The Ukrainian IT / software sector currently enjoys much attention from the Danish side.  
Danish IT companies see Ukraine as an opportunity to ensure that competent programmers at prices significantly below the Danish costs, and not located several time zones away from Denmark. It is not only wages, but just as far as the amount of well educated, making Ukraine interesting and an attractive alternative to India. It trained 10,000 programmers from universities every year, but the figure will grow to 25,000 in 2008/2009. To the ICT industry as a whole trained there approx. 30,000 a year currently.
The great popularity not only come from Denmark, has meant that the IT industry starts to experience some of the same problems as in Western Europe. The biggest challenge Ukrainian IT / software companies now face is the recruitment of qualified personnel and retaining the skilled employees. In contrast to most other sectors in Ukraine have almost all IT companies in Ukraine's own HR department, since employees are considered as the critical factor for success. In 2006 and 2007, wage growth around 25-30% annually. Increase fares expected to be the same for 2008 but will over time probably fall to 10%.
Pressure on resources has led to many IT companies have begun to focus on other cities than just Kiev. In addition to Kyiv, there are four other large cities in the country and it is in these cities that IT companies are expanding. Kharkiv, Dnipropetrovsk, Donetsk, Odesa and Lviv is the country's other development centers.
"Cost Drivers" - what does it cost?
Basically, a Danish IT company only save costs on wages. All other costs are either on the same level as in Denmark or higher. The price of computers and licenses are the same in Ukraine as in other countries, while office rent and communication costs / Internet are higher. Office Expenses can easily sneak up on 30-40 USD per m2 per month.
A comparison of Danish and Ukrainian running looks like this

Cost Items
DK = index 100
Telephone / Internet

The above table is only interesting if you plan on running his own company in the country. Most companies choose, however, to pay for the programming work on an hourly basis.
In the procurement of programming services, there is a price range of between 20 to 25 Euro per billed hour. The actual pricing depends primarily on the competence requirements and volume. With a high and steady volume of projects it can be done to get the price below 15 euros, although in Kiev. Some companies offer prices around 11 Euro per hour, but the purchasing entity must so even stand for example. training of employees, equipment purchases, payment of office facilities or the like. 17 to 23 Euro seems to be the fairest pricing. As in all other sourcing exercises it is important to activity base its costs, so the actual savings can be assessed.
As a rule of thumb you can achieve a cost reduction of 50% at a volume of 6,000 hours over 12 months compared with the project in Denmark. With these prices, you as business to very large volumes before it is worthwhile to establish own ODC rather than buy services from local businesses. An educated guess is that you must at least be able to employ 15 people full time before his own development company is an economic advantage over traditional outsourcing.
It is also not an inconsequential consideration whether we as a Danish company sees its activities in Ukraine as an extension of its business or a relocation of activities (IT sector is currently expanding and do not cut down). If the alternative is the expansion of activities in Denmark, the saving is greater than the above, taking as further assume new capacity costs.
There are mainly four Danish operators in the market which stands out, and each with their own benefits and each with their positioning offers their programmers to other companies. These are Celenia, Ciklum, Kring and Mondo. The first three companies are primarily located in Kiev, and all three have the Danes sitting local to the servicing of client group. Mondo has its branch in the city of Kharkov in northeastern Ukraine.