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Tuesday, March 21, 2023

IT outsourcing to Ukraine: development that outshines the warfare

With younger generations of IT expertise, Ukraine is a dynamic and productive nation. These professionals embrace change and innovation, and constantly aspire to excessive achievements. Ukraine’s IT outsourcing trade has had super development within the final twenty years. 

With quite a few advantages, Ukraine has established a strong fame as probably the most most popular outsourcing locations. Over 15,000 IT specialists graduate in Ukraine annually. The nation has constructed a thriving IT ecosystem the place 1000’s of software program growth firms ship cost-effective and high-quality options. Corporations outsource their IT initiatives to Ukraine to entry top-class engineering expertise and the best merchandise.

Ukraine has usually been acknowledged as one of many prime areas to outsource glorious software program builders at an inexpensive value. By outsourcing IT must Ukraine, firms profit from a wider expertise pool and decrease bills.

International companies on the lookout for customized software program growth often select Ukraine. Nonetheless, from February 24, Ukrainians should take care of russia’s warfare towards Ukraine. Regardless of this case, the Ukrainian software program trade remains to be increasing. What attracts Western firms and their IT operations to Ukraine and the way have Ukrainian IT enterprises withstood these troublesome instances? Let’s discover it on this article.


IT enterprise operates seamlessly regardless of the warfare

Ukraine has suffered from an all-out warfare waged by russia since February 24. Nonetheless, this case has not halted any operations within the Ukrainian IT trade. After guaranteeing that their workers and information are absolutely protected within the West of Ukraine or overseas, software program growth firms and the US and EU firms with places of work in Ukraine proceed to function with out interruption. Whereas retaining management, high-quality companies, and entry to the expertise pool, they’ve decreased and managed all enterprise dangers.

Ukrainian IT companies have proven their resiliency and talent to ship glorious companies it doesn’t matter what. Throughout the wartime, the Ukrainian IT trade has displayed outstanding tenacity, ethical braveness, and talent to deal with crises. Many IT firms ensured the security of their workers in the course of the early levels of the warfare and even earlier than the warfare began since that they had launched emergency measures upfront following intelligence warnings. 

The shift to a brand new mannequin went easily, and that may very well be anticipated. Two years of Covid quarantine have helped Ukrainian IT firms get ready for any circumstances.

Overseas embassies have additionally returned to Kyiv, suggesting that the Ukrainian capital is safe sufficient for companies. Throughout disaster instances, Ukraine’s IT sector has confirmed to be a dependable accomplice for international companies. 

Development of IT companies export

Ukraine’s export-oriented IT sector produced a file $2 billion income for the primary quarter of 2022, the Nationwide Financial institution of Ukraine (NBU) studies. The result’s 28% greater than the determine for a similar interval of 2021 ($1.44 billion).

In keeping with this report, the expansion of the software program growth trade continued till the warfare began and reached a file month-to-month export – $839 million. This determine exceeds the identical interval in 2021 ($480 million) by 43%.

In March 2022, the Ukrainian IT trade retained $522 million that’s 96% of IT companies exports, in comparison with the identical interval final 12 months ($546 million). Furthermore, nearly all of Ukrainian IT companies count on a development of 5-30% in 2022. The IT sector has been in a position to stabilize and rapidly rebuild its operations with the assistance of anti-crisis plans. Most Ukrainian IT firms managed to retain prospects and the amount of their growth and upkeep contracts, Forbes studies.

Ukraine IT firms nonetheless rent

The DOU recruitment portal’s ballot discovered that 90% of IT professionals haven’t skilled any modifications of their jobs or workload because the starting of the warfare. This illustrates the trustworthiness of Ukrainian IT companies. Extra importantly, they carry on hiring gifted tech specialists to help their firm and the market. 


