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.

Offering affordable top notch IT specialists, Ukraine attracts more and more businesses considering outsourcing their IT services and locating their core IT development in Ukraine.

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.

Ukraine is capturing a great amount of attention as one of the most attractive outsourcing destination. With the highest IT outsourcing market volume, number of IT companies and IT specialists operating in the industry among other CEE countries, Ukraine is one of the main nearshore destination for West European and UK companies and offshoring destination for North American businesses.

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.