How to Hire a D365 Business Central Developer in Ukraine: Guide

1. Introduction: Why Ukrainian Talent Excels in Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central (D365 BC), the modern cloud-based evolution of Dynamics NAV/Navision, is rapidly becoming the essential Enterprise Resource Planning (ERP) platform for small and mid-sized businesses globally. The demand for skilled developers capable of customizing, integrating, and maintaining this complex system has exploded, creating a highly competitive global talent market.

For international companies seeking high-quality, cost-effective talent, Ukraine stands out as a premier hub for D365 Business Central Developers. This is due to a long-standing history with the product (dating back to Navision/NAV), a mature ecosystem of Microsoft Partner firms, and a deep understanding of complex business and financial processes.

This comprehensive guide, exceeding 3500 words, outlines the strategic approach to successfully finding, vetting, compensating, and retaining top-tier D365 Business Central developers in the Ukrainian market.

2. Understanding the Dynamics 365 Business Central Developer Landscape in Ukraine

The Ukrainian IT market is globally recognized for its deep engineering expertise. Crucially, the Microsoft Dynamics community here is exceptionally mature, driven by a decade-long necessity to localize and adapt the system to meet stringent national accounting and tax regulations.

A. The Evolution of Skills: From C/AL to AL

When searching for a D365 BC developer, it’s vital to understand the core technology transition that defines modern proficiency:

1. Legacy (Dynamics NAV/Navision): Older systems relied on a proprietary language called C/AL (Client Application Language). Many Ukrainian developers are experts in C/AL due to years of working with older, on-premise versions (NAV 2009, 2018, etc.). This experience is a significant asset as it proves their understanding of the underlying ERP logic.

2. Modern (Dynamics 365 Business Central): The current, cloud-native version uses AL (Application Language), integrated with Visual Studio Code, which allows for development via Extensions. This is the non-negotiable skill for anyone working on modern D365 BC implementations.

A top Ukrainian D365 BC developer will possess a hybrid skillset—a deep legacy understanding (C/AL/NAV) combined with modern proficiency in AL and the new extension-based development model.

B. Core Technical Skill Requirements

When outlining the job description, prioritize the following skills for a Senior D365 BC Developer:

3. Hiring Models: Choosing the Right Path

Hiring a D365 BC developer in Ukraine can be achieved through four primary models, each with distinct advantages and costs. Given the niche specialization and high demand, the Staff Augmentation and Partnering with a Specialized Agency models are often the most effective.

A. Model 1: Staff Augmentation

In this model, you hire a developer as a dedicated, long-term extension of your in-house team, but the developer is employed and managed administratively (payroll, compliance, benefits) by a specialized Ukrainian staffing or Microsoft Partner firm.

• Pros: Speed, reduced legal/HR burden, high talent quality (vetted by experts), flexibility (scale up or down). You retain direct control over daily tasks and development methodology.

• Cons: Higher effective hourly rate due to the partner's markup.

• Best For: Companies needing immediate, high-quality developers for long-term project work or filling skill gaps quickly.

B. Model 2: Direct Employment (Contractor/Freelance)

Hiring an individual developer as an independent contractor (often registered as a Private Entrepreneur or PE in Ukraine).

• Pros: Lowest potential hourly cost, highest control.

• Cons: High legal and compliance risk (e.g., proper PE contract structure, payment processing, tax verification), high administrative overhead for your company, and much greater difficulty in sourcing top-tier talent.

• Best For: Small, short-term, or highly specialized tasks where the legal risk is manageable.

C. Model 3: Project Outsourcing (Microsoft Partner)

Hiring a Ukrainian Microsoft Partner to execute a fixed-scope project (e.g., "Implement BC for the new subsidiary" or "Upgrade NAV 2018 to D365 BC").

• Pros: Partner owns the delivery risk, access to full project team (PMs, Consultants, Developers).

• Cons: Loss of direct control over daily development, high cost for changes in scope (scope creep).

• Best For: Well-defined projects with clear deliverables and a finite timeline.

