White Paper on Offshore Software Development in Ukraine (2002)

In the era of globalization and specialization outsourcing non-core activities to third parties became a universal tool, helping companies to concentrate on their basic, profit-generating activities, while letting professionals take care of secondary business processes.There are several strong characteristics of Ukraine that provide positive benefits for international organizations considering working with software development resources from Ukraine:

• Availability of resources;
• Availability of programming specialists;
• Labor Costs;
• Technical excellence;
• R & D focus;
• Strong fundamental education;
• Experience with complicated projects;
• European culture;
• Great potential;
• Location;
• Business travel;
• Availability of local professional organizations.

Like any developing and young industry, the Ukrainian offshore software development industry has a number of drawbacks. People involved in the industry clearly recognize them and try to combat them. These disadvantages may be real or merely perceived, but they prevent Ukraine from becoming an outsourcing superpower:

• Business and Management skills;
• Bandwidth costs;
• Industry association development;
• Language barrier;
• Lack of certification organizations;
• Brain Drain;
• Legal and regulatory issues.

Although leading Ukrainian providers have existed for 10 years, the industry is still young, which leads to both disadvantages and advantages. Because the outsourcing sector is small but very competitive with the rest of the Ukrainian IT –industry, not to mention industry outside of IT, in terms of payment, career opportunities, job challenges and social protection, it attracts the best of the best. This situation will last so long as free resources are available. Indian companies, by contrast, have started to meet problems attracting new high quality personnel. Another positive impact is that Ukrainian companies are much more flexible when seeking to attract clients. They strive to overtake the leader and to prove themselves.

White Paper on Offshore Software Development in Ukraine (2002)