Jan 5, 2021

Ukraine as an offshore and outstaffing destination: IT market overview

Ukraine has long secured the status of the IT center of Eastern Europe. The large IT talent pool, good English skills of developers, time zone convenience, and low rates are among the main reasons why Ukraine is a top destination for outstaffing. 

Nowadays, Ukraine maintains a good reputation internationally, being among 20 best destinations for offshore development according to the Global Services Location Index 2019. 

Recently, Gartner and Outsourcing Journal have marked Ukraine as one of the top destinations for software outsourcing. At the beginning of 2020, the number of specialists employed in the IT industry reached 200 thousand people — this accounts for 35% of the Central and Eastern Europe pool. And this figure is forecasted to double by 2024 as 20,000 new specialists graduate from Ukrainian 150+ key tech universities every year. 

According to the European Business Association (EBA), the IT industry takes third place in the export structure, accounting for 20% of all Ukrainian service exports. The most significant number of qualified developers (over 76,000) is concentrated in Kyiv, which is now considered the premier location for various companies and startups. This capital city has over the years become the biggest IT hub in eastern Europe. 

More than 4,000 technology companies operate in Ukraine in total. In 2019, the software development sector in the country grew by 19%. According to experts, the main reasons for the growth of Ukrainian IT-exports is the high demand for IT-solutions in the global market. More than a hundred companies from the Fortune 500 list resort to Ukrainian IT companies’ services. 

Ukraine has become a preferred choice for starting offshore R&D offices for its friendly business environment, among other reasons. Internet, computer software, e-commerce, cybersecurity, telecom, and fintech remain the top industries that open software development centers in Ukraine and hire required engineers. Also gaming is one of the leading trends in the IT industry of Ukraine being represented by Wargaming, Playtika and Playtech with their R&D centers in Kyiv among others.

In January 2020, Google claimed to open its R&D development center in Ukraine. It will be the third in Europe for the corporation. Besides, such renowned companies as Samsung, Amazon, Oracle, NEC, and Boeing have their R&D centers in our country as well. Other worthy mentions include Grammarly and Petcube, which were both founded in Kyiv, Ukraine.

The majority of Ukrainian programmers speak English fluently. The language is compulsory in all schools and universities. Besides, a good deal of software development companies in Ukraine offer corporate English lessons, and thus, many programmers have a verifiable intermediate, upper-intermediate, or advanced English mastery.

To enter Ukraine’s innovative IT, it’s much better to hire a trusted software development partner that focuses on creating development teams or centers for offshore clients. Such a partner can help get a product into the Ukrainian market risk-free, recruit talented and experienced programmers to form an offshore team, equip the team with the needed resources, and support the R&D center for the entire span of the contract. Don’t hesitate to come to Ukrainian IT side – we have something much better than just cookies!