This is a presentation describing Ukraine as an attractive software outsourcing destination for businesses worldwide. Prepared by Softheme.

1. Ukraine: an Emerging Software
Outsourcing Destination
prepared by Softheme™
Learn why >

2. Ukraine at a Glance
Fast Facts:
• Second-largest country in Europe after Russia
• Population: 44.3 million (2014 est.)
• Workforce: 22.1 million (2011 est.)
• Situated in the heart of Europe: strategic
position between Europe and Asia on the
intersection of major transport and trade
routes

3. Political and Economic Environment
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 the EU countries
Favorable Economic Environment:
• Signed the Free Trade Agreement (FTA)
with the European Union

4. Political and Economic Environment
• GDP (PPP): $373.1 billion (2014 est.), GDP per capita: $8,240 (2014 est.)
• Foreign Direct Investments: $6.6 billion (2014 est.)
• Ranked 63rd on the 2014 Legatum Prosperity Index of 142 countries, ahead
of Mexico, Philippines, Russia, Indonesia, and Turkey
Sources:
 State Statistics Service of Ukraine
 The 2014 Legatum Prosperity Index
 Whitepaper: Outsourcing and Offshoring in CEE, by Colliers International
• EE/CIS region undertook positive business
reforms in 2013, is ‘simpler and more cost-
effective’ to establish and run a business with
than with such regions as East Asia / Pacific,
South Asia, Latin America, Sub-Saharan
Africa, Middle-East, and North Africa.

5. Political and Economic Environment
Other Factors:
• Moderate wage growth
• Attractive IT outsourcing rates
• Modest infrastructure costs: office rent and communications
• A fixed added value tax at just 4% for
businesses working in the IT sector:
serves as a significant relief and a
boost for the industry development

6. Ukrainian IT Outsourcing
Ukraine is an attractive Emerging Outsourcing Destination, due to:
• Growing pool of qualified human resources
• Strong Scientific Legacy
• European mentality
• English language proficiency
• Competitive outsourcing rates

7. Ukrainian IT Outsourcing
Ukrainian Outsourcing Facts:
• Ukrainian IT outsourcing companies have been providing software development
services since the early 1990s
• Outsourcing accounts for more than 75% of software development work in UA
• Ukraine is the #1 among 16 countries in Central and Eastern Europe (CEE) in
regards to:
 IT outsourcing market value ($1.1 billion)
 Number of IT outsourcing companies (1,050)
 Number of employees involved in IT outsourcing
industry (25,000+)
Sources:
 CEE IT Outsourcing Review 2008, 2009, 2010
 UKRAINE: More than just another outsourcing destination, by Alex Golod, Intetics
 Exploring Ukraine. IT Outsourcing Industry 2012 , by Ukrainian Hi-Tech Initiative

8. Ukrainian Outsourcing Facts:
• Ukraine is included in Gartner’s TOP 30 Outsourcing Destinations since 2007,
with one of the best cost and IT education quality indexes
• Ukraine was nominated as the “Outsourcing Destination of the Year” by the
European Outsourcing Excellence Awards in 2011
• Ukraine is included in TOP 50 Countries for Locating Outsourcing Services
according to Global Services Location Index
• Ukraine is 11th among 20 leading countries in the
area of IT Outsourcing and High Tech Services
Sources:
 Gartner’s 30 Leading Locations for Offshore Services
 2011 European Outsourcing Association Summit and Awards
 A.T. Kearney Global Services Location Index 2011
 The 2010 Global Services 100 list
Ukrainian IT Outsourcing

9. Ukrainian Outsourcing Facts:
• Ukraine was ranked among the 10 TOP countries with the most certified IT
professionals, just after the US, India, and Russia
• Ukraine was ranked 8th in the Gaming Industry’s TOP 12 European Countries
• Ukraine was ranked the 49th best country in which to live by Newsweek Magazine
• Kyiv, Ukraine’s capital, is included in the Tholons’ TOP 50 Emerging Global
Outsourcing Destinations
• The Ukrainian city of Lviv was named a TOP 30
emerging destination for outsourcing according to
the report “Exploring Global Frontiers” by KPMG
Sources:
 Global IT IQ Report
 Global Gaming Industry Network 2009
 Newsweek Magazine, World’s TOP 100 Countries
 TOP 50 Emerging Global Outsourcing Cities, Tholons 2009
Ukrainian IT Outsourcing

