The document discusses Ukraine's economy and potential for growth. It notes that while Ukraine had a reasonably good starting point after the collapse of the USSR, corrupt and incompetent governments resisted reforms, keeping foreign investment away. However, the Revolution of Dignity in 2013 marked a paradigm shift, with an active, pro-European civil society demanding change. Ukraine now has opportunities to transform its economy by leveraging two competitive advantages - its educated population with strong technical skills, and low labor costs. Ukraine ranks highly in math and science education and is a top global outsourcing destination for IT. With continued reforms, Ukraine aims to attract more foreign investment and further develop its economy.

1. UKRAINE
The past and the future

2. What happened at the end
of 2013?
The start of the Revolution of Dignity

3. As USSR collapsed Ukraine had a reasonably good starting point…
Source: World Bank

4. ..but populist, corrupt, incompetent governments resisted reforms
Ukraine’s ranking in Ease of Doing Business
Source: World Bank, 2010-2012
2011 rank
138 Madagascar
139 Micronesia
140 Bhutan
141 Sierra Leone
142 Syria
143 Ukraine
144 Gambia
145 Cambodia
146 Philippines
147 Bolivia
2012 rank
149 Iran, Islamic Rep.
150 Malawi
151 Mali
152 Tajikistan
153 Algeria
154 Gambia
155 Burkina Faso
156 Liberia
157 Ukraine
158 Bolivia
2010 rank
137 Iran
138 Ecuador
139 West Bank and Gaza
140 Gambia
141 Honduras
142 Ukraine
143 Syria
144 Philippines
145 Cambodia
146 Cape Verde

5. …which kept foreign investors away…
1 379
4 090
5 966
7 109
8 828
11 634
12 942
15 370
18 995
0
5 000
10 000
15 000
20 000
Estonia Czech Romania UkrainePoland LithuaniaSlovakia Hungary Latvia
Source: Economist Intelligence Unit
Net FDI stock in each country per capita, $

6. Can this be also the story of Ukraine in 2015?
Kyiv Maidan, 15 December 2013
The Revolution of Dignity
marks a paradigm shift in
Ukrainian society, politics
and inevitably, the economy
The active, pro-European
civil society – the Maidan
generation, intolerant of
abuses and relentless in
their controlling function,
warrants a point of no
return for the transformation
of the country

7. Maidan had a peaceful start but a tragic ending
BUT
• Ukraine changed
own Government
• Ukraine is
regenerating own
army and policy
• Ukraine is changing
laws and economy
• And……
Ukraine is changing!
• We lost more than 100 people in
Kiev
• We lost the Crimea
• We received a war in Donbass
• We near default in economy

8. What about the future?

9. A critical perspective: ground-floor starting point…
Economic Stagnation Authoritarian Legacy
Conflict Black Sheep of Europe

10. 3
2
1
0
4
+14%
-6%
201420102005200019951990
Saakashvili
Reform
Administration
Starting point: 2004
• Endemic corruption
• Crippling energy blackouts
• Economy in shambles
Outcomes:
• Corruption Perception ranking:
#132 to #51 by 2012 (i.e.
higher than Czech)
• From #98th to #8th in Ease of
Doing Business by 2014
• One of the fastest growing
economies in the world
From laggard to leader: Georgia
GDP per capita, in ‘000 USD

11. A ground-floor opportunity
Why this time is different and what makes us optimistic
about the Ukrainian economy now

12. A clear pro-European majority, for the first time
Source: Razumkov Centre, Democratic Initiatives, Kyiv Post
2002 2004 2006 2008 2010 2012 2014
50%
55%
60%
65%
35%
40%
45%
40%
53%
64%
48%
53%
44%
49%
Population support for joining the EU,
percent

13. A critical mass of active, tech-savvy civil society
Source: Euromonitor, Internetlivestats, BBC, USAID
5.7
Russia
4.5
Romania
3.6
Ukraine
3.3
Czech
2.6
Belarus
Civil Society Organization Index in 2014, 1-7 scale, lower=stronger civil
society
+0.1 +0.4 0 -0.2 +0.1
Improvement vs. 2008
1
7
“2014 saw the rise of self-organized
public and a strong volunteer
movement”
Throughout this turbulent period,
Ukrainian civil society stepped up to
the plate, playing a key role in
forming the new government’s
policy priorities and providing
critical services to the public”
– USAID, 2015

14. Percent of population using internet, %
42
38
34
29
23
18
0
10
20
30
40
50
2008 2014

15. Ukraine’s ranking in Ease of Doing Business, inversed scale
100
150
200
2015
96
2014
112
2013
137
2012
152
Source: World Bank, Ministry of Economic Development and Trade of Ukraine

16. Brains and Hands: two lasting, competitive advantages
1. Brains 2. Hands
The #1 IT engineering
force in CEE
Lowest-cost work platform
in Europe

17. Brains: #1 CEE IT force

18. Top math and science education, starting with primary school
China 1
US 2
Ukraine 6
Romania 11
Netherlands 13
Germany 16
Czech Republic 32
India 39
France 45
Belgium 59
Source: International Mathematical Olympiad, Eurostat, Ukrstat 2014
Results at the International Math
Olympiad, global rank
10%
4%
2%
8%
6%
0%
4.4%
Romania
4.9%
Ukraine
5.1%
Bulgaria
6.3%
6.8%
Latvia
9.8%
Poland Hungary Lithuania
3.9%
Share of math, science and computing graduates, %

19. Strong technical education ensures high quality of students…
United Kingdom 1
Hungary 9
Ukraine 13
Belgium 15
United States 26
Poland 32
Italy 38
Romania 48
India 56
Philippines 115
Source: goodcountry.org, Universitas 21
Good Country Index: Science and Technology parameters reported to GDP, rank
 Are you know, a
budget of Ukrainian
Ministry Of Science
and culture = a budget
of the Oxford
University?

