In recent years, many companies have begun to use strategic outsourcing. Strategic outsourcing is when an organization works with suppliers in order to make a significant improvement in business performance. According to many analysts, there is a growing trend for software development to be conducted in the countries where expertise and labour costs can compete with the western world. Ukraine has a reputation of producing very strong technical competence. Ukrainian programmers are very motivated to work closely with Western markets, as technically, they are exposed to more challenging and interesting development projects. Having efficient organizational and administrative support creates a very productive environment that guarantees quality software development at a very competitive price.
- Extraordinary experience: about 30,000 students who graduate annually have strong IT and mathematical backgrounds (15,500 – Software Engineering)
- Competitive pricing: 30% less costly compared to the traditional project based outsourcing model and up to 60% less costly compared to in-house development
- Culturally close
- Physically close: two hours and 20 minutes to Kiev at just over SEK 2 000 return
- R & D heritage
- Thousands of private and state R&D institutions and technology companies
- Over 30% of R&D activity in the former USSR was done in Ukraine
- Ukraine is among the top 5 aerospace nations and weapons exporters in the world.
At the beginning of 2005, the Ukrainian offshore software development market was around 300,000,000 USD, with 50 large companies (> 100 people), and a couple of thousands of smaller companies (< 100 people). When considering offshore software development, Ukraine is considered one of the largest competitors to India (according to Gartner research, at start of 2005, India held about 3-4% of offshore software development market). India is well know for writing code, Ukraine and Russia in return are known for creating and executing whole projects (according to “IT-Ukraine” Association). | 
