Ukraine has been named Europe’s top IT outsourcing and software development destination, according to a report conducted by industry specialists AVentures Capital in association with Sourcingfocus.
The nomination is a testament to the sector’s rapid and consistent growth in the country, which has managed to weather extreme political instability. The IT service and software development sector has, over the years, reported double-digit growth figures.
The growing importance of IT for the Ukrainian economy can be explained by the conflux of a highly internationally-focused group of local IT companies, and the large sums of investment poured in the country for R&D development by global IT giants. Big players like Cisco, Oracle and Samsung have all invested in the country’s booming R&D sector.
The report reveals that by 2020, Ukraine’s IT engineering workforce will double to reach 200,000. IT is now the third biggest export sector in the country with an export volume of $2.5bn. At the moment, the US is by far the largest destination for Ukrainian IT exports representing over 80 per cent of trade volume.
The report also discloses that the current period of political turbulence has had little effect on Ukraine’s IT sector, despite having hampered overall growth in the country. The findings are in line with declarations by both local and international IT companies.