Outsourcing to Ukraine - understand your options

Ukraine is one of the World’s top destination for IT outsourcing. In October 2017, Global Sourcing Association (GSA) named Ukraine Offshoring Destination of the Year. The outsourcing industry in Ukraine has a great track record of 10 plus years of successful development in all sorts of business domains, so it’s fair to say that there are a lot of software engineers in Ukraine.

An obvious deterrent to resourcing is Ukraine is the on-going war in the east of Ukraine around Donetsk and Luhansk (shown on the map bellow). Some businesses have hesitated to look to Ukraine as an outsourcing destination due to concerns about this conflict along Ukraine’s eastern border regions with Russia.

Ukraine-1

Media reports have been fairly accurate in depicting the situation in Ukraine. However what sometimes is lost on outside observers is how the actual conflict is limited in its geographic scope. The vast majority of Ukraine is peaceful and untouched by the conflict in the far eastern border regions.

Change is brewing, according to Bloomberg survey, Ukraine is one of the 50 most innovative countries in the world.

Ukraine is famous for its higher education institutions. 41% of young Ukrainian specialists have at least Bachelor degree. The government encourages obtaining science degrees by providing free education to the gifted students based on enrolment test results. With more then 130,000 Ukrainians graduating each year. The system yields tens of thousands of math and engineering graduates from its universities, many of whom go on to become excellent software engineers. 2017 has brought 27,000 more IT specialists, which shows 27% annual growth to the Ukrainian engineering talent pool.

According to IT Ukraine Association and DOU, the country has positive workforce dynamics and significant improvements in its qualitative indicators. Ukrainian IT professionals developed new kinds of expertise and broadened their skills in 2017. Here are a few statistics on the subject:

Ukraine is 3rd in the world by the number of certified technical specialists;
It is 1st in CEE by the number of talents;
130,000 Ukrainians graduate each year;
79% of Ukrainians obtained higher education, and 57% of IT specialists have STEM degrees;
75% of IT professionals working in the country are fluent in English;
12% of Ukrainian IT specialists have over 10 years of experience, 19% – 5-10 years of experience, and 25% – 3-5 years of experience.

Graph

Another interesting fact is that English is an obligatory foreign language in Ukrainian schools. This means that Ukrainians obtain English basics in their early childhood.

Cost of living in Ukraine is significatly lower than that of western countries. Local companies like Pacto Systems can afford modern office spaces and provide employees with all the necessary tools and equipment to work effeciently and effectively while still keeping costs down compared to their western counterparts.

There are big rewards for companies looking to outsource in the Ukraine. Pacto Systems can help you get a team up an running in Ukraine. Please get in touch we can help you explore your options from Web Developer to payroll to Content editor to Desktop support.

Find out more about your options in Ukraine