Ukraine Outsourcing market is one of the most effective software outsourcing markets in the world. We have a lot of high qualified programmers, QA-Engineers and other IT professionals on Ukraine market. As Ukraine is ex-USSR country, we also have on market many high-qualified experts in military, aerospace, electronics and other applied fields that were prepared by USSR and post USSR military oriented education.
So, Ukraine outsourcing market has a lot of high-skilled professionals for low rates. And our company could be your gate to this market.
You can read about it from information below provided by Ukrainian HI-TECH Initiative (http://hi-tech.org.ua/market-outlook/publications/):
Main Advantages of Ukraine as the Outsourcing Destination
Ranked among the countries best suited for outsourcing, and offering affordable, top notch IT specialists, Ukraine has already earned solid reputation as a provider of innovative technology skills and ideas.
One of the main things that make Ukraine so attractive as an outsourcing destination is the availability of a highly skilled IT talent pool. The country’s strong emphasis on education – especially
engineering and sciences – is supported by the fact that it boasts the highest public expenditures on education in the CEE region. This ensures that every industry segment in Ukraine reaps the benefits of highly qualified and trained IT workforce.
Ukraine also has a distinct advantage in software quality. Talented IT specialists with in-depth knowledge and experience, and a creative approach, guarantee an extremely high quality of developed software.
The affordability of the IT workforce is another prime reason why businesses consider outsourcing their IT services to Ukraine. By locating their core IT development in Ukraine, western European and U.S. companies can expect to save 40% to 60% on their total in-house IT spending.Reasonable cost combined with a reliable and well-developed infrastructure, telecommunications, legal system and simplified tax structures have created extremely favorable conditions for conducting business in Ukraine.
A similar culture and shared business values has led to historically close ties between Europe and Ukraine. These cultural similarities, and a favorable geographical position with insignificant or no time differences, make communication and mutual understanding much easier for foreign companies that do business in Ukraine.
Ukraine’s IT outsourcing industry demonstrates stable growth over the past several years.
Compared to other CEE countries, Ukraine reports the highest rate of market growth. In fact, Ukraine’s growth dwarfs that of other CEE countries in exported IT outsourcing services.
Ukraine, with its extensive IT talent pool, reasonably low labor costs and established business infrastructure is attracting Western European and North American companies as the preferred
destination for outsourcing IT work.
Since the year 2000 Ukraine has been a leading player in the software development space, and has been ranked at the top of IT outsourcing service providers in the global market. More and more companies come to Ukraine selecting it as a preferred destination for their R&D offices.
Strong engineering education, popularity of engineering professions among the youth, and rich history of the software development industry make Ukraine one of the most attractive Europe destinations for the IT outsourcing and software development businesses.
The history of Ukraine’s software development industry is deeply rooted. Officially, December 25th, 1951 is considered as the beginning of the computer science era when the Ukrainian academician from Kyiv, Sergey Lebedev, introduced the first computer in the entire Continental Europe. A rapid growth of the industry was recorded in the middle of 1990s, when a large number of independent software development companies emerged.
Based on a 60 plus year history of the extensive network of educational and scientific institutions, the Ukrainian software development and IT outsourcing services industry is rapidly developing into one of the most important sectors of the Ukrainian economy.
The Ukrainian government actively supports industry growth through tax exemptions,and provides public financing for development of IT and innovation parks. Governmental support will promote industry growth and further expansion of the software development and IT outsourcing service ecosystem in 2012–2013.
During the last decade Ukraine has been the leading provider of software development and IT outsourcing services in the Central and Eastern European region (excluding Russia).
Ukraine is ranked first in the volume of IT outsourcing and software development servicesprovided, in the number of IT specialists working in the industry, and in the number of IT graduates;
The post crisis effects have been overcome, the industry is developing at a rapid pace of 20 %-25 % growth a year while new companies are opening their R&D offices in Ukraine.
