Ukraine has been a leading player in the software development arena since 2000. It has been listed among the top IT outsourcing service providers in the world market. More and more companies choose Ukraine as the destination for their Research & Development offices.
This article will outline what the Ukrainian IT outsourcing industry is going to look like throughout 2019. Outsourcing to Ukraine software development can be a good option due to the impressive numbers of the Ukrainian IT market.
Ukrainian IT Market in Numbers
The Ukrainian IT market grows by leaps and bounds year in and year out. As of now, Ukraine has the following characteristics:
- 166,000 developers
- 11,932 IT companies
- $1,256 billion industry value
- Market focus: USA
- $34-64/hour average rate for software development
- $25-149/hour average rate for app development
- 40% speak English fluently
Now let’s zero in on five specific vectors of Ukrainian IT outsourcing industry development:
#1. IT industry is supposed to grow by 30%
The Ukrainian IT industry grows fast. Nowadays, it is showing a steady growth rate of 20-26% annually. The number of IT professionals is going to exceed the mark of 200,000 people by 2020. Simultaneously, the Ukrainian software developers are continually improving their skills.
#2. The backup by the government
As the volume of the Ukrainian IT export amounts to 5% of overall export revenue and 3,5% of the country’s GDP, the government plans to support the software development industry. The government will be giving more opportunities for employment, better taxation, data protection, and service export, promoting cross-border business operations. The key tasks for the next year are the simplification of the services export from Ukraine, granting the long-term visas for foreigners’ employment, and modernization of the education system.
#3. Developers will return to Ukraine
Fewer IT employees decide to migrate overseas currently. The following year will most likely witness the same tendency. Furthermore, more Ukrainian IT specialists working abroad will head back to their homeland. (Young IT specialists choose to go overseas to gain professional experience from corporate giants, such as Google, Amazon, or Facebook.)
#4 Effort consolidation by IT Clusters
There are many IT clusters in 17 major Ukrainian cities. These clusters will consolidate their efforts to build an effective infrastructure for creating cities where IT specialists will be eager to live and work. They plan to launch multiple state-level programs working with universities to draw in the best students.
#5 Investing in leadership programs
The best is yet to come as we will be seeing a significant change in the education of IT specialists. Ukrainian IT firms will pay more attention to enable leadership and self-organization management at all levels of the organizational structure. Now, tech companies embrace the importance of their employees’ leadership skills and concentrate on training skilled managers within a company. The number of professional leadership programs for IT industry employees will be growing as well.
The Ukrainian information technology industry will continue growing steadily. Software development companies will go on attracting the flow of cash into the country’s economy. Judging from all the positive signs, we can expect both quantitative and qualitative growth of local software development companies and IT engineers.