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Technology Outsourcing Market Volume in the Ukraine has Doubled
Yes, you know the benefits of outsourcing. Yes, words like globalization and outsourcing became engrained in the business world. Yes, you also want to reap the rewards and not lag behind.
When looking to outsource your IT development team, the Ukraine offers a competitive environment. Think carefully though and reconsider your options as leading entrepreneurs and economists foresee great success for the Ukrainian IT market.
In 2005, Global Outsourcing Report, published by CIO Insight, ranked Ukraine as the number 17 technology outsourcing destination in the world. Assessment of the long-term competitiveness of the top 30 future outsourcing countries projects that by 2015 Ukraine is going to be number six.
This insight on the market is based on the Global Outsourcing Index (GOI) and the Future Outsourcing Rank (FOR). The GOI is a weighted index made up of three separate ratings: the costs of doing business in each top 20 outsourcing country; seven risk factors (including geopolitical, human capital, IT competency, economics, legal, cultural and IT infrastructure); and market opportunities. The FOR, on the other hand, assesses the long-term (10 years) competitiveness of the top 30 future outsourcing countries. It is determined from GDP growth, population growth, the quality of the labor pool and analysis from leading entrepreneurs, economists and other experts.
Three years have passed since these predictions were made and we can already see that Ukraine is on its way to the top. Since 2005, the volume of the country’s IT market has grown an average of 77 percent per year and reached 544 million USD in 2007. At the same time, market growth rate in terms of employment has been growing at an average of 57 percent per annum.
Table 1: Technology Outsourcing Market in the Ukraine 2004-2007
| 2007 | 2006 | 2005 | 2004 | |
|
Market volume, million USD
| 544 | 246 | 156 | 101 |
|
Market growth rate, (volume)
| 121% | 57% | 54% | |
|
Number of IT professionals
| 14,000 | 7,630 | 5,201 | 3,692 |
|
Market growth rate, (in employment)
| 83% | 47% | 41% |
These statistics speaks for themselves. The growing pool of Ukrainian IT specialists, low labor costs and membership in the WTO since 2008 make Ukraine a competitive and attractive destination that is soon to surpass such popular outsourcing destinations as Ireland and Romania.
The following reports will give you an expert idea of your future potential in the Ukraine:
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