Top 7 Onshoring Companies: What Do They Do

The American research company Clutch published ratings of the fastest-growing IT companies, as well as outsourcers with the most sustainable growth. There are nine in the top 100 that are sustainable.

What Are The Rankings?

Clutch determined the fastest growing B2B IT service providers based on the change in their revenues in 2019 compared to 2020. As for the most resilient, here, the dynamics from 2017 to 2020 were assessed. Only companies that had:

  • The minimum revenue in 2017 was $500,000 or more.
  • The minimum revenue for 2020 was $500,000.
  • There was net positive growth in revenue from 2017 to 2020.

The world ranking of Global Outsourcing 100 lists 13 Ukrainian outsourcing companies and 7 more international companies with local representation in Ukraine. Global Outsourcing 100 is an annual ranking of the global top suppliers of outsourcing solutions. It is compiled by the International Association of Outsourcing Professionals (IAOP). In 2020, companies were evaluated in four areas:

  • customer feedback;
  • awards and certifications for industry excellence;
  • Innovative customer service programs;
  • Corporate social responsibility (programs that address labor practices, human rights, fair practices, the environment, and more).

Source: https://mobilunity.ch/blog/how-to-hire-nearshore-team-in-ukraine-6-pros/ 

The rankings include companies from around the world that provide services in information technology, real estate, administration, capital asset administration, factory production, as well as logistics.

Based on these rankings, the seven leading Ukrainian firms have been identified.

Top 7 Onshoring Ukrainian Companies

  1. Ciklum

Ciklum is an IT firm established in 2002 by Torben Maigaard in Ukraine. It develops software and also delivers facilities and decisions in various spheres. Its offices are located in Kyiv, Kharkiv, Lviv, Dnipro, Odessa, Vinnytsia, Minsk, Gdansk, Malaga, and Wroclaw.

The organization employs approximately 3,500 software engineers all over the world. Collaborate straight with globally renowned customers in engineering locations in Ukraine, Belarus, Poland, and Spain.

  1. Computools (Kyiv)

Computools Is a worldwide provider of Consumer software solutions, Retailing, Financials, and HealthCare industries. The company currently (2019) consists of more than 180 IT professionals who develop and support the digital side of client businesses to serve millions of their customers worldwide. It is a Ukrainian organization for creating innovative software solutions, established in 2013. It is engaged in the creation of different types of apps, development, IoT solutions, and others.

The organization is located in Kyiv and Zaporizhzhya.

The company’s goal is to develop innovative software solutions to grow client businesses worldwide.

  1. Mobilunity (Kyiv, Outstaffing, IT Management)

Mobilunity is a fast-developing supplier of IT outsourcing services. Established in 2010 with a shipping location in Kyiv, Ukraine, it delivers a broad range of advanced technologies to its customers from different industries. Its team of professionals provides a complete cycle of bespoke software development oriented to boost each customer’s growth. From new companies to big businesses, Mobilunity provides the supreme engineering in Ukraine, the agility of performance-oriented administration, and the confirmed success of delivering different services worldwide. If you need to hire a professional developer, Mobilunity is your choice.

  1. Infopulse

This is a Ukraine-based IT enterprise, established in 1991. It creates programs and offers IT security services. Among their clients are BICS, Bosch, British American Tobacco, Gorenje, Vodafone Ukraine, OTP Bank, Raiffeisen Bank Aval, and more.

The headquarters are located in Kyiv, Kharkiv, Lviv, Odessa, Vinnytsia, Zhytomyr, and Chernihiv, with a staff of about 2,000 professionals.

  1. Sigma Software

Established in 2002 in Kharkiv the organization became part of the Sigma group in 2006. Clients include Volvo, SAS, Scania, Oath, Formpipe. Recently they released their own augmented reality game.

There are offices in Kyiv, Kharkiv, Lviv, Dnipro, Odessa, Vinnytsia, Sumy, Warsaw, and New York. Over 800 employees operate in Ukraine.

  1. N-iX 

Ukraine-based software firm, established in 2002 in Lviv.  They deal with topics in telecommunications, finance, media, energy, aviation, education, and medicine. Their clients include mobile operator Lebara, fintech project Currencycloud, digital drawing solutions developer Anoto, RateSetter, and more. The company is staffed by over 1,000 professionals. There are locations in Lviv, Kyiv, Krakow, Minsk, Sofia, and representation in Malmo, St. Petersburg (Florida).

  1. ELEKS 

Eleks was founded in 1991. Here they develop bespoke programs and resources and consulting for businesses. Their clients include Eagle Investment Systems, Autodesk, Phoenix, MINT Software Systems, AVG, and more.

The offices are located in Kyiv, Lviv, Ternopil, Ivano-Frankivsk, and Rzeszow, with a total of over 1,500 specialists working there.

What Are Onshoring Companies?

Often compared onshoring vs nearshoring, let’s review what onshoring is. An onshore firm is a legal entity that submits reports as well as pays taxes at the standard rate in the location of registration, regardless of the place of the company. Sometimes onshore organizations receive tax benefits. 

Source: https://mobilunity.com/blog/onshoring-vs-offshoring-in-software-development/ 

The following is characteristic of standard onshore companies:

  • Accounting and compliance with auditing requirements in the country of incorporation;
  • accrual and payment of taxes in accordance with the standard legislation (without benefits);
  • the right to apply double taxation treaties;
  • full and real work process.

What Do They Do?

Onshore is popular in cross-border trade, as well as adding to the solidity of the company’s operations. They are often applied in order to avoid double taxation, and in former times were not a bad way to reduce the tax base. Onshoring seniors is necessary for business, just like offshore. The most common use of an onshore company in international practice is for:

  • creation of real business not related to offshore schemes;
  • practical utilization of advantages of double tax treaties;
  • increasing the prestige of the organization;
  • proof of the source of income.

The default onshore jurisdictions are all countries that aren’t on the “gray” or “black” lists of international financial organizations and states.

Advantages Of Onshore Companies

Source: https://mobilunity.com/blog/onshoring-vs-offshoring-in-software-development/ 

Countries that do not belong to the classic low-tax areas can be attractive for companies for a variety of reasons:

  1. Prestige – Affiliates and lenders are eager to collaborate with foreign firms. While offshore zones are sometimes associated with various “dark” schemes, onshore zones have a high status, are considered to be reliable and their activity is transparent.
  2. Stable legislation and a developed economy.
  3. Expansion of partnerships – the companies working in onshore companies can make deals with low-tax firms without restrictions.
  4. Optimized taxation. You can count on preferential and even zero rates (under certain conditions). In addition, optimization is possible by eliminating double taxation. 

Such jurisdictions have high credibility in the international business community than offshore jurisdictions and are used for various purposes, such as giving solidity to the holding company, the output of the group of companies for an IPO, the use of favorable tax regime, the consolidation of the group and the avoidance of prohibitions on transfer pricing, asset protection, investment projects, as well as for the purpose of subsequent immigration.

Posted by Charlie