On April, 17th 2013 Lviv Employment Center explained the high school graduates what the benefits of working in IT are. Surprisingly, there was no need to convince them; most young people are ready to connect their life with information technology.
IT sector in Ukraine is developing rapidly. Every month there are about 40 open vacancies. Smart and talented students are hunted from the third year of their studies. However, IT companies are trying not only to lure them but to educate as well.[more…]
Finding professionals is half a deal, but keeping them within the company- this is what is truly important. Companies compete with each other for best professionals. Thus, the emphasis is made on comfortable working environment, corporate events and atmosphere in the company.
Every year the geography of finding professionals is expanding. Recruiters find workers even on the East and South of Ukraine and offer them more benefits, one of which could be a beautiful and comfortable city to live in.
Video reportage is here.
Ukraine is fourth in the world by the number of certified IT specialists after the United States, India and Russia, according to the annual report of the National Commission for the State Regulation of Communication and Informatization of Ukraine, referring to research of Exploring Ukraine IT Outsourcing Industry 2012.[more…]
The bulk of the country’s IT specialists, 40%, work in Kyiv, 19% in Kharkiv, 16% in Lviv, 7% in Dnipropetrovsk and 4% in Odesa.
Annually the higher education establishments graduate about 16,000 IT specialists.
According to the hh.ua staff portal, the most demanded post of software designer is not just in the IT sector, but also on the whole labour market, the report from the commission said. Over 15,000 vacancies in the section ‘Information Technologies/Internet/Telecom’ was registered in 2012.
As reported, Ukrainian Premier Mykola Azarov in February ordered Education and Science Minister Dmytro Tabachnyk to ensure the increasing of the state order to train IT specialists at the universities.
As the premier said, in 2015 the state will need about 100,000 qualified specialists due to the state support of the IT sector.
KPMG specialists have indicated that the rush for new outsourcing centers is the result of two major factors: the credit crisis seems to have encouraged companies to consider outsourcing, while the traditional locations have approached their saturation point. This means that there is a sizable opportunity for these new locations to absorb a large proportion of the new outsourcing work created by the credit crunch. [more…] As corporations are looking to find new locations which can reduce their cost base, Lviv has an opportunity to come as a city which has its own niche specialism and eclectic mix of unique characteristics.[more…]
Why has Lviv been identified as a new outsourcing hot spot? The answer is elegant and quite simple. Lviv has a large pool of highly educated people, houses several leading educational institutions and a high literacy rate of about 99.6%. English competency for niche specializations is high, while Lviv has a lower cost of living than elsewhere in Ukraine, and the salaries in Lviv are significantly lower than in Western Europe. Lviv is also well-connected to the rest of the world logistically and only a two-hour flight from most European capitals. No less important is government support, and in this regard the Lviv City Administration has proved supportive of outsourcing initiatives.
The outsourcing market in Lviv has been showing steady growth since 2002. This means that partners in Ukraine are maturing and delivering good products and more and more clients are becoming inclined on taking a chance on Lviv.
The full list of highlighted destinations according to KPMG report includes:
10 locations in the Americas (Buenos Aires, Campinas, Curitiba, Calgary, Winnipeg, Santiago, Guadalajara, Queretaro, Boise, Indianapolis);
10 in Asia-Pacific (Brisbane, Changsha, Hangzhou, Ahmedabad, Jaipur, Nagpur, Penang, Davao City, Iloilo City, Ho Chi Minh City);
11 in Europe, the Middle East and Africa (Sofia, Zagreb, Cairo, Port Louis, Belfast, Gdansk, Cluj-Napoca, Rostov-on-Don, Belgrade, Tunis and Lviv).
The source: http://www.lvivtoday.com.ua/lviv-business/728
Ukraine has joined Gartner’s list of TOP30 outsourcing destinations since 2007. In its annual reports world’s leading research organization looks at the credentials of 72 countries as offshore locations, and list the top 30 destinations.[more…]
Gartner used ten criteria that it determined important for organizations to consider when looking at a potential location for offshore or nearshore IT operations or business process services. They were: language, government support, labor pool, infrastructure, educational system, cost, political and economic environment, cultural compatibility, global and legal maturity, and data and intellectual property security and privacy.
Considering EMEA, locations such as Ireland, Israel, Northern Ireland and South Africa rated well for language skills, because of the quality and quantity of English-language speakers. However, other countries such as the Czech Republic, Slovakia, Hungary, Poland and Romania also given credit for the availability of alternative languages that address the needs of an increasing number of continental European buyers.
