Lviv as the Key IT Outsourcing Destination in Ukraine

IT outsourcing is now more than just a trend, that’s an efficient method to get more profit using fewer investments. With a vast number of businesses shutting down or cutting their budgets, the demand for custom software development is still huge. Not many companies are in position to have an IT department in-house. Therefore, they are seeking for professional and trust-worthy software development service providers to outsource that part of their operations. And one of the most important steps is to find the right destination.

For many years Lviv has been viewed as one of the main tourist attractions of Ukraine famous for its architecture and numerous cultural events. Today the city has turned into one of the renowned business centers due to the rapid growth of the local tech sector making Lviv one of the top IT destinations in the country.

In this article, we are taking a look at why Lviv is one of the best for business investment and is a perfect IT outsourcing destination both in Ukraine and the CEE region.

Lviv as the Emerging City of the Year in the CEE Region

Early 2020 gave Lviv an outstanding CEE Business Services Awards naming it the Emerging City of the Year – CEE. The award ceremony took place in Warsaw and brought together 320 TOP-managers from 23 countries as well as over 70 international organizations from Western Europe, Scandinavian countries, the USA, the UK and India who seek new business opportunities and expansion to Central and Eastern Europe.

The award is very special as it grants Lviv the title of the leading business outsourcing destinations and opens new vistas for cooperation and economic growth. The Head of the Department on Investments and Project Development of Lviv City Council mentioned that Lviv is showing great potential and is attractive to the investors since the award emphasizes the advantages over other CEE cities.

International Market Players

The experts explain that Lviv has a lot to offer to the investors owing to a large number of graduates, developing infrastructure, beneficial geographical location and multiple companies already successfully operating or having their HQs here. Among the largest corporations operating in the city area with manufacturing facilities, customer support or BPO centers are Nestle, KPMG, Cypress Semiconductor, Fujikura, Austrian Airlines and others.

Lviv IT Industry Overview

Within the past years, the Ukrainian IT market has shown significant growth which is why we are taking a closer look at the best IT outsourcing destinations in the country. With over 490 companies employing 26,000+ specialists 80% of whom are software developers Lviv is amidst the three largest IT hubs of Ukraine. According to Lviv IT Cluster’s latest report, the IT industry share in the GRP of Lviv comprises 20% of the city’s total GRP which was around $ 780 million and the number is constantly increasing.

The period between 2015 and 2020 was crucial for Lviv IT industry, since the city:

• entered the top 10 for cost-efficient investment in the Financial Times investment ranking Smart Locations of the Future;
• headquarters several IT companies that joined the rating of 100 best outsourcing services providers by AIOP;
• IT sector has grown by 85% compared to 2015;
• has had up to 5000 applications annually from young people wanting to join the IT educational programs in the local universities.

There are plenty of powerful reasons for outsourcing your IT operations to Lviv. And no, that’s not only because of the reputable tech universities located there.

Why Lviv?

Excellent Location and Cultural Adjacency

Lviv is located in the heart of Europe and can be easily reached from any European city by bus, train, or plane. The air commute today is by far the most advantageous means of transport as it significantly reduces the travel time. As of today, Lviv International Airport, the second-largest in Ukraine, services 55 destinations in 24 countries including direct intercontinental flights to Africa (Egypt) and Middle East (Dubai).

Up to 95% of Lviv software engineers speak fluent English, and every third Lviv citizen speaks more than one foreign language; hence, it is doubtful to experience a communication barrier here. The apprehension of cultural diversity, open-mindedness and professional flexibility attract clients to cooperate with the local software development service providers. Adding in the business value and orientation, and you receive extremely favorable conditions for starting a business, partnership or outsource some of the processes.

High-Level Tech Education

With 5,000+ tech students annually graduating from local educational institutions, Lviv is a perfect IT industry center with a large talent pool of software developers. The average age of IT professionals is 28 years, and the average practical experience in this area amounts to 3 years.

As to the most popular institutions providing tech education, the TOP 3 comprises of Lviv Polytechnic National University, Ivan Franko Lviv National University, Ukrainian Catholic University. The leading directions and programs amongst the students are Computer Science and Information Technology, Computer Engineering, Applied Math and Informatics, Computer Technology and Engineering, etc. Students have a chance to participate in numerous events carried out by the universities in collaboration with Lviv IT Cluster, apply to the internship in the companies-members of the Cluster, listen to the lectures from the IT industry’s leading specialists, and many more. The changes in the studying programs are caused by the latest market demands so that the students do not have to change their specializations after they graduate.

Vigorous Growth of the IT Community

Lviv IT community is shaped by the people that firmly believe in the prosperous future of the city as a major business.

After the foundation of Lviv IT Cluster, the biggest IT association in Ukraine, it is now much easier to find a professional in any area: CEO, custom software development, computer engineering, robotics, statistics & data science, HR management, cybersecurity, and others. Moreover, the organization brings together authorities, companies, event organizers, and educational establishments to promote STEM education and fuel the Lviv tech talent pool with more specialists.

The fact of lots of IT experts located in Lviv has greatly encouraged various companies to outsource the hardware and software development to the city. Besides, these companies save huge investments and boost software development as well.

Summary

To conclude, Lviv is a city of numerous opportunities for businesses and specialists. The latest initiatives by the local authorities and organizations prove that the city has a bright future. Potential investors have multiple opportunities and business models to choose from.

IT outsourcing in Lviv is now an efficient and promising option to improve your company’s performance and make the most of the outsourcing process. Thanks to the huge number of IT experts and strong skills base it now becomes one of the most competitive IT centers for outsourcing in the world. Providing a vast scope of services that resonate with the client’s demands is the main key to successful business conduct and long-term cooperation.

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