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Why Outsource to Ukraine?

In recent years, Ukraine has become one of the most attractive outsourcing destinations in Eastern Europe. With the second largest population after Russia, a legacy of Soviet science and success-hungry entrepreneurs, the country boasts the fastest-growing software development industry. The USA and Western Europe are unalterably the well-established importers of software development services from the Ukraine. In spite of increases in developers’ salaries software development costs are still highly competitive and attractive for Western customers. The attractive prices are accompanied with progressively improving quality of products and knowledge of developers.

Offshore Outsourcing Industry in Ukraine

In its recent study Goaleurope, an Eastern European advisory firm, estimated the size of the outsourcing industry in Ukraine reached over US$246 million in 2006. Ukraine is not a member of the EU, so Ukrainians cannot take jobs freely outside their country, unlike Polish, Czech, and other nationals of the new EU members. So the Ukrainian software developers stay in their homeland, where the prices are low; work comes from offshore outsourcing customers.

According to Schipperus, ISM eCompany chose Ukraine because it has a large pool of highly educated people and the geographical location was convenient. He found the English competency of his employees was better than in China. And the cultural differences were less noticeable compared to those in India and China.

The successful development of Information Technology Outsourcing Industry in the Ukraine results from a number of advantage factors in the country.

Well established educational infrastructure and scientific background

Ukraine boasts a 98% literacy rate. There are more than 950 universities and colleges. 87% of high school graduates going on to higher education. Of those, 35% choose information technology related disciplines. Presently, there are more than 39 educational institutions that maintain more than 15 IT related programs.

The estimated number of students that graduate each year with certificates in IT disciplines is more than 3,000 and is growing year by year. Ukrainians won numerous prize places in the world mathematical and programming contests for students and schools.

In Soviet times Ukraine generated scientific developments of the Union and presented the world with great scientists and inventions. Independence brought along both: solid scientific basis in face of representatives of the old school, and strong motivation to develop. Having a wide access to up-to-date information sources, Ukrainian modern IT developers and programmers are highly skilled and constantly up-grade their competence level.

Attractive prices

Since Ukraine hasn’t entered the European Union, the cost of living remains low and the average salaries of programmers and managers are much lower than in other Eastern European countries. This situation determines low prices for offshore services and developed products from highly qualified IT-specialized personnel—making Ukraine an extremely attractive country for western clients.

Fluent English

Ukrainian specialists have successfully overcome the language barrier and easily communicate with English-speaking clients.

Similar culture and business understanding

Throughout its rich history Ukrainian people have been tightly contacting with the representatives of other European countries. For sure, it left an imprint on culture, mode of life and way of thinking, which are very close to, if not to say, the same as the European ones.

Ukrainians share many common values with other European peoples: beliefs in honesty and decency, hard work and education, family and fellowship.

In Ukraine you will find people, who see the world the way you do!

Nearshore Advantages

EU prospects

Recently the experts have emphasized that IT outsourcing becomes more geographically diversified, and Ukraine as well as other countries of Central and Eastern Europe attract more and more attention of the companies interested to outsource their software development and testing.

After the entrance of Bulgaria and Romania into the European Union almost all countries of Central and Eastern Europe (excluding republics of the former USSR) are members of the EU. The analysts predict that Ukraine will become a member of the EU only in 10 or more years. As a result, Ukraine is very preferable for IT outsourcing.

Advantages of nearshore software development and IT services in Ukraine

  • Substantial reduction of travel and communication costs and time: 1-3 hours by airplane, visa-free conditions for EU citizens;
  • Cutting project cost: Ukraine is not a EU member, the manpower and infrastructure are still rather cheap here;
  • Convenience in communications and control: almost the same business hours – the time shift is one hour for Benelux and Germany, 2 hours for UK and France;
  • Close business rules: Ukraine strives to be involved in the main European organizations, now it is entering WTO; ISO standards are adopted as state acts and are obligatory for some industries; different MBA programs become more and more popular;
  • Close communication and business culture: Ukraine is a European country, a lot of Ukrainians have worked in the EU countries and the USA including managers positions.

Learn more about Offshore IT Outsourcing and Web 2.0 Development Services provided by MitriDAT.


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