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Global Recognition of Ukraine’s IT Outsourcing Industry and Its Market Players

Ukraine is increasingly becoming more and more popular as an IT outsourcing destination. Many experts agrees that such advantages as unique geographical location, the availability of extensive IT talent pool, strong scientific legacy, and cost benefits make Ukraine a natural choice for outsourcing.

Ukraine is increasingly becoming more and more popular as an IT outsourcing destination. With IT outsourcing market volume of US$ 1,1bn, with more than 1,000 outsourcing companies operating in the industry, and more than 25,000 IT specialist involved in outsourcing, Ukraine is one of the most attractive nearshore destinations for West European and UK companies and offshoring destination for North American businesses.

Many experts agrees that such advantages as unique geographical location, the availability of extensive IT talent pool, strong scientific legacy, and cost benefits make Ukraine a natural choice for outsourcing. Ukraine’s IT outsourcing service industry and Ukrainian outsourcing companies were recognized many times by global research organizations, national industry associations in their reports, listings, and rankings, as well as awarded in different nominations. Here are some of the achievements that should be mentioned and acknowledge the image of Ukraine as one of the best locations for outsourcing:

Central and Eastern Europe IT Outsourcing Review
Ukraine was ranked the first among 16 countries of the CEE region by the volume of IT outsourcing services provided, by the number of IT outsourcing companies operating in the market, and by the number of IT specialists involved in the outsourcing industry in the report “CEE IT Outsourcing Review” in 2008, 2009, 2010. The research is conducted annually by Central and Eastern European Outsourcing Association (CEEOA). The reports can be found here:
“CEE IT Outsourcing Review 2007”
“CEE IT Outsourcing Review 2008”
“CEE IT Outsourcing Review 2010”

TOP 30 Outsourcing Destinations
Ukraine has joined the list of TOP 30 Outsourcing Destinations by Gartner since 2007. Gartner, world’s leading research organization, examines 72 offshore locations in terms of ten criteria and list top 30 destinations. The criteria used by Gartner to identify top outsourcing destinations are language, government support, infrastructure, political and economic environment, cultural compatibility, educational system, labor pool, cost, global and legal maturity, data and intellectual property security and privacy. See Gartner’s 30 Leading Locations for Offshore Services

TOP 50 countries for locating outsourcing services – Global Services Location Index
Ukraine is included to the report of global management consulting firm A.T. Kearney – The Global Services Location Index that analyzes and ranks the top 50 countries worldwide for locating outsourcing activities, including IT services and support, contact centers and back-office support and has been published since 2003. For more details see the Global Services Location Index reports.

Ranked 49th in the World’s TOP 100 Countries
Ukraine was ranked 49th in the ranking of the world’s top 100 countries, and became the country with the best quality of life among low-income countries in the Newsweek Magazine Study of best countries in terms of health, education, economy and politics. For more details see World’s TOP 100 Countries

Outsourcing Destination of the Year
In 2011 Ukraine has been recognized by outsourcing experts as the top destination for IT outsourcing and won the nomination “Outsourcing Destination of the Year” in the frames of European Outsourcing Excellence Awards. The awards program took place during the European Outsourcing Association Summit. More information about awards can be found on EOA Summit website.

City Lviv included to TOP 30 emerging destinations for outsourcing
In 2009 Ukrainian city Lviv was included to TOP 30 emerging destinations for outsourcing in the report “Exploring Global Frontiers” by KPMG. The 30 cities in analysis are “emerging” in that they are lesser known alternatives to the more established or organized cities for IT-BPO operations in the three regions: South and North America (Americas), Asia, India, Japan and Australia (ASPAC), Europe, Middle East and Africa (EMA). For more details see report “Exploring Global Frontiers”.

TOP 50 Emerging Global Outsourcing Destinations
Ukraine’s capital Kyiv was ranked among TOP 50 Emerging Global Outsourcing Destinations by Global Services and Tholons in 2009. These rankings were based on the analysis of the following categories: Scale and Quality of Workforce, Business Catalyst, Cost, Infrastructure, Risk Profile, Quality of Life. For more details see the TOP 50 Emerging Global Outsourcing Cities listing.

TOP 20 Leading Countries in the area of IT Outsourcing and High-Tech Services
According to the 2010 Global Services 100 list, Ukraine is 11th among 20 leading countries in the area of IT Outsourcing and High Tech Services. The GS 100 list is annually compiled by Global Services in association with NeoAdvisory, a consulting and advisory company. The 2010 Global Services 100 list can be accessed online at http://www.globalservicesmedia.com.

TOP 10 countries with the most certified IT professionals
Ukraine was among 10 TOP countries with the most certified IT professionals following United States, India and Russian Federation. For more information see  Global IT IQ Report.

Gaming Industry’s TOP 12 European Countries
Ukraine was ranked 8th in Gaming Industry’s TOP 12 European Countries by The Global Gaming Industry Network in 2009.

