The cost is not always #1 factor in IT business, but of cause it is important. Below I will provide the short summary of salary expenses in such area as software development using Microsoft .Net technology.
So what salary expenses you should expect if you open office in Ukraine and employ the developers to work full time (do not forget that we are talking now only about the salary, that in reality just a part of expenses when you employ people – taxes, social security, vacations, sickness, etc)?

There are several factors that will affect the compensations and main 3 are:

- location. Kiev has the highest salaries; compensation in Kharkov, Donetsk, Dnepropetrovsk, Lvov and other big cities are lower, and what you pay in smaller cities is the lowest. That is the rule, but of cause it has some exclusions;

- qualification level and experience. Quite clear, the bigger the experience – the higher the salary

- position you need to fill. Related with previous but not directly. Team leader, senior developer get more than junior programmer

The very rough digits show the next picture:

- for the whole Ukraine salary for .Net developers starts from as low as $200 and finishes at $4000 as top margin. The median salary is $900

- if we take just Kiev we get a bit other digits: $250-$1200-$4000

Figures are monthly wages, after tax in US dollars.

I would say that it is hardly possible to find any decent candidate orienting on the bottom margin, I suspect that reporting bottom level salary may be possible in some internships for people without any experience only and for very reputable companies. If you want to find experienced candidate and do it fast you should offer salary higher than median.

Sources of information: different job and IT sites and own experience