Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Ukraine: an Emerging Software Outsourcing Destination


Published on

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

Ukraine: an Emerging Software Outsourcing Destination

  1. 1. Ukraine: an Emerging Software Outsourcing Destination prepared by Softheme™ Learn why >
  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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 ( – a community of Ukrainian IT professionals  Robert Half Technology, IT Salary Guide 2012
  15. 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. 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. 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 +1-202-657-5672 business.softheme