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Cost Structure
In order to give you an overview of average costs associated with establishing and running a software development center in Ukraine, we provide two illustrative scenarios for different sizes of teams.
Scenario #1 (20 IT employees)
In this scenario we assume the well-balanced team of 20 junior and senior members (full-time software engineers, analysts and QA-engineers) specializing in .NET, Java or PHP technologies as a basis of the nearshore development center.
Expected size of the team |
20 employees |
Size of the team after the Build phase |
5 employees |
First year of the Operate phase |
Growth to 20 employees |
Length of the Operate phase |
24 months |
Estimated monthly fee per full-time IT employee |
EUR 1.500 |
Estimated financial effectiveness in 24 months (compared to traditional outsourcing and considering enterprise value of the subsidiary) |
EUR 318.000 |
Scenario #2 (50 IT employees)
In this scenario we assume the well-balanced team of 50 junior and senior members (full-time software engineers, analysts and QA-engineers) specializing in .NET, Java or PHP technologies as a basis of the nearshore development center.
Expected size of the team |
50 employees |
Size of the team after the Build phase |
10 employees |
First year of the Operate phase |
Growth to 50 employees |
Length of the Operate phase |
24 months |
Estimated monthly fee per full-time IT employee |
EUR 1.350 |
Estimated financial effectiveness in 24 months (compared to traditional outsourcing and considering enterprise value of the subsidiary)
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EUR 696.000 |
Monthly Fee Structure
Included into the monthly fee per full-time IT employee:
- Infrastructure costs (office space, equipment, basic software, broadband Internet connection, furniture, electricity, public utilities)
- Recruitment and HR management costs
- Support staff services (HR manager, network administrator, accountant, office manager)
Not included into the monthly fee per full-time IT employee:
- Licenses for specific software packages and commercial development tools
- Specific hardware and equipment
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