How is outsourcing regulated in Ukraine in the legal field?

10.29.2019

To begin with, in Ukraine, outsourcing is conditionally divided into 2 groups: it-outsourcing and general. In fact, outsourcing companies provide the same type of service, but in the field of IT this service has gained wide popularity and was able to go far beyond the borders of our country. Considering that last year Ukrainian it-outsourcers in Europe earned a total of $ 4.5 billion, this service quite predictably became somewhat isolated.

In the legislative field, “outsourcing of personnel” does not have clearly defined rules, more precisely, the “Law on Employment” contains information on the necessary permission, but it has not yet entered into force. Therefore, in order to avoid difficulties with regulatory authorities, outsourcing companies enter into a service agreement that can protect performers in court. This information is relevant for all types of outsourcing in Ukraine and abroad.

The first large outsourcing centers of large international companies began to appear in Ukraine in 2008. Moreover, Lviv became the epicenter because of its geographical proximity to the EU and convenient logistics. The second city is Kharkov, working with eastern destinations. However, due to globalization in Ukraine, many large cities, such as Kiev, Dnieper, Odessa, Ivano-Frankivsk, are charged with potential. Moreover, View Research predicts an increase in the number of outsourced business centers by 75,000 worldwide by 2020.

The main characteristics of an outsourcer who is more likely to get contact (based on personal observations and customer reviews):

1. The more years on the market, the better. The more reviews (including those that are not always positive), the better. Rich experience and the ability to work with objections will be more useful in practice than a beautiful logo and relevant SMM. But, of course, it is better if all communications are at a high level.
2. The presence of ready-made instructions for force majeure. These are the same guarantee cases, clauses on solving complex issues in the contract, the availability of an advance payment and a clear schedule of cooperation with the terms of compensation in case of failure. It is decided individually and strongly depends on the market where the outsourcer works.
3. The presence of staff. Freelancers are good, but for a large company it is important to see regular managers in classic office mode. Exceptions to the rules are found, but extremely rarely.