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Top IT contracting out destinations: Ukraine vs. India – N-iX

By Yustyna Velykholova
September 19, 2019

Nowadays the focus of outsourcing is moving from overseas to nearshore places, such as Eastern Europe, due to the distance of time zones, cultural affinity, and strong technological expertise. Ukraine stays among the leading IT outsourcing locations in this region using a terrific cost to quality ratio and a rapidly progressing IT and company infrastructure.

Asian nations, such as India, are actively flooding the market with brand-new talents and competing with the United States and European outsourcing leaders. That is why we’ve decided to compare Ukraine and India as some of the leading outsourcing locations in their regions and specify which country provides the finest quality of services to fulfill your organisation requirements.

IT Industry Development in Ukraine

IT market in Ukraine grew by 15-20% in 2018, while the marketplace reached $4.5 B, and this speed is getting quicker year by year. Over 192,000 Ukrainian IT professionals have developed strong competence in different verticals ranging from fintech, healthcare to telecom, which helps the nation keep an one-upmanship on the worldwide IT market. More than 1,600 IT outsourcing companies lie in Ukraine providing a vast selection of services related to technology development. According to 2019 Bloomberg Development Index, Ukraine is ranked 53rd for its adoption of developments and came somewhat ahead of India. Because 2014, the nation moved up 25+ positions worldwide Bank’s Ease of Operating and now holds the 71st location, while India is ranked 77th.

Ukraine is also continuing to gain prominence in regards to IT market recognition with many global IT business establishing their innovation centers here. For example, more than 100 R&D centers of major international business such as Microsoft, Samsung Electronic Devices, Apple, Wargaming, Boeing, Skype, eBay, Siemens, IBM, etc. lie in Ukraine. Moreover, 15 Ukrainian IT companies, including N-iX, Eleks, Sigma Software, and so on have been featured in 2019 International Outsourcing 100 list by the International Association of Outsourcing Professionals (IAOP) as the very best outsourcing companies. It comes as no surprise that the nation was consisted of in Gartner’s Top 30 offshoring and outsourcing destinations and acknowledged as number one in Europe in the sector of IT outsourcing.

IT Industry Advancement in India

According to The National Association of Software and Provider Companies (Nasscom), the IT sector in India utilizes more than 2.75 M specialists with the inflow of over 230K employees throughout the last year. The Indian IT market generated earnings of $181B throughout 2018 compared to $146.5 B in 2015, with a growth rate of nearly 10%. Such software application development growth rate is attributed mainly to the country’s population size, which is around 1.36 B, and a high youth rate with about half the population under 25.

Furthermore, India has around 4,000+ start-ups and is ranked third worldwide amongst start-up neighborhoods in such areas as healthtech, analytics, IoT, and cybersecurity. However, the president of the software application association Nasscom highlighted the need to update the skill base in India for digital and consulting domains. Despite the large schedule of resources within the nation, it still struggles to contend with the United States and European countries in regards to digital innovation adoption.

Technical education in Ukraine and in India

Education in among the crucial aspects that figure out the development and development of a particular region. The economic progress, as well as total development of any nation, is directly connected to the quality of education that is being imparted with the values. Strong technical education can not just stimulate the look of new technological innovations however also foster digital change within the nation.

Ukraine has a strong technical education system. More than 16,000 IT and additional 23,000 engineering students graduate every year with certificates in technical disciplines from over 400 universities. The most popular of them are the National Taras Shevchenko University of Kyiv, National Technical University of Ukraine “Kyiv Polytechnic Institute”, Lviv Polytechnic National University, etc. Ukrainian universities have actually introduced a number of IT-related courses in IoT, Artificial Intelligence, Data Science, and so on to promote new technological trends across the country.

On the contrary, India has around 620 technical organizations consisting of the Indian Institute of Infotech, Indian Institute of Information, Technology, Style and Manufacturing (IIITDM). Additionally, such organizations as All India Council for Technical Education along with 10 statutory boards of research studies are accountable for the development of technical education within the country. The speed of education advancement in India is not quite acceptable and requires more reforms. To show this, 25% of the population of India are still illiterate while Ukraine boasts a 99,8% literacy rate.

Cultural Differences

It is a popular fact that interaction issues and cultural differences may impede software product quality and result in obstacles in task delivery. Often, it is hard to interact technical and programming principles to clients and develop feasible job goals without being able to supply clear guidelines. That is why it’s important to comply with a remote team that has a great command of English and pertinent cultural experience.

For instance, dealing with IT specialists from India can be quite a difficulty when it comes to the cultural differences in the manner in which they work. In this nation, it is thought about rude to challenge anybody who remains in a more senior position than yourself, even if they are wrong. This might result in miscommunication and a number of unresolved concerns which need to be clearly communicated at the early phases of the task advancement.

Conversely, when dealing with IT specialists from Ukraine, it is rather the opposite. The majority of Ukrainian IT business are targeted at establishing a company culture that resembles the Western one and utilize the most efficient methodologies, such as Agile to provide better results with versatile advancement procedures. Ukrainian specialists are open-minded and are eager to bring up alternative and more effective ways of doing things. This might minimize any misunderstandings and foster task advancement in the ideal direction. The bulk of Ukrainian developers have an excellent command of the English language with around 47% of IT professionals with proficient English skills and 34% of engineers having a strong intermediate level.


All in all, both Ukraine and India keep their positions as leading IT contracting out destinations in their areas. Ukraine provides proficiency in the advanced technologies, highly knowledgeable IT specialists, a distance to the European customers and a moderate time distinction with the USA, that makes it a significantly appealing location for outsourcing. It has the biggest talent pool in Eastern Europe and increases its positions in worldwide business location rankings every year. So, depending upon the aspects that are vital for your company, you might decide which of these nations is much better for you and pick your best IT contracting out provider for effective cooperation.

This content was originally published here.

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