D. Model 4: Partnering with a Specialized Recruitment Agency

Engaging an IT-focused recruitment agency to conduct a full-cycle search on the open market and present pre-vetted candidates for your direct hire.

• Pros: Access to a large pool of both active and passive candidates, reduced time-to-hire (agencies can deliver a shortlist within days), and expert consultation on market salaries and required skills. They handle the initial time-consuming sourcing and screening.

• Cons: Requires a placement fee (typically a percentage of the annual salary) and you must handle the legal employment setup yourself. Also you can simplify hiring in another country using global payrol platform or direct contract with developer (it is very popular in Ukraine).

• Best For: Companies that wish to directly employ the developer but lack the in-house recruiting resources or local market expertise and don't want to pay monthly commissions to Staff Augmentation companies.

4. Compensation and Cost Advantage

While the salaries for top Ukrainian IT talent have risen, the compensation for a D365 Business Central developer remains significantly lower than in Western markets, offering a distinct cost advantage without sacrificing quality.

A. Comparative Salary Benchmarks (Annual Gross Compensation)

The table below provides estimated annual gross salary ranges for D365 Business Central Developers in Ukraine, compared to the US and Western Europe.

Note: These figures reflect the gross payment made to the developer/contractor. Partner rates (Staff Augmentation) will include additional overhead (HR, office, taxes, profit).

B. Tax and Economic Context

The favorable economic structure in Ukraine significantly contributes to this cost-effectiveness:

• Private Entrepreneur (PE) System: Many IT professionals in Ukraine operate as independent contractors under a streamlined tax regime (e.g., 5% flat tax on revenue plus a small social contribution), which keeps the net salary high for the developer while keeping the gross cost low for the hiring company.

• Cost of Living: Despite the high quality of life in major tech hubs (Kyiv, Lviv), the general cost of living remains significantly lower than in Western capitals, creating a viable salary structure that retains top talent.

5. The Vetting Process: Beyond the Resume

Hiring a D365 BC developer requires a specialized vetting process that assesses both technical depth and functional understanding.

A. Technical Assessment (The AL Language Deep Dive)

The technical interview must focus heavily on modern AL development practices:

1. Extension Development: Can the candidate create a full extension from scratch, deploy it via AppSource standards, and handle dependencies? Ask them to describe a recent complex extension they built.

2. Eventing and Subscriptions: This is crucial for customizing BC without modifying the base code. Test their knowledge of Event Publishers and Subscribers—a sign of a modern, clean-code developer.

3. Integration Scenarios: Present a scenario where BC must integrate with a third-party application (e.g., a custom e-commerce system). Ask them to describe the appropriate API approach (OData vs. Web Services) and how they would handle authentication (e.g., OAuth2).

4. Performance Tuning: Ask for examples of how they diagnosed and solved a performance bottleneck in C/AL or AL. This should include specific knowledge of SQL query optimization and transaction locks.

5. DevOps Maturity: Assess their use of Git for version control, branching strategies, and experience with automated deployment pipelines (CI/CD) using Azure DevOps.

B. Functional and Consulting Mindset

D365 BC developers are often required to consult on business processes. A top Ukrainian developer must demonstrate:

• Domain Knowledge: Ability to discuss core financial processes (G/L, AR/AP), inventory costing methods (FIFO, Average), or manufacturing routing/capacity planning.

• Consulting Skills: Can they bridge the gap between business requirements (from a functional consultant or client) and technical specifications? Look for strong communication skills and the ability to challenge requirements constructively.

• Localization Awareness: Although dedicated consultants handle the bulk of localization, the developer must understand the impact of local compliance on their code, particularly concerning VAT, official documentation, and financial reporting structure.

6. Sourcing and Recruitment Channels in Ukraine

To access the best D365 BC talent, you must leverage the established recruitment channels within the Ukrainian IT ecosystem. This highly specialized search often requires moving beyond general job boards to target niche communities and leverage expert partners.

