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Ukraine's IT salaries level used to be low, but as the country's economy develops and integrates into the European and world market, it is growing, even though it is still lower than the salaries of EU and US IT specialists. The Ukrainian programmers possess high level of education and skills. As the IT sphere of the Ukrainian economy develops the demand for them increases. Hence, their highly intellectual labour cannot be cheap.
However, outsourcing customers need to realize that cheap workforce is not a good reason to choose an outsourcing provider, as it is likely to cause problems in the long run that will lead to an increase in expenses instead of savings. The reason behind many outsourcing failures is actually the customers going for cheap workforce and overseeing the quality and efficiency issues.
Outsourcing is seen as a way to cut down the development costs, but this should not be done at the expense of the developers' salaries and therefore, quality. There are better and more effective ways to save. If a company employs methodology allowing for faster development, better quality source code, automated code generation, less developers involved, etc., this actually does reduce the development costs while still providing a satisfactory software solution.
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