The History of IT Outsourcing in Ukraine

it history ukraine

Did you know that the first helicopter, the fastest car in the world, X-Ray, rocket engine and now old school compact disk were created by Ukrainians? And it’s just a few samples of the numerous discoveries made by local scientists and engineers.

So, when talking about the history of IT outsourcing in Ukraine, we should consider this amazing scientific background, which has been transforming due to progress and society changings. Now our Qubit-Labs team represents these changings itself, embracing the history of the market.

During the Soviet Union, when freedom wasn’t on the top, but education and technical work were, scientists from Ukraine made a significant contribution to the world progress. Many of their concepts have become the basis for creating new industries, advanced technologies, materials, and machinery. Can you imagine that just one Ukrainian Academy of Sciences consisted of 81 thousand employees, among whom were 14 thousand scientists, including more than 1000 doctors and 7000 candidates, 300 academicians and corresponding members? All their work was dedicated to searching for new possibilities and discoveries. Here you can read a story about Ukrainian Academician Victor Glushkov who was among the first ones who created IT technologies and dedicated his life to collecting knowledge aimed at the future generation.

glushkov visiting veklych

The solid scientific and mathematics background allows our scientists to pass it to the young generation. All these knowledges is now kept in the universities and minds of engineers and scientists, who are teaching future IT specialists the fundamentals and opening the door to the world. And it is still one of the core points of the outsourcing history in Ukraine.

Nowadays, Ukrainian IT-specialists are nearly the basics of the middle class. While outsourcing, they create the pure export without consuming natural resources. In addition, IT-industry doesn’t require expensive machinery, huge investments or energy resources, which make this export efficient both for specialists, clients, and country.

The US still obtain 70% of IT-export from Ukraine, but new countries, interested in outsourcing here, have been appearing lately. For example, Germany and Great Britain with 14% of consuming, Israel with its 5%, EU countries, Australia and others.

According to Elance (now – Upwork), Ukraine is among the top three countries with the amount of IT-freelancers. Research company Gartner claims that the country is included to the top 30 outsourcing locations.

“An astounding number of American technology companies employ engineers in Ukraine, but you might never know it. The Ukrainian tech industry is responsible for Ford’s in-car infotainment systems, Reuter’s award-winning photography app, Nokia’s customer retail experience, and Deutsche Bank’s Risk Management System, among many others. “said American IT entrepreneur Brett Wilson. And it’s true, Ukrainian IT geeks are conquering the world, sharing their strong knowledge and implementing robust skills. Also, IT-outsourcing is among the most perspective industries, showing 12% of growth annually and forecasted to gain $7 billion by 2021.

In all, the history of IT outsourcing in Ukraine is the history of scientific abilities, strong education, continuous growth, and reliable mentality – to be progressive and show the best result possible.

To know more about the benefits of outsourcing in Ukraine, please, read our blog article.

Julia Kravchenko