1,200
- Senior Developer – $2,500
Despite the fact that software companies in Hungary have a well-established position in the world of software development, it is worth noting that Ukrainian specialists become more and more popular for software development outsourcing. Thus, if you consider Hungary outsourcing, take a look at the Ukrainian outsourcing market that can provide remarkable experts at an even more affordable cost.
The Largest Software Companies in Hungary
In the list of global companies relying on Hungary development services, there are such corporations as Siemens, Microsoft, Deloitte, Nokia, TATA, HP, Lufthansa, and much more. In addition to such global software companies in Hungary, the country also attracts many startups and companies of local scale. In Hungary, there is also T-Systems International, which provides many back-office services in Hungary for outsourcing. However, there is no doubt in the number of reasons to turn your attention to the nearest countries such as Ukraine, which holds the potential of a great source of programming specialists and high-quality services for the more considerable price than Hungary developer salary rates.
Do Ukrainian Specialists Have the Same Potential as Hungary Developers?
According to Upwork statistics, Ukraine ranks first in Europe and fourth in the world in the number of freelancers. More than 82% of orders for outsourcing in Ukraine are related to the development of software or maintenance of IT systems, while the share of other outsourcing, for example, call centers, etc., is very small. Currently, there are more than 1,000 IT companies in Ukraine that provide outsourcing services, while each year the IT market in Ukraine grows by at least 20%. Most orders come from English-speaking countries such as the US, the UK, Australia, and Canada.
Also, same as Hungary developers, Ukrainian programmers receive a good education to become an IT specialist. Even novice programmers usually have a fairly high level of knowledge, and many of them also take specialized courses from world-known IT companies. Therefore, by default, the chance to find a qualified software programmer in Ukraine will always be higher.
Another aspect, which, one way or another, customers take into account, is the location of Ukraine in the close time zone to customers from EU countries. The time zone of Ukraine is GMT +2 which is very convenient for Europe – the working hours are the same. And even for companies from the US or Canada, Ukraine is the best choice by this criterion compared to Russia, China, or India, with which the difference in time zones is more significant.
Mobilunity an Alternative to IT Outsourcing Hungary
The IT outsourcing market in Ukraine may be of interest to many Western companies. It is not necessary to work with the giants of the IT outsourcing market; instead, it’s wise and more efficient to work with well-established, potentially strong specialists such as at Mobilunity. In case you need an experienced development team, be sure to use the services of Mobilunity who knows the specifics of business both in the country and outsourcing market and can provide you with the best specialists in the required sphere.
There is no need to look for IT services Hungary when you have Ukrainian top developers ready to contribute to your project. Contact Mobilunity and outsource programming experts shortly!