How is outsourcing regulated in Ukraine in the legal field?

To begin with, in Ukraine, outsourcing is conditionally divided into 2 groups: it-outsourcing and general. In fact, outsourcing companies provide the same type of service, but in the field of IT this service has gained wide popularity and was able to go far beyond the borders of our country. Considering that last year Ukrainian it-outsourcers in Europe earned a total of $ 4.5 billion, this service quite predictably became somewhat isolated.

In the legislative field, “outsourcing of personnel” does not have clearly defined rules, more precisely, the “Law on Employment” contains information on the necessary permission, but it has not yet entered into force. Therefore, in order to avoid difficulties with regulatory authorities, outsourcing companies enter into a service agreement that can protect performers in court. This information is relevant for all types of outsourcing in Ukraine and abroad.

The first large outsourcing centers of large international companies began to appear in Ukraine in 2008. Moreover, Lviv became the epicenter because of its geographical proximity to the EU and convenient logistics. The second city is Kharkov, working with eastern destinations. However, due to globalization in Ukraine, many large cities, such as Kiev, Dnieper, Odessa, Ivano-Frankivsk, are charged with potential. Moreover, View Research predicts an increase in the number of outsourced business centers by 75,000 worldwide by 2020.

The main characteristics of an outsourcer who is more likely to get contact (based on personal observations and customer reviews):

  1. The more years on the market, the better. The more reviews (including those that are not always positive), the better. Rich experience and the ability to work with objections will be more useful in practice than a beautiful logo and relevant SMM. But, of course, it is better if all communications are at a high level.
  2. The presence of ready-made instructions for force majeure. These are the same guarantee cases, clauses on solving complex issues in the contract, the availability of an advance payment and a clear schedule of cooperation with the terms of compensation in case of failure. It is decided individually and strongly depends on the market where the outsourcer works.
  3. The presence of staff. Freelancers are good, but for a large company it is important to see regular managers in classic office mode. Exceptions to the rules are found, but extremely rarely.

WHAT DOES EXECUTIVE SEARCH DIFFERENT?

Recruiting is the search, selection, selection and hiring of a specialist reward. Executive search is one of the areas of recruiting where the agency not only provides the client with a pool of suitable candidates, but also takes care of anonymity, conducts closed negotiations, lures, etc. Simply put, executive search means closing a job of increased complexity.

In large cities, such as Kiev, Odessa, Lviv, Kharkov, and Dnieper, executive search is resorted to when hiring top management, while in small cities, applications are often sent to “rare” specialists: farmers, engineers, and specialists to attract investment.

Executive search firms, as a rule, charge higher fees for their services than for classic recruiting. But the guarantee for the candidate lasts longer – from six months to a year, subject to all points of the agreement on cooperation between the two parties. By the way, in the West, the cost of a “direct search” starts at $ 50,000 per candidate. In Ukraine, the price tag, of course, is ten times lower.

How does Executive Search work? After the vacancy is removed from the client, the recruiting agency analyzes the labor market and job seekers. It is not looking for a specific person who liked the company – this service is called headhunting. At this moment, work begins with direct competitors, because in their staff, as a rule, there is a candidate with relevant experience. Sometimes a direct search includes access to foreign markets, where it is easier to find a specialist, even when it comes to “returning” the applicant to Ukraine. By the way, right now there is a trend of reverse labor migration.

Recruiters study the agency’s internal base, view available analytics and publications on the Internet, and hold meetings in the conditions of maximum confidentiality. Only after obtaining preliminary consent from the candidate, the agency invites him to a meeting with the client.

Over 20 years of practice, the Recruit Alliance has applied for Executive search more than a hundred times. We have experience in closing vacancies of the level and TOP management, and key personnel in the restaurant business, scientific forwarders, it-specialists, the best representatives of the marketing market, farmers, logistics, sales, engineers and others.

If you are currently looking for a unique specialist, contact us – we will show you who is best suited for a vacant position and will orientate by its level of salary.

Who is the best export it-candidate – information from IT recruiting agencies

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The hh.ua recruitment and job search portal has published a study that details the portrait of a potential it-emigrant. Firstly, he is included in 30% of specialists from all those planning to move. Secondly, he is most likely a man (70% of the resume), he is from 31 to 40 years old, he has a diploma of higher education and he has been in the profession for more than 6 years. The main countries that IT employees talk about in interviews with recruiting companies are Germany, Poland and the rest of the countries (here we group Cyprus, the USA, Czech Republic, Lithuania, the Netherlands, etc., because in total they give one third of the requests).

