The practice of outsourcing business operations to a trusted Nearshore location has been growing in popularity as a way to access a bigger talent pool, tackle market challenges and adopt advancements in technology.
As a decision bearing a high degree of importance, choosing a suitable and reliable outsourcing location is crucial.
Nearshoring, which in the geographical context of UK refers to transferring process to Eastern Europe, has been an extremely effective solution to many companies (ours included).
This article will explore and compare two top IT and contact centre outsourcing destinations in Eastern Europe, namely Bulgaria and Ukraine. Read below to discover where the right strategic partner for you would be located.
IT Talent Availability
Overall Winner: Ukraine
As a significantly bigger country with much larger population size, Ukraine trumps Bulgaria in number of available IT professionals: 100 000 vs 24 000.
In fact, as shows by Colliers International, Ukraine ranks 4th in the world by number of IT professionals. Moreover, this number is expected to grow by 50% by 2020 turning the Ukrainian IT sector into the biggest export industry in the country.
For its size, Bulgaria isn’t doing too shabby either. It boasts with 24 000 trained IT specialists working across 400+ companies. It’s important to note that Bulgaria has a long-standing tradition in software development and ranks 8th globally for total number of IT professionals, 53% of which are ICT-certified.
An interesting and encouraging fact about Bulgaria is that it is the country with the highest number of female ICT specialists in Europe – 30.28%. Well done, Bulgarian ladies.
Tech Education & Language Proficiency
Overall Winner: Bulgaria
Both Ukraine and Bulgaria can boast with an enviable amount of high quality educational institutions offering IT-related programs. What’s more, Ukrainian universities launch many courses that relate to hot tech topics such as Data Science, IOT (Internet-Of-Things), AI (Artificial Intelligence) and others.
Apart from solid university education in the Information Sciences, Bulgaria has a number of intensive IT academies that offer software development, digital marketing, AI, IOT, Blockchain and web design courses to those are considering career change into the lucrative ever-growing IT sector.
The reason Bulgaria is crowned winner in this category is the better English language proficiency of the workforce. Bulgarian students study English as a compulsory subject all the way from high school through to university. In addition, many young Bulgarians pursue higher education in the UK, USA and across Europe, coming back home to begin their career path.
Overall Winner: Bulgaria
The business environment in Ukraine is undoubtedly evolving in a direction that simplified the taxation system and improves registration procedures. The country ranks 68th for its GCI (Global Competitiveness Index), recognizing its high grade education, health care, and innovation.
Bulgaria has been enjoying a stable economy, with its local currency pegged to the euro. This, in combination with a government that does everything in its power to encourage foreign investments; the lowest rates of personal income tax in the EU and very favourable business conditions makes it a perfect outsourcing destination.
Unsurprisingly, Bulgaria is named “Offshoring Destination of the Year” by NOA (National Outsourcing Association) in the UK in 2015.
When it comes to Nearshore Outsourcing, both Bulgaria and Ukraine are popular destinations, and for good reasons. When deciding where to search for your perfect strategic outsourcing partner, it is important to weigh all options.
Ukraine trumps Bulgaria in the number of available staff for hire, but Bulgaria is the queen when it comes to favorable economic conditions and highly trained multilingual workforce.