Outsourcing and outstaffing phenomena. Сomparison of Salaries

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May . 24. 2018

We live in a world of imperfection and some sort of injustice. This statement is more applicable to third world countries. By the time some countries do everything possible to establish processes and reach a new level, other countries only stymie themselves. Let me explain how this works.

“Two little mice fell in a bucket of cream. The first mouse quickly gave up and drowned. The second mouse, wouldn't quit. He struggled so hard that eventually he churned that cream into butter and crawled out. Gentlemen, as of this moment, I am that second mouse.”: Catch me if you can

If a third world country for some reason is in this current and stable position of self destruction, people in this country are like those mice. Some of them quickly give up and blame the government and the rest churned the cream into butter to survive. I am proud to rank our company including myself among the number of strong and diligent people. I wish this article was not that political but I wanted to show the contrast. This contrast itself generates a term “outsourcing”. Yes! All this demagogy was only for the purpose to highlight the reasons and consequences of outsourcing, outstaffing and other transformations of this essence. Since our company is in IT segment, I would like to stay more specific and discourse in this direction.     

I made a decision to figure out what is the difference between IT people from European countries and Ukraine specifically. Most people believe that it is impossible to be that much knowledgeable and smart in a third world country, but I will argue this erroneous opinion.  

We all know these magic terms “outstaffing” and “outsourcing”. Companies that are specialized in this sort of business usually pay attention to all innovations and remain updated. They employ highly qualified specialists and train them even more diligently because they realize the importance of this. I understand that it is almost impossible to identify straight away if the company is worth of attention, that is why clients might give test assignments and simply check the competence and if the implementation was smooth enough. As you may notice, offshore companies have already envisaged every possible question that may arise.

However, for how long we can beat around the bush? Let’s be more precise and talk about numbers! I made a small research and found out that IT people in Ukraine earn not so much compared to the rest of the world. I mean European countries like UK and Germany. For instance, in the UK software developers have average income from 22,000 to 50,000 pounds per year. As regards Germany, software engineers there earn 52k-65k euros per year. This sounds like a fairy-tale for a software engineer from Ukraine. It does not mean that IT people in Ukraine suffer and do not have enough money to buy food. They are fine and have good salary as for ukrainian people. I am not trying to say that you have to feel sorry for the rest of the world but let’s admit, it is a great opportunity to use current situation. Now it seems so obvious that outsourcing kind of business is so popular in Ukraine since it is the most attractive. By the time European countries save their budget with outsourcing, Ukrainian companies earn a bit more than they may expect. It is like having the best client who provides you with the job constantly and pays you slightly extra as a bonus. Outsourcing whether outstaffing companies are like a remote full-time employee or dedicated team in another country. They operate efficiently and very professional. The main advantage is that big companies in Europe do not have to bother where to find a space for new employees and other issues connected with new staff in a company. Outstaffing means “very convenient and less expensive”, that is my verdict. Very beneficial for both parties.

I really hope this article was interesting for you because I am always trying to express my thoughts in less boring manner. Anyways, if you have some questions or want to argue my opinion, I will gladly support conversation and answer all questions. Please, leave your comments or simply send me emails on contact@lagoteam.io  
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