After the recent tax exemption legislation for software development companies has been accepted, such global vendors as Google, Microsoft, Samsung, and Huawei expressed interest in establishing R&D centers in Ukraine;
Highly qualified personnel is at the core of the software development business. The presence of educational institutions for IT personnel training and preparation plays a very important role in the industry development.
Ukraine has a long standing reputation as a major technology region, with a well-developed cientific and educational base:
In terms of IT services outsourcing, Ukraine primarily places emphasis on its deep IT talent pool. With 16,000 IT specialists graduating from Ukrainian universities each year, the country holds the fourth position in the world in the number of certified IT specialists, following the USA, India, and Russia. On top of that, the experts recognize both quantitative and qualitative potential of the Ukrainian specialists.
In 2011 the number of IT specialists working in the industry reached 25,000 people with 20 % growth. The successful development of IT outsourcing services industry in the country depends a lot on its deep IT talent pool. The presence of strong science schools, universities mainly focused on engineering specialties fuels the industry. In Ukraine, of 16,000 IT specialists graduating each year from universities only 4,000–5,000 are employed in companies that provide professional IT services. This number might easily double because of the initiatives of Ukrainian government aimed at the creation of favorable conditions for IT outsourcing business development.
In order to improve the quality of IT professionals and to strengthen cooperation between businesses and educational institutions to sustain further development of IT outsourcing industry in Ukraine, a working group under the leadership of Deputy Prime Minister, Sergey Tigipko, and an IT Committee partnered together with IT associations, IT companies, leading technical universities and the Ministry of Education. Their work led to a decree intended for the improvement of IT education, attraction of youth to the IT industry and bringing of education to the needs of IT labor pool. A decree of the Cabinet of Ministers “On approval of the agenda to identify the priority areas in the IT education development for the years 2011–2013” aimed to support IT education in Ukraine, was signed by a Prime Minister Nikolay Azarov on September 21st, 2011.
1952-1970: Formation of computer calculations
1951 – first computer in Continental Europe.Computer codes.
1960-1980: Use in science, military technologies.FORTRAN, PL1, COBOL, C
1980-1990: Use of software in business
1980: Emergence of PC
1980-1990 – automation of the largest industrial enterprises of the Soviet economy. COBOL,FORTRAN, PASCAL, Palma.
1990-1999: Emergence of market society in the SOFTWARE DEVELOPMENT industry.
1989 – establishment of company Mirasoft.
1990 – Emergence of the first independent software development companies. Accounting. Automated workstations for industrial enterprises. Clipper, DBase, FoxPro, С/С++.
1999-2002: Dot-com bubble and the industry growth
The active use of Internet
Projects for Dot-com startups
The volume of offshore projects exceeds the volume of onshore projects
2002-2003: The period of uncertainty. Global recession and orientation of software development market towards offshore customers caused the market slowdown and separate bankruptcies (Novatek, Tessart, UkrSoft).
2003-2006: Rapid growth of the industry at the cost of offshore projects. With the recovery of global economy, the demand for the Ukrainian programmers increased.
2006-2008: Market Stabilization
Large players such as Luxoft, EPAM, Dataart, StarSoft entered the market
In 2008 – 800 IT companies with 14 000 employees.
