+972-72-3425-723 Atrium Tower, Jabotinsky 2, 18th Floor, Ramat-Gan info@allstars-it.com

Why Kiev is the most suitable Ukrainian city for IT outstaffing?

The past few years have seen enormous, exponential growth in the Ukrainian IT industry.

The country’s IT industry export volume has grown by almost 3000% in the last decade, from $110 million in 2003 to $3.6 billion in 2017. This number is expected to double in the next few years as large multinationals are increasingly receptive to the value proposition provided by Ukrainian outsourcing firms. A 2017 PWC report claims that Ukraine is now ranked among the top 25 IT services exporters worldwide.

Market-Leading Talent

Ukrainian IT firms are concentrated in the country’s larger cities such as – Kyiv, Lviv, Kharkiv, and Dnipro. Kyiv in particular has thus far developed a well-deserved reputation as a market-leading IT outsourcing destination due to its abundance of highly skilled developers and vibrant commercial environment .The city attracts many experienced developers and maintains the highest concentration of IT talent in the country. Developers who work in the IT sector in Kyiv is around 46.6% of all IT resources in Ukraine). High commercial demand on the Kyiv IT market has resulted in the nation’s highest average salaries, strong year-on-year wage growth and world class workplace conditions, thus underpinning its reputation as one of the IT capitals of the world. Developers are said to be excited by the Kyiv IT environment in which they are able to leverage professional IT firms to broaden their tech stack, upskill existing capabilities and work flexible hours. 

Geographic Competitive Advantage

Kyiv has an advantageous strategic location unrivalled by most neighbouring cities. All major European countries are accessed by no more than a 2-3 hour flight, while major international markets in Asia, India and the US are no more than a direct flight away. The city is serviced by 2 international airports and European rail. Kyiv’s central location also ensures working hours overlap significantly with burgeoning markets across Asia and the Middle East.

Outsourcing Location of Choice

Increasingly, large multinationals are choosing Kyiv as their IT outsourcing destination. Giants of industry such as Orange Telecom, SAP and Sandisk (to name only a few) are already reaping the benefits of outsourcing elements of their IT operations to Kyiv with many others said to be following their lead. Internal reporting from these companies has suggested that not only have costs significantly decreased, but the quality of output and product has significantly and tangibly  increased.