As the IT industry is booming worldwide and is among the most coveted to work and invest in, you might want to ask yourself a question: where do I find the best deal? Well, how about a country that is currently repositioning itself economically as a progressive, tech-savvy market open to international collaboration with 70% of its total export of services being IT services? The main destination of those are the US: about 80% of Ukrainian IT services are imported to the industry’s largest market.
So what makes Ukraine so special? The country has about 120,000 highly skilled IT specialists at the moment and this number is expected to grow well over 240,000 by 2025 according to the current rates. About 40% of them are fluent in English and more have a solid intermediate level, which allows them to communicate freely with their international colleagues and customers. According to various statistics, the country’s freelance professionals in the digital field are among the most qualified and efficient in the world.
To learn more about working with Ukrainian IT specialists read this article: Business Culture In Ukraine
Besides individuals, businesses that provide IT services are also growing steadily. A significant number of 18 of the country’s IT companies (established or operating in Ukraine) was listed on the IAOP’s “The 2018 Global Outsourcing 100”, and that number is getting consistently higher year by year. The companies are: SoftServe, Eleks, N-iX, Ciklum, EPAM, Sigma Software, Luxoft, Miratech, Softjourn, Softengi, TEAM International, Program-Ace, AMC Bridge, Innovecs, Intellias, Infopulse, Itera, Artezio. While some might still consider outsourcing a practice not to be envied, Ukrainian professionals believe in the future of services, the main goal of which is to optimize a business’ operation in the best ways possible, and we all know: that optimization often requires resources not available within one’s country for a number of reasons. This kind of attitude towards outsourcing makes it a respectable career choice for a considerable number of highly qualified professionals, and that means the service quality is accordingly high.
Now, Ukraine is not only good at providing outsourcing services. It is also internationally recognized as a location for digital research and development centers, which are also often referred to as ‘captive centers’. The most prominent multinational companies that have chosen to establish their R&D offices here are: Samsung, NetCracker, Huawei, Ericsson, Aricent, Oracle, ABBYY, Playtech, Wargaming, Gameloft, Ubisoft, Magento and many others. Those companies are seduced not only by the huge talent pool we’ve been going on about since the beginning of this article, but also by rather low associated costs (the lowest in Europe) from rent to salaries and taxes.
It should be noted that the political turmoil Ukraine has experienced recently has had no effect on its IT industry. In fact, regardless of many economical hardships the country has faced, the Government consistently supports the development of the IT industry by providing tax exemptions for IT businesses.
Another great tendency is that Ukrainians are rapidly adopting the Western practice of forming clusters of IT companies to improve the local IT ecosystem. There are currently 16 such clusters in Ukraine, the biggest ones being Kyiv IT Cluster, Lviv IT Cluster and Kharkiv IT Cluster that together unite more than a hundred companies. Clusters, being non-profit NGOs, do not only focus on giving their member companies visibility and representation, but also on projects aimed at incorporating technology into our educational and lifestyle processes. In the case of Kyiv IT Cluster, it is cooperation with local universities and smart city initiatives.
You can learn more about our cooperation with universities here: How Kyiv IT Cluster Helps To Support Tech Education
With all that being said, here is a hint of advice for you: next time you think about launching a new project, think about bringing it to Ukraine so you do not miss out on what might be the best cooperation one can have.
If you are interested in learning about some successful cases of Ukrainian tech companies, check out this article: How Ukrainian IT Specialists Are Redefining Home Security