In 2018, the German labor market was filled with vacancies for it. Recruiters and direct employers placed 82,000+ requests, which is almost two more than in 2017. But, of course, developers and testers with experience are in demand. To be more specific, they are most often looking for C / C ++, ABAP (which is for SAP), Java, C # and front-end developers. All these guys are needed to work with cloud data, social media, mobile development. There is growing interest in Data Scientist and Virtual Reality Designer. According to the information of the germania.one portal, programmers without German knowledge will be able to find their place in large companies, but cozy lamp offices with up to 30 people are only looking for German speakers. However, do not forget about the “scaled ours” – there will be more mutual understanding with them.

As for it-vacancies in Poland, there are also a lot of them. Moreover, they forecast job growth by 6% at least annually. The Polish General Directorate of Statistics supplements the forecast with an expected increase in the minimum wage of 7% annually. Neighbors typically seek backend developers with UI / UX knowledge. Separately, it is worth noting the growing interest in DevOps to accompany local it-projects.

Everyone who wants to try to find a job in an another country needs to understand that for relocating, hard skills (professional skills) are most important. Given the growing interest in blind-recruitment in Europe, your external characteristics and the ability to be purposeful, sociable and customer-oriented may be left without any attention from recruiters.

Why IT outsourcing is not what you thought

Probably everyone knows the meaning of the word “outsourcing”. Thousands of outsourcing companies work in Ukraine, providing all possible types of services. This is not outstaffing, where legally “renting” of personnel takes place, but taking on some tasks of another company.

Outsourcing is almost in demand in it more than in other areas. Especially popular is the export of it services, which by 2021 will grow to 7 billion dollars – the opinion of the Ukrainian IT Association. Although 2 years ago, this figure barely reached 3 million dollars. In the local market, it business outsourcing began with the work of technical support and system administrators. Even 20 years ago, many companies successfully functioned without an individually designed database, gliders, applications, sites and other seemingly irreplaceable things. Today, the release of each product needs to be supported by media support, and in order to enhance the effect, it is often necessary to digitalize. So there are thousands of sites, games for phones, online questionnaires – almost everything that a modern person deals with daily was created by marketers in collaboration with engineers.

An experienced leader understands that the company cannot specialize in everything at once and gives out development or testing for outsourcing. Therefore, in Ukraine now more than 4,000 it-companies are registered and their number will always grow.

IT outsourcing allows you to significantly save money while obtaining stable quality. Working under the contract, the client knows that the contractor clearly follows the deadlines, otherwise he will not receive payment.

Among the well-known outsourcing companies in Ukraine, there are absolute leaders in terms of the number of personnel: these are EPAM (more than 7,500 people), SoftServe (about 7,000 employees), GlobalLogic (4,300 people). By the way, SoftServe is a Ukrainian company with a head office in the city of Lviv and representative offices in Kiev, Kharkov, Odessa, Dnipro and even Wroclaw.

In 2018, the International Association of Outsourcing Professionals released the TOP-100 rating of outsourcing companies in the world, which immediately included 12 Ukrainian ones. Considering that the quantity is increasing every year, it can be safely stated that it-outsourcing in Ukraine is not just one out of a thousand directions, but a completely self-sufficient type of activity with its own community and quality criteria.

Recruit Alliance Job Digest

A recruiting agency often receives good vacancies, which we want to talk more about. Especially if the selection of personnel for a specialty was ordered without an exact definition of the functional.

One of these is now in work – an international company needs analytics with a research function. You will not find this vacancy at headhunter Ukraine, but after reading you can feel free to send your CV to us at [email protected] and we will definitely consider it.

So what kind of frames are we looking for?

It’s good if you have already worked in railway logistics or other transportation. You know how to work with sources of information, independently determine the veracity and relevance, make reasonable, but not biased conclusions.

You will need to work in constant contact with the leader: he sets the task, answers clarifying questions, together defines goals. Further, the future employee will recount local and international sources according to the request, analyze and execute in a readable form. To make it easier, a person must first be able to use Excel and PowerPoint.

Our recruiting agency immediately warns that the work will not be easy, but you can determine your own schedule: full-time or part-time.

