Ukraine IT outsourcing market. June 12, 2013
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1 Ukraine IT outsourcing market June 12, 2013
2 ITO is a large and relatively mature market IT Outsourcing (ITO) is as well established form of outsourcing it has evolved into a sophisticated global market. The worldwide spend on ITO during 2011 is forecast to increase to billion (Source: Gartner. IT Outsourcing, Worldwide, , 3Q11 Update). As the ITO market has matured, companies have extended their outsourcing from relatively low risk commodity areas such as networks and desktop to more critical functions such as data centre. Offshoring has also resulted in very significant historic growth of application development and maintenance (ADM) outsourcing. The arrival of cloud technology is likely to increase the range of outsourcing models available to customers. Page 2
3 Top 30 Countries for Offshore Services Europe, the Middle East and Africa (EMEA): Bulgaria Czech Republic Egypt Hungary Mauritius Morocco Poland Romania Russia Slovakia South Africa Turkey Ukraine Leaders on cost attractiveness Egypt, Slovakia and Ukraine Page 3
4 Ukraine - constant growth ITO Export by countries 3 000, , , , ,00 500,00 Ukraine Bulgaria Czech Republic Egypt, Arab Rep. Hungary Mauritius Morocco Poland Romania Russian Federation Slovak Republic 0,00 South Africa Turkey Source: World Bank, Gartner Page 4
5 Ukraine IT outsourcing market growth ICT Export US$ M Source: World Bank, Gartner Page 5
6 Ukraine IT outsourcing market Ukraine Parliament adopted the bill as the Law On State Support of the Software Industry in 2012 Annual growth %, IDC, 2011 Market Size - $20,3 million* (which is 10,5% of service market) Information systems and applications outsourcing $9,68 million Client, server and network infrastructure outsourcing - $7,01million Outsourcing industry of Ukraine Ukraine is the only country from the top off shore services list in Europe that demonstrated the information and communications technology (ICT) exports growth in crisis year 2009 The World Bank 2010 ICT Report Gartner has analyzed 30 offshore services locations and rated each using 10 criteria. Our assessment of Ukraine identifies it as an attractive location for low-cost IT services Gartner, October 4, 2010 Ukraine is 11th among 20 leading countries in the area of IT Outsourcing Global Services 100 list 2010 Source: World Bank, Gartner Page 6
7 What kinds of services are usually outsourced? Нет Да -60,00% -40,00% -20,00% 0,00% 20,00% 40,00% 60,00% 80,00% 100,00% Outsourcing of Application Development and Its Integration -16,70% 77,10% Help Desk/ Service Desk Outsourcing -35,40% 41,70% IT Infrastructure Outsourcing IT Infrastructure Outsourcing (hardware) Workstations Support Business Applications Management & Hosting Network Infrastructure Hosting Data Storage Hosting Data Center Hosting Call Center/ Contact Center Hosting Printing Hosting Project Management Outsourcing Cloud Services -41,70% -20,80% -33,30% -39,60% -43,80% -37,50% -39,60% -39,60% -41,70% -41,70% -27,10% 39,60% 68,80% 43,80% 35,40% 18,80% 20,80% 16,70% 14,60% 8,30% 12,50% -IaaS -33,30% 2,10% -PaaS -31,30% 2,10% -SaaS -29,20% 8,30% Outstaffing -22,90% 22,90% Other 8,30% Source: Marketvisio Consulting, 2011 Page 7
8 Why our Clients Outsource with Miratech General Advantages to Outsource Cost predictability, savings and the ability to focus on core competencies Possibility of new business strategies and new investments Access to world-class skills and services Better IT effectiveness: IT is relieved of time-consuming, routine tasks Additional Advantages to Outsource with Miratech Easy communication and coordination: Miratech headquarters are only a 2-hour flight away from most of Europe and a 9-hour flight away from the US outstanding level of software engineering and IT service skills of Ukrainian IT workforce Wide coverage of Ukraine Page 8
9 Miratech Services Global Outsourcing Application Development and Maintenance Testing & Quality Assurance Managed Competence Centers Business Process Outsourcing Service-on-Demand Managed IT Services Infrastructure Operations Help Desk & Service Desk IT Support Database Operations Business Solutions Thin Computing Contact Centers Enterprise Application Integration Customer Relationship Management Enterprise Content Management Page 9
10 Confirmed Success in IT Services Miratech is named to Global Outsourcing 100 service providers list of The International Association of Outsourcing Professionals Miratech is ranked #2 in TOP 10 outsourcing providers lists in Central and Eastern Europe by Datamonitor s Black Book of Outsourcing Miratech is ranked #1 among Ukrainian enterprises according to official data from the State Service of Statistics and recognized as Software Industry Leader in 2010, 2011 and 2012 Industry Leader 2012 Industry Leader 2011 Industry Leader 2010 Company of the Year 2011 Quality Star 2011 Order of Merit 2012 Industry Expert 2011 Cross of Honor 2011 Page 10
11 Global Presence Market Entry Global Experience 1989: Started in Switzerland 1995: Ukraine 1999: US 2001: Germany 2004: UK 2006: Netherlands 2007: Norway and Sweden Miratech serves a number of global Top 1000 companies. Experience with international projects spanning 23 years Customers in all time zones Customers in over 100 different locations Customers in over 15 countries Page 11
12 Miratech at a Glance Founded in 1989 One of the first private IT companies in Ukraine Core team from Glushkov Institute of Cybernetics Part of Telenor Group (OSE: TEL) from 2006 to 2011 Owned by management since 2011 R&D facilities in Kyiv, Kharkiv, and Odesa Software CMM Level 3, ISO 9001:2008 certified 600 employees Clients in Europe and North America Clients on the Forbes Global 2000 list Audited by Ernst & Young since 2008 Annual sales growth rate of over 30 percent in the years 2007 through 2012 Page 12
13 Contacts Stockholm Kyiv London Oslo Washington DC Zurich Corporate Headquarters Stockholm, Sweden Delivery Headquarters Kyiv, Ukraine DACH Headquarters Zurich, Switzerland US Sales Office San Francisco, CA Page 13
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