OUTSOURCING MARKET IN UKRAINE

Abstract

The role of outsourcing in decades continues to grow primarily through the possibility of increasing the efficiency of enterprises by attracting external service contractors. Outsourcing contributes to increase the competitiveness of companies, increase the value of profits by optimizing costs while maintaining or improving the quality of goods or services to gain access to a wider range of skilled manpower. Application Outsourcing demands new ways and methods of interaction between enterprises and organizations, which leads to the relevance of the study this issue. Ukraine is the leading IT outsourcing country in Eastern Europe, along with some other major IT centers, such as Poland, Romania, Hungary, and the Czech Republic. In general, Ukraine occupies about 1% of the global outsourcing market. According to research consultancy Avasant Poland and Romania are ahead, but the export volume of outsourcing services Ukraine ahead of Bulgaria and Hungary. According to the research results of the International Association of IAOP, the ranking of the best outsourcing companies - The 2017 Global Outsourcing 100 included 13 Ukrainian outsourcing companies. Among them SoftServe (Lviv), Ciklum (Kyiv), ELEKS (Lviv), Miratech (Kyiv), Sigma Software (Kharkov), N-iX (Lviv), Softengi (Kyiv), Program-Ace (Kharkiv). Among companies with Ukrainian R&D agencies, EPAM, Luxoft, Intetika, TEAM International Services, Softjourn should be noted. The contribution of IT-export industry to the total GDP of Ukraine in 2017 amounted to 3.34%, IT companies operating in Ukraine, paid taxes of 16.7 billion. USD. According to PwC research, the IT industry of Ukraine ranks third in terms of its GDP contribution to the country, and exports $ 2.5 billion. It is expected that by 2020 it will reach 10 billion dollars with 5.7% contribution Among the clients of Ukrainian IT companies are: Panasonic, Oracle, Intel, Microsoft, MasterCard, Ericsson, BAYER, Ford, Deloite, Limelight Networks, Huawei, Samsung, Siemens, Netcracker, Mellanox Technologies, Google, Corel etc. The main areas of specialization of Ukrainian IT specialists include Software Engineering, Testing, Test Automation, Application Support, Architecture. The factors that hinder the development of the IT outsourcing market in Ukraine include: the attraction and maintenance of talented professionals, the lack of appropriate legislative definition and regulation of outsourcing processes; insufficient popularization of the domestic market of IT outsourcing; low level of English language skills by native specialists; the presence of a large number of risks associated with doing business; an unstable economic and political situation, as well as a complex legal, tax and business environment. To ensure the development of the industry, the following conditions are named: stability of the tax policy, absence of new regulatory barriers, development of IT education and human resources, active promotion of the Ukrainian brand on the international scene. If we compare Ukraine and Poland and what characterizes our market and the Polish market, we will see that in Ukraine are very few development centers (capital development centers) created by large companies (Microsoft etc.). In Poland, they are bigger because the conditions for doing business in Ukraine are much more complicated. Therefore, all customers who want to work in Ukraine do not create development centers themselves, but work through other companies such as SoftServe, Luxoft and others. These companies know certain practices in the Ukrainian environment. This is precisely the reason that BP-outsourcing does not evolve in Ukraine. Lviv and Ivano-Frankivsk became the most attractive cities in Ukraine for the creation of joint service and outsourcing centers in 2017. These cities are ranked leaders due to the availability and value of skilled manpower, developed infrastructure, rental office costs and convenient geographic location. According to a research conducted by the International Consulting and Audit Company KPMG, Ukraine has the advantage over the cost of work and office leasing in Poland and the Czech Republic, which previously was the most popular outsourcing business. Today, these countries are becoming more expensive. Promoting and strengthening Ukraine IT brand in the world needs a consolidated work, as the leading IT companies in the country should work together and form a strong and attractive brand of Ukraine, giving it a single voice and presenting the country in the global engineering and business events.