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Software Outsourcing
in Ukraine
Michael Shraybman, CEO, Cogniance Inc.
February 8, 2010



European Entrepreneurship & Inn...
“An orange and two lemons”
Sunday Feb. 7 presidential election - does it matter?




                                     ...
Facts & stats

 Population      47 million (5th in Europe)

 Area            603,600 km2 (largest contiguous country in Eu...
Born in the Ukraine



                                                 Mechnikov




 Trotsky                            ...
Condensed history timeline


                                              Turks,
              Scythians,
               ...
Notable technical achievements




DniproHES, 1930, largest
hydroelectric station in      First electronic computer in con...
Ukrainian Software
Outsourcing Sector
                     7
Strong basis & support for outsourcing
          world-class engineering
                           cultural alignment wit...
Ukraine leads CEE outsourcing

    2008 SOFTWARE OUTSOURCING REVENUE BY COUNTRY, $ MLN


                 CEE share of glo...
Fragmented and plentiful supply

  NUMBER OF OUTSOURCING COMPANIES        NUMBER OF OUTSOURCING PROFESSIONALS
            ...
Top clients of Ukrainian outsourcing




                                       11
Company Overview
Competent & cutting-edge




 Full-service software outsourcing partner for early-stage,
   venture-funded Web 2.0 & Mobil...
Covering end-to-end product lifecycle




     Design               Development               Operations

• Full-service d...
World-class leadership

                Juha Christensen
                Chairman & Founder
                (Denmark)


 •...
Happy customers and happy VCs




                                16
Customer successes



  Cloudmade
  London, UK




 • “Wikipedia” of maps. Provides developers with tools and APIs to make...
Customer successes



  Ad Infuse
  San Francisco, CA




 • Mobile advertisement insertion and routing platform for carri...
Thank you!

        Michael Shraybman
        CEO and Co-Founder
        Cogniance Inc.
        www.cogniance.com



     ...
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Michael Shraybman - Cogniance - Stanford - Feb 8 2010

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Michael Shraybman - Cogniance - Stanford - Feb 8 2010

  1. 1. Software Outsourcing in Ukraine Michael Shraybman, CEO, Cogniance Inc. February 8, 2010 European Entrepreneurship & Innovation Program
  2. 2. “An orange and two lemons” Sunday Feb. 7 presidential election - does it matter? 2
  3. 3. Facts & stats Population 47 million (5th in Europe) Area 603,600 km2 (largest contiguous country in Europe) Education • 98% literacy rate (top 10 rank worldwide) • 70% of adults have secondary or higher education International • Trade: USA, Germany, UK, Japan, China, Russia, Poland • EU & NATO cooperation agreements Relations • No visa required for citizens of EU, US, Canada, Japan Religion • 84% Orthodox Christian • 10% Catholic Christian • 2% Protestant Ethnicities • 78% Ukrainians • 18% Russians 3
  4. 4. Born in the Ukraine Mechnikov Trotsky Meir Hoffmann Korolev Bulgakov Drinfeld Gogol 4
  5. 5. Condensed history timeline Turks, Scythians, Mongols, Greeks, Democratic Poles, Austro- Romans, Orange Hungarians, Byzantines Revolution Russians WWI, Ukraine hosts Golden Age of Independence First human WWII, UEFA EURO Kievan Rus’ (USSR collapses) settlements USSR 2012 4500 BC 600 BC - 900-1200 1200-1900 1900-1990 1991 2004 2012 600 AD Great Famine (Holodomor) 1930’s, 10M dead Babiy Yar and other mass exterminations WWII, 3M dead 5
  6. 6. Notable technical achievements DniproHES, 1930, largest hydroelectric station in First electronic computer in continental Europe at the time Europe, 1950 (MESM) World’s largest aircraft (Antonov-225) - 1988 6
  7. 7. Ukrainian Software Outsourcing Sector 7
  8. 8. Strong basis & support for outsourcing world-class engineering cultural alignment with the West high talent availability manageable time differences Law: “Foundations low turnover of the Development of Ukrainian Information Society in 2007-2015” competitive motivated growing English & Internet penetration US and EU travel-friendly 8
  9. 9. Ukraine leads CEE outsourcing 2008 SOFTWARE OUTSOURCING REVENUE BY COUNTRY, $ MLN CEE share of global software engineering market: 15% Ukraine’s share: ~3% Source: Central & Eastern Europe IT Outsourcing Review 2008 Booz Allen Hamilton 9
  10. 10. Fragmented and plentiful supply NUMBER OF OUTSOURCING COMPANIES NUMBER OF OUTSOURCING PROFESSIONALS 2008 2008 Ukraine has abundant supply of software engineering talent, with more than 16,000 new grads with Bachelors degree and 14,000 new grads with Masters degree each year Source: Central & Eastern Europe IT Outsourcing Review 2008 10
  11. 11. Top clients of Ukrainian outsourcing 11
  12. 12. Company Overview
  13. 13. Competent & cutting-edge Full-service software outsourcing partner for early-stage, venture-funded Web 2.0 & Mobile companies globally • Established in March 2008 • Cash-flow positive from Month 2 • Silicon Valley and Kiev, Ukraine • < 3% annual staff turnover • 75 employees and growing • 13 venture-funded customers in US, UK, Scandinavia, Germany, and Israel 13
  14. 14. Covering end-to-end product lifecycle Design Development Operations • Full-service delivery partner • Ability to define, design, architect, build, and support the solution • Delivering projects faster, at better value and lower risk 14
  15. 15. World-class leadership Juha Christensen Chairman & Founder (Denmark) • Time Magazine’s 25 most influential Europeans in technology • Founder of Symbian • VP of Mobile at Microsoft • President at Macromedia • Board member at Teleca, VirtualLogix, and an active VC 15
  16. 16. Happy customers and happy VCs 16
  17. 17. Customer successes Cloudmade London, UK • “Wikipedia” of maps. Provides developers with tools and APIs to make the most out of maps in their web and mobile applications. • Cogniance scaled Cloudmade team from 2 to 25 Designers, Engineers, QA, and Network Operators in less than 30 days. • RESULT: • 20,000+ registered developers one year later • Selected by the White House for tracking Obama’s “Change” progress • Nominated for Mobile Premier Award at Mobile World Congress next week 17
  18. 18. Customer successes Ad Infuse San Francisco, CA • Mobile advertisement insertion and routing platform for carriers, ad aggregators, publishers and mobile subscribers • Cogniance provided complete UI design, Engineering, and QA teams • RESULT: Ad Infuse was acquired by Velti in 2009 for 8X the invested capital 18
  19. 19. Thank you! Michael Shraybman CEO and Co-Founder Cogniance Inc. www.cogniance.com michael@cogniance.com @mshraybman, @cogniance www.facebook.com/mshraybman www.linkedin.com/in/mshraybman 19

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