IT outsourcing sector in Ukraine: recent trends and perspectives.

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1 IT outsourcing sector in Ukraine: recent trends and perspectives. Prepared for: Polish-Ukrainian Shared Services and Outsourcing Forum November 2015

2 Agenda Structure of IT outsourcing (ITO, R&D etc.) People as the key value (a size of IT market, specializations, trends etc.) BPO perspective in Ukraine

3 Structure of IT outsourcing (ITO, R&D etc.) Ukraine is ranked first (Europe) in the volume of IT outsourcing and software development services provided. Industry is developing at a rapid pace of 10-15% growth a year while new companies are opening their R&D offices in Ukraine. The industry actively penetrates into different regions. These are fairly large industrial and cultural centers such as Chernigiv, Kirovograd, Ivano-Frankivsk, Sumy, Ternopil, Zhitomyr, Lutsk, Poltava, Khmelnitskiy.

4 Structure of IT outsourcing (ITO, R&D etc.) ICT/ITO R&D CENTERS ecommerce STARTUPS E-GOVERNMENT $2 billion market 50,000+ developers 500+ companies 25-30% growth billions $ 5,000+ developers 100+ centers 30-40% growth $2 billions locally employees 100+ companies 40-50% growth Worth $1 billion employees 1,000+ startups % growth employees 50+ startups % growth

5 Over 100 services ICT/ITO R&D CENTERS ecommerce STARTUPS egovernment development and maintenance of applications QA consulting increased productivity, improving technical performance, optimization of processes in the international market Research consulting services development, implementation and maintenance of applications buying and selling goods through the Internet(В2В, В2С, С2С): online shopping, online auctions, trading platforms payment systems companies with a short operational history, characterized by rapid growth turns into a fullfledged business after attraction capital for the development information payment for services appeals of citizens services for product development, development of user interfaces

6 People as the key value (a size of IT market, specializations, trends etc.) The total number of IT specialists in Ukraine over persons. More then 74k Software Developers 27 years average age 60% senior level and higher 74% specialized higher education in IT 78% speak English on Intermediate level and higher 148 universities which train ICT specialists; Average salary in Ukraine of Senior Software Engineer 3k USD

7 English proficiency Ukraine is in a cohort of medium English proficiency countries according to the EF English Proficiency Index (2013) English Proficiency Index ranking The level of English proficiency in Ukraine is close to some countries where English is an official language (such as India or Hong Kong) Nearly 17% of adult Ukrainians have at least an intermediate level knowledge of English and a substantial share of the population knows other languages, such as German, French or Spanish 17% Knowledge of foreign languages 8% 4% 3% 3% 2% English German French Polish Spanish Italian

8 Geographical proximity Distance and language barriers likely also play a role for managing outsourcing contracts, ensuring quality, and mitigating the risks of errors and misunderstandings. In terms of location, Ukraine holds a position similar to Poland, Romania and Bulgria but is far closer to clients than competitors in India and the Philippines. Short flight time to the major EU cities adds a key advantage in terms of the ability to clients to meet face to face with the sourcing firm

9 SBT Systems Services in Ukraine: Office Start Legal, Finance&Accounting HR&Recruitment Marketing Additional Services (visa support and more) TOP-5 IT cities in Ukraine 100+ employees 7+ years of experience PE support throughout all territory of Ukraine 10+ recruiting team from TOP-3 IT players

10 QUESTIONS You are welcome during coffeebreaks

11 Stay focused on programming - everything else is our care. Dmytro Ovcharenko

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