2009-till now: Post-crisis growth
Many experts agree that Ukraine’s many competitive advantages such as its unique geographical location, the availability of an extensive pool of IT talent, its strong scientific legacy, and lower costs make Ukraine a natural choice for outsourcing. Ukraine’s IT outsourcing service industry, as well as several specific Ukrainian outsourcing companies, have been recognized many times by global research organizations and national industry associations in their reports, listings, rankings and via awards and various nominations. Here are just a handful of the achievements that support Ukraine’s reputation as one of the world’s best locations for outsourcing:
Ukraine was ranked the first among 16 countries of the CEE region according to volume of IT outsourcing services provided, by the number of IT outsourcing companies operating in the market, and by the number of IT specialists involved in the outsourcing industry in the “CEE IT Outsourcing Review” in 2008, 2009 and 2010. This research is conducted annually by the Central and Eastern European Outsourcing Association (CEEOA). The reports are located at:
“CEE IT Outsourcing Review 2007” http://itonews.eu/files/f1223022181.pdf
“CEE IT Outsourcing Review 2008”http://itonews.eu/shared/files/CEE_IT_Outsourcing_Review_2008.zip
“CEE IT Outsourcing Review 2010”http://ceeoa.org/assets/Uploads/CEEITOReview2010.final.pdf
Ukraine has made the list of the TOP 30 Outsourcing Destinations as ranked by Gartner Group since 2007. Every year Gartner, the world’s leading research organization, examines 72 offshore locations according to ten criteria and lists the top 30 outsourcing destinations. The criteria used by Gartner are language, government support, infrastructure, political and economic environment, cultural compatibility, educational system, labor pool, cost, global and legal maturity, data and intellectual property security and privacy. See Gartner’s 30 Leading Locations for Offshore Services.
Ukraine is included The Global Services Location Index, a report by global management consulting firm A. T. Kearney that analyzes and ranks the top 50 countries in the world for locating outsourcing activities. This includes IT services and support, contact centers and back-office support. The report has been published since 2003. For more details see the Global Services Location Index reports.
Ukraine was ranked the 49th best country in which to live in the ranking of the world’s top 100 countries by Newsweek Magazine. Among low-income countries the Newsweek Magazine Study found Ukraine has the best quality of life in terms of health, education, economy and politics. For more details see World’s TOP 100 Countries.
In 2011, Ukraine was recognized by outsourcing experts as the top destination for IT outsourcing, and was also nominated as the “Outsourcing Destination of the Year” by the European Outsourcing Excellence Awards at the European Outsourcing Association Summit. More information about the awards can be found on the EOA Summitwebsite.
In 2009, the Ukrainian city of Lviv was named a TOP 30 emerging destination for outsourcing in the report “Exploring Global Frontiers” by KPMG. The 30 cities in its analysis are “emerging,” in that they are lesser known alternatives to more established cities for IT-BPO operations in three regions: South and North America, Asia, India, Japan and Australia (ASPAC), Europe, the Middle East and Africa (EMA). For more details see Exploring Global Frontiers.
Ukraine’s capital Kyiv was ranked among the TOP 50 Emerging Global Outsourcing Destinations by Global Services and Tholons in 2009. The rankings were based on an analysis of In 2011, Ukraine was recognized by several outsourcing experts as the top destination for IT outsourcing, and was also nominated as the “Outsourcing Destination of the Year” by the European Outsourcing
the following categories: Scale and Quality of Workforce, Business Catalyst, Cost, Infrastructure, Risk Profile and Quality of Life. For more details see the TOP 50 Emerging Global Outsourcing Cities listing.
According to the 2010 Global Services 100 list, Ukraine is 11th among 20 leading countries in the area of IT Outsourcing and High Tech Services. The GS 100 list is compiled annually by Global Services in association with NeoAdvisory, a consulting and advisory company. The 2010 Global Services 100 list can be accessed online at http://www.globalservicesmedia.com.
Ukraine was ranked among the 10 TOP countries with the most certified IT professionals,coming in just after the United States, India and the Russian Federation. For more information seethe Global IT IQ Report.
Ukraine was ranked 8th in the Gaming Industry’s TOP 12 European Countries by The Global Gaming Industry Network in 2009. Ukraine was among the 10 TOP countries with the most certified IT professionals ranking just after the United States, India and the Russian Federation. For details see the Global IT IQ Report.
