GoGlobal has launched its people-first international HR and Employer of Record (EOR) services in Ukraine.
Ukraine is a country with untapped potential and unique opportunities, especially when it comes to IT, agriculture, manufacturing and infrastructure improvements. Against the backdrop of the ongoing war, which poses grave danger and hardship, we are inspired by the strength and resilience of the Ukrainian people. We believe in Ukraine and the opportunities it offers for investment and expansion.
Our team of on-the-ground experts can help businesses navigate the Ukrainian market, from understanding the unique opportunities for investment to the regulatory compliance requirements, HR processing and cultural nuances.
Our team members from all around the globe feel privileged to support our clients as they invest in the country’s economy and vibrant workforce during these challenging times. We hope that through our launch, we can help more businesses realize the immense potential Ukraine has to offer the world.
To kick off our launch, we prepared a special Q&A session with Valeriya Tiavlovskaia, Associate Director of Client Solutions, and Kurt von Moos, Executive Director. In this interview, they share their insights and expertise on the Ukrainian market and offer answers to some of the most common questions we’ve fielded from businesses as they look to expand into and hire in Ukraine.
Can you give us a sense of where there are unique opportunities for expansion and hiring in Ukraine?
Valeriya: In recent years, Ukraine has become a hub for IT outsourcing and has established itself as a leading destination for software development and IT services. According to data from the National Bank of Ukraine, in spite of the war, IT industry export revenues actually increased by 23% year-on-year during the first six months of 2022 to reach $3.74 billion.
Kurt von Moos: Even with the war happening, Ukraine’s IT talent pool remains and is now an untapped resource. Ukraine offers a highly educated and skilled workforce, with many IT professionals holding advanced degrees in computer science and related fields. The country also has a strong tradition in science and engineering, which has helped to produce a talent pool of highly skilled developers, engineers and other IT professionals.
Why should multinational companies (MNCs) consider expanding into or hiring in Ukraine at this time when there is a war underway?
Valeriya: While the conflict in eastern Ukraine is a concern, it is important to note the majority of the country remains stable and safe for foreign businesses to invest and hire in. The Ukrainian government also offers a range of incentives to foreign investors, including tax breaks, grants and subsidies. These incentives can help reduce the initial costs of establishing operations in Ukraine and provide support for ongoing operations.
Kurt: Another reason companies may consider expanding into or hiring in Ukraine is as a form of support. The war has of course taken a toll on both the local economy and its citizens. One of the most effective forms of aid can come with MNCs boosting the local economy and offering Ukraine’s workforce access to additional opportunities.
What are some of the benefits of hiring in Ukraine?
Kurt: Ukraine’s workforce offers a myriad of benefits:
- Competitive costs: Ukraine is highly cost-effective compared to other European countries, which plays a huge part in making it an attractive location for MNCs to hire or expand into. For example, the cost of IT services in Ukraine can be a fraction of those found in Western Europe or the US.
- Favorable business environment: Ukraine has made significant progress in improving its business environment in recent years, including measures to reduce bureaucracy and corruption, streamline regulations and support entrepreneurship. This has helped to create a more favorable environment for IT companies to operate and invest in Ukraine.
- Government support: The Ukrainian government has also made efforts to support the development of the IT industry, including through initiatives aimed at promoting innovation and technology transfer, providing training and supporting the growth of startups and SMEs in the sector.
Apart from the IT sector, are there any other industries where there’s a particularly strong investment proposition that might be appealing to MNCs?
Valeriya: Other sectors ripe for investment in Ukraine include:
- Agriculture: The country is known for its fertile soil and favorable climate for agriculture. The agricultural sector is a major contributor to Ukraine’s economy. Investment in agriculture can support the development of modern farming technologies, increase productivity and help the country become a leading exporter of crops and food products.
- Infrastructure: Ukraine has significant infrastructure needs, particularly in the areas of transportation, energy and telecommunications. Investment in these areas can improve connectivity and facilitate the movement of goods and people. This will fundamentally make it easier to do business in Ukraine.
- Manufacturing: Ukraine has a strong manufacturing base, with a skilled workforce and a history of producing high-quality goods. Investment in the manufacturing industry can help modernize production facilities, introduce new technologies and expand production capacity. This will create new jobs and generate economic growth.
How would you describe the talent pool? There is the perception many have fled the country.
Valeriya: In general, the workforce of Ukraine is highly-educated, skilled and cost-effective. There is a war happening but people are still working, earning a living and providing for their families.
Kurt: While it’s true many have fled, many have returned and continue to do so. Furthermore, large segments of the male population are not permitted to leave due to the state of the war.
What would you like businesses to know about expanding to Ukraine at this moment in history?
Valeriya: Ukraine is a land of untapped potential and opportunity. With a highly educated and skilled workforce, a favorable business environment and a strategic location at the crossroads of Europe and Asia, it is the perfect destination for businesses seeking to expand their operations and break into new markets.
Kurt: The country’s agriculture, manufacturing and information technology industries offer immense potential for growth and development. At the same time, the government’s commitment to reform and modernization has created a business-friendly environment that welcomes foreign investment.
Despite the ongoing conflict, these opportunities remain true today.
Investing in Ukraine during these challenging times can uniquely position companies for the future. Check out our Spotlight on Ukraine, HR at a Glance: Ukraine or contact us to learn more about navigating the international expansion and hiring lifecycle.