Outsourcing in Ukraine
By Oleg Mishyn
Posted: 9th April 2014 09:00
Outsourcing can be defined as transferring some of a company’s business activities to third parties. And when these third parties are located in a different country, outsourcing takes the form of offshoring. But why do companies choose to outsource instead of working with in-house specialists? Well, there are quite a few reasons why the benefits of outsourcing can and should be leveraged. Let’s take a look at them.
1. The first and probably the most obvious reason why companies choose to outsource is to lower business costs. It’s no news that third world experts offer work of the same high quality as the ones located in first world countries at a significantly reduced rate. So why would you pay more if you can pay less?
2. Outsourcing mundane business activities, companies can focus on their core functions. Internal resources can be used more effectively when dealing with company’s primary concerns rather than with bills, for example. A software development company may outsource helpdesks and tech support instead of keeping them in-house, as many software problems can be solved over the phone by outsourced consultants.
3. Businesses that decide to outsource also reduce infrastructure needs significantly. There is no reason why you should invest in an expensive call center or a top-notch IT team, when outsourced companies can already perform their functions better and often cheaper.
4. Risk management is yet another financial advantage of outsourcing. If, for example, you use in-house employees to launch a new product, they are now on payroll and you’ll pay them regardless of whether the product sells, which will not be the case with outsourced employees, who can be dropped in a minute.
5. Being one of the major reasons to outsource, financial benefits are far from being the only ones. For one thing, outsourcing gives access to a huge knowledge base and world-class experts. This is especially helpful if your country lacks talents in a certain domain.
The advantages of outsourcing are undoubtable. But if you decide to outsource, make sure you are working with the best companies. For instance, software outsourcing in Ukraine is on the rise. Ukraine is the number one country among Central and Eastern European countries when it comes to the prices on IT outsourcing. Low taxes on software development in Ukraine create the best conditions for working in the IT industry in Eastern Europe, making outsourcing to Ukraine all the more profitable.