Ukrainian software outsourcing on the march

Consider just one key hit – and there starts the dawn of new Digital Age, made with efforts of all the best specialists of the world, and all the minds of prominent humans are connected directly to some great virtual hub… Would you not press it?

Go ahead and try something similar, maybe, a step towards it…
Ugh, who am I kidding? For now it’s just about making important parts of project (like core) in mother country and placing other stuff like UI/UX, somewhere else. Also, outsourcing is good for scaling businesses, that use it for growth in good periods, and drop it down in recessions [1].

Software market is very dynamic and always calls for re-evaluation [2]. That is how more tasks are assigned not to IT staff from India or Pakistan, but from Ukraine. Firstly, time zones are not so far from European ones; secondly, engineering education system of days of yore yields ripe fruits if many skilled specialists [3]; next, there are cultural ties with our Europe-striving country; and, last, but not least, the labor is – sadly – cheap. With falling exchange rate of hryvnya to euro, Western clients could have their components produced cheaper than in Poland (not to mention, than that in India, where a developer’s hourly fee might sometimes equal to some Ukrainian salaries for day).

Ukrainian outsource market was believed to be represented in major by Kyiv, Kharkiv and Lviv [4], when boom of IT outsource has started, but this data could be far from true now. On the other hand, which is also true, Ukraine has unstable legal field and is considered risky for investments [5] even more than earlier.

Click image to expand whole view. Origin:

A huge advantage for Ukraine to export IT services over material export is, obviously, in easiness of access to product worldwide, while solid goods manufacturing could be more convenient nearer to head office [6], which makes more people looking for different jobs at home, thus raising wages for local tasks [7].

Key directions that grow in demand for several years now are cloud security and apps for outsourcing management (that could be outsourced, too!) [7].

What could Western clients look for, except for low costs of jobs, is part-time load [8].

1. Outcourcing in 2014 – the new Normal
2. The best ways to renegotiate your outsourcing deal
3. Nearshoring in Eastern Europe
4. Regional Structure of Ukraine’s IT Outsourcing Industry
5. Ukraine: the perspective player
6. Outsourcing some tasks and going home with other
7. Retrospective: outsourcing trends to watch in 2013
8. How to Build a Better Business with Outsourcing

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