Innovecs CTO: New Trends in Software Industry Market Give Us an Edge

Share Article

"Today we are facing serious changes in the software industry as a whole and particularly in the pattern of demand – these changes raise new challenges and open window of opportunities. Western customers, the main clients for the Ukrainian software industry, put out some new requirements in contrast to those they had at the dawn of this industry’s development," says Dmitry Sverdlik, CTO at Innovecs, an American business technology outsourcing company headquartered in Ukraine.

Main Logo


It’s the quality that is of importance for the Western customer now

The Ukrainian outsourcing industry established itself before the 2008 economic crisis, the period when big money pumped into projects in the US market, and there was no need whatsoever for any cost reductions. US companies used to come to Ukraine to outsource large-scale projects, and the largest Ukrainian outsourcing companies excelled because they successfully adopted a business model tailored to implement large-scale projects, which was a priority then. The success formula was simple and effective: they were quick in finding workforces and selling them to the US.

However, there's a serious drawback of such approach: meeting the demand for large-scale projects often entails the issue of quality loss. After long years of exploiting this business model, most of the Ukrainian IT outsourcing “giants” have developed a retailer mentality and lost the skills of a production company that can independently perform the entire production process.

Now is the time when the Western client is looking for companies that are able to implement the principal part of the product, understand the US market and can take up client's idea and carry it out from inception to the market launch. The Western client expects the service provider to take care of the whole product life-cycle, and this is where small, Innovecs-like, companies, step in with their expertise.

”Of course, if a customer approached us and asked to engage 300 people staff for tomorrow, we will not be able to do that. We will not even think of doing such projects. At the same time, if a company approached us with a complex high-tech task, and they have only three managers' teams in California who set an overall idea, and transferred the main product cycle to us, we will certainly win this sale. We can do it because from the top down we have people with unmatched expertise in IT industry who understand engineering problems and client’s objectives,” says Dmitry.

Why did such serious changes in the software industry happen? Dmitry believes that there are two global trends taking place in the West today. Firstly, it is cost saving. This applies to both multinationals and small businesses: after 2008, all Western customers focused on cost saving.

Secondly, the number of the engineering graduates from western universities has decreased, and their professional level is usually below the required standards. Apart from high-tech hubs, the engineering profession does not enjoy much popularity in the US, and this is a problem recognized by the government, as well.

Too little money and too few engineers – these are two significant challenges faced by today’s software industry. Those who understand it today will become masters of this market tomorrow. A flexible company meeting the market realities – this is what the Western customer needs now.

Innovecs does their utmost to extend the Silicon Valley engineering spirit and create the best software products for the worldwide customers. Company create advanced box products and enjoy working on complex projects requiring highly qualified experts and non-standard engineering solutions. That is what differs Innovecs in the Ukrainian software market.


Innovecs is an American company specialized in technology outsourcing in Central and Eastern Europe, established in 2011 by leaders with decades of combined experience in global software outsourcing business.

Headquartered in Ukraine with business offices in the US, UK, Israel and Russia and delivery centers US and Ukraine, the company provides multiple service offerings including business technology advisory, software development, quality control and testing services for technology companies and software-enabled enterprises all over the world. We have created an outstanding technology team which has been responsible for more than 2,500 projects of distributed software development for more than 150 companies worldwide, including Fortune 500 and NASDAQ 100 companies.

To learn more about us, please visit:

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Katerina Drobot
+38-044-593-7794 2401
Email >

Iryna Chubur
Follow us on
Visit website