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?
The Hungarian IT market’s compound annual growth rate (CAGR) is estimated to reach 8.60% during 2023-2028. For comparison, analysts expect the US CAGR for the same period to be 6.70%. Researchers forecast that the Hungarian IT sector will generate $1.57b in 2023, while Hungary IT outsourcing will dominate with its sales of $0.56b.
Hungary’s tech export value grew steadily from $14.5b in 2015 to $19.67 in 2021. The number of ICT (Information and Communication) employees increased from 71,902 in 2010 to 100,409 in 2020. And as of July 2023, the quantity of Hungary-based IT companies registered on LinkedIn is around 5,600.
The statistics prove that the demand for Hungarian IT professionals is growing, and PHP, Lua, .NET, Python, and Java are the most popular programming languages in the country. And apart from the lower Hungary developer rates, there are several reasons these specialists are so popular:
- Hungary is an EU member. Labor laws in Hungary comply with European standards. This makes Hungary nearshoring simple for Europe-based companies. Also, US businesses find cooperation with engineers from an EU member country more reliable.
- Hungary has a comfortable time zone. Located in Central Europe, Hungary has no time difference from Germany, Switzerland, the Netherlands, etc. So nearshoring Budapest tech experts for Western European countries offers 100% of shared business hours.
- Hungary is financially stable. The financial stability report as of May 2023 claims that the Hungarian banking system is robust. The capital and liquidity of the country’s banks are strong, while economic stability risks are limited.
- Hungary boasts a high level of tech education. 11 tech universities in Hungary got into the Times Higher Education World University Rankings 2023. This list rates 1,799 universities in 104 countries. Among them are the universities of Budapest, Lorand, Debrecen, Obuda, Pecs, Szeged, and Miskolc.
- Hungarians have good English skills. The EF English Proficiency Index report tests around 2.1 million adults in 111 countries/regions. And in 2022, Hungary was ranked 18 and got the “high proficiency” status. This means most technicians speak English fluently.
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
Hungarian 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. And below, you’ll find information about technicians in these locations.
- Budapest. We’ve checked the payrolls of some IT experts in the capital of Hungary. For example, a Software developer Budapest earns approximately $5,967/mo, while a Java developer Budapest gets around $2,984. LinkedIn search for software developers in Budapest returned about 18,000 results.
- Debrecen. The average monthly salary of a technical expert in the second largest city in Hungary equals $2,848, according to Glassdoor. LinkedIn showed that about 1,000 software developers work in Debrecen.
- Szeged. 1,800 software developers marked the third largest city in Hungary as their place of work. Each month a Java developer Szeged or other Szeged-based programmers earn about $2,769.
- Miskolc. Miskolc is the fourth largest Hungarian city located in the country’s north. 482 software developers are based in Miskolc, according to LinkedIn. The average remuneration of an engineer there is $2,778 per month.
- Pecs. The fifth largest city is in the south of Hungary, and 563 programming specialists mark it as their place of living. $2,195 is the average monthly salary a software developer can get in Pecs.
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.
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
Now, let’s closely look at the monthly salary levels of software developers in Hungary. We’ve researched the remunerations of five specialists of different experience levels.
As the table shows, the Hungarian developer cost is significantly lower than what their colleagues earn in Germany, the Netherlands, Switzerland, the UK, or the US. So cost-effectiveness is one of the main factors that makes Hungary nearshoring and offshoring attractive.
However, let’s also check the payrolls of Ukrainian developers with similar skills.
The second table shows that most salaries of Ukraine-based programmers are lower than remunerations of their Hungarian colleagues. So let’s learn more about how you can hire software developers in Ukraine.
*Ukrainian salaries are provided based on Mobilunity’s Recruitment Team research on the local job markets. All salaries are net and do not include the service fee (in case of hiring on a dedicated team model). The salaries are provided for comparison purposes and could be not entirely accurate. Contact us to know the exact cost of hiring a developer corresponding to the required parameters.
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, with taxes, the Hungary developer salary will be much higher than the net salary before taxation. In general, the cost of IT outsourcing Hungary software developer depends on the experience level of the specialist.
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. Doubting what specialist will bring more value to your company? We can assist you in finding WordPress plugin developers for hire, cloud infrastructure engineer or part-time CTO in no time! Get in touch!According to Mobilunity’s Recruitment Team research, the average salary of a developer in Ukraine is:
- Junior Developer – $1,000
- Middle Developer – $2,000 – $2,500
- Senior Developer – $3,000 – $5,000
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.
Do Ukrainian Specialists Have the Same Potential as Hungary Developers?
Also, the same as Hungary developers, Ukrainian programmers receive a good education to become an IT specialist.
