Ukraine – Outsourcing Market Information

Ukraine has a very powerful technical education and R&D foundation inherited from the times when Ukraine was the major Tech hub of the USSR. It’s located in the center of Europe and has close heritage ties with many Western and centered European countries. Ukraine is wealthy in mainstream technology skills such as .Net, PHP or Java as well as some rare / new high-demand abilities (for wireless, iGaming development, ERP, etc.).

Outsourcing to Ukraine is adept to smaller down IT budgets by 40% to 60% (Ukrainian IT workforce is more than two times less costly than in Western Europe companies to do more for less money. IT services export capacity is 1.15 billionn Euros (High-Tech start 2012) major ITO towns are Kyiv, Kharkiv, Lviv, Dnipropetrovsks, and Odessa Number of IT graduates – 30 000 / while the number of arise graduates comes to 670 000 per year.

The business levy rate is 19 % (will decline to 16 % in 2014), but only 5 % for IT businesses. IT experts engaged with IT companies are subject to decreased individual earnings tax rate of 5% (compared to the present rates of 15% and 17%). Software development, Internet-sites and /or online-services are exempt from VAT.

Employers’ social security assistance is 36% based on whole remuneration (31.8% to the retirement benefit finance, 2.9% to the communal Security finance, 1.3% to the paid work protection Fund) In addition 0.66 – 13.6% to the Fund for communal protection counting on the level of risk of accidents for enterprises belonging to certain sectors of the finances. The minimum whole salary is cc 115 Euros per month, while the average monthly whole salary cc 320 Euros.

Ukraine’s ICT associations

Hi-Tech Initiative – association of Ukrainian ITO companies. One of the major objectives of the association is to promote Ukrainian software development companies and the positive likeness of Ukrainian IT outsourcing industry in international markets. Ukrainian Hi-Tech start supplies its members with the opening to enhance their business in the localities of IT outsourcing and offshore programs development by using the colleague network and marketing passages of the association in the external markets.

centered and Eastern European IT Outsourcing Association (CEEOA) –Communication and promotion of affirmative image and main worth proposition (-s) of region of CEE by connection passages armed with the following promotional devices: advertising, PR and promotion, events, and direct trading

IT Ukraine the reason of the Association is to promote the consolidation of efforts in foreign markets comparable goods of Ukrainian companies, the amalgamation of technical and industrial promise of Ukraine to conceive software that meets worldwide measures, as well as the conditions for the farther development of the district.

Association of Ukrainian IT Directors The aim is to organise and manage enhanced information sharing among the Ukrainian IT managers, commission IT related research and support IT learning among the youth.

All-Ukrainian Public Organization “Council on Competitiveness of Ukrainian Information and connection Technologies Industry” (Council) – about-compete

Modernization of the current learning system in the ICT part, and the interaction between learning and science;
Establishment of a exceptional taxation system for companies and workers in the ICT commerce, which will be competitive in comparison with alike situation in India, Belarus and other nations;
Regulation of legal relations concerning defence of thoughtful house in the Internet;
Development of an discovery ecosystem