Recent EU entrants Slovakia and Romania, together with Russia and Ukraine are scored well on cost grounds. Increasingly, companies are choosing offshore providers in Eastern Europe countries such as Ukraine, where language skills are better and outsourcing providers appear to have a more in-depth understanding of their clients than competitors further east. Ukrainian offshore outsourcing companies have been providing software development services since early 1990s, one of them Mirasoft Group started to provide outsourcing software development services since 1989, and for today the company already exist more than 20 years.
It’s finally happened! Ukraine has been recognized by outsourcing experts as the top destination for ITO in 2011. The country has won the nomination “Outsourcing Destination of The Year” in the frames of European Outsourcing Excellence Awards.[more…]
Over the last decade Ukraine has gained a huge interest from the western countries for provision of outsourcing services in the areas of Informational Technology. Country’s IT sector saw a double-digit growth over the last 5 years finally reaching 1 billion value last year. Today, Ukraine is the world’s fifth IT services exporter worldwide with the biggest labor pool in CEE region.
Many experts agreed that country’s specific traits such as unique geographical location, cultural likeness, rich labor pool and strong scientific legacy coupled with cost-benefits provided by country’s non-EU memberships will play a crucial role in shaping outsourcing landscape in the coming years.
Ukrainian IT outsourcing industry has been growing exponentially year by year. In 2011 Ukrainian outsourcing market volume was about 1,1 bn US$, while in 2016 it reached 3.5 bn US$. The total share of IT services in the national export in 2016 became 4%.
The growing number of IT companies also reflect the growth tendency. In 2016 their number hit more than one thousand companies and 100 R&D centres across the country. In 2016 they employed about 90,000 IT specialists (compared to 25,000 in 2011). Ukraine is a home to the biggest number of IT specialists in Central and Eastern Europe, putting even Russia aside. PwC analysis market forecast claims that by 2020 about 200,000 specialists will be involved in Ukrainian IT industry. The country is a hotbed for outsourcing by virtue of relatively low prices and high-quality service. Currently, Ukraine is one of the most attractive nearshore destinations for West European and UK companies and offshoring destination for North American businesses.
Many experts agree that such advantages as unique geographical location, the availability of extensive IT talent pool, strong scientific legacy and cost benefits make Ukraine a natural choice for outsourcing. Ukrainian IT outsourcing service industry and Ukrainian outsourcing companies were recognized many times by global research organizations, national industry associations in their reports, listings, and rankings, as well as awarded in different nominations. We’ve gathered the most impressive ones to showcase the reasons which make Ukraine one of the best locations for outsourcing.
TOP-25 IT services exporters
Ukraine holds the 5th place among TOP-25 countries which export IT services according to PwC analysis (http://www.eba.com.ua/static/export_it_industryfinal_29092016.pdf).
1st place by a number of IT specialists in CEE
Colliers International claims that Ukraine holds the 1st place by a number of IT specialists (http://www.uadn.net/files/ukraine_it_ov.pdf) in CEE and the 4th place globally.
2nd most master level certified nations
In 2013 Ukraine got the 2nd place at the Bench Games. It means that Ukrainian specialists are 2nd in the world with master degree. Ukraine is 1st in CEE (http://www.uadn.net/files/ukraine_it_ov.pdf) by the number of graduates entering the labour market. In addition, Ukraine was listed among 10 TOP countries with the most certified IT professionals following the United States, India and Russian Federation according to Global IT IQ Report (https://www.brainbench.com/pdf/globalitiq.pdf).
A 14th place globally in Science and Technology
According to The Good Country Index (https://goodcountry.org/), Ukraine is placed 14th in the rank of the countries which contribute the most to the global development of science and technology.
Open for innovations
In 2015 Ukraine was ranked the 33d place among 50 countries according to Bloomberg. There are about 2,000 of tech startups in Ukraine. Also, most companies have already switched to agile development during the past few years the report states. (http://www.uadn.net/files/ukraine_it.pdf).
TOP 30 Outsourcing Destinations
Ukraine has been on the list of TOP 30 Outsourcing Destinations by Gartner since 2007. Gartner, world’s leading research organization, examines 72 offshore locations in terms of ten criteria and list top 30 destinations. The criteria used by Gartner to identify top outsourcing destinations are language, government support, infrastructure, political and economic environment, cultural compatibility, educational system, labour pool, cost, global and legal maturity, data and intellectual property security and privacy. See Gartner’s 30 Leading Locations for Offshore Services (http://www.gartner.com/DisplayDocument?ref=clientFriendlyUrl&id=1491316).