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. GMT +2 is the time zone of Ukraine which is very convenient for European clients – the working hours are the same. And even for vendors from the US or Canada, Ukraine is the best choice by location compared to India Russia or China with which the difference in time zones is more significant.
5 Benefits of Hiring Programmers with Professionals
When you plan to nearshore or offshore Python, .NET, or SAP developer Budapest, you’ll need a reliable local partner. For instance, if you contract us to assemble a dedicated team of engineers in Ukraine:
- You’ll hire top experts cost-effectively. We work with Ukraine-based tech professionals whose salaries are lower than those in Western Europe and America. This is due to the lower cost of living in Ukraine. It can help you spend less on outsourcing Ukrainian tech experts compared to the Hungarian developer cost you can incur. Some of our clients saved up to 20% of their budget when cooperating with us.
- You’ll build your team promptly. Recruiting is one of our primary areas of expertise. So our specialists leverage top-notch tools and approaches to streamline candidates’ search for you. They can find an RPA developer Budapest by offering relocation to local engineers or working in the Hungarian market through partners. We explore your requirements, specify the search criteria, and find and interview only relevant applicants.
- You’ll outsource HR, helpdesk, and accounting tasks. Our services go beyond typical outsourcing, where you get a turnkey solution. For instance, we give you complete control over a .NET developer Budapest or in Kyiv, but handle the administrative issues. Formalizing cooperation agreements, transferring payrolls, and doing the accounting and taxing paperwork. We equip, onboard, and retain your team.
- You’ll have synchronized schedules with your tech team. Limited shared business hours are an issue for remote teams. So if you contract the one from India or China instead of hiring a Salesforce developer Budapest or in Kyiv, the performance can drop. Ukraine boasts the GMT+3 time zone, which makes it an hour ahead of its European neighbors. US partners can also have 100% shared working hours with their Ukrainian coders.
- Your team will speak English well. A critical factor for a productive tech team is the effective communication of its members and managers. That’s why whether we hire a Python developer Budapest, or a PHP programmer in Ukraine, this specialist will have at least a B1 level of English. Our recruiters pre screen resumes to select developers with basic skills, and English is one of them.
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 ruby on rails outsourcing company such as Mobilunity. We have a proven track record of working with clients all around the globe: FinExpert from Canada, Byg-E from Denmark, Zenchef from France, XPLG from Israel, esurance from Switzerland, and many more.
So if you want to build a dedicated team of programmers, hire a part-time tech consultant, or get assistance with recruiting software developers, reach out to us. Mobilunity specialists have extensive expertise in hiring engineers in Hungary, Ukraine, and other Eastern European countries. We even know how to find a technical cofounder in these countries.
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 ruby on rails outsourcing company such as Mobilunity. We have a proven track record of working with clients all around the globe: FinExpert from Canada, Byg-E from Denmark, Zenchef from France, XPLG from Israel, esurance from Switzerland, and many more:
In case you need an experienced development team or wonder how to find a technical cofounder, 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.
3 Cooperation Models We Offer
We provide solutions tailored to each client’s needs; that’s why you’ll find 3 formats of contracting us.
- Dedicated development teams. The dedicated team we build for you will be under your functional management and available full-time. In fact, these programmers will be more like your remote employees than outstaffed experts. With this model, we ensure long-term cooperation with clients, remaining flexible to scale up (or down) the dedicated teams. Customers focus on work while we cover administrative issues.
You’ll pay a monthly fixed-fee invoice with a breakdown of the total amount. It’ll include salaries and taxes for each software developer. We add operating expenses like hardware, software, office space, etc. We’ll also include the agreed paid sick leaves and vacation days in our invoices.
- Consultancy services. This part-time consultancy option will work best in several cases. Once your in-house team lacks expertise, your project is small, or you need an expert for a short period. You also should leverage the cost-effectiveness of this format when your development team is temporarily overloaded. Get another pair of coding hands and pay for the worked hours only.
We’ll also send you an invoice at each month’s end. It will include the number of worked hours at the agreed hourly rate of the tech expert. You’ll get senior-level consultancy on request without covering operating costs for a dedicated specialist.
- Recruiting services. Once you plan to directly contract a website developer in Budapest or a team of full-stack engineers in Kyiv, we can also help. 12+ years of experience in hiring tech talents allow us to recruit your best-fit programmers within 5-8 weeks. We’ll analyze the market and salary ranges to help you estimate the costs.
Our specialists will make your vacancy stand out among hundreds of others. We’ll also advise you on the legal format of cooperation with your future teammates. Mobilunity’s recruiters can hire a front end developer Budapest or in Hungary. They’ll also find your ideal candidates in other countries of Eastern Europe, just like they did the local hiring in such a complex market as Japan.