Achievements of separate market players

Actually, not many Ukrainian outsourcing companies participate in the rankings and nominations, but nevertheless it is worth to mention the latest achievements of some of them.

The 2011 Global Services 100
The 2011 Global Services 100 recognizes service provider excellence and maturity to serve the global market and deliver ITO-BPO services. GS100 survey is done by Global Services in association with NeoGroup. SoftServe, Ciklum, DataArt, Intetics Co., EPAM Systems and Luxoft companies were listed in TOP 100 in this rating.
EPAM Systems company was one of only two vendors named as “IT Services Leaders — Eastern Europe”, in addition to being named as one of the world’s ten “Top Product Engineering Vendors”.
Luxoft was among TOP 13 in the Top Specialty Product Engineering Vendors nomination. EPAM Systems and Luxoft were also among 13 winners of the Top Global Mid-Tier ITO Vendors.
Company Ciklum was named the 2011 Global Services 100 Provider and featured as one of the Top Specialty Product Engineering Vendors.
DataArt was selected to the 2011 Global Services 100 List for the fifth time, reaffirming its position as one of the world’s top technology providers.
Intetics Co. was featured as a 2011 Global Services 100 provider.
See The 2010 Global Services 100 list

The 2011 Global Outsourcing 100
The 2011 Global Outsourcing 100 is the list of top outsourcing worldwide services providers. The ranking was put together by the International Association of Outsourcing Professionals’® (IAOP®).
Among companies included to the list were SoftServe, EPAM Systems, Intetics Co., Team International and Softjourn.
SoftServe Inc. was once again named to IAOP®’s annual ranking of the world’s best outsourcing service providers and advisors. The company has been selected in the Rising Star category for the 2011 Global Outsourcing 100 ® service providers list.
TEAM International was included into the 2011 Global Outsourcing 100® service providers list after being named among Best 20 Rising Stars by Region Served – UK” and “Best 10 Rising Stars by Industry Focus – Services” in 2009 and 2010.
Softjourn company was ranked as one of the top 20 “Rising Star” outsourcing firms serving the Western European market and one of the best 10 companies serving Eastern Europe.
See The 2011 Global Outsourcing 100 list

The Software 500
The Software 500 is a revenue-based ranking of the world’s largest software and services suppliers, targeting medium to large enterprises, their IT professionals, software developers, and business managers involved in software and services purchasing created by Software Magazine.  Such companies as Luxoft, Intetics Co., EPAM Systems and CS Odessa were included in the Software 500 ranking.
Company Luxoft was ranked 188th, with a FY2010 software revenue of $206.2 million. Intetics Co. was ranked 465 with software revenue of $7.6 million.
The EPAM Systems company rose 21 places — from the 190th to the 169th spot and CS Odessa — from 496th to 451st place.
For more information see The Software 500 report.

Inc. 5000
Inc. 5000 recognizes the top technology innovators, showcasing year-to-year organizational and revenue growth and industry presence.
Inc. Magazine ranked the DataArt company #215 in the Software Industry category of its annual list of the nation’s top private companies. DataArt’s Inc. 5000 status reflects the company’s strong continued global expansion, including three year revenue growth of sixty-five percent.
See the Inc. 5000 list

WebAward Competition
The Web Marketing Association’s annual WebAward Competition is the premier award recognition program for Web developers and marketers worldwide. Since 1997, it has been setting the standard of excellence for Website development.
SoftServe Inc. company’s website SoftServe.ua was recognized with the 2011 WebAward for Outstanding Achievement in Web Development by the Web Marketing Association.
For more details see the WebAward Competition website.

Customer Satisfaction Survey (CSAT)
The survey is conducted annually and a required part of the Microsoft Partner Program re-enrollment process.
Ukrainian outsourcing company ELEKS Software earned a resounding 100% customer satisfaction rating in the annual Customer Satisfaction Survey (CSAT).

Best Employer in Central and Eastern Europe by Aon Hewitt
Aon Hewitt, the global human resource consulting and outsourcing business of Aon Corporation, surveyed employees and senior leaders of 479 companies from eight Central and Eastern Europe (CEE) countries: Austria, Bulgaria, Czech Republic, Hungary, Poland, Slovakia, Turkey and Ukraine. The study examined three aspects, namely Employee Engagement, Leadership Team, and HR Audit and was completed by staff members holding respective positions.
Company SoftServe Inc. was selected as the 2011 Best Employer in Central and Eastern Europe by Aon Hewitt, the only IT company in the Large Companies Top 5 list.
For more details see the Best Employers Study.

Frost & Sullivan 2011
Company Luxoft has been honored with the Frost & Sullivan 2011 European Telematics and Infotainment Competitive Strategy Innovation Award. More details can be found here.

Ukrainian companies strengthen their positions in the global market of IT outsourcing services provision. Recently Ukrainian outsourcing companies have been receiving more and more recognition that is the evidence of high quality of provided services and customers satisfaction.