Outsourcing to Ukraine

You are here


Optimizing the core processes, IT outsourcing became an integral part of the way people do their business for as much as business today requires at least the basic IT products. Reliable IT outsourcing partners give companies the competitive advantage.

Ukraine is a young country with a rapidly growing economy, low rates for IT services and strong educational system. The geographical proximity of Ukraine with European countries makes collaboration easy, flexible and cost-efficient. As IT outsourcing is not just a means of reducing cost and overhead, you need to ensure you won’t be distracted by unnecessary trouble. With

Ukrainian IT partners you can focus on the main goal of your business, while highly skilled Ukrainian software engineers work on your project providing the most efficient IT solutions in compliance with the latest technologies.


GDP131.8 Billion

0.8 % came into it from the IT industry in 2012; 3% (which is growth!) came in 2014


Area603.628 KM2

Average software
engineer salary$ 2000

Trends of ukrainian IT outsourcing services industry

  • Growth of IT services export

  • Increase of IT support services volume

  • Increase in number of providers with foreign capital

  • Increase in skilled specialist shortage

  • Increase in outsourcing services consumption of international market

  • Deployment of Quality Management systems

  • Market consolidation process (M&A)

  • Increase in-house product development

  • Improvements in government support IT industry

  • Market decentralization processes

Strong Education system

13% of high school graduates don’t go to the universities

30% of high school graduates choose IT related subjects in universities

57% of high school graduates choose other subjects in universities

Ukrainian IT industry

Ukrainian IT market surpasses all, even the most far reaching, expectations both in terms of software and hardware sales and production. Ukrainian IT industry is currently experiencing an explosive growth. According to the analysts from Hi-Tech Initiative the volume of Ukrainian IT outsourcing services and software development has increased by ten percent during the last 8 years and amounted to $1.1 billion and now the number of IT employees made up 25,000 specialists that amounted to 20% growth in the industry.

The Ukrainian IT market growth ratio by far outruns its counterparts from the CIS and Central European countries. By growth rate Ukraine outruns Russia, with its annual increment of 18%, almost twofold. On the evidence of such trend, increasingly more multinational vendors have established or re-assessed the status of the existing offices and offshore development centers in Kyiv, Kharkiv and other Ukrainian megalopolises.

However, the industry experts mention that IT market still has a low level of saturation, thus its potential is very large. Moreover, IT companies as well as individuals began to invest heavier in the appropriate fundamental IT education and training, which significantly adds to the general trend.

Respondents rate the volume of Ukrainian IT market in 2013 at $ 320 million that is approximately 9% of the total IT-market.

IT Outsourcing in Ukraine

As it is stated in the recent survey of Ukrainian HI-TECH INITIATIVE, the Association of Ukrainian IT Outsourcing companies, since 2000 Ukraine has been a leading player in the software development space, and has been ranked as one of top IT outsourcing service providers in the global market. More and more companies come to Ukraine selecting it as a preferred destination for their R&D offices.

According to the following analytical Report Ukraine is holding the leading positions with regards to “qualified IT workforce available on the job market, innovation readiness, access to the newest technologies, R&D and tech education excellence, favorable service rates and innovative business models offered to Western European outsourcing services buyers to help reach sustainability, flexibility and strategic long-term IT / development cost savings.”

Well Established Educational Infrastructure

Ukraine boasts a 98% literacy rate. There are more than 950 universities and colleges. 87% of high school graduates proceed to higher education. Of those, 35% choose information technology related disciplines. Presently, there are more than 39 educational institutions that maintain more than 15 IT related programs.

The estimated number of students that graduate each year with certificates in IT disciplines is more than 20.000 (out of a total of 560.000 students) and is growing year by year. Ukrainians won numerous prizes in world’s top mathematical and programming contests among students and schools.

R&D Focus

Ukrainian companies have a strong advantage in R&D. By R&D we mean not only scientific research, but also all the software development that requires creativity and strong skills in adjacent domains.

Ukraine belongs to very small group of countries which produce space rockets, airplanes, and nuclear power-plants, as well as hardware and software for them. As a result, complex R&D, design and development tasks can be successfully implemented and are welcome.

In fact, such sharks of the market as Samsung, Siemens, Magento and many others have chosen to create R&D hubs in Ukraine.

EU Prospects

Recently the experts have emphasized that IT outsourcing becomes more geographically diversified, and Ukraine as well as other countries of Central and Eastern Europe attract more and more attention of the companies willing to outsource their software development and testing.

After Bulgaria and Romania entered the European Union almost all countries of Central and Eastern Europe (except for republics of the former USSR) are members of the EU. The analysts predict that Ukraine will become a member of the EU in several years. As a result, Ukraine is very preferable for IT outsourcing.

Advantages of nearshore software development and IT services in Ukraine

Here are some of them:

  • Substantial reduction of travel and communication costs and time: 1-3 hours by airplane, visa-free conditions for EU citizens;
  • Cutting project cost: Ukraine is not a EU member, the manpower and infrastructure are still rather cheap here;
  • Convenience in communications and control: almost the same business hours - the time shift is one hour for Benelux and Germany, 2 hours for UK and France;
  • Close business rules: Ukraine strives to be involved in the main European organizations, now it is entering WTO;
  • ISO standards are adopted as state acts and are obligatory for some industries;
  • Different MBA programs become more and more popular;
  • Close communication and business culture: Ukraine is a European country, a lot of Ukrainians have worked in the EU countries and the USA including managerial positions.