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1
IT in Ukraine –
the Opportunity
2
Mr. Dmitry Ovcharenko
VP of Legal matters in
IT Ukraine Association
CEO at ALCOR
50+ MAJOR IT PLAYERS
3
4
Ukraine’s booming IT
industry under the
microscope by
The Ukraine Business
Journal
WHY UKRAINE?
Borys Pratsiuk,
Head of R&D Engineering at Ciklum:
“When we asked our clients why they
worked with Ukraine, w...
PEOPLE AS A KEY
200,000
100,000
$4.5 billion
6
industry
IT professionals
software engineers
PEOPLE AS A KEY
60%
senior level
7
74%
specialized
education in IT
78%
speak English
THE TOTAL NUMBER OF GRADUATES REACHES 600 000,
WHICH IS THE 4TH HIGHEST NUMBER IN EUROPE
8
PAY SCALE: UKRAINE VS UNITED KINGDOM
IT specialist Ukraine
Java $1,820-4,500
JavaScript $1,850-4,600
C# / .NET $1,750-4,24...
EFFICIENCY GAIN
10
Support/administrative personnel costs – 4-8 times cheaper
Administrative costs (including office rent)...
SIMILAR LOCATION TO POLAND, ROMANIA AND BULGARIA
11
FROM FLIGHT DURATION TO
Ukraine
2.5 h Zurich
2.5 h Oslo
2.5 h Berlin
3...
SUMMARY
12
COST
Ukraine is cheaper than
Poland, Hungary, the
Czech Republic,
Slovakia and Romania,
and can save Western
co...
RESULT: COMPANIES THAT INVESTED IN UKRAINE
13
COMPANY EMPLOYEES FROM
Samsung 800+ 2012
Boeing 400+ 2013
Ericsson 200+ 2014...
MAJOR R&D AND NEARSHORE DELIVERY CENTERS IN UKRAINE
14
EMERGING EUROPEAN STARTUP HUB
15
#3 UKRAINIAN INDUSTRY BY EXPORT
16
Agro
$16BMetallurgy
$11,1B
IT
$3,6B
THE RISKS IN UKRAINE
17*DOU IT industry statistics
0
10000
20000
30000
40000
50000
60000
2014 2015 2016 2017 2018
General ...
THE FUTURE OF UKRAINE
UNIT.City Kyiv
18
IT Park Lviv
THE FUTURE OF UKRAINE
200,000 400,000 IT professionals
100,000 200,000 software engineers
$4,5 billion $10 billion industr...
THREE MAIN OPTIONS FOR ENTERING UKRAINE
20
M&A
Your own R&D center
Outsourcing
M&A–TOP 5
2018 – Amazon buys Ring, $1 billion (500+)
2017 – Luxoft acquires IntroPro (500+)
2017 – George Soros Fund buys ...
22
YOUR OWN SOFTWARE R&D CENTER
23
YOUR OWN SOFTWARE R&D CENTER
TOP 3 LIFEHACKS FOR OPENING AN R&D OFFICE IN UKRAINE
Step 1: Research TOP 5 IT cities in Ukraine (to find the right IT spe...
25
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Alcor BP is one of the top outstaffing companies in Kyiv Ukraine. They find you an office space, hire a top team of developers and manage the whole process.

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Dmitry ovcharenko it in ukraine the opportunity london 2