Salary: up to 35 000 UAH.

Another interesting proposal from the logistics sector is a Customs broker to a large logistics company in Kiev. If you are familiar with customs legislation, know the theory of customs processes and know how to draw up different groups of goods – this is an offer for you.

Expected experience of the applicant from 1 year. You have to deal with the preparation and preliminary analysis of documents, the planning of customs payments and clearance at customs in Kiev and the region.

The company’s office is located in the Shevchenkovsky district, near the Lukyanovka metro station. The work schedule is stable, official employment. Salary level – 20 000 UAH.

If you are interested in these offers, send your CV to our Recruit Alliance Recruitment Agency. According to statistics, more attention is drawn to applications with a cover letter and a photograph of the applicant, but we will certainly consider the request of each applicant.

See you!

How to open a recruiting agency in Ukraine

To begin with, let’s agree that this article is not about a recruitment agency (job search for a candidate), but about recruitment services. This information is relevant for large cities, such as Kiev, Odessa, Lviv, Kharkov, etc., while for small settlements our instructions may not work for individual reasons.

It is advisable that the founder of the company be a headhunter with experience: either work in a recruiting company before, or freelanced. Ideally, he has his own accumulated base of HR managers and company owners, or a commercial vein and a diploma in recruiting modern courses. Then the routine begins, without which nothing will work:

  1. You register a company / individual entrepreneur with the appropriate KVED, for example, for 2019 – this is 78.10 “Activities of employment agencies”. We strongly recommend that you do this, because after a while, when you want to expand the package of HR services, you will find out that only officially working companies can provide them.
  2. Be sure to start an online database (CRM is not important) of customers, which will be filled with recruiters. Employees change, but one company can use the services many times. Especially, if every six months to a year you make ringing in the database and remind you of successful cooperation, selling your services is a normal practice among selection agencies.
  3. Create company platforms: website, social networks, catalogs, thematic portals, message boards. Develop a content plan, discuss SEO promotion with advertising, advertising – there is great competition in the market, you will have to maintain your position all the time. But the smaller the city, the cheaper marketing will cost you.
  4. Develop a unified application withdrawal scheme – here your recruiting skills and recommendations of more experienced colleagues will come in handy. Recruiting is not a new profession; you won’t have to come up with a bicycle.
  5. Think about creating a sales team at least outsourcing and the optimal number of requests that the agency will be able to handle. To take and not to carry out is as bad as looking for new customers.
  6. The recoupment period of the selection agency is up to six months maximum. To arrive at this figure, determine the percentage suitable for your market (from 5% to 25%) or a fixed amount (does not work long). In addition, we advise you to work on a prepaid basis, since a business based on communications should contain at least some guarantees of mutual interest
  7. Gradually identify your strengths and focus on it, not forgetting about your personal PR or PR brand: online training, webinars, participation in events, cooperation and collaboration.

Be effective and don’t be afraid to make mistakes. Having traveled 20 years in recruiting, we can safely say that only experience will teach you how to achieve your goal the first time. But for this, time must pass and “your” team gain a foothold.

When is it profitable to order an outsourcing service from Ukraine?

Ukrainian programmers, as a rule, are ready to work both in grocery companies and in outsourcing companies. Moreover, every year the Ukrainian IT market is growing at a 26% minimum, which stimulates the development of other businesses, including HR outsourcing companies. Due to this fact, many developers, programmers, designers and qa-specialists not only were able to find conditions for high wages, but received unique experience working on foreign projects.

And yet, who should seek outsourcing specialists in Ukraine?

As a rule, they are looking for the same specialists as ours. In IT it will be: Senior JS, Senior Fullstack, Lead DevOps, Senior Java, Crm dynamicsm Middle Backend developer, Senior .net core, middle / senior react, middle \ senior python, QA, Android / IOS Developer, Java Developer, Fullstack Developer etc.

Especially popular are specialists from large cities of Ukraine (Kiev, Odessa, Dnipro, Lviv, Kharkov), because it is easier to arrange a meeting for a recruiter with them. The salary level of the outsourcer will, of course, differ from the market average for local ones. In addition, you need to carefully read the offer, because the amount of payment can be indicated GROSS (before tax) or Net (final figure).

