Norway and Ukraine: Synergy in the IT Sector


In spite of all the shakes that Ukraine has gone through this country has become a popular software and app development hub. According to the State Statistics Service of Ukraine, the IT sector’s export trade with Norway has increased for more than 25% comparing the year 2017 to 2018. The same pattern is seen when comparing the first quarter of 2018 to 2019. Ukrainian IT companies’ export to Norway has increased by almost 10% in three months. These data clearly demonstrate that IT is one of the priority sectors for Ukraine export, growing annually for 20-30%.  

This rapid growth is supported by several important advantages. Firstly, Ukraine has historically been one of the technically developed countries with higher education institutions, offering technical studies in almost every large city. This has ensured Ukraine with a highly educated workforce that strives to increase its competence by different certifications and regular course attendance. Meanwhile, in 2018 Norway’s public investigations indicated that Norway will face a shortage of 4000 IT experts by 2030. Looking roughly at the numbers, Ukraine with 45 million inhabitants can definitely be useful to Norway whose population is nine times less.

Secondly, Norway is definitely one of the most expensive countries in Europe. Salary difference in both countries is extremely remarkable which leads to cost efficiency for Norwegian companies by outsourcing the service. European IT Outsourcing Intelligence Report that was made in 2010 states that the Norwegian company can save 40% to 60% of their total in-house expenses by outsourcing their tasks.  

Thirdly, geographical proximity plays an important role in export trade. Ukraine is only 2-3 hours flight away with no need for visa application, as well as, there is an only one-hour time difference between the countries which gives massive support to business development for both sides. In addition, Ukraine is situated inland where no natural hazards can impact the electricity supply or the Internet connection. 

Last but not least, the mind-set of European business culture and reliable work ethics in combination with English language proficiency frames Ukraine as a very suitable partner for Norwegian IT companies. 

Will Ukraine become the Silicon Valley of Eastern Europe time will show but meanwhile there is a chance to have a look at the leading Ukrainian IT sector’s representatives in the link here: