Nearly 100,000 Ukrainian programmers serve thousands
of companies as the demand for IT workforce is constantly growing on the global
market
In spite of the country’s recent political turbulence, Ukraine has seen its
IT service and software R&D sector grow every year by double-digit figures.
From Cisco, to Oracle, to Rakuten, to Samsung, more than a hundred global major
tech firms conduct R&D activities in Ukraine, while an array of local IT
outsourcing companies of all types and sizes serve clients worldwide.
Ukrainian developers often work on mobile, software, enterprise and web
projects in a variety of verticals. A range of providers have build their
reputation in solving complex engineering tasks. One may also find in Ukraine
excellent resources for front-end development, UI/UX design, QA and other
tasks.
The export volume of Ukraine’s software development industry reached at
least $2.5 billion in 2015 (number 3 export sector. This is just a fraction of
the country’s potential, taking into account its large and skilled workforce.
In partnership with local and international industry
associations, Ukraine Digital News (www.uadn.net) is releasing the first comprehensive report on this industry.
In addition to a complete set of data, including detailed analysis by
industry segments and regions, the report features fascinating cases of
international software R&D collaboration – for example, how a relatively
small company from Eastern Ukraine brilliantly solved mobile virtualization
tasks assigned by a South Korean research institute, while disruptive UK
fintech and healthtech startups have found industry and technology expertise in
a company from Western Ukraine.
The report also speaks frankly about the problems that may arise in
outsourcing projects. Miscommunications, inadequate methodologies, internal
resistance and other frequent issues are discussed by both services providers
and their clients, who share their experience and their advice for smooth
interactions.
Top legal experts have contributed advice to international companies to
draft outsourcing contracts and secure their IP rights, while Deloitte Ukraine
has offered a detailed account of the present tax rules as far as IT services
and local R&D centers may be concerned.
KEY FINDINGS Ukraine’s
IT service industry
·
Ukraine has the largest and fastest-growing number of
IT professionals in Europe; its IT engineering work force is expected to double
to over 200,000 by 2020.
·
Ukrainian outsourcing companies offer a wide range of
engineering capabilities, with most companies having already switched to agile
development over the past few years.
·
The export volume of Ukraine’s software development
industry reached at least $2.5 billion in 2015 (number 3 export sector),
showing double digit growth year after year. This is just a fraction of the
country’s potential, taking into account its large and skilled workforce.
·
The majority of local and international companies
report that the country’s political turbulence has had no or little impact on
their existing business – but such factors are hampering growth.
·
The US market is the main destination for Ukrainian IT
firms, with an estimated 80% volume of exported services.
·
The English proficiency level among IT professionals
has grown significantly over the past few years, but remains lower than that of
some other CEE countries.
R&D facilities of global companies in Ukraine
·
Ukraine is home to over 100 R&D subsidiaries of
global companies from a variety of industries, including telecoms, software,
gaming and e-commerce.
·
A significant part of these global companies entered
the Ukrainian market indirectly, through M&As, joint R&D with an
outsourcing component, or outstaffing service companies.
·
The United States remains Ukraine’s largest partner
for joint R&D activities (around 45% of the companies involved), followed
by EU countries and Israel.
·
Kyiv (Kiev) is the most popular location in Ukraine
for opening an R&D center, concentrating over half of all such bases in the
country. Other key cities for R&D activity include Dnipropetrovsk, Lviv
(Lvov), Odessa, Kharkiv (Kharkov) and Vinnytsia.
Business and legal
environment
·
Over the past year, Ukraine has significantly improved
its status in international business venue rankings, while its taxes for
IT-related businesses have remained relatively low.
·
Though far from completion, the reform effort is
significant, with several e-government projects launched in 2015. Important
legislative changes are expected in the short term in the field of IP
protection, in line with the 2014 Association agreement signed with the EU. IT
service export regulations are to be simplified, while local IT companies will
be better protected against bureaucracy and corruption.
No comments:
Post a Comment