Report: 100 000 IT professionals working for 100+ global companies in Ukraine

A new report by East-West Digital News in collaboration with AVentures offers a comprehensive overview of the Ukrainian IT outsourcing and software R&D capacities in 2015.

The report chronicles the continued growth of the Ukrainian IT outsourcing sector at the time of economic and political crisis and explains how it can do better.

According to the report, Ukraine (population: roughly 45 million) is home to nearly 100,000 software developers and other technology specialists, and more than 1,000 local companies specialising in IT services. By 2020, this figure is actually expected to double.

The country has seen its IT service and software R&D capacities grow by double-digit figures in recent years, with the help of 100+ global technology companies.

According to the report, companies like Rakuten, Huawei, Oracle, Opera, Cisco, Ubisoft, Samsung, Wix and many others currently have R&D activities in Ukraine.

A significant part of these global companies entered the market indirectly, through M&A activity, joint R&D with an outsourcing component, or out-staffing service companies.

The report says the United States remains Ukraine’s largest partner for joint R&D activities (around 45% of the companies involved), followed by EU countries and Israel. Kyiv (Kiev) is the most popular location in Ukraine for opening an R&D center, concentrating over half of all such bases in the country.

 

The English proficiency level among IT professionals in Ukraine has grown significantly over the past few years, according to the report, yet it remains lower than that of some other CEE countries.

Online tender system saved UAH 600 million

 

The ProZorro public procurement system that started operating on February 12, 2015, allowed saving around UAH 600 million of budget funds in a year of its operation. This is what the head of Zakupki.prom.ua trading site, a participant of the ProZorro system, Mykola Zhandorov, told Interfax-Ukraine.

The total sum of tenders announced during one year was around UAH 9 billion and their number reached 50,000. "In 2016, when the law on public procurement took effect, it is expected that all indicators would grow by at least ten times, as the law introduces mandatory online public procurement," Zhandorov said.

During the year of the operation of the ProZorro system Kyiv, Dnipropetrovsk, Kharkiv, Odesa and Lviv regions were most active ones. Donetsk region is sixth.

Today, around 3,000 public customers work in the ProZorro system. The top largest are Defense Ministry, public joint-stock company Ukrgazvydobuvannia and Interior Ministry.

The largest tender was worth almost UAH 201 million when Ukrgazvydobuvannia bought steel pipies and steel sections.

The huge inefficient of processes and specialists in the public agencies hinder successful work of the public procurement system along with corruption. "The absence of skilled buyers does large harm. The team of the Economic Development and Trade Ministry and representatives of the trading sites of the ProZorro system trained specialists of public agencies for the whole year, and it will continue in 2016," he said.

Soon typical specifications for announcing tenders will be created, the technical part of the system will be elaborated, quality criteria for selecting winners will be added and a possibility of challenging the results of tenders online will be created.

METRO Cash & Carry signs a contract with Defense Ministry

METRO Cash  Carry LLC have signed a contract with the Defense Ministry of Ukraine to supply food to military servicemen.

"The agreement on supply of food according to a catalog for the western naval base in Odesa where the experiment on the introduction of the alternative feed system for military servicemen successfully continues has been signed," the Defense Ministry said on its website on Thursday.

The head of the food reformation system for the Armed Forces of the project office of the Defense Ministry Diana Petrenia said that according to the preliminary results of the electronic reversed auction the cost of a food set per serviceman of the western naval base a day will be UAH 42.39 and on the ship – UAH 44.41.

The previous cost of the food set per serviceman (before December 31, 2015) was UAH 57.24 and UAH 59 on the ship.

This week it is planned to sign an agreement on supply of food under a catalog in the National Army Academy in Lviv.

METRO and the Defense Ministry are planning to expand the catalog for military servicemen in the Anti-Terrorist Operation (ATO) zone. It is also planned to improve the military food quality control system.

Dutch bank names Ukraine as the most promising market

ABN AMRO bank considers Ukraine as the most promising among the emerging markets. The bank put Ukraine on the top of the list of the four perspective countries, including Vietnam, Mexico and Ghana.

“Yes, the country still has problems in its relations with Russia. However, the country’s foreign trade is increasingly oriented to the West. Above all Ukraine is attractive to Dutch agricultural business,” – said the statement on the bank’s website.

Bank professionals noted that the Netherlands can be a market for Ukrainian products, and Dutch entrepreneurs can find opportunities on the Ukrainian market instead of the Russian market lost due to the anti-Russia’s sanctions.

ABN Amro is the second largest bank in the Netherlands. In 2012 the bank took the 48th position in the list of the world’s largest banks.

 

 

 

Ukraine: Europe’s leading software development powerhouse

Ukraine Digital News and its partner AVentures Capital released the comprehensive report on the Ukrainian IT outsourcing and software R&D capacity.

In spite of the country’s recent political turbulence, Ukraine has seen its IT service and software R&D capacities grow every year by double-digit figures. From Cisco, to Oracle, to Rakuten, to Samsung, more than a hundred global major tech firms conduct R&D activities in Ukraine, while an array of local IT outsourcing companies of all types and sizes serve a growing number of clients worldwide.

With 200,000 programmers forecast by 2020, the Ukrainian IT sector is fuelling the development of the middle class, which aspires to a better life in a democratic and non-corrupt country – as reflected by the active role of many people from this industry in the country’s strive for reform.

In addition to a complete set of data, including detailed analysis by industry segments and regions, this 210-page report features fascinating cases of international software R&D collaboration – for example, how a relatively small company from Eastern Ukraine brilliantly solved mobile virtualisation tasks assigned by a South Korean research institute, while disruptive UK fintech and healthtech startups have found industry and technology expertise in a company from Lviv (Lvov), in the western part of the country.

Also included are testimonials from a variety of Western companies using the services of Ukrainian programmers, the analysis of Ukrainian experts on the key global market trends. In an exclusive interview, Dmytro Shymkiv, former Microsoft Ukraine GM and currently Deputy Head of the Presidential Administration, shares his views on the current reforms and their impact on the IT industry.

Yet the report speaks frankly about all issues. Top legal experts have contributed advice to international companies on how to secure their IP rights and avoid pitfalls when drafting contracts with Ukrainian counterparts, while Deloitte Ukraine has offered a detailed account of the present taxation system.

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