"CEE IT Outsourcing Review 2010" Webinar - Ukraine an emerging IT outsourcing destination by Eleks

1. Sponsor of CEE IT Outsourcing
Review in Ukraine
Ukraine – An Emerging Software
Outsourcing Destination
By Olha Markova
Head of Marketing,
ELEKS Software
www.eleks.com
www.eleks.com

2. www.eleks.com

3. Ukraine - One of The Largest Countries in Europe
The second largest European country
Population: 45.7M (#27 in World)
GDP in PPP: $ 290B
GDP per capita in PPP: $ 6,300
Labor force: 22.15M
Developed ex-Soviet
economy (World’s #34) Lviv
Large, highly-educated, Kyiv
low-cost work force
www.eleks.com

4. Overview of Ukraine’s IT Outsourcing Industry
Ukraine represents the largest IT Outsourcing industry in
Eastern Europe
IT Outsourcing industry growth rate for 2009 – 13%
More than 900 IT companies
18,000+ specialists involved in IT Outsourcing
Ukraine has more than 800 universities and colleges
Majority of Ukrainian IT specialists (est. 70%) work for
American or European customers
A number of Government initiatives introduced to support
and promote the Ukrainian IT industry
www.eleks.com

5. Industry Acknowledgement
Ukraine is listed among:
Top 10 countries with the most certified IT professionals
(Global IT IQ Report by BrainBench)
Top 30 Outsourcing Destinations
(Gartner, 2007-2008)
Top 50 Emerging Global Outsourcing Destinations
(Global Services and Tholons, 2009)
Top 20 Leading Countries in the area of IT Outsourcing and
High-Tech services (Global Services 100 List, 2010)
www.eleks.com

6. Ukraine’s IT Outsourcing Market
Growth in 2009
2008 2009 2010 Forecast
Market Volume $ 530 M $ 697 M $ 874 M
Number of
Companies 850 940 1,000 +
Number of IT
Specialists 14,400 18,100 20,400
* Source: CEE IT Outsourcing Review 2010
www.eleks.com

7. Sample Customers of Ukrainian
Outsourcing Services
www.eleks.com

8. Main Advantages of Ukraine as the
Outsourcing Destination
Mature IT / BPO market that Well-developed infrastructure
continues to develop rapidly Economics and politics
Large pool of highly-skilled transformations towards
specialists, top-notch Western business models
technology talent
Cultural and geographical
Strong educational proximity to Western Europe
system, large number of
universities, scientific schools Significant cost reductions,
and R&D centers including labor costs
Good command of English
www.eleks.com

9. Key Outsourcing Centers in Ukraine
Part of outsourcing Average
Population,
City industry resources salary relative
million
(mostly IT), % to Kyiv, %
Kyiv 4.0 42 100
Kharkiv 2.5 20 85
Lviv 1.3 11 75
Dnipropetrovsk 2.0 8 80
Odessa 1.8 4 80
Other 14 70
* Source: www.ceeoa.org
www.eleks.com

10. www.eleks.com

11. Lviv – The Capital of Western Ukraine
One of the largest economic, scientific and
technological centers in Ukraine
Strong historical and cultural
ties with EU countries
The Ukrainian city with the
strongest Western mentality
Main industries: tourism,
food, chemical, construction,
electronics, engineering, and IT
www.eleks.com

12. Lviv – The Capital of Western Ukraine (2)
The leading educational center in Ukraine with almost
40 universities and institutes
Strategically located in the very center of Eastern Europe
Convenient airline connections: Munich – 2 hours,
Warsaw – 1 hour, Vienna – 1.5 hours (direct); New York
(through Warsaw) – 10 hours
In 2009, Lviv was named the Best Ukrainian City To Live In
(‘Focus’ magazine)
www.eleks.com

13. Lviv - One of The Largest Ukraine’s IT Centers
Lviv is one of the three largest software development
centers in Ukraine
11% of all Ukrainian IT specialists work in Lviv
50+ IT companies. Several of the larger players influence
the local market
The largest: Softserve, GlobalLogic, ELEKS Software,
Lohika, EPAM
Average salaries in Lviv are approx. 25% lower than those
in Kyiv
Low employee turnover
One of the top Emerging IT/BPO Destinations in the world
(KPMG Report 2009)
www.eleks.com

14. Education Facilities in Lviv
Ukraine is ranked #32 in Education on the 2009 Legatum Prosperity
Index of 104 countries – ahead of India, China and other key
outsourcing destinations
Lviv is a leading educational center in Ukraine and one of the
largest in Central and Eastern Europe:
38 higher education institutions
130,000 students
15,000 highly educated graduates each year, specializing in
IT, Engineering, Applied Sciences, and Foreign Languages
www.eleks.com

15. Key Factors that Make Lviv an
Attractive IT Outsourcing Destination
Strong positions of Lviv in Ukraine’s IT industry
Access to large, continuous pool of resources that are highly-
skilled in diverse areas of information technology
Workforce is highly educated, a large number of universities
and high schools
Low cost for software development and testing services
Time-zone advantage and geographical proximity
Ukrainian culture more closely matches Western mentality
and way of thinking as compared to China and India
www.eleks.com

16. www.eleks.com

17. About ELEKS Software
ELEKS Software is a leading company in the
Ukrainian IT industry with a diverse customer
base and over a decade of
experience, delivering software services and
solutions for the US and European markets
470 professionals, including experts in
Microsoft
technologies, Java, Web, mobile, embedded
development, and localization
www.eleks.com

18. ELEKS Global Locations
www.eleks.com

19. ELEKS Services and People
Services & Solutions People
Product Development 470 IT professionals – and growing
IT Outsourcing / Team Extension High retention rate of skilled
resources
Software Testing and QA University degree holders - 85%
Full-Cycle Localization Services PhDs - 4%
Turnkey Solutions for Government Fluent English - 55%
Solutions for SMB Microsoft, Sun, Oracle, and IBM
certified professionals
Web Design & Portal Solutions
www.eleks.com

20. ELEKS Software’s Customer Geography
www.eleks.com

21. Industries Serviced
www.eleks.com

22. Sample Customers
www.eleks.com

23. Thank you for attention!
ELEKS Software Contacts
World Headquarters / U.S. Headquarters
Main Engineering Campus 701 North Green Valley
7g Naukova St. Parkway, Suite 200
Lviv 79060, Ukraine Henderson, NV 89074
phone: +38 032 297-1251 phone: +1 866 588-0113
fax: +38 032 244-7002 phone/fax: +1 702 433-4779
EleksInfo@eleks.com
www.eleks.com