ukrainian software outsourcing

Ukraine economy was hit heavily by the 2009 recession. This crisis had also concerned IT field. In this period businesses, government and home users sharp reduced their IT purchasing. But for last two years IT market continues growing at equal to double digit rates. But it still depends on economic and political environment in Ukraine.

According to the market research company’s report, the total amount of sold IT goods in Ukraine hits UAH 14.5bn (€1.3bn) and the annual growth rate of the IT field in 2011 declined by more than 25% y-o-y. But this value does not include the export products and services.

In 2010 IT sales had returned back to their reasonable level.

In 2011 year the IT market was filled with 2009 and 2010 investments, natural demand increased in private sector. State owned companies and public sector also invested in IT market. The funds provided by the government were partially used on upgrading of the transport infrastructure of the national database creation.

The complexity and importance of outsourcing projects also grow up. Big companies decided to delegate their departments’ IT functions to the external vendors. So the provider’s skills became the most important factor among the competitors. Thus, transferred from the simple services to the high-end projects demand requires outsourcing companies to improve their skills and to raise customer service on the new qualitative level.

The further IT business development is highly dependable on the microeconomic situation in the country. Well, government, business and home users have unsatisfied IT needs. Implementation of the e-government services and elaboration of 3G-UMTS operating licenses might lead to the IT field growing. But we cannot be sure in this forecast because of GDP and export structure. The industries’ profitableness depends on the increasing price rates of imported energy resources. The real incomes of population and investment environment are not defined.

In spite of the economic and political situations in Ukraine, IT industry keeps developing and growing in 2012-2013. The export part is almost half of the IT sales in Ukraine. So this field is attractive for foreign investors.

According to PMR agency, general situation in this field remains mixed but positive. They expect arising of the double digit rate of growth in 2013. But it is based on the positive trend of the economic situation and absence of the crisis. In this case the IT market will growth by 13,5% y-o-y. The growth is expected to slow with increasing market maturity.