Ukraine is now 17 positions up in the ranking of the countries for outsourcing. What does it mean?

It is too early to talk about full-fledged outsourcing market in Ukraine, but according to the GSLI rating, the process of its formation is already running. Basically, the market is moved by little foreign companies that can easily form the basis of experts and quickly get to outsourcers market.

While in other countries the requirements for doing business are getting tougher, there is a tendency to simplify them in Ukraine. For example, it takes 2-3 days to open a bank account in Ukraine today, and in recent offshore paradise of Cyprus this process takes up to two months.

Small and medium foreign businesses face usual difficulties when they come to Ukraine – Western investors do not fear them. However, big business and large investments still have many risks. The situation is further complicated by the fact that the judicial system is practically not working, corruption is thriving, and to protect the investments in big business in such conditions is impossible.

Ukraine has risen in the rankings largely due to the depreciation of the national currency. Simply put, Ukrainians can be paid less for skilled work compared to Europeans. For example, in Kiev, the cashier is offered 150 euros per month. Danish companies pay cashiers an average of 2,500 euros per month. For this amount of money, the Danish company will employ a whole team of skilled professionals in Ukraine. By the way, two-thirds of Ukrainian working-age population has a university degree.

For the same reason Ukrainian IT specialists are seeking employment abroad – developers’ salaries in Europe and America are several times higher. For example, according to the statistics of DOU.ua portal, in the period from October 2014 to October 2015, from 2 to 5 thousand of Ukrainian programmers has left the country. However, many professionals are willing to live in Ukraine, working remotely for foreign companies. The savings are due to the fact that the currency difference is growing faster compared to the rise of the cost of life in Ukraine.

More and more inexpensive labor force along with a convenient location of Ukraine and understandable "Ukrainian" English encourages more foreign companies to contact us for services through outsourcing. Lviv and Western Ukraine are traditionally more attractive to foreign companies due to the proximity to the European border.

In the GSLI ranking, Ukraine became the third country that has shown the greatest growth. The first two are Colombia, which immediately rose by 23 positions and took the 20th place, and Turkey, which has risen by 18 points and took 21th place in the ranking.

The reasons of the growth of Colombia's attractiveness for outsourcing also lie in the reduction of the cost of the national currency (the peso), and, accordingly, to reduce labor costs. At the same time, Colombia demonstrates progress in the IT-sphere and carries out the state training of IT specialists.

Turkish outsourcing industry is growing due to the simplification of the reimbursement procedures, reduction infrastructure costs and a sufficient number of skilled labor force. In 2014, the volume of the outsourcing market in Turkey amounted to $1.6 billion while the number of professionals employed in this sector increased to 80 thousand.