THE RECEPTION AT THE UKRAINIAN EMBASSY, APR 29, 2014

"The Ukrainian Embassy to the United States will begin a campaign to support IT outsourcing to the country during its crisis with Russia. The slogan of the campaign, set to begin with an event at Ukrainian embassy in Washington, D.C. on April 29, is “Increase Profits. Support Democracy. Cloudsource to Ukraine.” IT outsourcing has become a significant source of revenue for Ukraine. According to the embassy, the campaign is an appeal to Western businesses to increase outsourcing IT services to the Ukraine as a way to maintain global stability.”

On April 29, 2014, Ukraine's Embassy in the U.S. in partnership with TransparentBusiness.com company launched an ambitious project to position Ukraine as Silicon Valley of Europe.

AMBASSADOR’S STATEMENT:

Welcome Remarks of the Ambassador of Ukraine to the U.S. Olexander Motsyk at the Ukrainian IT Day in Washington D.C. (Ukraine’s Government Initiative: Ukraine to become a Leader of Global Cloudsourcing) (April 29, 2014, Washington D.C., Embassy of Ukraine to the USA)

Ladies and Gentlemen, It’s an honor for me to open Ukrainian IT Day in Washington!

I’d like to welcome you all and do hope you’ll find today’s presentation and discussions of the Ukrainian IT Services and investment opportunities of information technologies in Ukraine interesting and useful.

I thank the TransparentBusiness Company and personally Alex Konanykhin for support in organizing this event in partnership with the Embassy and inviting us all to share our ideas on Ukraine-U.S. cooperation in IT-business.

Today we present to you a Strategic Initiative designed to modernize Ukrainian economy and create hundreds of thousands of new jobs in our country. We’ll discuss IT outsourcing opportunities and talk on advantages of cloudsourcing to Ukraine, which may help U.S. businesses and Government agencies reduce costs, while helping Ukraine to develop economy and create working places in these hard times. Ukraine has faced unprecedented aggression form the neighboring country. It’s hard to believe that something like this could happen in Europe in XXI century. This unexpected and mean military aggression together with absolutely shameless propaganda, unacceptable political and economic pressure puts Russia in a row of states who are gross violators of international law. And we appreciate the United States’ strong support of Ukraine in these difficult times. Today, Ukraine is undergoing the complicated process of quite ambitious reforms. Preserving national economy is therefore a matter of national survival for Ukraine.

It’s also a matter of maintaining economic and political stability of the world. But we do not simply waiting for the international community to bail us out – we take every possible measures to boost our economy and looking for effective solutions. Ukraine is ready to compete for a larger share of IT outsourcing business. Today we have less than 1% of world’s IT market, but we can do easily ten times more in nearest time: our technological, educational and tax advantages permit us to hope to grow our share of global outsourcing to 10-15% or even more.

Unfortunately, Ukraine has never tried to position itself as a major destination for outsourcing services, while concentrating on our traditional industries. Now the sense of national urgency is prompting us to explore opportunities we’ve been neglecting before. Our government is starting Strategic Initiative designed to turn Ukraine into the Silicon Valley of Europe. Development of IT business will also strengthen our cyber security that is also very essential in times of Russian aggression. Ladies and Gentlemen, I strongly believe that it’s high time for the US investors and IT companies to really discover Ukraine. Together with tax incentives and support from the Government Ukrainian market may be very profitable and perspective for the American investors, technology companies and project developers. I hope that U.S. Eximbank, OPIC, as well as USAID and USTDA will be true partners for those American companies that decide to launch or develop their business in Ukraine. Moreover, I’m sure that American companies currently involved in IT business in Russia have a nice chance to move their facilities and contracts to better place with friendly environment, transparent policy and European future. By using advantages of high-skilled IT-specialists, European mentality and modern approach in outsourcing – such as cloudsourcing – Ukraine gives unique opportunities both for business and government IT-solutions. We know that major U.S. companies complain of shortage of IT talents and compete fiercely for the 85,000 H-1B visas to import tech talents from the other counties. But now you can use top-level Ukrainian IT talents with great savings without hiring them locally.

Today, Ukraine is in the top 5 IT outsourcing destination in the world, with up to $2 billion annual revenues. Companies which outsource to Ukraine include IBM, Dell, Google, Intel, Citibank, PepsyCo, Hewlett Packard, Motorola, Chrysler, Boeing, Reuters and many others from Fortune 500. Small and medium sized business is also active in Ukraine. Ladies and Gentlemen, Ukraine has never before been so threatened from outside and simultaneously had such incredible chances and prospects in future. Ukraine’s strategic partnership and economic cooperation with the United States, along with integration to the European Union, is a significant part of solution to save and strengthen our independence, sovereignty and security.

I want to thank you all for attention and encourage fruitful discussions on Ukrainian IT opportunities!