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Ukraine's growing IT outsourcing industry in danger of disruption

Stephanie Overby | March 24, 2014
The increasing threat and possibility of further violence in Ukraine is likely to impact its growing IT outsourcing industry. The current tensions threaten service delivery both in the short- and long-term.

Over the longer term — the next three or more years — the issues with Russia are unlikely to have a significant impact on service delivery in Ukraine, says Dani. "Ukraine's proposition as a technology service location is well-established, particularly for domain-intensive skills."

Ukraine has a large and experienced talent pool relative to the size of its industry. Around 16,700 engineering and computer science students graduate each year with a higher than average employability ratio of 15 to 20 percent, according to Everest.

Meanwhile, operating costs in Ukraine around can be as much as half of those in western European tier-1 cities, with costs in Kiev typically 10 to 15 percent lower than other central European cities like Prague and Budapest, according to Everest.

 

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