Ukraine: outsourcing vs. product companies

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Ukraine is famous for its leading positions in the outsourcing industry. Ukraine is the #1 in Central and Eastern Europe (CEE) in regards to:

  • IT outsourcing market value (~$2B)
  • Number of IT outsourcing companies (~850)
  • Number of employees involved in IT outsourcing industry (~14K)

However, a current trend is raise of product companies. It is a classic trend in the IT world, and now Ukraine tries to catch up with the rest of the world. Accordingly to Forbes, the total capitalization of Ukraine’s product companies is well above $1B for 2012 while 8% of these enterprises have valuation $50-100m, and it is just beginning. In the next 2-3 years, this number will grow to $2-3B and more than $5B in 5 years.

Long story short, product companies will outperform their outsourcing counterparties.

Artem Berman

Artem Berman

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