| Source: Ukraine has become the most attractive | | | | share of Ukrainian software programmers remain on |
| destination for IT outsourcing in Eastern Europe, | | | | home turf due to the difficulty in acquiring permission |
| according to a study published June 2007 by Global | | | | for work and residency in developed markets, such as |
| Offshore Associates Limited, an IT-outsourcing | | | | the European Union and US. |
| consultancy. | | | | The relatively lower cost of living compared to EU |
| The country’s relatively low-cost software | | | | member-states is expected to keep salaries for |
| development industry earned about $246 million in | | | | software developers in Ukraine competitive, in turn |
| export contracts in 2006, 47 percent more than in the | | | | attracting more outsourcing work to the country. |
| previous year, the study concluded. | | | | While the number of computer science graduates in |
| Other estimates suggest the business was worth | | | | Ukraine is relatively high, at over 30,000 annually, the |
| significantly more last year, but exact figures are hard | | | | real number of qualified software developers available |
| to come by, as a significant portion of earnings are not | | | | is limited due to a declining educational system that fails |
| declared in efforts to avoid tax payments. | | | | to prepare young professionals with the newest |
| Ukrainian Hi-Tech Initiative, an alliance that unites | | | | technologies and methods in a fast-moving |
| Ukrainian offshore IT outsourcing providers, estimates | | | | technological age, the survey says. |
| the size of the Ukrainian software outsourcing market | | | | According to GOAL, the software development |
| at about $600 million in 2006. | | | | outsourcing business is best established in Ukraine’s |
| According to the alliance, Russia exported around $1.2 | | | | capital city Kyiv, where over 50 percent of software |
| billion worth of IT services in 2006, while the world’s | | | | developers are employed. However, GOAL’s |
| leading software services vendor, India, received | | | | study also recognizes the industry’s rapid |
| around $18 billion last year for exported IT services. | | | | development in smaller cities backed with strong |
| These figure show that Ukrainian software exports | | | | software development universities, including Lviv and |
| are only a tiny fraction of the world’s top | | | | Kharkiv. Lower salary requirements in these cities can |
| export-oriented software development business. | | | | offer software development labor at a discount to |
| However, industry insiders expect Ukraine to continue | | | | Kyiv, according to the study. |
| developing more software for foreign clients in the | | | | Taras Vervega, executive vice president for sales, |
| next several years, steadily earning its fair share of the | | | | marketing and business development at SoftServe, a |
| global software export business. | | | | Lviv-based offshore software development company |
| Global Offshore Associates Limited (GOAL), which | | | | that employees more than 200 programmers, said IT |
| provides companies in Europe and North America with | | | | outsourcing is one of the most dynamic sectors of |
| outsourced personnel from Russia, Ukraine, Bulgaria, | | | | Ukraine’s bustling economy. |
| Belarus and Latvia, singled out Ukraine as the most | | | | “Although domestic customers still often cannot |
| attractive outsourcing destination in Eastern Europe. | | | | afford ordering big IT projects, Ukrainian informational |
| With the second largest population after Russia, a | | | | products are becoming more and more recognizable |
| legacy of Soviet science and success-hungry | | | | and demanded in the West,” he said. |
| entrepreneurs, the country boasts the fastest-growing | | | | “In the past several years the Ukrainian brand [of |
| software development industry, the company said in its | | | | software development products] has significantly risen |
| survey. | | | | on the world software market,” he added. |
| According to GOAL, Ukraine boasts more than 7,500 | | | | According to Vervega, the main importers of Ukrainian |
| software developers. The outsourcing industry growth | | | | software development services are Western Europe |
| rate in terms of available IT professionals in 2006 was | | | | and the US. On the whole, the annual growth rate of |
| just under 50 percent in year-on-year terms. | | | | outsourced software from 2000 to 2005 was around |
| While salaries for IT professionals are steadily rising, | | | | 50 percent. Due to mounting demand from Western |
| they remain significantly lower than those offered for | | | | companies, the growth rate should remain high again |
| comparable work performed in developed countries. | | | | this year, he added. |
| And while salaries are higher abroad, the lion’s | | | | |