Advantages of IT Outsourcing to Ukraine and Eastern Europe

High-tech outsourcing to Eastern Europe has been growing rapidly due to a shortage of IT and other high-tech professionals in the United States and Europe. Outsourcing IT and high-tech projects offshore to Ukraine and Russia or hiring East European IT specialists for part or full-time jobs has become very common for corporations and start-up businesses. Numerous resources have been created online (e.g. High-Tech Hire) to facilitate the search of engineers, web designers and software developers.

High-tech employees such as engineers, web designers and programmers are in demand in the U.S. and Western Europe. The U.S. technology industry added almost 150,000 jobs in 2007. That was the largest gain since 2001, before the implosion of the tech bubble resulted in the loss of more than 1 million jobs in three years.

Even though U.S. businesses outsource their IT work offshore to Ukraine, Russia and other East European countries by hiring freelance and full-time contractors or employees, there is plenty of domestic demand for IT professionals in America.

U.S. and European companies have relocated software development jobs to places Business in Ukraine   such as Ukraine and Russia, where labor costs are lower and skilled workers abound. Most of the IT professionals have embarked on the road to learning English, German and other languages to be able to work with international companies.

Take as an example Ukraine. There are about 150,000 students graduating each year in Ukraine with advanced degrees in software engineering, web site development, architecture and design. Many of them have superior skill and knowledge to step into a company and start working immediately. However, there are not enough high-tech vacancies in Ukraine to employ all graduates. As a result, young professionals are constantly looking for freelance work or apply for high-tech jobs overseas in the United States and Europe. Many of them are willing to travel; however, a big part of the hired professionals work freelance or full-time remotely without even meeting their employers in person. The salaries start at $3 per hour.

There are numerous resources online that allow IT professionals from Eastern Europe search for high-tech jobs overseas. One of the most popular resources is This web site allows U.S. or European employers or service buyers find affordable and highly-skilled high-tech specialists from Eastern Europe. Employers get a chance to either post their job openings or publish information about freelance projects that need to be done. In addition, employers receive full access to a searchable database of qualified IT professionals from Eastern Europe who willingly register their resume-profiles to find work.

So who hires offshore programmers and engineers? Most international corporations have offices in east European countries where they do their own recruitment. Medium-sized and small businesses on the other hand cannot afford to open a branch in Ukraine or Russia. As a result they use the internet to find the right employees. According to Oleksiy Syneluchenko, co-founder of the company, “Most of the projects posted on the website are coming from entrepreneurs, small businesses, and U.S. and European web design and software development companies that are looking for additional labor to accommodate their work load. There is so much global demand for employees proficient in programming languages, engineering and other skills demanding high technology knowledge that domestic companies in the U.S. and Europe cannot meet all the needs.”


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