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Symphony Solutions | October 20, 2017

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Global Recognition of Ukraine’s IT Outsourcing Industry and Its Market Players

Global Recognition of Ukraine’s IT Outsourcing Industry and Its Market Players

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)

Sources:
http://hi-tech.org.ua/exploring-ukraine-it-outsourcing-industry-the-volume-of-it-outsourcing-services-provided-in-ukraine-has-grown-by-a-factor-ten/
http://www.uadn.net/files/ukraine_it_ov.pdf
http://www.eba.com.ua/static/export_it_industryfinal_29092016.pdf
https://outsourcing-journal.org/?s=Ukraine