10. Ukrainian IT Outsourcing
Ukrainian Outsourcing Facts:
• Steady growth of IT outsourcing market in the past 10 years
• 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:
 Central and Eastern Europe IT Outsourcing Review 2008
 A. T. Kearney Global Services Location Index 2009
 Global IT Report, Factbook

11. IT Education in Ukraine
Ukrainian Education Facts:
• Ranked 42nd in Education on the 2014 Legatum Prosperity Index of 142 countries,
ahead of Argentina, Malaysia, Costa Rica, Romania, China, Chile, Philippines,
Indonesia, Turkey, Brazil, India, Egypt, and other popular outsourcing destinations
• Out of 144 countries, ranked 41st in ‘Higher Education and Training’ and 30th in
‘Quality of Math and Science Education’ on the 2014 Global Competitiveness Report
• Ukraine is 5th in 'Postsecondary Education' in
Bloomberg's 2015 list of Top 50 Most Innovative
Countries
Sources:
 2014 Legatum Prosperity Index
 The Global Innovation Index, Bloomberg 2015
 The Global Competitiveness Report 2014-2015 – World Economic Forum
 Exploring Ukraine. IT Outsourcing Industry 2012, by Ukrainian Hi-Tech Initiative

12. 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
IT Education in Ukraine

13. Sources of IT employees in Ukraine:
City Population (mil)
Part of outsourcing industry resources,
number of IT specialists
Kyiv 2.8 10 000
Kharkiv 1.7 4 750
Lviv 0.9 4 000
Dnipropetrovsk 1.2 1 750
Odesa 1.1 1 000
Crimea cluster 1.5 750
Other - 2 750
Total 9.2 25 000
IT Education in Ukraine

14. IT Salaries: Ukraine vs. USA
Salary Comparisons Across Various IT Positions:
Position
Ukraine
min/year
USA
min/year
Ukraine
max/year
USA
max/year
IT Manager $31,200 $91,000 $60,000 $130,750
Project Manager $15,000 $79,000 $42,000 $117,250
Programmer $14,400 $78,250 $27,600 $119,500
Quality Engineer $10,200 $80,250 $19,200 $107,000
Sources:
 DOU (www.dou.ua) – a community of Ukrainian IT professionals
 Robert Half Technology, IT Salary Guide 2012

15. About Softheme
Company Fast Facts:Core Services:
• Software development
• Software re-engineering
• Enterprise-level application development
• Salesforce development and integration
• Web development
• Mobile development (iOS, Android, Windows Phone, etc.)
• Software maintenance & support
• Independent software testing & QA
• Dedicated development teams
• Remote system administration / security audit
• Internet marketing, SEO, marketing automation
• Founded in 2006 in Kyiv, Ukraine
• More than 1,000 successfully delivered projects
• ~400 developers and testers
• 80% of clients selected Softheme basing on customer
recommendations
• 30% certified specialists (MS .NET, Oracle Java, Salesforce)
• Customers in the USA, UK, Japan, Western/Eastern Europe
Application Domains:
• ERP / CRM / Document management
• Website / blogs / e-commerce / social networks
• Data analysis / data security
• Finance / Insurance
• Healthcare / Medical
• SaaS, and more
Technologies: C# .NET, Java, C/C++, ASP.NET, PHP, Ruby, Python, Delphi, Oracle, MS SQL, mySQL, JS/Ajax

16. Terms of Engagement:
• Cost-free project quote
• Confidentiality / IP rights reserved
• Fixed price, fixed team, time & materials
cooperation models
• Rates starting at 15 USD resource/hour
• Flexible cancellation policy
Softheme Mission:
Softheme mission is to create better applications
for a better world.
Softheme does not save on specialists and
equipment but rather optimizes process and
operations, applying profound industry
experience and knowledge.
Testimonials:
“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.”
Mark F. on his experience with Softheme’s C#
developers
“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.”
John S. on his experience with Softheme’s Web/Mobile,
C#/C++ and QA units
About Softheme

17. About Softheme
Softheme® is a trademark of Software Outsourcing House Int., an international
group of companies dedicated to investing in Ukraine’s IT outsourcing industry.
We provide cloud, desktop, web, and mobile software development; along
with independent software testing and QA, remote system administration, and
Internet marketing outsourcing. We are recognized as the Technical Talent
Company that knows how to hire and retain prominent IT specialists.
Contacts
www.softheme.com
+1-202-657-5672
business.softheme
info@softheme.com