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
IDC Ukraine,
marketing research and consulting company, the ratio of market growth went beyond the
forecasts for 2006 and amounted to 28% as compared to the previous year.
This positive trend is to persist in the next three to four years.
For 2007 the industry analysts predict 20% growth.
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.
Nowadays more than 4 000 IT dedicated companies operate in Ukraine.
Ukrainian IT staff amounts to more than 47 thousand software, hardware
and IT-consulting professionals. The IT market volume is about $2.2 bln.
However, the industry experts mention that IT market still has the 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.
More surveys of the Ukrainian IT industry potencial:
 Computer Equipment Manufacturing: Ukraine, 2003
"In the past three years Ukraine has undoubtedly become the most attractive
outsourcing destination in Eastern Europe. With the second largest population
after Russia, a legacy of Soviet science and success-hungry entrepreneurs, the
country boasts the fastest-growing software development industry," stated
Natasha Starkell, CEO of GOALEurope, in her recent survey "Outsourcing Industry
in Ukraine 2007".
"The offshore outsourcing market in Ukraine has reached $246 million in 2006.
It grew 47% in 2006 with 30 000 IT graduates arriving into the workforce each year.
A lack of the integration with the EU keeps the prices in check and IT professionals
from leaving the country. It is not unheard of for Poland and other new EU member
states seek qualified IT resources in Ukraine. And Germany recognizes the outsourcing
opportunity in Ukraine-- German customers (60 in total) employ 6% of all offshore
outsourcing resources in Ukraine."
A whole pdf-version of the survey:
Outsourcing Industry in Ukraine 2007
According to recent ITONews.eu study,
the Central & Eastern Europe will definitely keep the
appreciation of the customers from all over the world for yet another decade. It will
attract new clients by professionalism of the experts, low labor cost, friendly
legislation as well as by geographical vicinity and cultural connection to the
Western Europe.
The survey (pdf-version, 1.7 Mb):
Central & Eastern Europe IT Outsourcing Review '2007
More surveys of the Ukrainian IT outsourcing:
The market research of the IT industry in Ukraine, by Market Visio (Gartner Group), 2003
White Paper on Offshore Software Development in Ukraine, American Chamber of Commerce, 2002
Ukraine boasts a 98% literacy rate. There are more than 950 universities and colleges.
87% of high school graduates going
on 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
3,000 and is growing year by year. Ukrainians won numerous prize places in the
world mathematical and programming contests for students and schools.
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 atomic 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.
Recently the experts have emphasised 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 interested to outsource their software development and testing.
After the entrance of Bulgaria and Romania into the European Union
almost all countries of Central and Eastern Europe (excluding republics of
the former USSR) are members of the EU.
The analysts predict that Ukraine will become a member of the EU only in 10 or more years.
As a result, Ukraine is very preferable for IT outsourcing.
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 managers positions.
Advantages of IT outsourcing to Kharkiv:
Kharkiv - Silicon Valley of Ukraine.
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