Blog / Business, Tech

Ukraine or Malaysia – what is the best software outsourcing destination?

  • Rating — 4.6 (5 votes)
  • by Anna - Technology Author and Strategist
  • Updated on February 26, 2020
  • Read —
    5-6 minutes

Nowadays almost every successful company runs business in Internet. The World Wide Web grants numerous possibilities to both startupers and business owners and lets them reach out to a bigger number of potential clients. So many entrepreneurs sooner or later consider developing multifunctional app or creating a strong web platform to communicate with their clients directly and receive first-hand information about their primary needs. 

When it comes to software development, many companies choose to contract an outsourcing team instead of organizing their own one or searching for a group of freelancers. And this is a completely understandable choice. Outsource software development offers a full range of benefits, allowing companies to save time, reduce costs, lower risks and speed up the whole app building process. Foreign outsourcing companies usually provide high level of consulting and development services. However, it is always extremely hard to choose whom to trust with your project, especially if you start exploring outsourcing market. 

As of today, European and Asian companies are probably the most demanded and qualified in the development field. So in this article we will compare software development in Ukraine and Malaysia to discover all crucial differences and help you make the right choice to what country you should outsource. 

Price-Quality Ratio

Finally, a common misconception that price always equals quality starts losing its power. Of course, financial matters still play a significant role in the process of decision making. However, many startupers as well as experienced businessmen put aside the old prejudice and stopped thinking that companies, asking for lower payment, deliver projects of poor quality, while their highly paid competitors presumably release masterpieces. 

We have explored and analyzed several reliable sources listing top IT outsourcing companies and discovered some interesting facts. 

  • Many Ukrainian companies are ready to start working on a project which average estimated cost will be around $5.000. This number may reach $50.000 or even more depending on project complexity and number of team members involved. 
  • Malaysian developers can take on a small project with a budget starting from $1.000, while for a complex and resource-intensive project they will request $25. 000 or more. 
  • Both Ukraine and Malaysia set almost the same average hourly rate (around $25-50) for a certain available specialist. 

The size of team really matters

Although at first glance Malaysian services may seem a bit more appealing due to their affordability, you should pay attention to the number of company employees. A couple of years ago smaller teams considered to be the best. Businessmen from abroad used to outsource software development to small companies and avoided cooperation with bigger firms by all means. Luckily, now that time is far behind and the paradigm has shifted. 

This shift has to do with the specifics of an app development cycle that is rather complex. To create a reliable smoothly running app you will require numerous different specialists – starting with analytics and developers, and ending with project managers and testers. One more advantage of bigger teams is that they offer timely communication which leads to creation of more interesting and versatile solutions. Big companies with in-house developers are more competitive and skilled. Choose such teams because they can offer a huge variety of technologies for your specific project. 


Big companies usually have a department of marketing specialists who can make a holistic research of market for you. They will ensure that your project is able to withstand competition and reach the top in its niche.

Without doubt, every separate team member is a crucial resource of a development company. The more resources company has, the better is its performance. 

After researching outsourcing market and comparing Ukrainian and Malaysian software development companies, we can state the following:

  • The small teams in Ukraine comprise from 50 and up to 100 members, while in Malaysia this number is 10 – 50 members. 
  • The largest teams in Ukraine can be up to 1000 members, while in Malaysia there is around 200 – 500 members in a team.

Need a reliable team of experienced developers?

Rely on expertise

If you made a decision to start your business or to boost the existing one, the first thing you need is an original one-of-a-kind web or mobile solution. Therefore a team of developers should be skilled and creative enough to identify the exact pain points of your clients and offer an effective solution to get rid of them. Expertise level is a crucial criteria that you should take into account while choosing your team. 

Expertise itself is first and foremost education degree and, of course, actual developing experience. The latter can be easily checked by you if you take a look at the portfolio of a company you are planning to work with. As to education, we‘d recommend you to choose developers from European countries as it is proved that the system of education is more advanced there than in Asia. European IT graduates always have deep knowledge of the subject they studied and they are likely participated in many conferences and IT forums (that often take place in Europe). Such knowledge accumulation and constant technology learning allows Ukrainian developers to keep up with modern trends of technology world. 

Which country is best for outsourcing?


Outsourcing allows to reduce project cost, accelerate production process, avoid hiring your own expensive team and concentrate more on other important business tasks.
Software development outsourcing is needed when your in-house specialists lack expertise in a certain field and you don't want to waste precious time or compromise the quality of a project.
It depends on country as well as developers' experience, skill set and hourly rate. An approximate cost of developers hour ranges from $20 to $50 and higher.

Final word

Outsourcing to other countries is the future of all industries including software development. It is probably the best possible way to get a high-quality solution in a shorter period of time and at a lower price. In fact, all you need to start your business right now is your unique idea, certain budget and desire to make it all work. The rest of the job will be done by overseas development company. Which country is it going to be – European or Asian one? Now that you’ve read this article and know how to choose your team, you’ll definitely make the right decision.

Feel it's the right time to outsource your software development?

Anna - Technology Author and Strategist I am mainly focused on enterprise mobility (Apple, Android), and digital transformation, highly curious about all emerging tech trends, always pay close attention to crucial details and try to find answers to a lot of questions before writing about something.

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