Ukraine as a budding destination for Shared Service Centers
Ukraine continues to be an attractive market for different industries. Five shared service centers (SSC), a vast number of BPOs (business process outsourcing) and R&D centers successfully operate and now are expanding operations in Ukraine. Several companies are currently considering Ukraine as a destination for SSC/R&D. We hope to announce new names soon.
Recent reforms and developments have a favorable impact on Ukraine’s business environment. Ukraine is steadily improving its ranking in ‘ease of doing business’, showing advancement primarily in deregulation and paying taxes. Ukraine went from 142nd a decade ago to 71st in 2019 in the World Bank's Ease of Doing Business rankings.
More facts about Ukraine:
- Ukraine has significantly improved air connectivity with other countries. New airlines and lowcosters entered the Ukrainian market, making logistics easier and more affordable in terms of both intercity and international flight connection.
- Ukraine is a country with significant high-qualified labor potential. More than 14 million people with advanced education live and work in Ukraine.
- The office property market in major cities of Ukraine has overcome the crisis due to economic recovery and increased demand for new office space, particularly by IT-sector and BPO companies, resulting in a significant decrease in vacancy. Nevertheless, in view of the improved market dynamics, many developers are now increasingly considering new development projects in major cities of Ukraine.
- Ukraine ranked 64 among 146 countries in terms of social development according to the findings of the Global Social Progress Report, developed by US-based, non-profit organization Social Progress Imperative with the support of Deloitte.
- Ukraine's GDP per capita has increased from USD 7,457 in 2017 up to USD 7,668 in 2018.
The survey results illustrate the potential: social and economic performance of Ukraine continues to grow from year to year.
“Ukraine remains an attractive market for various industries, which is confirmed by the interest of foreign investors and choice of the Ukrainian market by large companies both for expanding its presence and as a strategic direction for business development,” said Volodymyr Yumashev, one of the research authors and Tax & Legal Partner at Deloitte Ukraine.