Studying the possibilities of outsourcing services, foreign clients are often interested in the number of candidates open for cooperation. That is, many companies are more comfortable immediately hiring a team of developers so that they close the issues on the project on their own. However, it is more convenient for some clients to independently assemble a team of specialists around the world and they invite one by one to cooperate. The average term of cooperation is a year with the possibility of extension.

It’s better to order services at the end of summer, when many specialists complete projects and look at offers on the market. The second most popular period is right after the winter holidays, when vacations are over and people are looking for interesting orders with renewed vigor.

By the way, outsourcing can be not only in the it-sphere. In Ukraine, they are also looking for marketers and their colleagues (especially from digital), call center operators, secretaries and representatives of other professions who are ready to work remotely according to a non-standard schedule.

Recruit Alliance provides outsourcing and outsourcing services. For details, please contact [email protected]

How not to miscalculate when choosing an outstaffing agency

Outstaffing and outsourcing are some of the most popular methods for optimizing business processes abroad. In Ukraine, outstaffing agencies are not so widespread, therefore there are no clearly defined norms and restrictions in the legislation. Only in the Tax Code can you find the definition of “staff rental”:

P. 14.1.183 .: “a service for the provision of personnel is a business or civil law transaction, according to which the person providing the service (resident or non-resident) sends one or more individuals to another person (resident or non-resident) to fulfill certain by this function agreement. An agreement on the provision of personnel may provide for the conclusion by the indicated individuals of an employment agreement or an employment contract with the person to whose disposal they have been sent. Other conditions for the provision of personnel (including the remuneration of the person providing the service) are determined by agreement of the parties. ”

The service “outstaffing” includes:

Staff removal
Recruitment
Taking over personnel issues when opening branches and representative offices in other cities or countries
Payment of wages, labor issues
Accounting services
Company cost optimization

What is an outstaffing agency that meets your expectations? One that will reduce the burden on the enterprise, will take on the risks associated with working with personnel, provide employees with a safe environment for cooperation (white wages, pay taxes, maintain benefits and accrual of retirement benefits) and allow company owners to concentrate on strategic tasks and business processes.

It’s good if the outstaffing company works with projects in different cities (at least in large ones – Kiev, Odessa, Lviv, Dnipro, Kharkov, etc.). Even better if her customers were representatives of foreign countries.

The only risk when “removing staff from the state” is to stumble upon an illegally operating agency. In 2018, there were a number of lawsuits in Ukraine with unscrupulous providers, which led to a reduction in the number of austeners. Therefore, when ordering services, be sure to check if the company has documents and positive reviews.

Recruitment in Ukraine: what kind of specialists does Europe need?

All specialists exporting their knowledge and skills abroad, the employment and staffing agency is conditionally divided into 3 groups:
– qualified specialists (physicians, pharmacists, engineers, IT, etc.)
– working staff (builders, waiters, assemblers, etc.)
– unique specialists who are either headhunted or found through executive search

According to the counter, 1,582,137 people have already left Ukraine, but this is only legally registered. In fact, according to the estimates of the Ministry of Social Policy, from 7 to 9 million Ukrainians are constantly working abroad. If we talk about remote work, then with IT-specialists this figure will increase significantly.

Depending on the level of skills, European salaries can range from 50,000 euros to 140,000 euros per year. In addition, the presence of a confirmed diploma (it is better if it is framed according to an international model) can serve as motivation. But qualified professionals will still have to take confirmatory exams.

According to the report of the World Economic Forum in Davos, in 2020 Europe will be in great need of various specialists from other countries. Recruiters and hr already today should pay attention to the presence in their database of representatives of the following professions:

  • analysts, business analysts, industry analysts
  • information security developers
  • biochemists, nanotechnology engineers
  • traffic managers, especially for mobile development
  • TOP management
  • representatives of creative professions and production
  • teachers, coaches and other teaching staff

According to preliminary estimates, today more than 2 million jobs are being prepared for representatives of these professions. To compile this list, 350 company executives from 15 countries were interviewed.

Meanwhile, the Ukrainian list of the most sought-after specialists in 2019 consists of for the most part unskilled personnel (laborers, hostesses, waiters, sales representatives), marketers and their colleagues, drivers and cooks.

If you are looking for qualified personnel to work abroad, you can contact the Recruit Alliance – we will help you find employees, and it is faster and easier for applicants to make their dreams come true.