Ukraine — Outsourcing Destination of the Year – 2011. In 2011 Ukraine claimed the nomination “Outsourcing Destination of The Year” within the frames of European Outsourcing Excellence Awards proving its ambitions to challenge to become a destination в„– 1 for complex R&D and software development. Ukraine is renowned for its exceptional talent pool, advanced engineering capabilities and “can-do” mentality which already made it as best location choice for some of the world leading enterprises.
Ukraine — the world’s fifth biggest IT services exporter. The country holds the largest outsourcing market volume in Europe. The IT market volume is about $2.2 bln. Ukrainian IT sector demonstrates the fastest-growing rates.
R&D Focus. Ukrainian companies have a strong advantage in R&D including not only scientific research, but also the software development demanding creativity and strong skills in adjacent domains. Ukraine belongs to a very small group of countries producing space rockets, airplanes, and atomic power-plants, as well as hardware and software for them.
High-level educational heritage. Historically, Ukraine had highly-developed education and science; the country produced gifted engineers, researchers and scientists for the former entire Soviet Union; nowadays there are almost a thousand colleges and 600,000 students.
Promising scientific and technical potential. Ukraine possesses great scientific potential especially in technical branches — with only 1% of the world’s population, the country has 6% of the world’s physicists, mathematicians, computer programmers and other highly trained professionals.
Great educational infrastructure. Nearly 27% of total population has some higher education. According to Goal Europe research agency today in Ukraine there are 900 active universities and 30 000 IT graduates each year and the level of education is really high. Currently, there are 170 scientific research institutes (within the National Academy of Sciences structure), including the internationally renowned Glushkov Institute of Cybernetics, and eight techno-parks which address the challenges of innovation.
Cutting project cost. Ukraine is not an EU member. The manpower and infrastructure are still rather inexpensive here.
Visa-free travel. The Ukrainian government introduced visa-free conditions for EU and US citizens and several other countries to make trips even easier.
Favorable tax policy. The Ukrainian government keeps a favorable eye on IT outsourcing industry with 0% VAT (only one sector remaining) for exporting software development services. This allows to offset wages growth rate and keep prices stable.
Acceptable travel costs. Substantial reduction of travel and communication costs and time: 1-3 hours by airplane.
Favorable time zone. Ukraine time zone is GMT+2, so the business hours here almost coincide with the rest of the European countries (the time shift is one hour for Benelux and Germany, 2 hours for the UK and France). Moreover, there is some overlap with the USA working hours, so managers from the United States can discuss the tasks and set new targets to developers during their work time;
Close communication and business culture. Ukraine is a European country. A lot of Ukrainians have worked in the EU countries and the USA including those on managers’ positions. Most Ukrainians are open-minded, communicative people. They share common European culture with some national differences of course.
No language barriers. Most of IT professionals have fluent spoken English language skills. This assures that the communication during working process will be successful.
To read about Abto Software Communication Processes, please refer to Company Materials
Lviv is the third largest software development center. Lviv is the economical, cultural, and intellectual capital of Western Ukraine. As a center of computer technology and software development Lviv has an unused and available resource of software competencies which makes it an extremely attractive outsourcing destination for lots of offshore and nearshore companies seeking qualified and well educated personnel striving to gain the highest level of support.
Lviv — is a “destination to watch”. According to the recent report by a leading global professional services firm KPMG, 31 cities were identified as potential to become the “destinations to watch” for the next outsourcing wave and Lviv was the only Ukrainian city included in this list.
Historic connections, cultural proximity and similarities with Europe. Being a part of the former Austrian-Hungarian Empire Lviv has been historically involved in European political and economic processes. Intensive business contacts with European partners throughout the history facilitated in incorporating European business practice. Thus, Western Ukrainian companies combine European business tradition with cultural proximity in order to create ultimate communication environment and coherent business mechanisms. Lviv, more than any city in Ukraine, is culturally closer to the West. Such regional aspirations show that Lviv and its inhabitants are willing to operate based on the rule of law democracy and the principles of free trade. Lviv also shares a similar work ethic and European view on life.
Lviv is a leading education center. Lviv is famous for its great educational institutions including Lviv Ivan Franko National University and Lviv Politechnical National University, which historically became great educational scientific and cultural Ukrainian centers. In Soviet times Lviv also provided a considerable number of high-level programming professionals to the former Soviet military and space industries, therefore resulting in considerable potential of the R&D institutions and complex programming. According to statistical data by IT Ukraine Association, the number of IT institutions and universities in Lviv totals 20, with 54 of IT-related majors.
Advantages of Ukrainian IT education. Lviv programmers obtain a universal education and are able to work on different sophisticated and science intense projects. Unlike many Indian programmers, who are often taught some particular technology at short specialized courses, and thus cannot solve problems that arise outside the scope of their knowledge, Ukrainian developers possess a number of skills to work on nonstandard challenges; therefore they are also able to change development platform, technology, etc. relatively easily.
English skills. A substantial number of Lviv IT employees are familiar with the commonly spoken European languages: English (80%), German (5-10%) and French (4-5%). Abto software and web development experts have good command of the English language as they understand that foreign languages and cultural traditions knowledge is critical for successful communication with customers abroad.
Sufficient cost-saving. Lviv is especially attractive for outsourcing due to its sufficient, relatively inexpensive, and available human resource potential for software development and the best communication infrastructure in the region. The most important reason for entering Lviv software sector is great cost savings on software development projects.