Business Process Outsourcing - Ukraine

Revenue in the Business Process Outsourcing market is projected to reach US$1.05bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.85%, resulting in a market volume of US$1.33bn by 2029.
The average Spend per Employee in the Business Process Outsourcing market is projected to reach US$54.01 in 2024.
In global comparison, most revenue will be generated United States (US$146.30bn in 2024).

Definition :
The Business Process Outsourcing (BPO) market refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers). A distinction is made between horizontal and vertical outsourcing. Horizontal BPO combines function-centric as well as cross-sector and cross-industry services, such as human resources management or payroll accounting. Vertical BPO, on the other hand, focuses on specialized services and is especially appealing to customers from the financial services industry, the healthcare sector, the manufacturing industry, or the retail sector.

Additional Information:

The Business Process Outsourcing market comprises revenues, revenue change, average spend per employee, and the market shares of the different business sectors. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include Accenture, Cognizant, Wipro, and IBM.

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Back office process outsourcing, such as Genpact, Concentrix, HCL Technologies, Sutherland Global Services, EXL Services, Remote Coworker, and TechSpeed
Front office process outsourcing, such as IBM Global Services, Hewlett Packard Enterprise (HPE), Sitel Group, Teleperformance, and Qualfon

Application outsourcing, such as ScienceSoft, Arcanys, and SumatoSoft
Administration outsourcing, such as Conduent, Genpact, and ADP (Automatic Data Processing)
Infrastructure outsourcing, such as IBM Global Technology Services, Wipro Infrastructure Engineering, and Cognizant Infrastructure Services

The Business Process Outsourcing market in Ukraine has been steadily growing over the years.

Customer preferences: Ukraine has become a preferred destination for outsourcing services due to its highly skilled workforce, cost-effectiveness, and proximity to Western Europe. Clients from various industries, including IT, healthcare, finance, and logistics, have been outsourcing their business processes to Ukraine. The country has been able to attract international clients due to its proficiency in English, which is a critical factor for clients when selecting an outsourcing destination.

Trends in the market: The outsourcing industry in Ukraine has been experiencing significant growth in recent years. The sector has been growing at a rate of 20-25% annually, and the trend is expected to continue in the coming years. The growth of the outsourcing industry in Ukraine can be attributed to several factors, including the country's IT talent pool, favorable business environment, and government support. Ukraine has been investing in its IT infrastructure, and the country is home to several IT parks, which provide a conducive environment for outsourcing companies.The outsourcing industry in Ukraine has also been witnessing a shift towards more complex and high-value services. Companies are increasingly outsourcing services such as research and development, product design, and engineering to Ukraine. This trend can be attributed to the country's highly skilled workforce and the focus on innovation and creativity.

Local special circumstances: One of the significant advantages of outsourcing to Ukraine is the cost-effectiveness of the services. The country's low cost of living and competitive salaries have made it an attractive destination for outsourcing services. Additionally, Ukraine's geographical location makes it an ideal destination for companies looking to outsource services to Europe, the Middle East, and Asia.

Underlying macroeconomic factors: The Ukrainian government has been supportive of the outsourcing industry and has implemented several policies to promote the sector's growth. The government has been investing in IT infrastructure and has provided tax incentives to outsourcing companies. Additionally, the country's membership in the World Trade Organization has made it easier for companies to do business in Ukraine.In conclusion, the outsourcing industry in Ukraine has been growing steadily due to several factors, including the country's highly skilled workforce, cost-effectiveness, and favorable business environment. The trend towards more complex and high-value services is expected to continue, and the government's support for the sector is likely to attract more international clients to the country.

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Unseen yet omnipresent, Information Technology (IT) services are the invisible gears driving modern organizations. These services support business operations and digital transformation through outsourcing, managed services, security, data management, and cloud computing. By leveraging these services, companies enhance efficiency, reduce costs, and gain competitive advantages in a digital marketplace. Prominent cloud providers worldwide include Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud. In the managed services sector, Oracle, Accenture, and IBM are among the largest providers globally.