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Prospect of war in Ukraine raises concerns over outsourcing industry

Matthew Finnegan | March 5, 2014
The Russian annexation of the Crimea and the possibility of war between Ukraine and Russia are threatening the country's IT industry and its customers world-wide.

The situation is more of a concern for customers of smaller outsourcing firms which lack resources, according to Majgaard.

"A lot of small companies don't have the resources to have contingency plans in place. Having your own line into Europe requires that you have a certain volume and you are willing to pay for that. A lot of smaller companies will just have to cross their fingers and hope everything is going to be okay."

"A contingency plan for a small company might be to go home and try to work from home, and hope that they will not try to close the internet. You need to have certain size of a company to seriously deal with things. We have also have offices outside of Ukraine, so we have the capacity."

 

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