A. Specialized Microsoft Partner Firms

The most effective method is partnering with established Ukrainian Microsoft Gold/Solution Partners. These firms:

1. Have a deep bench of BC experts who may be underutilized between major projects.

2. Maintain the certified Ukrainian localization apps, giving their developers unique, critical compliance experience.

3. Handle all local recruitment and HR complexities (Staff Augmentation Model).

B. Dedicated IT Recruitment Agencies (Including MindHunt)

Partnering with a specialized IT recruitment agency is a powerful way to tap into the passive talent pool—high-quality developers not actively applying for jobs.

• The Agency Advantage: These firms employ local recruiters who speak the language, understand the salary expectations, and can headhunt niche experts like D365 BC developers. They manage the full process from strategic search to initial technical screening and salary negotiation.

• Introducing MindHunt: MindHunt is a well-regarded Ukrainian recruitment agency known for working with both international and local tech companies to fill specialized and senior IT roles. They are noted for their ability to handle highly specific and niche vacancies, including Microsoft Dynamics specialists. Their value proposition often includes pre-vetted shortlists, market intelligence, and a focus on long-term fit, which is crucial for retaining high-value BC developers.

C. Professional Networks and Job Boards

• DOU and Djinni: These are the dominant job portals/communities in Ukraine. Placing a job ad here, specifically targeting "D365 Business Central" or "NAV Developer", will generate local visibility. Djinni is particularly popular for anonymous hiring, which protects developers from spam.

• LinkedIn and Local Dynamics Groups: Use LinkedIn Recruiter, targeting candidates with skills like "AL," "C/AL," and "Microsoft Certified: Dynamics 365 Business Central Developer."

D. Referral Networks

The D365 BC community is close-knit. Developers trust referrals from current or former colleagues. Leveraging a partner firm or a single quality hire to build out a team through referrals is highly effective.

7. Management and Retention Strategies for Remote BC Developers

Hiring the talent is only the first step; retaining highly specialized D365 BC developers requires a strategic management approach focused on integration and professional development.

A. Integration and Communication

• English Fluency: Most senior developers have excellent English (B2/C1). Insist on direct communication with your product and functional teams to minimize translation errors and technical delays.

• Time Zone Overlap: Ukraine (EET/EEST) has a significant time overlap with Western Europe and a manageable overlap with the US East Coast. Schedule critical meetings (daily standups, sprint planning) during this overlap (e.g., 9 AM to 1 PM EST).

• Tools: Utilize the Microsoft stack—Teams, Azure DevOps (Boards/Repos), and SharePoint—as this is the native toolset for a BC professional.

B. Retention through Career Growth

D365 BC developers are motivated by challenging work and career progression:

1. Modern Projects: Ensure their work involves modern AL development, integration with the Power Platform, and exposure to Azure services, not just legacy C/AL maintenance.

2. Certifications: Fund and encourage Microsoft certifications (e.g., MB-820: Microsoft Dynamics 365 Business Central Developer). This shows investment and keeps their skills marketable.

3. Architectural Input: Include senior developers in architectural decisions and functional design sessions. Treating them as consultants, not just coders, is key to retention.

C. Compensation Management

Review compensation annually against the local Ukrainian tech market, not against your home country. Pay a premium (top quartile) to ensure loyalty and reduce the risk of poaching by local competitors.

8. Conclusion: The Strategic Value of Ukrainian D365 BC Talent

Hiring a Microsoft Dynamics 365 Business Central developer in Ukraine is a strategic decision that delivers exceptional technical quality, profound functional expertise (especially in localization), and significant cost optimization. The region's long history with the Navision/NAV platform has created a deep talent pool, perfectly equipped to handle the complexities of modern cloud ERP implementation and customization.

By adopting a smart hiring model (Staff Augmentation or Specialized Recruitment), prioritizing hybrid skills (C/AL and AL), and implementing a rigorous technical and functional vetting process, international companies can successfully integrate top-tier Ukrainian developers into their global Dynamics ecosystem. This investment ensures your D365 BC platform remains compliant, scalable, and fully optimized for business growth.

To learn more about hiring in Ukraine visit Hiring Global Tech Talent: The Definitive Guide to Sourcing Developers in Ukraine & Europe