Why IT Outsourcing in Ukraine Is a Top Choice for Businesses

IT outsourcing in Ukraine is one of the top choices for business looking to outsource software development. The country has a skilled workforce and offers competitive prices. Despite ongoing challenges, Ukraine’s IT sector keeps growing and contributes billions to the economy. With over 5,000 software companies, Ukraine remains a strong player in the global market. As Ukraine rebuilds, IT outsourcing continues to offer great opportunities for businesses worldwide.

Ukraine as an Economy

Ukraine is an emerging, lower-middle income economy in Eastern Europe. In 2022, Ukraine’s GDP was $160.50 billion, which is a 19.65% decline from 2021. In 2023, inflation was 17.7%. Russia’s invasion of Ukraine, now in its third year, has inflicted profound suffering on Ukraine’s people and economy, erasing 15 years of developmental progress and exacerbating poverty. Despite the devastation, Ukraine has demonstrated remarkable resilience, maintaining economic growth at 4.8% in 2023 through improved infrastructure and government support. Social services, education, and healthcare persist despite the conflict, with significant international aid contributing to rebuilding efforts, including housing repairs and road reconstruction. However, the road to recovery remains daunting, with a $486 billion estimate for reconstruction over the next decade. Urgent needs span housing, transportation, industry, agriculture, energy, and social welfare, necessitating robust private sector investment and reforms for a sustainable, inclusive recovery. Ukraine’s determination to pursue economic growth, attract investment, and enact reforms underscores its commitment to shaping its future despite the ongoing crisis.¹

Ukraine’s economy at a glance

	Gross Domestic Product
Annual GDP		USD 178.7 Billion (2023)
GDP Per Capita		USD 5,070 (2023)
Income Category		Upper-middle Income (2025)
	People
Population		38.7 Million (2025)
Literacy Rate		100% (2021)
EF English Proficiency Index		Moderate Proficiency (2024)
	IT Sector
IT Services Market Size		USD 3.6 Billion (2025)
IT Outsourcing Market Size		USD 1.2 Billion (2025)
Registered Software Companies		2,150+ (2024)
	Business Environment
Ease of Doing Business		Score: 70/100 | Rank: 64
Political Stability Indicator		Percentile Rank: 10.9
Corruption Perceptions Index		Score: 36/100 | Rank: 104/180 (2023)

Resilience of the Ukrainian IT Sector and Software Industry

Before the war with Russia, Ukraine’s IT sector was a leading offshoring destination, growing rapidly in 2021 with exports reaching $6.8 billion. Despite the conflict, IT outsourcing in Ukraine continued to perform well, contributing $7.3 billion to the economy in 2022 and $4.5 billion in the first eight months of 2023. The sector showed resilience with a 1.3% increase in exports in August 2023, totaling nearly $566 million. The Ministry of Digital Transformation is working on establishing a military technology hub, further highlighting the potential for growth and global collaboration in IT outsourcing in Ukraine.

In 2023, IT services exports fell by 9.3% due to the ongoing war. However, IT outsourcing in Ukraine remains crucial to the economy, contributing nearly 40% of service exports. Some clients have reevaluated risks, but many continue to support Ukrainian businesses. Despite perceptions of instability, business operations in Ukraine remain stable, with resilient IT infrastructure. Ukrainian startups, driven by innovation, are attracting investment from venture capital funds. IT professionals and entrepreneurs continue to invest in Ukraine, showing their commitment even in challenging times.

Despite Russia’s invasion, IT outsourcing in Ukraine remains strong. IT companies have maintained 96% of their service exports in 2023, surpassing $3.74 billion. Over 60,000 Ukrainians have enrolled in Coursera courses, with an 80% completion rate. Ukrainian IT professionals are known for their strong communication skills, ability to work across time zones, and shared values of integrity and hard work, making Ukraine a key player in IT outsourcing.

Top IT Services and Software Companies in Ukraine

Ukraine has a prospering IT sector, home to over 5,000 IT services and software companies. While these companies are numerous, most have relatively small teams. This reflects the widespread presence of IT businesses across the country and the rise of local startups. Our research shows that most of these companies employ fewer than 200 people. The lower use of LinkedIn among Ukrainians might partly explain this, although we lack solid evidence to confirm this.

We have analyzed publicly available data and created a list of the top IT services and software companies in Ukraine, ranked by employee count. While this list focuses on company size, it’s important to note that some highly regarded companies may not rank as highly due to their smaller teams.

IT Ukraine Association

Amidst wartime challenges, Ukraine has emerged as a growing tech hub, similar to Silicon Valley. The IT Ukraine Association leads this transformation, representing over 90,000 skilled IT professionals. As the country rebuilds, the association works to integrate IT solutions into key sectors like infrastructure, healthcare, and education. It also acts as the voice of the Ukrainian IT industry, fostering innovation, collaboration, and global partnerships.

The association’s mission is to support the sustainable growth of Ukraine’s IT sector. Its activities include advocating for IT companies in legal and taxation matters, managing educational and social projects, and improving Ukraine’s global reputation as an IT service provider. It also helps businesses secure international contracts and supports them in industry associations worldwide.

A key focus of the association is modernizing IT education to ensure long-term growth. The IT Ukraine Education Summit, an annual event, brings together over 400 participants to discuss trends and reforms in IT education. It gathers government officials, universities, and IT firms to address training needs for students, adults, and career changers, promoting valuable insights and progress in education.

Reputed Institutions in Ukraine Renowned for Top IT Graduates

Ukraine has over 800 higher education institutions. By 2019, 75,606 students from 154 countries were enrolled in 443 universities, enjoying lower tuition fees compared to many other nations. We’ve compiled a list of the top 20 institutions known for producing IT and Computer Science graduates, based on alumni working in IT and engineering roles. Our data came from university websites and LinkedIn profiles. However, LinkedIn numbers may be lower than actual figures due to the age of some institutions. Some institutions also lack official LinkedIn pages or have different names listed. Given the limited LinkedIn usage in Ukraine, we advise interpreting our list carefully. Nevertheless, these universities are well-regarded in the country for their Computer Science programs.

Conclusion

IT outsourcing in Ukraine continues to grow despite challenges. The country offers skilled talent, strong infrastructure, and global collaboration. Ukrainian IT professionals are committed, innovative, and reliable. With over 5,000 software companies, Ukraine is a key player in the global tech market. Its strong education system and support from industry associations help drive success. For businesses worldwide, Ukraine remains a smart and trusted choice for IT outsourcing.

If you’re looking to outsource in Ukraine and tap into its thriving IT sector, let us help you connect with the best companies through Enosis Outsourcing. Contact us today to learn more and explore the opportunities Ukraine has to offer!

References

[1] The World Bank In Ukraine