The current state of the IT outsourcing in Ukraine

In today's interconnected world, the demand for IT services has skyrocketed. Companies are looking for innovative solutions to keep up with the rapidly changing market demands. IT outsourcing has emerged as a viable option for businesses to access top-tier technical expertise without having to invest in-house resources.

IT outsourcing is a practice in which a company hires external contractors to provide IT-related services such as software development, technical support, and infrastructure management. It offers various benefits, including cost reduction, access to a larger pool of talent, and flexible scaling options.

Ukraine has emerged as a leading destination for IT outsourcing in recent years. The country has a rich history of technical education and a talented pool of IT professionals. In this article, we will explore the current state of the IT outsourcing industry in Ukraine, focusing on its market size and growth, talent pool and skills, and its strengths and weaknesses.

Market Size and Growth

The IT outsourcing industry in Ukraine has experienced significant growth over the past decade. The country has emerged as a top destination for software development, cybersecurity, and data science. According to the Ukrainian IT Outsourcing Industry Report 2020, the industry's revenue reached $5.3 billion in 2019, and it is projected to reach $8.4 billion by 2025.

Ukraine's IT outsourcing industry is also growing in popularity among international businesses. The country is currently ranked fourth in the world for the number of certified IT professionals, and its IT industry employs over 200,000 people. The industry is expected to continue to grow in the coming years due to Ukraine's favorable business environment, cost-effectiveness, and high-quality technical expertise.

Talent Pool and Skills

Ukraine's technical education system has a strong emphasis on science, technology, engineering, and mathematics (STEM) subjects. The country has over 180 higher education institutions that offer technical degrees, with an estimated 36,000 IT-related graduates each year. Ukrainian IT professionals are known for their strong technical skills, problem-solving abilities, and creativity.

The country has a large pool of talented IT professionals, ranging from software developers and data scientists to cybersecurity experts and UI/UX designers. Many Ukrainian IT professionals speak English fluently and are familiar with Western business culture. However, there are some challenges facing the talent pool, including brain drain, where talented IT professionals leave Ukraine for better job opportunities and higher salaries abroad.

The IT outsourcing industry in Ukraine is experiencing rapid growth and expansion due to its cost-effective solutions and talented IT professionals. The country's favorable business environment, technical education system, and large talent pool make it an attractive destination for businesses looking to outsource IT services. However, the industry also faces some challenges, including talent retention and competition from other outsourcing destinations. Despite these challenges, the future looks bright for the IT outsourcing industry in Ukraine, and businesses can expect to continue to benefit from the country's technical expertise and innovative solutions.

Key Players in the Industry

Ukraine is home to a number of major IT outsourcing companies, including SoftServe, EPAM Systems, N-iX, and GlobalLogic. These companies have established themselves as leaders in the industry, providing a range of services to clients in Ukraine and around the world. Each company has its own strengths and weaknesses, with some specializing in certain areas of IT outsourcing, such as software development or data analytics.

SoftServe, for example, is known for its expertise in areas such as cloud computing, UX design, and digital transformation. EPAM Systems has a strong focus on software engineering and digital platform development, while N-iX specializes in areas such as custom software development, AI and machine learning, and data science. GlobalLogic is a leading provider of digital product development services, with a strong focus on innovation and collaboration.

Business Environment and Support

Ukraine has made significant strides in recent years to create a favorable business environment for the IT outsourcing industry. The government has implemented a range of policies and incentives to support the industry, including tax breaks, funding for research and development, and support for technical education and training.

The country also benefits from a highly skilled and educated workforce, with a strong emphasis on technical education and training. Many universities in Ukraine offer specialized programs in areas such as computer science, software engineering, and data science, providing a steady stream of highly skilled graduates to the IT outsourcing industry.

Challenges and Opportunities

While the IT outsourcing industry in Ukraine has experienced significant growth in recent years, there are also a number of challenges that must be addressed in order to maintain this momentum. One of the key challenges facing the industry is a shortage of skilled IT professionals, particularly in certain specialized areas such as AI and machine learning.

Another challenge facing the industry is competition from other outsourcing destinations, such as India and the Philippines. To remain competitive, Ukrainian IT outsourcing companies must continue to innovate and differentiate themselves by offering high-quality services and specialized expertise.

Despite these challenges, the IT outsourcing industry in Ukraine has many opportunities for growth and expansion. The industry is expected to continue to grow in the coming years, driven by factors such as increasing demand for digital transformation services and the emergence of new technologies such as blockchain and the Internet of Things.


In conclusion, the IT outsourcing industry in Ukraine has come a long way in a relatively short period of time, establishing itself as a major player on the global stage. With a highly skilled and educated workforce, a favorable business environment, and a growing market for IT services, Ukraine is well positioned to continue to grow and expand its IT outsourcing industry in the years to come.

Frequently Asked Questions

There are significant opportunities for growth and expansion in the IT outsourcing industry in Ukraine, including increased demand for specialized skills and emerging technologies like AI and blockchain.
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