20. …and feeds abundant technical talent into the market
Engineering graduates per annum in European countries, thousand students
39
48
56
66
71
75
93
105
130
20
40
60
80
100
120
140
RomaniaItalySpainPolandUKTurkeyGermanyFranceUkraine
Source: World Economic Forum, Forbes, 2014, IVC, www.business-standard.com

21. Possibilities of study
 353 Universities and
Institutes
 95 of them has technical
direction
 29 faculties of foreign
languages

22. Largest IT outsourcing force in CEE & among top ones globally
Source: dou.ua, Elance
3%
Macedonia
3%
Croatia
2%
Moldova
7%
Other
7%Poland
4%
Belarus
4%
Bulgaria
Serbia
8%
21%
33%
Ukraine
Russia
9%
Romania
Top CEE countries by IT freelance outsourcing, %
Ukraine is the #1 IT
outsourcing country in
CEE, by a wide margin;
#3 by freelance
outsourcing in the world
after US, India

23. Ukrainian softs for CC
http://www.voiptime.net/
http://callway.com.ua/
Gamification
http://www.naviwfm.com/
http://www.workandjoy.com/
CC software
Cloud CC software
WFM
https://www.oki-toki.net/

24. RESUME
 Ukraine has good educated population
 A lot of people has technical education
 A mentality of Ukrainians is close to mentality of western person

25. Brains: #2 Hands

26. Large, young, urban population
Source: Ukrstat
729766
9931 017
1 451
2 868
0
500
1 000
1 500
2 000
2 500
3 000
Kharkiv LvivZaporizhyaKyiv Odessa Dnipropetrovsk
• 70% urban population, concentrated mainly in and
around large cities
• 2.6 million student population with 640,000 graduates
each year
Select Ukrainian cities by population, thousand people

27. Top CEE cities by IT freelance outsourcing, %
Kharkiv 6.7%
Kyiv 6.6%
Lviv 3.4%
Zaporizhya 3.1%
Omsk 3.1%
Moscow 2.8%
Minsk 2.7%
Novosibirsk 2.6%
Bucharest 2.5%
Belgrade 2.3%
Source: dou.ua, Elance
21%
33%

28. CC agents salaries among the most competitive in the world
In Ukraine – 2,5 € !

29. RESUME
Good qualification with the
cheapest price in the world –
best decision!

30. Some words about
Ukrainian Outsource Contact Centers
and
foreign languages

31. Dynamics of changes in OCC market
Workplaces:
2013 - 9600
2014 – 8440
The reasons for reducing the n
umber of OCC are the following:
• Closing
• The cancellation of services on
the part of basic customers (that
are often Russian)
• Pass into status of "internal"
• The merge
with the larger OCC.

32. Companies that work with foreign projects
Ukrainian OCC initially were focused
not only on the domestic market.
In 2013, a significant number of
them (in a varying degree almost
all) worked with Russian customers.
In 2014, things began to
change though Russian projects still
occupy a leading position in the list.
European and Asian destinations are
not far behind.

33. The frequency of using foreign languages
Distribution of foreign
languages depending on the
frequency of using is the following:
the definite priority belongs
to English, quite often German and
Polish occur, other languages
are less common, but their list is
quite wide.
This suggests good potential
for development of
Ukrainian OCC towards foreign
markets.

34. Ukraine CC Awards - DZWINNER
 Start – in 2014
 Special site http://dzwinner.com/
 11 nominations
 25 members of the Jury
 70 participants
From the 2015 –
nomination Customer service specialist
(English speaking agents)
We are waiting for the participation of
Kazahstan and Belorussia in 2016

35. The world's largest ranking of countries by
English skills
According with EF EPI Rate
UKRAINE:
 Moderate Proficiency EF EPI Score:
52,61
 #23/27 in Europe
 #34 out of 70 countries
Source: http://www.ef.se/epi/
01 Sweden
02 Netherlands
06 Slovenia
09 Poland
10 Austria
11 Germany
16 Romania
17 Belgium
18 Czech Republic
19 Switzerland
21 Hungary
22 Latvia
23 Spain
25 Slovakia
28 Italy
32 Indonesia
33 Hong Kong
34 Ukraine
37 France
39 Russia
47 China
ModerateVeryHighHighLow

36. Propositions of the Ukrainian Government
 2016 will be a year of English
language in Ukraine
 English must be a second
official language in Ukraine

37. RESUME
Good qualified population with
different languages
and cheap price
is ready for work

38. We are waiting for an orders from the
West Europe

39. Ukraine is open for U
https://www.youtube.com/watch?v=jdSQuanI8Z8