Ukraine IT market grew tremendously in 2021

In 2021, the Ukrainian IT market confirmed phenomenal development. To visualise this growth, consider a 50% workers enhance by the 5 largest Ukrainian software program growth firms. The 5 largest organizations (SoftServe, GlobalLogic, EPAM, Luxoft, and Ciklum) have employed roughly 27,000 IT specialists since 2020. In 2022 they depend greater than 40,000 workers all collectively. The current estimates point out that 220,000 Ukrainian programmers carried out within the international market in 2021. That is the very best lead to Europe and the fourth rank globally when it comes to functionality.

World’s top-100 IT distributors checklist embody Ukrainian firms

The Ukrainian IT trade is legendary for its companies supplied for the EU, UK, and US firms and tech startups. Over 100 firms from the Fortune 500 checklist are among the many Ukrainian IT distributors’ prospects.

The Worldwide Affiliation of Outsourcing Professionals introduced the highest 100 checklist of IT outsourcing companies suppliers. This ranking included 12 Ukrainian software program growth companies and three worldwide firms with places of work positioned in Ukraine. IAOP yearly selects the perfect software program growth firms based mostly on essentially the most related standards within the trade, similar to buyer testimonials, certification and awards gained by distributors, innovation initiatives, and social duty initiatives.

Robust positions in US market

Clutch, the globally recognized US B2B software program suppliers assessment portal,  highlighted Ukrainian companies among the many fastest-growing IT firms in its rating revealed final 12 months. Ukraine’s outsourcing companies are additionally on the checklist of firms with essentially the most sustainable development. The checklist of the 100 fastest-growing software program growth firms contains 5 of them from Ukraine, whereas 9 seem on the checklist of prime 100 firms with essentially the most sustainable development.

In the case of IT outsourcing actions, the US continues to be Ukraine’s prime accomplice. Roughly 45% of the IT sector prospects characterize the US-based companies. Ukrainian IT specialists are among the many greatest on this planet for his or her in-depth technical experience, glorious English proficiency, and cutting-edge know-how abilities. 

Ukraine to hitch the EU

Ukraine has been granted European Union candidate standing by the EU leaders on Jun 23, 2022. The historic choice marks a necessary level on Kyiv’s approach to EU membership. 

All industries, together with IT, will regularly converge on EU requirements as a part of the EU integration course of. Entry to the EU market, technological developments, monetary assist to revive important infrastructure, and low-cost loans to restructure the financial system will assist Ukraine’s IT trade proceed rising.

Advantages of IT outsourcing to Ukraine

Ukraine is without doubt one of the greatest locations for IT outsourcing. Right here you’ll be able to rent highly-skilled software program engineers fluent in English. Ukrainian builders and IT undertaking managers are arduous staff and have a constructive stance on cultural variations.


Big expertise pool

The expertise pool is younger and vibrant, with good builders who’ve constantly raised the bar of excellence regardless of the challenges to allow the IT sector to prosper. With greater than 400 universities unfold throughout the nation, Ukraine yearly produces over 15,000 IT graduates who’re among the many greatest on this planet. Seizing the rising want to make sure ongoing software program growth capabilities, a big variety of non-public institutions provide specialised programs within the trade. During the last decade, there has additionally been a gentle rise within the numbers of IT specialists in Ukraine. For example, the highest 50 Ukrainian IT firms employed 10,000 extra professionals within the first half of 2021.

Various tech ability set overlaying numerous applied sciences

IT specialists from Ukraine have a variety of abilities throughout all programming languages. There are greater than 1,000 growth facilities within the nation that rent expert programmers to work on numerous high-level software program initiatives for international firms like Google and IBM. About 10% of Europe’s graduates in STEM fields, together with laptop science, come from Ukraine. The nation has change into a hub for innovation and the origin of many well-liked IT merchandise immediately. Ukrainian startups embody Ahrefs, GitLab, and Grammarly.

Efficient Communication and English Language Proficiency

Ukraine has a lot of folks talking English fluently. Western firms don’t face any challenges with the language barrier and potential miscommunication when outsourcing to Ukraine. All they want is to offer an in depth description of their undertaking’s technical necessities to get an ideal finish product.

Value financial savings

In comparison with software program growth companies in Canada, the US, and the EU, Ukrainian IT distributors do provide distinctive technical data and creativity for aggressive pricing. In comparison with different markets, Ukraine is a extra inexpensive supply for software program growth experience to rent.  

