Ukraine – a post-Soviet relic or the future of IT?
Looking at the map of the world near a notorious giant Russia you can see a proud country situated in the east of Europe. Yep, that’s Ukraine. You probably heard about the Klitschko Brothers and you most probably were influenced by all that scary rumors flying around about the post-soviet mentality and that people never smile in Ukraine.
With a hint of humor I must say that it’s not terribly wrong, but terribly exaggerated. What you probably never heard of is the fact that Ukraine is an extremely attractive place to invest if you want to do the software development offshore and hire some remote development team for a project. Or even establish your own company there.
Dynamics of sustainable growth of Ukrainian Outsourcing Market
Now, let’s look at some dull statistics.
The general situation is not that terrible as you can see. On the contrary, the attractiveness of investment is growing every year.
So what are the incentives for such a dynamic?
Factors of Growth: Economics, Politics, Education and more.
Well, politics and economic factors might be a huge influencer in this situation. The national Ukrainian currency, Hryvnya, has been declining drastically through last couple years and if back in 2013 it was 8 UAH for 1 USD, it fell to the level of 27 UAH to 1 USD. The salaries, as it often happen, can’t keep up with that kind of inflation and only people who have their wages in USD are having a good time.
Who are those lucky ones? Mostly the IT guys and those who work on companies with the revenues from abroad.
That is why the IT sector is developing that rapidly in Ukraine. Courses and trainings on coding and programming are opening everywhere, people are learning English like insane and everyone is dreaming to become a developer (Java, C++, Python and many others).
But not only have the economic and political situation shaped the sustainability and proficiency of Ukrainian labor force.
Ukraine has a long history of great and quality technical education and therefore produces thousands and thousands specialists annually. This creates huge opportunities for flourishing of international business in Ukraine.
5 major reasons to invest in IT Outsourcing in Ukraine:
- The costs of outsourcing the IT business or hiring a software development specialist is still twice lower than in the EU or the USA.
- Ukraine is the 5th biggest and most rapidly developing world’s market for IT outsourcing services, with more than 2.5 billion USD revenues per year (and growing by 35% annually);
- Ukraine has over 4000 IT companies and about 300 ISPs, with over 100k software/hardware development and IT consulting specialists;
- More than 20 major IT educational institutions and centers that give BA, MSc and PhD diplomas to more than 30k specialists annually;
The IT industry in Ukraine is multifunctional and you can give the whole project for outsourcing, no matter big or small.
Predictions on further development of Software development industry in Ukraine
As for the overall forecasts for the development of the IT industry in Ukraine, the experts state that till year 2025 Ukraine has all the chances to become a high technology country. The IT industry in Ukraine can overwhelm even agriculture and metallurgy and transform a huge raw material supplier into technology exporter. Ukraine has all the chances to become a “Software Hub” of Europe.
The idea of investing in Ukraine is not new and there are some world renown entrepreneurs that have got their own mind regarding this question.
David Rubinstein from Carlyle Group once said: “…Next door to Russia there is a complicated place, but also more attractive… Ukraine is an extremely attractive place to invest and I would look at that place as a place if you want to take some risk and you are investing in dollars, but there aren’t that many people investing in Ukraine, so you’re probably going to buy some things that are going to be relatively inexpensive”
Richard Branson, the founder and CEO of Virgin Group once mentioned: “Personally, I think that Ukraine is a good place to invest. I’m hopeful that Virgin would start doing business in Ukraine”
For more details read also “Ukraine as IT workforce exporter: Brain in Ukraine” and “Outsourcing in Ukraine: Development of Europe “Software Hub””.
Current participants of the Software development market in Ukraine
Moreover, to add more credits, we found out that more than 100 international companies have founded their R&D departments in Ukraine. These companies are from North America, Europe and even Asia. Samsung alone has over 1,000 engineers working on things like computer vision, information security, artificial intelligence, natural language processing (NLP), human computer interaction (HCI), computational intelligence and more.
The companies that have shown their trust towards outsourcing in Ukraine include but are not limited to: Dell, Microsoft, Ebay, Symantec, Nokia, IBM, Bloomberg, Autodesk, Beko, BNP Paribas, Boeing, Bombardier, Bosch, Cisco, Comoto, Deloitte, Deutsche Bank, DHL, Hewlett Packard, IKEA, Jaguar, Kodak, MTV, Novell, Skype, Sony, T-Mobile, USAID, VAB, Volvo, VolksWagen and many others. And that proves something, don’t you think?
In conclusion, there are many places in the world where you can invest into, but if you are looking for the dynamically developing market, high skilled labor force and great opportunities, look no further! If you want your project to be done at low costs and high quality, then Ukraine is your choice!