IT OUTSOURCING PLAYBOOK
IT Industry overview
Ukraine has the largest and fastest-growing number of IT professionals in Europe. Today, Ukraine employs about 105,000 developers, 15 000 of which work for 5 large companies. 38.0% of them live in Kyiv, 17.2% in Kharkiv and 13.0% in Lviv.
At the same time, 2 years ago, it consisted of 105000 developers, hence, it increases by 20% per year. In other words, monthly industry “consumes” more than thousand new specialists, or even more, along with relocations.
The tendency also shows that females’ number in the industry is increasing: today there are almost 15% of women, occupying various positions.
The average age of the Ukrainian developers is 27 years old. Usually, students start working on their 4th year of the junior (or 21 years old) and may reach senior developer position by 25-27. If we start talking about years of experience you can find out that in Ukraine developers' classification is as follows:
Among hundreds of companies, existing in the IT outsourcing industry of Ukraine today, the biggest IT companies in Ukraine are EPAM, SoftServe, Luxoft, Global Logic, etc. The following table provides information on these companies by the number of employees and careers:
Average salary of IT-specialist in Ukraine varies from $350 to $4000 depending on skills, position and experience.
Roughly Ukrainian IT specialists provie service as follows:
- software development outsourcing providers (mainly to US and EU) – 75%
- software development for internal client (for Ukraine customers) – 8%
- system integration and enterprise solution implementation – 5%
- internal corporate IT departments – 12%
International experts believe that the industry has the potential to grow tenfold or more, given the size and quality of the country’s workforce, should reforms succeed and new strong players emerge.
The export volume of Ukraine’s software development and IT services reached $2.3 billion in 2014, in 2015 this number amounted to $ 5.5 billion, showing double-digit growth year after year. The Ukrainian IT industry is rather oriented on technology and new software development with:
- prevailing mainstream technologies (Java, MS stack, C/C++, Web) and QC/QA;
- low level of enterprise solutions knowledge (ERPs, CRM, and other business solutions);
- and almost no mainframes expertise.
Among the biggest and well-known Ukrainian IT centers are Kyiv, Kharkiv, Lviv, Dnipro and Odesa.
Kyiv. The capital of Ukraine has about 42,000 IT specialists. There are focused 38.0 % of all IT resources in Ukraine. The city has about 68 universities which are preparing skilled specialists for IT outsourcing market.
Kharkiv. The second largest IT center is Kharkiv. The city has 43 universities that can prepare at about 14,500 IT specialists. This city occupies 17.2% of IT sector.
Lviv. Currently over 9,000 IT specialists are involved in Lviv's IT outsourcing sector which means that this city reached over 13% of all the resources. Currently there are 5 universities which prepare highly skilled specialists.
Dnipro. This city has reached approximately 12% of all Ukraine's IT resources; about 7,000 IT specialists are involved here. There are 16 universities providing IT specialists.
Odessa. There are 5 universities which train highly skilled specialists in IT technologies. Odessa and Dnipropetrovsk have smaller pools of IT workforce. These numbers easily show that Odessa occupies only 6% of IT sector, but this city is rapidly developing. Today there are almost 4500 IT developers.