IT OUTSOURCING DEVELOPMENT AND ITS IMPACT ON THE ECONOMY OF UKRAINЕ

Abstract

A large amount of well-qualified IT developers in different developing countries, low salaries in the internal markets of these countries, restrictions due to the Covid-19 pandemic, and high level of technological progress has encouraged a lot of big companies to create outsourcing companies in different countries all over the world. Ukraine belongs to countries that are attractive to foreign companies in terms of developing business. It has a list of positive consequences for the Ukrainian economy. For instance, these companies have already created significant opportunities for both external and inland employees. Therefore, in this paper, we examine and estimate the real impact of IT outsourcing on the economics of Ukraine. The study aims to analyze the current situation in the IT-outsourcing market in Ukraine. To determine trends, prominent advantages, and drawbacks of such business activity, analyze Ukraine's most significant IT outsourcing companies. And show the influence of outsourcing on Ukraine economics based on examples of these companies and their experience. In this article, we can highlight a couple of definitions and the main types of outsourcing. This article analyzes the advantages and disadvantages of outsourcing as a business model. Besides, it explores the dynamics of the IT-sphere part in the GDP of Ukraine during the period between 2011 – 2020. The top 10 of the biggest outsourcing companies in Ukraine were investigated. In addition, the perspectives of IT outsourcing for Ukraine economics and how to improve the legislation to attract more foreign companies were detected. The IT sphere is noteworthy and has significant perspectives for development. To fulfill outsourcing potential in Ukraine, it is necessary to create a firm legal framework that would regulate such activity and, in particular, guarantee copyright protection. Besides, the foreign partners are interested in cooperating with companies implementing the quality control system and well-developed corporate social responsibility. In addition, the significant trends in the IT-outsourcing sector during the last ten years are highlighted. Based on all of the above, recommendations are made on attracting foreign companies to spread into the Ukrainian market. These will help to increase the part of IT in the GDP of Ukraine and create more decent workplaces for Ukrainian IT developers.