OPPORTUNITIES AND PECULIARITIES OF GROWING IT SERVICES OUTSOURCING IN THE CURRENT GLOBAL CHALLENGES

Abstract

This study explores the potential and challenges of IT outsourcing development in Ukraine amidst contemporary global challenges. This topic is highly relevant due to Ukraine's significant role in the global IT market, bolstered by its highly skilled professionals and competitive pricing. However, the industry faces considerable threats, including a high-security risk index and a decline in venture financing, which hinders innovation and competitiveness. This research methodology comprehensively analyzes existing literature, statistical data, and reports on the Ukrainian IT sector. Critical methods used include comparative analysis, trend analysis, and expert surveys. This approach allows for a thorough examination of the current IT outsourcing in Ukraine and identifies internal and external factors affecting its development. The study results indicate that, despite high-security risks, Ukraine remains a crucial player in the IT outsourcing market. Government initiatives, such as tax incentives for SMEs, the digitalization of the economy, and the modernization of IT infrastructure, support the sector amidst ongoing economic challenges. Nevertheless, the decline in venture financing poses a significant threat to the industry's innovative growth. Reduced investment limits the ability to fund new projects and attract high-skilled professionals, which may slow the industry's development. To ensure the stable growth of IT outsourcing in Ukraine, the government needs to continue its support by implementing stricter cybersecurity standards, facilitating business travel, establishing mechanisms for reserving key employees, and supporting the relocation of specialists. Additionally, businesses must adapt to new conditions by investing in cybersecurity, employee training, and digital solutions to optimize business processes. The practical value of this article lies in its comprehensive analysis of the IT outsourcing sector in Ukraine, providing actionable recommendations for both government and businesses to overcome existing challenges. The findings highlight the importance of strategic efforts to maintain and enhance the sector's growth, ensuring Ukraine's continued relevance and competitiveness in the global IT market. This research contributes to understanding the Ukrainian IT sector's dynamics and offers a roadmap for sustaining its development amidst global economic uncertainties.