  1. 1. 1 IT in Ukraine – the Opportunity
  2. 2. 2 Mr. Dmitry Ovcharenko VP of Legal matters in IT Ukraine Association CEO at ALCOR
  3. 3. 50+ MAJOR IT PLAYERS 3
  4. 4. 4 Ukraine’s booming IT industry under the microscope by The Ukraine Business Journal
  5. 5. WHY UKRAINE? Borys Pratsiuk, Head of R&D Engineering at Ciklum: “When we asked our clients why they worked with Ukraine, we expected to hear because of price. But we heard: because of quality.” 5 Alex Lutskiy, Founder and CEO of Innovecs: “In India, you can build a team of 1,000 people in six months. You can’t do that in Ukraine. But if you want to build a small team of high-end software engineers, Ukraine is a good place.”
  6. 6. PEOPLE AS A KEY 200,000 100,000 $4.5 billion 6 industry IT professionals software engineers
  7. 7. PEOPLE AS A KEY 60% senior level 7 74% specialized education in IT 78% speak English
  8. 8. THE TOTAL NUMBER OF GRADUATES REACHES 600 000, WHICH IS THE 4TH HIGHEST NUMBER IN EUROPE 8
  9. 9. PAY SCALE: UKRAINE VS UNITED KINGDOM IT specialist Ukraine Java $1,820-4,500 JavaScript $1,850-4,600 C# / .NET $1,750-4,240 PHP $1,400-4,000 C++ $2,000-4,200 Python $1,700-4,200 Swift $1,900-4,500 Ruby $2,000-4,500 QA $1,220-3,500 Objective-C $1,760-4,000 9
  10. 10. EFFICIENCY GAIN 10 Support/administrative personnel costs – 4-8 times cheaper Administrative costs (including office rent) – 3-4 times cheaper Attractive personal tax rate for IT professionals 5%
  11. 11. SIMILAR LOCATION TO POLAND, ROMANIA AND BULGARIA 11 FROM FLIGHT DURATION TO Ukraine 2.5 h Zurich 2.5 h Oslo 2.5 h Berlin 3 h Paris 3 h London
  12. 12. SUMMARY 12 COST Ukraine is cheaper than Poland, Hungary, the Czech Republic, Slovakia and Romania, and can save Western countries up to 60% on their total expenses. LOCATION At most, you will have a 2-hour difference if you are in the UK, and the 1-hour difference if you are in central Europe. Ukraine is also located almost in the middle between the Australian and the Americas time zones. TALENT Undervalued human capital under the Davos economic forum meeting in 2017. CULTURAL SIMILARITIES A successful business is based on transparent communication, understanding of European values and hard work of professionals.
  13. 13. RESULT: COMPANIES THAT INVESTED IN UKRAINE 13 COMPANY EMPLOYEES FROM Samsung 800+ 2012 Boeing 400+ 2013 Ericsson 200+ 2014 Oracle 200+ 2015 Amazon 500+ 2018
  14. 14. MAJOR R&D AND NEARSHORE DELIVERY CENTERS IN UKRAINE 14
  15. 15. EMERGING EUROPEAN STARTUP HUB 15
  16. 16. #3 UKRAINIAN INDUSTRY BY EXPORT 16 Agro $16BMetallurgy $11,1B IT $3,6B
  17. 17. THE RISKS IN UKRAINE 17*DOU IT industry statistics 0 10000 20000 30000 40000 50000 60000 2014 2015 2016 2017 2018 General employment in IT
  18. 18. THE FUTURE OF UKRAINE UNIT.City Kyiv 18 IT Park Lviv
  19. 19. THE FUTURE OF UKRAINE 200,000 400,000 IT professionals 100,000 200,000 software engineers $4,5 billion $10 billion industry by 2024 19 *PwC IT Industry research for European Business Association
  20. 20. THREE MAIN OPTIONS FOR ENTERING UKRAINE 20 M&A Your own R&D center Outsourcing
  21. 21. M&A–TOP 5 2018 – Amazon buys Ring, $1 billion (500+) 2017 – Luxoft acquires IntroPro (500+) 2017 – George Soros Fund buys a stake in Ciklum (2000+) 2015 – Snapchat buys Looksery, $150 million (150+) 2015 – Oracle buys Maxymiser (150+) 21
  22. 22. 22 YOUR OWN SOFTWARE R&D CENTER
  23. 23. 23 YOUR OWN SOFTWARE R&D CENTER
  24. 24. TOP 3 LIFEHACKS FOR OPENING AN R&D OFFICE IN UKRAINE Step 1: Research TOP 5 IT cities in Ukraine (to find the right IT specialization). For example, Kharkiv is a game development center in Ukraine, yet Kyiv hosts more than 40% of the industry. Step 2: Hire the first senior employee for your future development team in Ukraine. He/she may use a co-working until you hire 2-3 other IT specialists. Step 3: Find the right IT office for a 10+ team… and then move onward & upward! 24
  25. 25. 25

Alcor BP is one of the top outstaffing companies in Kyiv Ukraine. They find you an office space, hire a top team of developers and manage the whole process.

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