Top 5 Industries that Outsource Their Projects to Ukraine

Over the last few years, Ukraine became the leading outsourcing destination in Eastern Europe. The IT industry of the country is flourishing and is expected to grow exponentially in the coming years. Convenient time zone, profitable cost and quality ratio, European mentality and work ethics, as well as profound expertise of the developers, are the key factors that draw customers to outsource projects to Ukraine.

But what are the top industries that outsource their projects to Ukraine the most? Do these projects eventually turn out to be successful? Let’s find out on the example of the top 5 industries: Automotive, Banking and Finance, Telecommunications, Manufacturing, Software & Hi-Tech.

1. Automotive.

The most exciting software development projects outsourced to Ukraine are related to the automotive industry. Just look at all these brands that trust the expertise of Ukrainian developers – Daimler Group, KIA, Mitsubishi, Volvo, and many others!

In-Vehicle Infotainment

Ukrainian developers work on a whole range of complex projects for embedded in-vehicle infotainment systems. These systems feature UX/UI with enhanced safety, as well as the use of speech recognition and voice assistance technologies designed to create personalized in-car entertainment platforms. Car drivers may use applications that are installed on their mobile devices, turn on audio and video playbacks, search for the latest news, send voice and text messages, view notifications and make arrangements while they drive. For a driver’s convenience, IVI systems allow blocking unwanted messages or software updates so that the drivers won’t be distracted.

Another promising solution by Ukrainians is to combine in-car operating systems under one hood, e.g., Automotive Grade Linux for managing critical functions and Android OS for the infotainment system. The diverse architecture protects critical vehicle functions such as driver assistance from possible crashes and optimizes the computing resources of automotive equipment.

Smart Navigation

Ukrainian developers have solid expertise in 3D navigation development. These cutting-edge navigation solutions include real-time traffic information and road guidance. Moreover, such a navigation system offers smart driving alerts about the nearest construction points, weather reports, and precautions that increase the driver's safety.

Furthermore, programmers in Ukraine excel at cloud development and efficiently implement cloud technologies into the automotive industry. Utilizing Qt, NDS, MirrorLink, C++, and other technologies and programming languages, Ukrainian developers have created exceedingly smart vehicle connectivity systems. These systems leverage guidance of drivers by joining smartphones with the vehicles head units. With such connectivity option, drivers can view constantly visited routes and receive high-quality digital maps for their upcoming trips.

Human-Machine Interface is another technology that is being actively developed in Ukraine. The user-friendly HMI automotive features act as vehicle co-pilots and include precise prototyping, 3-dimensional visualization, and advanced animation, undergoing a full cycle of quality assurance testing before mass production.

To sum it up, Ukrainian programmers are savvy in automotive technologies, and currently, are involved in creating automotive innovations in the areas of computer vision and AR, machine learning and AI, autonomous driving and ADAS, blockchain, and others.

2. Banking and Finance.

A significant part of projects outsourced to Ukraine is aimed at the transformation of the banking and finance industry. The scope of financial app development that is outsourced to Ukraine includes software for capital markets, investment banking, wealth management, asset management, treasury, and commodity trading. Ukrainian software developers create a wide range of solutions for core banking services as well as digitize financial services with technologies like AI, IoT, Big Data, and Cloud.

The most notable financial institutions that outsource their development projects to Ukraine are Barclays, Nordea, Murex, Australian Investment Bank, and Deutsche Bank.

Digital Banking

At present day, there is a big demand for digital banking services that could be available 24/7 at any location via smartphones. For the past few years, Ukrainian programmers have produced a tone of multi-component banking applications for the world’s largest banks, featuring comfortable UX/UI. These applications are based on cloud data and ensure secure encrypted peer-to-peer mobile connections. Some NFC systems do not oblige the user to expose the card details and are interconnected with different financial systems that allow instant access to critical business data.

Cutting-edge technologies in Finance

Ukrainian software developers march in step with the technological progress and successfully implement state-of-the-art technologies in various financial projects. With Robotic Process Automation, Machine Learning and AI, Ukrainian programmers create efficient invoice- and claims processing systems, and automated loan application solutions. Moreover, AI comprised of financial services is now capable to use natural language processing and speech recognition, automate the entire communication and request processing. The outsourced development projects include platforms that allow financial institutions to personalize these processes by using chatbots to augment human conversations. These technologies are also efficiently implemented to improve compliance with international standards and regulations.

Besides, Ukrainians are skilled in developing powerful business intelligence tools and predictive analytics solutions, which help to improve risk management, enhance user experience and make accurate business analytics possible for many customers from the banking and finance sector globally.

3. Telecommunications.

Ubiquitous Network & Technical Support

Another major industry that sees Ukraine as its strategic outsourcing destination is telecom. The most notable companies that are outsourcing their projects to Ukraine are Nokia, Ericsson, Samsung, VEON, Vodafone, and BICS. Ukrainian engineers have mastered the telecommunication support systems and deliver robust telecom BSS and OSS solutions. They also perform 24/7 monitoring and L1/L2/L3 support of companies’ physical and virtual IT infrastructures and networks.

Machine Learning & AI in Telecom

Ukrainian developers have been improving the telecom services through the implementation of RPA, Biometrics, Machine Learning, and AI. Telecom data is accurately personalized, and by this, customer churn is reduced, while the client's loyalty increases. Moreover, specific AI algorithms may forecast probable churn rates, identify potential risks and provide the information to the developers so they can take immediate actions. The latter technologies also improve business intelligence, predictive maintenance, and analytics.

