Ukraine: an Emerging Software Outsourcing Destination

prepared by Softheme™ www.softheme.com Ukraine: an Emerging Software Outsourcing Destination

Table of Contents
Ukraine Overview
Political and Economic Environment
Ukrainian IT Outsourcing
IT Education in Ukraine
IT Salaries: Ukraine vs. USA
About Softheme™
Ukraine: an Emerging Software Outsourcing Destination. Prepared by Softheme™ www.softheme.com

Ukraine Overview
Second-largest country in Europe after Russia
Population: 45.7 million (2009 est.)
Workforce: 23 million (2009 est.)
Situated in the heart of Europe  strategic position between Europe and Asia on the intersection of major transport and trade routes

Favorable Political Environment:
Western-oriented government policies favorable for US and EU companies
Member of the World Trade Organization (WTO) since 2008
Not a member of the European Union  positive influence on outsourcing rates which are lower than in EU countries

Economic Growth:
GDP (PPP): $340 billion (2008 est.)  GDP growth: 2.7% (2008 est.)
Foreign Direct Investment: $37.6 billion (2008 est.)
Public debt is 10.3% of GDP (2008 est.), while
the EU region has an average debt of 57%
Ranked 61st on the 2009 Legatum Prosperity
Index of 104 countries  ahead of Russia,
Turkey and China

Global Economic Crisis Impact:
Stopped rapid wage growth
Decreased IT outsourcing rates
Reduced infrastructure costs  office rent
and communications

Ukraine is an attractive Emerging Outsourcing Destination, due to:
Growing pool of qualified human resources
European mentality
Competitive outsourcing rates

Ukrainian Outsourcing Facts:
Ukrainian IT outsourcing companies have been providing software development services since the early 1990s
Outsourcing accounts for more than 70% of software development work in UA
Ukraine is the #1 in Central and Eastern Europe (CEE) in regards to:
IT outsourcing market value ($530 million)
Number of IT outsourcing companies (850)
Number of employees involved in IT outsourcing
industry (14,400)
Sources:
Central and Eastern Europe IT Outsourcing Review 2008
UKRAINE: More than just another outsourcing destination, by Alex Golod, Intetics

Ukraine is among world’s top 50 IT outsourcing locations as of 2009  5 positions higher than in 2008
Ukraine is among top 10 countries with the most certified IT professionals
Ukraine is included in Gartner’s top 30 locations for offshore services in both 2007 and 2008  with one of the best cost and IT education quality indexes
Ukraine’s capital, Kiev, is included in Tholons’
Top 50 Global Emerging Outsourcing Cities list
Sources:
A. T. Kearney Global Services Location Index 2009
Global IT Report, Factbook

Rapid IT outsourcing industry growth:
Steady growth of IT outsourcing market in the past 5 years
The highest IT industry growth rate among CEE countries in 2007,
according to IDC
Ranked 4th after Russia with almost 40% growth
and over $3.4 billion in volume in 2007,
according to IDC
Sources:

Ukrainian outsourcing rates are among the lowest in CEE
Ukraine has higher financial attractiveness as an offshore destination than such popular outsourcing locations as China, Chile, Mexico, Brazil, Argentina, Czech Republic, and Poland
The closest location to Europe out of those countries not part of the EU
Large number of small outsourcing companies 
low rates for medium and small businesses
Sources:

Ukrainian Education Facts:
Ranked 32nd in Education on the 2009 Legatum Prosperity Index of 104 countries  ahead of India, China, Indonesia, Malaysia, Mexico, Brazil, Chile, and other popular outsourcing destinations
About 70% of adult population have secondary or higher education
Nearly 60% of Ukrainian universities have graduates with majors in physics, mathematics and programming

IT Education Relevance:
IT and software development occupations are becoming more and more popular in Ukraine among university students as a good way to build a successful career, due to:
Growing market demand
Challenging projects
Higher than average salaries

Sources of IT employees in Ukraine:

IT Salaries: Ukraine vs. USA
Salaries Comparison Across Various IT Positions:
*Source: Robert Half Technology, IT Salary Guide, 2008-2009 Ukraine: an Emerging Software Outsourcing Destination. Prepared by Softheme™ www.softheme.com

About Softheme™
Core Services:
Company Fast Facts:
Programming
Re-engineering
Enterprise-level application development
Web development / iPhone development
Software maintenance and support
Independent testing
Business analysis
Remote system administration / security audit
3D modeling
Web design
SEO and Marketing
Dedicated software centers
Founded in 2006, privately owned, UA ownership
More than 200 successfully delivered projects
80% of clients selected Softheme basing on Customer Recommendation
Microsoft .NET, Sun Java and Oracle certifications
Customers in the USA, UK and Western Europe
Application Domains:
ERP/CRM/Document Management
Website/Blogs/E-Commerce
Social Networks + Video processing
Data Analysis/Math Methods/Reporting
Google/Yahoo/MSN APIs
Backup/Recovery Solutions
Technologies : C# .NET, Java, C/C++, ASP.NET, PHP, Ruby, Python, Delphi, Oracle, MS SQL, mySQL, JavaScript/Ajax Ukraine: an Emerging Software Outsourcing Destination. Prepared by Softheme™ www.softheme.com

About Softheme™
For start-ups:
For commercial projects/systems:
Software maintenance and support: Softheme’s solution : Providing a team of qualified software developers, who will carefully study the application, apply required corrections; making sure the regression bugs are taken care of. You have an idea and initial budget which should to be turned into a prototype attractive to investors. Softheme’s solution: Suggesting a light-weight flexible software outsourcing solution - short-term contract, resources experienced in various technologies, having string software architecture skills, able to account for changing and unstable requirements on the prototype development stage. You have a strong need in enforcing your in-house development team to decrease the project’s time-to-market, fixing bugs, adding required features. Softheme’s solution: Providing you with a stable, self-managed and scalable team of IT professionals who will quickly get on the business domain area and on the technology side of development. You have a software product or system that is already on the market. It requires ongoing maintenance and improvements. softheme | www.softheme.com | info@softheme.com | skype: softheme | contact: Irina Tsulaia, Business Development Ukraine: an Emerging Software Outsourcing Destination. Prepared by Softheme™ www.softheme.com

About Softheme™
Terms of Engagement:
Softheme Mission:
Testimonials: softheme | www.softheme.com | info@softheme.com | skype: softheme | contact: Irina Tsulaia, Business Development Softheme mission is quality and affordable solutions. Softheme does not save on specialists and equipment but rather optimizes process and operations applying profound industry experience and knowledge. “ We selected Softheme basing on: (1) Softheme's experience in conducting Data Mining projects, their experience in previous implementations of algorithmic components, rule based and real-time expert systems, data query optimization, (2) Understanding of our SOWs, (3) Human resources and infrastructure.” Data Analytics Software Development Company (VA, USA) “ Over time we had completed several projects from start to finish with Softheme. From the initial analysis of the project scope to detailing the required functionality to implementation and on-time delivery, Softheme required our input mostly on the changes to the initial design and pretty much took care of the rest.” Backup and Recovery Software Development Company, (VA, USA) Ukraine: an Emerging Software Outsourcing Destination. Prepared by Softheme™ www.softheme.com
Cost-free project quote
Confidentiality / IP rights reserved
Fixed-price, time and material contracts
Rates starting at 15 USD resource/hour
Flexible cancellation policy

Thank you! 2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions Ukraine: an Emerging Software Outsourcing Destination. Prepared by Softheme™ www.softheme.com

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Ukraine: an Emerging Software Outsourcing Destination

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