One of the primary unbiased indicators of growth in the IT outsourcing market is the volume of the services provided. The volume of the services provided in the software development and IT outsourcing service market is growing at a rapid pace. The most significant leap was recorded in 2004–2005 when Ukraine underwent an extensive liberalization of foreign economic relations and visafree travel was introduced. The growth in the volume of the services provided jumped 51 % in 2005 and 56 % in 2006, respectively. In 2008, the market growth slowed and market volume decreased by 2–3 % due to the global recession. But in the post-crisis year 2009, the market rebounded to turn in 25 % growth. This proves the resilience of Ukrainian software companies and their ability to weather adverse global economic factors. The significant growth in 2009 confirms that the management of Ukrainian companies can successfully navigate a contracting market situation and actively grow demand. By 2011, the volume of the software development and IT outsourcing services provided in Ukraine reached a healthy US$1.1 billion. The software development and IT outsourcing service industry is the most rapidly developing sector in the export oriented economy of Ukraine.
Ukraine’s software development and IT outsourcing service industry is the largest in Central and Eastern Europe. Ninety-percent of the industry is oriented towards external markets. The large number of highly skilled IT professionals fuels a robust industry focused on delivering quality, reliable IT services to global markets. Strong experience and qualifications, and a client-oriented approach, coupled with their relatively low cost, have created high demand for Ukrainian programmers. The deep involvement of Ukrainian developers in a client’s projects allows the client to more easily and cost-effectively achieve the results desired. Ukraine’s IT outsourcing services industry boasts numerous advantages over competitors. An abundance of stories exist about foreign companies that successfully set up their R&D centers in Ukraine after unsuccessfully attempting to work with Indian companies. A majority of our clients note that the main differences between working with Ukrainian developers, as compared to those in India, are the results-oriented approach of Ukrainian developers, the depth of their involvement in projects, and their strong mathematics and technical backgrounds. In terms of cost-to-quality, these competitive advantages make Ukrainian programmers the most effective in the outsourcing industry. Due to the strength and depth of our IT talent, the Ukrainian outsourcing industry has enjoyed exceptional growth. During last 2–3 years, many Ukrainian IT outsourcing companies set up corporate training centers to train, prepare and better use the pool of 16,000 IT professionals that graduate annually from area universities. Most companies have more than 10 years of experience, smooth, efficient production processes, solid marketing and training programs for staff. Over the last eight years, the volume of software development and IT outsourcing services the Ukraine has provided has grown by a factor of ten. Experts agree that the industry will continue to grow rapidly for the foreseeable future. In fact, according to the optimistic estimates of experts, the Ukrainian market will grow tenfold, and the volume of software development and IT outsourcing services may reach US$10 billion by 2020.
As long as software is in demand there will always be room for excellent IT services companies to grow, and Ukraine is a great place to thrive. Services companies that provide specific value to their customers will always be prized. Buyers of services like working with Ukraine because they want active participation in the development of their new applications. They do not want to just tell developers exactly what to do, they want ideas. They want to hear, “You may not want to do it that way, but this way would work much better.” “Or sometimes they just want to hear an up front “no””; “No we are not experts in that, or no, that date won’t be met unless we take something out, or rearrange priorities, etc.” This level of collaboration and directness can be expected when working with Ukraine; it helps build trust in both the country and the provider.
The industry of software development and IT outsourcing services is service-oriented, therefore the volume of the IT outsourcing services provided is closely related to the number of the personnel working in the industry. The number of the employed IT specialists is the second important indicator of the state of the industry. The quantitative estimation of the industry was first made in 2007 when the Ukrainian Hi-Tech Initiative issued the “CEE IT Outsourcing Review 2007.” The data on the number of personnel working in the market for 2008–2011 was taken from the research report “CEE IT Outsourcing Review.”
The growth in the number of IT specialists engaged in delivering the software development and IT outsourcing services recorded in 2011 was more than 4,000 people. This figure shows that the industry has completely recovered from a temporary dip caused by the financial recession and resumed its growth. Graduates from Ukrainian universities were the main source of personnel for the IT outsourcing and software development industry. Each year, roughly 16,000 IT specialists graduate from area universities. Such a high number of annual IT graduates gives the Ukraine a strong foundation for the further potential industry growth and development.
