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Softengi, together with over three hundred other representatives of IT Outsourcing in Central and Eastern Europe, participated in the annual industry review, conducted by the Ukrainian Hi-Tech Initiative in association with the members of the Central and Eastern European Outsourcing Association (CEEOA).
To the gist
The results of the CEE IT Outsourcing Review 2010 show, that despite all the prior forecasts and skeptical opinions, IT outsourcing in the region studied not only survived in the conditions of the financial crisis consequences, but also renewed the growth trends in the beginning of 2009.
It’s hard to disagree, that it was much due to the fact that during the global recession IT outsourcing industry, which had steadily become a drive of enterprise operation efficiency and innovation, kept on serving its primary goal – resources saving.
The “old” long-term customers went on outsourcing to CEE, thus providing the definite stability level for the providers, and the newcomer customers, who decided to optimize and outsource the software development activities, contributed to the development of the industry.
The main segment, that drove the industry stability and growth, was, naturally, large companies. Though, small and middle outsourcers also have good premises – according to analysts, the SME customers are supposed to outsource more actively in the forthcoming period.
Ukrainian IT Outsourcing 2009
During 2009 Ukrainian IT outsourcing industry also demonstrated the tendencies of stability and steady growth. Based on the Review results, the Ukrainian IT outsourcing market volume grew by 12,75% in comparison with the previous period, reaching $697 mln and placing Ukraine to the first place in the CEE region.
According to the forecasts Ukraine will keep the first position in 2010 as well. What has made it the leader? First of all, the Ukrainian IT outsourcing industry is ad verbum the biggest in the Central and Eastern Europe – in 2009 it counted 940 companies with over eighteen thousand of specialists involved.
And again, showing the growth in number of the specialists by 9,51% (the second growth rate after Romania) in 2009, this trend is supposed to stay in 2010 with the prospective twenty thousand of specialists. Still as to the rates level Ukrainian outsources took only the tenth position among 16 CEE countries. That is, though being not very attractive for the providers themselves, leaves Ukraine one of the most attractive IT outsourcing destinations for the customers.
The main indices of the Ukrainian IT outsourcing industry in 2009 included both qualitative and quantitative transformations. On the one hand the industry demonstrated the growth of IT services exported, on the other – the consumption of outsourcing services increased in the internal market.
The trends, strengthening the country position at the global IT outsourcing market, like market consolidation, improvement of quality management also took place. Besides, the Ukrainian outsourcers traditionally have the advantages, which had long ago become their features – the strong technological engineering legacy and business culture’s closeness to those of Europe and USA.