IT outsourcing software development

Growth in Ukraine: How it Impacts IT Outsourcing

Ukraine is exploding as a resource for IT outsourcing and software development. A 2-year old Ukranian startup was bought by Snapchat for $150 million. Let those numbers sink in for a minute. This is a pacesetter as to how outsourcing and IT has developed. Looksery developed facial recognition technology that Snapchat uses in its filter lens to allow for real-time video editing.

Also, Google paid around $45 million for facial recognition software. Just like Snapchat, the company was based in Ukraine. These examples and recent technology breakthroughs are due to the strong foundation created by previous software, such as Paymentwall.

Technology in Ukraine is showing signs of development as well. In fact, there’s an estimate of around 2000 startups located within the country. This is an indication of increased technological awareness and growth of different outsourcing models. Therefore, the world is now looking at Ukraine as it fights its way through the technology war.

Ukraine’s Dedicated Software Teams

For the past half-decade, Ukraine is the most recommended country for dedicated software development teams. However, with the recent growth of outsourcing exports of $2 billion in total. This was from 2011-2016 where 4 percent comes from the IT industry.

In fact, software and IT exports are becoming Ukraine’s 3r- highest generating sector. A large percentage of those exports are made to the US, UK, and Israel.

There has been a growth of IT service providing companies that brought out massive competition. This results in high quality IT services and affordable prices. In fact, by 2020 Ukraine will have around 200,000 IT experts within the industry.

In turn, this data is supported by the increase of IT specialists by 65,000. Companies such as Cisco, Oracle, Rakuten, and Samsung have significant interest in Ukraine’s IT talent pool. The majority of these companies specialize in the Research and Development centers in the country.

Kiev is becoming the most popular city with over 52 R&D international offices. There are other countries like Israel and the UK that have an excelling IT industry. Ukraine is gaining their skills and knowledge from them. Thus, Ukraine’s IT sector is growing despite its tender age.

Why is Ukraine a Breeding Ground for Dedicated Software Teams

Ukraine’s geographical location is a huge factor in its popularity. This is because Ukraine is a sovereign state that’s surrounded by European and Russian countries. Because of this, there is no language barrier when searching for IT experts or software developers.

There is a large population that speaks fluent English. Also, you can find others that speak German, French, etc. Plus, due to its geographical proximity, creating a physical meeting between the client and developer around America, Europe, and other countries, can be arranged with relative ease.

In addition to Ukraine’s talent pool, there is a large range for clients to choose in terms of location, size and the range of services. As much as the location is concerned, five years ago there had only been a few cities that met the needs of a company.

For whatever software development company size you’re looking for—whether large, medium, or small sized—it won’t take long finding what you’re looking for. This also applies to the services you’re after, as you can find a Ukranian IT professional to assist you.


It’s no doubt that Ukraine has become the main hub for the outsourcing economy. This means that this area will continue to grow and adapt to the tech industry. I’m confident that their dedicated software teams will become a great asset and improve the quality of future applications.

3 thoughts on “Growth in Ukraine: How it Impacts IT Outsourcing”

  1. Ukraine’s IT outsourcing sector has been booming for over two decades. The benefits of contracting out software development and QA/testing to this Eastern European country have long become clear: you get to tap into the extensive pool of world-class engineering talent and enjoy fairly cheap rates.

Comments are closed.

Scroll to Top