Over the last eight years, the volume of software development and IT outsourcing services Ukraine has provided has grown by a factor ten, according to the “Exploring Ukraine. IT Outsourcing Industry” report, just published by Ukrainian Hi-Tech Initiative, leading association of Ukrainian software development and IT outsourcing companies.

The Ukraine is getting a great amount of attention as a very attractive outsourcing destination. Being ranked the first by the volume of IT outsourcing services provided, in the number of IT outsourcing companies operating in the market and in the number of IT specialists working in the industry among 16 Central and Eastern European countries,

Outsourcing services are increasingly penetrating the business practices of a wide-range of companies. Transfer of non-core and IT activities on a long-term basis to independent contractors allows the business to focus on its core business activities.

In the post recession phase, when low cost countries like India, China and Philippines remain the most attractive destinations on the global outsourcing map, Europe, at the other end of the spectrum, is also capturing good amount of attention.

Small and medium size enterprises (SMEs) represent a significant proportion of the European Union (EU) economy. Within the EU there are more than 18 million SMEs representing 59% of the total economy, generating 67% of employment and contributing around two thirds of the EU GDP.

Low-cost, highly skilled IT labour and a relatively close proximity to the UK is making Eastern Europe an increasingly attractive destination to UK businesses for offshoring IT services.