Strongholds of IT Outsourcing to Ukraine

In the past years, Eastern Europe has firmly established a rather competitive market position in IT outsourcing industry. Ukraine, in particular, is gaining ground as one of the most attractive and popular IT outsourcing destinations.

Drawing upon the report “Exploring Ukrainian IT Outsourcing Industry” presented by the Association of Ukrainian IT outsourcing companies “Ukrainian Hi-Tech Initiative”, the volume of software development and IT outsourcing services in Ukraine has gone up by the factor of ten over the last 8 years. That makes one wonder what gives Eastern Europe and, especially, Ukraine an edge in this area. Among reasons that win for this country in southeastern Europe an upper end of the range the following stand out:

Specialists with higher education degrees

Foreign vendors (Smartling, SHAPE, Jelastic, Currency Cloud, Elementrum SCM, Viewdle, DisclosureNet, CloudMade, AdsWizz) are often attracted by the high level of technical skills and language command in Ukraine, home to over 800 institutions of higher education. It is one of the countries where education is held in high regard and considered a tremendous human value.

Relatively lower prices

Following the research results presented on the pages of an online edition of HKS Magazine, Ukraine’s per capita income is $3.082 which is far lower than $54.629 estimated per capita income in the USA. The estimates have created favorable conditions for outsourcing since customers cut their expenses due to lower prices not compromising the best quality.

Western mentality

Ukraine has come into focus of many foreign companies because cooperation with specialists who share the same mentality turns out to be more productive and smooth.

This common western mentality doesn’t manifest itself exclusively through the sense of humor or cuisine it goes deeper reflecting itself through business values. Eastern Europeans easily and quickly adapt to customer needs. Rather than performing to order, they engage headlong into projects willing to collaborate with clients and ready to discuss or even debate to ensure the best results.

High quality

Ukraine ranks high among the countries that are best suited for offshoring,  occupying 20% of the world IT outsourcing market in 2013 and taking the leading position among Eastern European countries as to the volumes of Eastern European IT Outsourcing market. Political instability didn’t interfere with booming growth in IT sphere. To obtain a degree IT specialists study on average 6-7 years, by comparison, many Asian developers just complete 4-month training courses before embarking on serious projects.

Thus, high quality, western mentality, highly skilled labor and affordable prices are beyond doubt those strongholds that make Ukraine look like a strong competitor.

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