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Ukraine is Europe’s #1 IT outsourcing and software development destination

Ukraine’s IT industry is among Europe’s best, reaching $2.5 billion in 2015 thanks to a highly skilled IT workforce, which is expected to double by 2020 to 200,000 IT professionals.

Ukraine Digital News and AVentures recently published a report in cooperation with global outsourcing associations. The report details the benefits of the Ukrainian outsourcing industry, its size and its projected growth.

Ukraine’s industry currently contains 90,000 IT professionals, and is expected to more than double by 2020 to 200,000. Professionals and companies follow global software development trends, offering a wide range of engineering capabilities and practice agile software development.

Despite recent political turmoil, the industry is showing double digit growth. In 2015 the software development exports reached $2.5 billion, with IT and software exports becoming the country’s 3rd largest sector. 80% of services are being exported to the US market.

Many companies already work with IT talent in Ukraine, including Samsung, Cisco, Oracle, and Rakuten. Many conduct R&D activities in Ukraine, but others engage with Ukraine for UX/UI, front-end and back-end application development, data processing, quality assurance, software testing and other expertise. Ukraine has over 100 R&D subsidiaries for global companies, with Kyiv, the capital, being the most popular destination for new R&D centers, followed by Kharkiv, Lviv, Dnipropetrovsk and Odessa. Majority of companies are US-based, the second largest group being UK and then Israel.

Ukraine continues to have low taxes for IT-related business. In 2014 it announced a series of comprehensive reforms. These reforms will include specific provisions for IP protection, simplification of regulations on IT services exports, and better corruption protection.

Let the numbers speak for themselves:

Ukraine High-tech IT industry and software development outsourcing Intetics

Sources: ITO News , Ukraine Digital News
Title image via gate gate at Free Images

For more information about Ukraine and Eastern Europe as outsourcing destinations, checkout out our Technology Landscape in Ukraine and Belarus presentation.

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