TOP 50 countries for locating outsourcing services – Global Services Location Index
Ukraine is included in the report of global management consulting firm A.T. Kearney – The Global Services Location Index that analyzes and ranks the top 50 countries worldwide for locating outsourcing activities, including IT services and support, contact centers and back-office support and has been published since 2003. For more details see the Global Services Location Index reports (http://www.atkearney.com/gbpc/global-services-location-index).
City Lviv included to TOP 30 emerging destinations for outsourcing
In 2009 Ukrainian city Lviv was placed among TOP 30 emerging destinations for outsourcing in the report “Exploring Global Frontiers” by KPMG. The 30 cities that are being analyzed are called “emerging” due to the fact that they are lesser renowned alternatives to more established or organized cities for IT-BPO operations in three regions: South and North America (Americas), Asia, India, Japan and Australia (ASPAC), Europe, Middle East and Africa (EMA). For more details see report “Exploring Global Frontiers” (http://www.kpmg.com/ca/en/issuesandinsights/articlespublications/oi/pages/exploringglobalfrontiers.aspx).
Outsourcing Destination of the Year
In 2011 Ukraine was recognized by outsourcing experts as the top destination for IT outsourcing and won the nomination “Outsourcing Destination of the Year” in the frames of European Outsourcing Excellence Awards. The awards program took place during the European Outsourcing Association Summit. More information about awards can be found on EOA Summit (http://www.eoasummit.com/awards/) website.
Central and Eastern Europe IT Outsourcing Review
Ukraine was ranked the first among 16 countries of the CEE region by the 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” report in 2008, 2009 and 2010. The research is carried out annually by Central and Eastern European Outsourcing Association (CEEOA). The reports can be found here:
“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)
City of Lviv in Western Ukraine, better known for its UNESCO-listed tourism attractions, is boosting its credentials as a progressive IT center in Central and Eastern Europe. Local IT-BPO Cluster, established by major industry players, has started to implement innovative public-private partnership initiatives that greatly increase city’s capacity as an upcoming outsourcing destination.[more…]
Recently Lviv IT-BPO Cluster and Lviv City Council launched a promotional video Find yourself in Lviv! that positions Lviv as a major destination for IT talent in Ukraine. It is an innovative example of public-private partnership in the IT industry in the country. Companies produced the video, featuring staff members, who moved to Lviv to pursue careers in IT, while the City Council supported promotional campaign in the country, including rotation of the video in cinemas across major cities. The campaign urges young specialists to consider Lviv for their next career move, offering a dedicated site featuring cluster member companies.
Lviv IT-BPO Cluster is raising, for now at least in Ukraine, the battle for the IT talents. Apart from the PR offensive, IT-BPO Cluster has been actively working on improving the skills of local IT students and professionals. Additional English courses for IT students were introduced with the cluster support and a soft skills training programme is in plans for 2012.
In 2009 KMPG named Lviv among the most promising locations for the next outsourcing boom. Strategically situated close to major European business centers, Lviv boasts cost effective and qualified workforce, dramatically improving infrastructure with the EURO-2012 football tournament fast approaching, lower market entry cost and cultural proximity to Europe.
With over 30 local and foreign IT companies present in the market, sector employs over 6000 professionals, and is expected to grow by at least 20% annually until 2015. Anticipating the need for growth in IT talents pool, leading local IT companies (Eleks, lohika, N-iX, SoftServe, SymphonySolutions) were the first in Ukraine to establish a cluster, in collaboration with local Universities and city council.
Business services sector is a cornerstone of the Lviv Development Strategy for 2015. The city is committed to support companies interested to establish themselves in Lviv.
With innovation in cross-sector collaboration, over 1000 IT graduates supplied by local Universities and a growing number of high quality professionals joining Lviv IT industry from other parts of Ukraine, the city is continuously improving its capacity to accommodate the needs of IT industry, and transforming itself to a major outsourcing destination in Eastern and Central Europe.
Ukrainian outsourcing IT industry has been growing steadily for the past few years. In 2011 its market volume was estimated of US$1 billion and in 2016 it reached almost US$3 billion. In 2016 IT industry contributed about 4% of the national GDP. The exponential growth can also be witnessed in a number of people involved in the industry. Thus, in 2011 the number of IT specialists working in the outsourcing industry was about 25,000. In 2016 this number was about 100,000 people and it is expected to double till the end of 2020.