Flag of Ukraine
Key facts about Ukraine
Population: 45 million
Language: Ukrainian, although Russian is also widely spoken
Capital: Kiev
Key development centre: Kiev, Kharkiv
Ukraine is a relatively new offshore development location, but analysts identify it as a software development market with strong potential for growth. It has a large talent pool and its business processes and infrastructure are improving rapidly.
The IT sector in the Ukraine has grown considerably during recent years – at a rate of between 28% and 20% year on year since 2006, according to IDC and the firm believes this rate is set to continue.
Ukrainians pride themselves on their scientific and mathematical skills that were developed during the Soviet era and continue today. Consequently the country’s university-level science, engineering and maths courses are of a very high standard and many students continue to post graduate study. IT education is one of the most popular and respected subjects in the educational system. In fact around a third of all students at Ukraine’s 950-odd universities are studying information technology-related disciplines. Many of those graduates go on to work in IT: the Ukraine currently boasts a developer population of around 14,400.
Ukraine is not currently a member of the European Union but it is clearly a European country and views itself as Western, sharing many similar values as Western Europeans.
Kiev - Capitol of Ukraine
Ukraine provides a nearshore location for Europe with a one to two hour time difference and two to three hours flight time to most European capitals.
Ukraine has not experienced the wage inflation of more mature offshore destinations and its currency has not appreciated in the same way as the Rupee. Development costs remain low in the Ukraine, in many instances lower than in Indian and European Union countries.
Employee churn in the Ukrainian software outsourcing sector is very low. While some other offshoring destinations are struggling with employee turnover rates of up to 25%, turnover is less than ten percent in the Ukraine. As you will not continually get new staff on your outsourcing projects you can build and keep a base of knowledge.
Worries over intellectual property theft and political instability have kept some of the larger IT organisations from opening their own development centres in the Ukraine, but smaller outsourcers have flourished. There are encouraging signs that Ukraine is winning the war on IP breaches. It has introduced new legislation against IP theft, data breaches and piracy. In 2008 it joined the World Trade Organisation and talks are underway with the European Union over trade agreements.