While Ukraine is becoming a new popular IT outsourcing destination, there are still many myths about it and no clear understanding of the opportunities outsourcing to Ukraine can present. Let us look closely at some of those myths and find out whether there is any truth behind them.

Myth No. 1 – Ukraine is politically unstable

This myth has seen its rise in November-December 2004 during the events around the presidential elections that led to the Orange Revolution. However, presently there are no grounds for concerns. During the Orange Revolution, the Ukrainian people have shown their devotion to the democratic ideals and prevented the worst scenario from happening, bringing the legitimately elected president to the power. The new Ukrainian government has clearly voiced its intentions to move towards the goal of joining the EU and is making logical steps in that direction. The overall political situation in the country is stable and predictable. Unlike some popular Asian outsourcing destinations, there have never been any threats of terrorist acts in Ukraine.

But even during the most critical events in November and December, no threat existed for the clients of the Ukrainian outsourcing services providers. There were no power shortages, Internet and telephone lines functioned as usual, and no danger was posed to the outsourced project. Many companies did join the national strike that was going on, but the most urgent tasks could still be done uninterrupted. Ukraine has proved that it is a civilized 21-century European nation.

Myth No. 2 – Ukraine’s IT infrastructure is poorly developed

Ukraine’s IT infrastructure is rapidly developing. As the recent research conducted by the Ukrainian Democratic Initiatives Fund and Kiev International Sociology Institute has shown, 13.1% of Ukrainians have a computer. 14% use Internet and/or email either at home or at work. Internet connectivity, being one of the primary concerns, is also developing rapidly. Telecom is one of the fastest growing markets in Ukraine, and fibre optics are continually being laid and new companies are continually opening new connectivity services, which continually lowers cost. For example, monthly fees for a DSL connection are lower in Ukraine than in India. It is considered indispensable for an IT company to have a broadband Internet connection and several telephone lines. Furthermore, there is no shortage in high quality hardware, and IT companies provide their development teams with powerful, modern computers and servers.

Myth No. 3 – Ukraine is software pirates’ paradise

WTO ascension is a top 2005 priority for Ukraine’s government. As Ukraine moves towards this, its intellectual property laws are being revised to comply with WTO standards. While a lot of private users may still be using the cheap pirated copies of the most popular software products on their home computers, companies specialized in software development are under severe Business in Ukraine   control, and to avoid problems with law, switching or have switched to licensed products. Those companies who can’t afford the price of more expensive software products choose Open Source solutions, but the problem is being tackled in one way or another anyway. Ukrainian companies are looking to work legally and don’t want to risk their good reputation.

Moreover, a large part of professional software aimed specifically at software developers has never been available as pirated copies in Ukraine, hence it has always been used in its legal, licensed form (take IBM RationalTM products as an example, as well as many others).

Myth No. 4 – Ukraine is not secure when it comes to sensitive information

Special measures must be taken to protect sensitive information no matter where your project is developed. However, according to the recent reports, India is much more dangerous than Ukraine when it comes to sensitive information leaks or theft. While it is reported that it is difficult to run background checks on employees in India, it is not that problematic in Ukraine. It has become a common practice in Ukraine for the outsourcing customers to sign NDAs with every member of the development team. Additional security policies can also be implemented to protect your sensitive data.


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