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IT Nearshoring: 3 Great Reasons to Choose Ukraine

Ukraine is well known for its excellence in IT outsourcing. The large number of talented and certified IT graduates has caused the industry to increase substantially over the last few years. Ukraine’s dynamic IT outsourcing sector could more than double in the next decade, according to Stanislav Sheliakin, a senior consultant at PricewaterhouseCoopers. Here are 3 great reasons why Ukraine is the best choice for IT nearshoring right now.

#1 New It Government Initiatives

if_government-1_177309The last few years have seen the Ukrainian IT industry grow at an astounding 27% a year! But the government is keen to spur further growth with several major initiatives. One initiative is the “Brain Basket Foundation”. This project was launched in April 2014 by the government in partnership with the largest IT companies in the Ukraine. The grand mission is to make IT services the largest export by 2024 with a target revenue of $20 billion. The action plan involves fund raising and additional resources to create and train more than 200,000 IT specialists by 2020. The foundation is not only supported by Ukraine’s IT industry but backed by global players like Cisco, Microsoft and Richard Branson’s Virgin Group.

#2 Ukraine: Europe’s Silicon Valley

if_162_2694028Another initiative – SupportUkraine.us was launched in Washington, D. C. on April 29. The project is a partnership with TransparentBusiness.com. The project aims to encourage major American and European companies to outsource their IT operations and development to the Ukraine. With the slogan that companies can improve their profits and support democracy by nearshoring to Ukraine the initiative hopes to bring Ukraine closer to other countries. Despite the massive growth in the IT outsourcing sector over the last few years, Ukraine still has less than 1% of the world’s Information Technology market. The project advocates believe that the Ukraine has the necessary technical, educational and tax advantages to increase IT outsourcing market share to 10-15% of the global IT services economy.

#3 Proximity

if_map-pin-distant_1475069Ukraine offers advantages in cultural and geographical proximity. Compared to other important IT outsourcing hubs like India and China the Ukraine’s cultural proximity to America and Europe offers great benefits in smoother co-operation and better communication. With English widely spoken there are no language barriers to overcome. Along with high technical skills the ability to communicate clearly and effectively leads to successful outsourcing solutions. With Ukraine only a 2-3 hour flight away from major Western European countries it’s easier to meet with developers and designers than companies in India or China. Geographical proximity also allows developers to work in similar time zones. It’s much easier to contact the nearshoring company in real-time on the phone, by video conferencing or instant messenger if necessary.

Despite news events in Eastern Ukraine, major global IT companies are already working in partnership with the government and Ukrainian IT outsourcing companies. The future of nearshoring to Ukraine is set to get bigger.

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8 Comments

  1. Abhishek Swaminathan
    June 4, 2018 at 10:08 am

    Dear Team, I'm Abhishek from Germany, responsible for nearshoring and offshoring activities for our company. It would be helpful if we are able to schedule a Skype call, so that I am able to clarify some queries and understand more about your company.

    Reply »
  2. Emma
    May 3, 2018 at 11:44 pm

    Your article makes a strong case for Ukraine being a great location for IT outsourcing, although I did notice that this post is several years old. Is the industry still growing now like Stanislav Sheliakin predicted, or has it lost steam in the last year or so? It'd be fantastic if it's still improving. Quick question: Is it better to find small IT companies for outsourcing, or are the bigger companies better for reliability and results?

    Reply »
  3. Tarundeep Singh
    November 19, 2016 at 1:38 pm

    Great Article. I agree

    Reply »
  4. shaun wright
    September 12, 2014 at 5:56 am

    I had heard that the Ukraine is the next Silicone Valley and the idea of it has sparked my curiosity. I would like to speak to you or one of your freelancers about some work. I notice you have a contact form on your site but I figured I would throw the request in here. :)

    Reply »
    • admin (Author)
      February 18, 2015 at 2:49 pm

      Sure! My skupe is: echoradar7. We can have a chat/talk whenever it's convenient to you.

      Reply »
  5. September 9, 2014 at 7:48 pm

    One of the companies I do business with has set up their own office in the Ukraine and it has been a very positive experience. Since I have been considering do the same I am glad I came across this blog while doing a Google search. It has a great deal of useful information.

    Reply »
  6. Jack
    September 6, 2014 at 2:26 pm

    I think the IT industry of Ukraine has a big future. Our company had some projects with ukrainaian developers, everything was done at highest quality and the prices vere compareably low. Ukraine has the biggest IT potencial in eastern Europe and all post-soviet region. Efficent goverment policy and foreign investments will help it become the IT centre of Eastern Europe. Peace to your county!

    Reply »
    • admin (Author)
      February 18, 2015 at 2:43 pm

      Thanks for such a pleasent feedback! If your company will have some more projects regarding web development, we are here to help you with them!

      Reply »

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