Since 2000, the traditional leader among consumers of Ukrainian services is the United States. During the last 2–3 years European consumers have become more active. Currently, the share of service consumption by EU countries is increasing. This is primarily influenced by the geographical and cultural proximity of Ukraine and the European countries, and the potential for more easily developing sales networks in Europe.
The majority of clients of Ukrainian companies are small-and mid-sized firms. This has been the case historically since times when the market was fragmented and there were no large players who could provide clients with large pools of talent resources. With the adoption of a range of laws in Ukraine designed to support IT service providers and software developers, global companies began exploring the Ukrainian market and setting up R&D centers here. Below are numerous examples of name global companies that work with Ukrainian software development providers.
Here is cites from “Central and Eastern Europe IT Outsourcing Review 2010” performed by Central and Eastern European Outsourcing Association (http://ceeoa.org)
The general volume of IT outsourcing and custom software development services exported from the CEE region reached USD $4 billion in 2009. The largest growth took place in Romania and Ukraine. These two leaders invariably show high rates of market growth and leave other countries far behind in terms of the volume of IT outsourcing services exported. Hungary, Poland, Belarus, Czech Republic and Bulgaria close out the list of leaders. The share of market export volume f or all other countries in the region combined is just 17%. The trend of decreasing market export volume shares in these countries, which has been noticeable f or the last three years, will most likely continue in 2010 as well.
Note: To calculate the market volume, two independent assessments were used. To determine thefirst assessment, sources used includedthe number of specialists involved inthe industry of software development and IT outsourcing services; the average rates by country; staff workloads; and the specific amount of offshore projects in the general revenue structures of companies as reported through the surveys.The second assessment of market volume is based on market volumes from CEEOA’s 2008 research, and the growth index of the IT outsourcing services export market in 2009.
The number of companies operating in the market describe the existing ecosystem of the industry in a given country, and the ease/complexity of setting up a business in the IT outsourcing industry. In 2009, the growth in the number of companies reached 16-17% in Slovenia, Bulgaria, Slovakia and Romania. A growth rate of 10-12% was indicated in Serbia and F.Y.R., Ukraine, Croatia, Belarus and Hungary. In other countries the growth in the number of
companies ranged between 3% and 6%.
In 2009, the number of specialists slightly increased. This f act led to a prediction of positive growth in the number of specialists for 2010 as well. In 2009, almost 95,000 IT specialists were involved in the IT outsourcing and custom software development services industry in the CEE region. The leading countries (Ukraine, Romania, Belarus, Hungary, Poland and Bulgaria) accounted f or 75% of all specialists inthe region. Strong engineering schools and large numbers of students inIT specialties have created good prospects f or further market development against the backdrop of the recovering global economy and rising demand for outsourcing services.
Alcatel Genesys, AstraZeneca, Atos Origin AG, Autodesk, Inc., Avid, BEKO International, Bloomberg L.P, BMC Software, BNP Paribas, Boeing, Bombardier, BOSCH, CISCO, Comoto, Dell, Deloitte and Touche, Deutsche Bank, DHL, eBay, EDB Business Partner, Electronic Arts, Enviance, Hewlett Packard, IBM, IKEA, Jaguar, Kodak, Kyriba Corporation, LandRover BMU, Mersedes Benz, Microsoft, Mobile TeleSystems, MTV, NamcoNetworks, Nokia, Nokia SiemensNetworks, Novell, ParexelInternational, Quest Software, Rabobank, SEB bank, Sky,
Skype, SonyComputer Entertainment, Sopera GmbH, SymantecCorp., Telcordia, Trend Micro, T-Systems, USAID, USP networks, VAB Bank, Volvo, Volkswagen, WincorNixdorf GmbH