It’s normally costly to rent and practice a bunch of IT specialists in addition to create the required in-house infrastructure. Moreover, firms can considerably scale back their expenditures on {hardware} prices, software program licenses, upkeep, and so forth. by subcontracting companies. By reducing growth prices, outsourcing provides you funds management and entry to the perfect expertise which may not be accessible in-house.

Value to high quality ratio

Pricing is just not the one issue. With highly-skilled builders and efficient product high quality management Ukrainian IT companies assure world-class high quality. On condition that Ukraine has a 30-year custom of software program growth, there are various senior engineers. As well as, plenty of IT graduates advance their talents rapidly since they land jobs proper out of college and are mentored by extremely skilled coworkers.

Robust work ethic

Ukrainians are well-known for his or her dedication to excellence and exemplary work ethics. Chances are you’ll depend on the perfect outcomes should you rent Ukrainian software program programmers. They put plenty of effort into product growth and have artistic minds to generate concepts for your online business.

Tradition proximity

Compatibility throughout cultures is the last word argument. Ukrainian IT specialists quickly take in Western rules and categorical pro-European views. The Ukrainian folks  share a really comparable mindset to European residents. This interprets right into a strong cooperation that permits IT initiatives and tech startups to be launched efficiently.

Geographical Proximity

Venture administration and scheduling alignment are made easy by the point distinction as a result of working hours are overlapping with these of a number of North Coast areas within the US and Canada, and there may be solely a 1-hour time distinction with companies positioned within the EU. One of many most important arguments for selecting Ukrainian outsourcing is that the working hours within the EU or the UK are practically an identical to these of the distant growth workforce in Ukraine. High Ukrainian outsourcing cities, like Lviv, are conveniently positioned and are only a two-hour flight away from the EU (bear in mind that flights are quickly canceled due to the warfare). As well as, residents of most international locations can enter Ukraine and not using a visa.

Information safety

Information safety is of important significance to international firms. The legal guidelines of Ukraine are in step with these of the European Union. Databases and laptop applications are copyright protected beneath Ukrainian mental property legal guidelines. Ukrainian growth firms are able to defending each delicate shopper info and mental property rights. They supply safe information restoration methods to take care of unexpected information loss along with compliance options tailor-made to the client’s wants. Ukrainian IT companies additionally signal Non-Disclosure Agreements to guard your online business concepts and confidential info.


Take advantages of Ukraine’s IT outsourcing, tailored to new realities

Each enterprise can entry extremely certified software program builders by outsourcing IT companies to Ukraine and get all of the listed advantages. The IT companies be certain that the workforce assigned to your undertaking has the required abilities and expertise to construct strong, efficient, and scalable options. Because the distributors have expertise engaged on quite a lot of initiatives throughout a number of industries, they’ll rapidly discover environment friendly options to any firm’s particular wants. Since companies should sustain with the quickly evolving IT developments, outsourcing to Ukraine may also help you undertake cutting-edge instruments and know-how sooner.

Ukrainian IT firms proceed to broaden, attain international rankings lists, and win awards. Throughout the warfare, disaster administration and enterprise continuity methods carried out at their greatest, and Ukraine’s software program growth firms have retained prospects and stored initiatives operating. The partial switch of sources to neighboring Jap European international locations went easily, and Ukrainian IT companies proceed offering top-level companies. Ukraine’s IT sector has confirmed to be a reliable and efficient outsourcing accomplice. 

ELITEX, as a Lviv-based firm, has left the doorways of our workplace open to each worker who will thus really feel morally protected or want to speak with like-minded folks. We have now supplied our workers with protected working situations and facilitated the potential of relocating overseas for these of our workers who, for one motive or one other, wanted it. Safety has been a key facet of our enterprise for greater than 4 months now. This fashion, we guarantee the perfect safety for ongoing and future initiatives.

In case you are on the lookout for a dependable software program growth outsourcing accomplice, we will likely be joyful to listen to from you.

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