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Most Preferred IT Outsourcing Destinations by Date

Most Preferred IT Outsourcing Destinations by Date
Table of Contents

    IT Outsourcing for a long while has been associated with India which used to be called an outsourcing hub since most companies started to delegate their IT business sections offshore. And even though India scored the first place on the list of top ten destinations for outsourcing business operations back in 2011, it now has competitors in the face of a number of countries, and staying on top of the game is not an easy task anymore. We will dwell on these particular locations some more below.

    Tholons – a strategic advisory company for global outsourcing and investments – published a report for Top 100 Outsourcing Locations early this year. It contained a lot of interesting data regarding the changes in the worldwide competition for outsourcing.

    Basically the biggest shift has happened in the three main regions: Eastern Europe, South America and Southeast Asia. While Southeast Asia is still on the verge of engaging service vendors with further establishment in the area that end up resulting in growth of providing the services in the countries of the region, Eastern Europe and South America are overtaking in IT Development for their major cities.

    Active development continuously goes on in these three areas thanks to the support exerted by the governments for the past few years. The regions demonstrate powerful dedication of IT BPO stakeholders in these areas. However, such territories as Middle East and North Africa have been impacted by both social and political overturns. That obviously has affected a number of companies willing to work in the countries of these sectors.

    Eastern European region this year covers such countries as the most preferred location for IT outsourcing as Poland, Ukraine, Russia, Romania and Hungary. And according to Tholons' report this region will carry on with making a profit out of promotional activities to boost top quality services, depending on the labor pool with technical skills.

    A look at Ukraine

    Amid the big picture of all these multiple destinations Ukraine is progressively becoming a more popular IT outsourcing location. For the past few years this country's IT outsourcing market volume has grown up to $1,1 billion, a number of outsourcing companies is now exceeding 1000, a pool of IT specialists is over 25 thousand people. All of these factors are making Ukraine a very attractive location for both Western European and North American organizations willing to outsource.

    Beneficial geographical position, large and easily accessible pool of IT resources, powerful scientific heritage as well as generally lower costs make Ukraine a logical choice for many companies to outsource. Ukrainian IT outsourcing service industry along with the local companies were acknowledged a number of times by national industry associations, worldwide known research organizations, listings, rankings, they have also received awards in various nominations. The following facts below confirm Ukraine's positive reputation in terms of IT outsourcing destination:

    TOP 10 Countries with the Most Certified IT Professionals

    Back in 2002 Ukraine ranked the 4th place in a Top 10 of countries who have the biggest number of certified IT specialists. The 3 top places were taken by the United States, India and Russia accordingly.

    TOP 30 Outsourcing Destinations

    Ukraine has been appearing on Gartner's list of TOP 30 Outsourcing Destinations since 2007. Gartner is a globally known research organization which analyzes 72 offshore locations in the form of 10 criteria and list top 30 locations. The criteria that Gartner uses to define top outsourcing places are infrastructure, government support, language, economic and political environment, educational system, cultural compliance, costs, resource pool, legal and global maturity, intellectual/data security and privacy.

    Central and Eastern Europe IT Outsourcing Review

    Ukraine shoot ahead first among 16 countries in CEE with the volume of IT outsourcing services rendered, by the number of IT professionals involved in the industry of outsourcing and the number of IT outsourcing organizations operating in the market shown in the “CEE IT Outsourcing Review” reports back in 2008, 2009 and 2010. This research is held on an annual basis by Central and Eastern European Outsourcing, or CEEOA.

    TOP 50 Countries for Locating Outsourcing Services

    Ukraine was included to the report of A.T. Kearney – global services location index - which examines and ranks top 50 countries across the world for location outsourcing activities that includes IT support and services, contact centers and back-office support. It has been published since 2003.

    TOP 50 Emerging Global Outsourcing Destinations

    Kiev, the Ukrainian capital, got to be ranked among Top 50 Emerging Global Outsourcing Destination by Global Services and Tholons back in 2009. The rankings were the results of the analysis of the next categories: Cost, Infrastructure, Risk Profile, Scale and Quality of Workforce, Business Catalyst, Quality of Life.

    Gaming Industry's TOP 12 European Countries

    Ukraine took the 8th place in Gaming Industry's TOP 12 European Countries according to The Global Gaming Industry Network back in 2009.

    TOP 20 Leading Countries in the Area of IT Outsourcing and High-Tech Services

    Ukraine hit the 11th place among top 20 countries in the field of IT outsourcing and High tech services according to the 100 List of 2010 Global services. This list is created on an annual basis by Global Services and New Advisory – a consulting and advisory firm.

    Outsourcing Destination of the Year

    Only a couple of years ago, in 2011 Ukraine was acknowledged by outsourcing professionals as the top location for IT outsourcing and won the award of European Outsourcing Excellence in nomination “Outsourcing Destination of the Year”.

    Ultimately, in 2013 the most popular destinations for IT outsourcing are traditional ones like India and Pakistan, the new ones are gaining their momentum as well – Philippines, Indonesia and Ukraine along with many others from Eastern Europe and South America regions.

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    Roman Korzh

    VP of Development

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    Anna Slipets

    Business Development Manger

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