Ukraine benefits from the growing Nearshoring trend

 
Over the last decade global outsourcing industry has seen a major shift in service delivery preferences. Traditional offshoring models are challenged by closer nearshore and sameshore alternatives.

Nearshoring became a buzz-word of today's outsourcing industry, with Central and Eastern Europe and Latin America regions named as the top nearshoring destinations.

Central and Eastern European region received an additional boost with the growing popularity of outsourcing across EU countries. In 2009-2010 EU outspent US for the value of ITO contracting activity.

In this favourable conditions some destinations within the nearshoring clusters were able to strengthen their postions at the outsourcing arena. One of such succsesful examples is Ukraine.

With the population of 47 million, 30,000 IT graduates each year and strong scientific heritage from Soviet Union, Ukraine's ITO market demonstrated the highest growth in the region with the peak of 23% percent in 2007.

Today, Ukraine is the world’s fifth biggest IT services exporter and ranks 11th in the number of IT workforce. The country has the highest ITO market value in the CEE region, the biggest number of workforce involved and the highest growing rates.

Ukraine has been recognized as ITO Destination of The Year 2011 by European Outsourcing Excellence Award and was named as new emerging outsourcing leader by KPMG.

Surely, Ukraine is still far from challenging outsourcing leaders such as India and China, however the country which with only 1% of world’s population has 6% of the world’s scientists has a great potential to challenge leaders for complex, knowledge intensive work.