Ukrainian programmers also have strong competence in the development of AI chatbots that notably enhance user experience in the telecom industry. Chatbots make the communication more quick and convenient, and enable the customers to have a precise record of their interaction with the service provider. Different types of queries, ranging from negligible to large-scale, could be effectively resolved with the help of chatbots. Most importantly, such chatbots may be designed to send e-mails, identify valuable leads and send them to the team, which will double the project’s cost-efficiency and increase its revenue.

4. Manufacturing.

The manufacturing industry is rapidly transforming, prompting entrepreneurs to embrace new technologies. State-of-the-art automation platforms, created by skilled Ukrainian programmers, become instrumental for digital business transformation. Many successful manufacturing enterprises that keep pace with technological advancements outsource their software development projects to Ukraine, such as Bosch, Siemens, Panasonic, Texas Instruments, Qualcomm, and LIEBHERR.

Embedded Development & IoT

Electronic embedded software is a significant branch of IT solutions for the manufacturing industry, which is outsourced to Ukraine. World-class manufacturers confide the development of sophisticated embedded software solutions to the Ukrainian IT specialists. The scope of the embedded software projects is very versatile, ranging from machinery and electronic control systems to fabless semiconductor solutions.

Internet-of-Things paired with AI is another technology currently transforming the entire manufacturing industry and accelerating Industry 4.0 adoption. The sensors are attached to physical assets, gathering and storing data, while using AI to execute certain actions. The development of specifically Industrial Internet of Things (IIoT) solutions is frequently outsourced to Ukraine, with the project spectrum including manufacturing execution, inventory management, predictive maintenance, smart connected products, and the development of AI solutions.

Business Intelligence and Supply Chain Management

Currently, IT specialists in Ukraine develop a wide range of different business intelligence solutions. The modernization of older systems and the transition to automated data management create an enormous competitive advantage for manufacturers. Migration from legacy systems optimizes the work of internal IT department and creates an opportunity to use effective business tools and applications, such as advanced analytical solutions. They provide precise forecasts, reporting, and convenient data visualization.

Another crucial aspect of manufacturing companies is an efficient and secure supply chain management. Many issues may arise if manufacturers use conventional approaches to their supply chains, for example, product traceability, supply disruptions, and more. Manufacturers outsource their projects to Ukraine where IT specialists are creating transparent supply chains with precise performance analysis and accurate risk management. This also includes the development of supply chain management systems based on blockchain, which helps create transparent and reliable ecosystems for the shipment process.

5. Software and Hi-Tech.

The last but not least important industry that works with Ukrainian developers is software and high-tech. Ukrainian specialists offer a broad spectrum of services that include software development, project management, UX/UI design, quality assurance and control, DevOps, and tech support. The most prominent hi-tech companies that outsource their projects to Ukraine are IBM, Oracle, SAP, Cisco Systems, Adobe, and Autodesk.

AR/VR

Ukrainian developers have profound expertise with cutting-edge technologies like augmented and virtual reality. The solutions developed by Ukrainian IT specialists include AR/VR cross-platform mobile and web applications, as well as content for Microsoft HoloLens, HTC Vive, and Oculus Rift. Among the most prominent projects designed in Ukraine are the AR house interior viewing application and a VR car configurator.

Blockchain

Blockchain is another emerging technology actively developed by Ukrainian developers. The blockchain-related services provided in Ukraine include the creation and maintenance of newly developed cryptocurrencies, stock exchange and smart contracts applications, and different types of custom blockchain development. In Ukraine, blockchain specialists work with every well-known system like Bitcoin, Ethereum, Hyperledger Fabric, Solidity, R3 Corda, IOTA, Monero, Peer Coin, Bit Shares, Stellar, Ripple, NXT, and many others. The most notable blockchain projects developed by Ukrainian programmers are:

  • Horizen – a privacy-oriented cryptocurrency and a leading-edge technology platform.
  • E-Vox – an open e-democracy platform
  • Infra – a blockchain-based regulator between the banks and the clients
  • Minexcoin – a cryptocurrency debit card designed for everyday purchases.
  • KUNA – the first Ukrainian public cryptocurrency exchange.

AI, ML and Computer Vision

Leveraging artificial intelligence for specific industry needs is very popular today. Lots of projects that include AI, Machine Learning and Computer Vision are outsourced to Ukraine. Ukrainians have mastered advanced analytics and predictions, social network data analysis and fraud detection technologies, natural language processing, voice recognition, and neural networks. The most evident examples of Ukrainian AI startups are – Grammarly, an English grammar-checking program based on natural language processing, and People.ai, an AI-based sales department management application.

IoT

Ukrainian developers have rich expertise in working with IoT projects based on various protocols like MQTT, OPC-UA, Sigfox, and others. The proficiency of Ukrainian experts includes outsourced projects for smart cities and smart houses, adaptive logistics, Industry 4.0, healthcare solutions, and diverse cybersecurity solutions, like encryption protocols for smart houses and healthcare devices.

Conclusion

In 2018, Ukraine was ranked as the top outsourcing destination of the year by the Global Sourcing Association (UK). At the same time, IAOP named 18 Ukrainian IT companies in their 2018 List of Top 100 Outsourcing Companies. Ukrainian IT industry is soaring and is expected to double by 2020. All this proves the notable success and experience of Ukrainian software developers who achieved great triumphs in automotive, financial, telecom, manufacturing and hi-tech projects. The extensive experience of the developers, their perfect mentality and profitable service costs continue to attract businesses, making Ukraine an alluring outsourcing destination.

About Author

Anton Blotskiy, Head of Marketing at Infopulse, one of the largest IT service providers in Ukraine and a 2019 Best of the Global Outsourcing 100 Company according to IAOP®. Providing end-to-end technology services and consulting, Infopulse brings in over 28 years of IT expertise to enable the success of our clients in 30 countries worldwide.

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