The IT outsourcing industry in Ukraine
UKRAINE IN 11TH PLACE IN THE TOP 20 LIST OF LARGEST GLOBAL DELIVERY CENTERS
Thus, according to Annual Global Outsourcing Industry analysis GS100, Ukraine is on 11th place in the Top 20 list of the largest global delivery centers in terms of number of people deployed. Ukraine is the first among Central and Eastern European countries ahead of Russia, Belarus and Poland in this list.
Similar result are shown in the catalogue of IT outsourcing providers from Central and Eastern Europe – www.ITOlist.eu (the project of Central and Eastern European Outsourcing Association – www.ceeoa.org). According to the 2007 and 2008 CEE IT Outsourcing Review, Ukraine holds the first position among CEE countries in terms of market value, number of IT outsourcing companies and number of professionals involved in IT outsourcing services.
Top 20 Locations
|6||England / United Kingdom||23494|
|Note: Figures are based on data from over 150 companies|
For the last decade the market value of IT outsourcing services in Ukraine showed constant growth, except for the last couple years, where due to the global uncertainties of the economy IT outsourcing activities remain sluggish.
Besides the global uncertainties of the economy, the Ukrainian IT outsourcing industry is greatly affected by the economic and political situation in the country.
Many other countries who are competitors of Ukraine in IT outsourcing have established special tax policies for outsourcing providers thus placing them in more favorable position and promoting industry growth.
For example, India, China, Brazil, Russian Federation, and Romania have several times lower tax rates for software vendors than Ukraine. Belarus has a special Government program for the stimulation of the software development industry.
The Belarus Hi-Tech Park in Minsk provides a comfortable business environment for the IT business with its special taxation conditions which are unprecedented for European countries.