Ukraine - Europe’s No. 1 provider of IT outsourcing

When we think of offshore outsourcing, we ask ourselves a number of questions: where to go, what criteria should we use, should we choose the least expensive solution, etc.?

In this area, Ukraine has become Europe’s destination of choice. In 2011, Gartner designated Ukraine as the top destination for IT outsourcing. What are the reasons for this success? Here are the top 10 reasons.

1. IT outsourcing in Ukraine is a mature and booming market, with eight hundred IT outsourcing companies employing 14,000 personnel. According to the Top 100 Global Services ranking, Ukraine takes 11th place worldwide in terms of IT outsourcing. In Central and Eastern Europe, Ukraine is by far the most developed market. Exports of IT service has grown by 83% since 2009. The number of IT enterprises with foreign investment has grown by 58%.

2. Abundant and high quality human resources available: every year 168,000 graduates enter the IT sector. Ukraine is ranked fourth in the world for its IT human resources after the United States, India and Russia.

3. Very competitive costs: costs are on average 40% to 60% of those in Western Europe. Ukraine is the European destination offering the best combination of cost and abundance of IT human resources.

4. A high quality system of education and science: according to the UN, the level of education level in Ukraine gives nothing away to those of Western countries. 700, 000 students graduate each year.

5. A small time difference: there is only a 1-2 hour time difference between Western Europe and Ukraine, which allows for efficient real-time collaboration.

6. Geographical proximity: Kiev is only 3 hours by plane from Paris or London. EU citizens do not need visas to visit Ukraine.

7. Cultural familiarity: Ukraine is a completely European country - unlike Russia, for example. A visit to Kyiv is eloquent in this regard. It has a 100% Central European feel. Ukraine is open and Ukrainians are oriented towards the European Union, which they hope to join one day.

8. Legal security: Ukraine is a market economy, gradually shedding Soviet bureaucracy and corruption. Since 2012, the IT sector has had the benefit of a particularly attractive special regime in terms of taxes and social security contributions. Ukraine’s major cities boast a modern IT infrastructure (fiber optic ...) Ukraine occupies the 28th place worldwide for Internet speed (2.28 Mb / sec on average). Outsourcers’ property rights are well protected, and outsourcing contracts are concluded under Ukraine’s jurisdiction.

It is the combination of all of these positives, particularly the competitiveness and competence of the abundant human resources available in this mature and experienced IT market, which have made Ukraine Europe’s preferred destination for IT outsourcing.