Regional Structure of Ukraine’s IT Outsourcing Industry: Dnipropetrovsk

Talented IT specialists, high quality of services and reasonable costs have always been prime motivation to businesses to consider outsourcing their IT services to Ukraine. Ukraine can boast stable growing market and extensive IT talent pool.

In terms of the number of IT outsourcing companies operating and the number of IT specialists we have separated six largest outsourcing centers in Ukraine. They are Kyiv, Kharkiv, Lviv, Dnipropetrovsk, Odesa, and Crimea cluster (includes cities Kherson, Mykolaiv, Simferopol, and Sevastopol).

The last of the largest outsourcing centers we would like to review in our series of posts is Dnipropetrovsk region.

Dnipropetrovsk Region

The city is fourth largest in Ukraine with population of over a million people and is one of the biggest industrial centers, located in East-Central Ukraine.

A vital industrial center of Ukraine, Dnipropetrovsk was one of the key centers of the nuclear, arms, and space industries of the former Soviet Union. Because of its military industry, Dnipropetrovsk was a closed city until the 1990s.

About 10% of all Ukraine’s IT outsourcing resources is centered in Dnipropetrovsk and about 2,000 IT specialists are involved in provision of IT outsourcing services here.

The city is also a major education center in Ukraine. There are 16 universities in Dnipropetrovsk which prepare about 1,500 IT graduates annually. In 2006 Dnipropetrovsk hosted the All-Ukrainian Olympiad in Information Technology, in 2008 that for Mathematics, and in 2009 the semi-final of the All-Ukrainian Olympiad in Programming for Eastern Region.

The city is connected to other European and Ukrainian cities with daily flights and trains. Dnipropetrovsk International Airport is located 15 km from Dnipropetrovsk city center. A number of airlines are operating here – Aerosvit Airlines, Austrian Airlines, Aeroflot, El Al, Georgian National Airlines, Turkish Airlines, Ukraine International Airlines, and others.

The region is attractive outsourcing and R&D outsourcing destination due to cost-effective highly qualified IT talent pool and low market entry costs. In 2009, Focus Magazine included city Dnipropetrovsk to the ranking European Cities and Regions of the Future 2010/2011 and ranked it the 5th in the TOP 5 Major Cities in the category Cost Effectiveness.

Additional information and useful links:

Presentations of the Dnipropetrovsk region:

List of outsourcing companies in Dnipropetrovsk from catalogue ITOlist.eu: