San Francisco, The Fairmont Hotel, July 23, 2014

"The government of Ukraine expects that exports revenue from the IT outsourcing industry to grow from $2 billion in 2013 up to $10 billion by 2020,” said Oleksandr Krotenko, consul on economic affairs at the Consulate General of Ukraine in San Francisco.

SoftServe, along with embassy officials and Internet firm KMGi Group, which offers an online service called to help companies better monitor the work of remote employees first began a campaign, April 29, to appeal to Western businesses to support outsourcing as a way to stave off a “new Cold War."

Welcome Remarks of Consul General of Ukraine in San Francisco Sergiy Aloshyn at the Ukraine’s IT Presentation “Ukraine to become a Leader of Global Cloudsourcing”

Dear Ladies and Gentlemen!

It’s a great pleasure for me to open this Ukraine’s IT Presentation in San Francisco!

I welcome all of you and do hope you will find today’s Presentation and discussions about the Ukraine’s IT industry and investment opportunities. And I would like to express my gratitude to the TransparentBusiness Company and personally to Alex Konanykhin for organizing this event in partnership with the SoftServe Company and inviting you all to share our ideas on Ukraine-U.S. cooperation in IT-business.

Today let me present to you a Strategic Initiative designed to modernize Ukrainian economy and increase the country’s investment attractiveness. We will discuss IT outsourcing opportunities and the advantages of cloudsourcing to Ukraine, which may help the U.S. businesses to reduce their expenses, while assisting Ukraine to develop its economy.

As you well know Ukraine’s economy is facing difficult times because of brutal military aggression of Russia. It’s hard to believe that something like this could happen in Europe in XXI century. This cynical aggression together with absolutely shameless propaganda, unacceptable political and economic pressure puts Russia in a row of states which are gross violators of international law.

And we appreciate the American people and its Leadership strong support of Ukraine in these hard times.

Despite nowadays economic, financial and national security challenges, the newly elected President of Ukraine and the Government of Ukraine launched comprehensive process of ambitious reforms. Therefore, the national economy recovery is a priority of Ukraine’s Government. We undertake every possible measure to boost our economy and look for effective and long-term sustainable solutions.

In this regard I would like to inform you that the main tasks of the Government economic policy in 2014 remain:

  1. to preserve the financial stability;
  2. to eliminate administrative barriers for the business development;
  3. to reduce the interference of public agencies in the business activity;
  4. to promote the implementation of investment and innovation projects in the priority industries.
A number of results have been already achieved:
  1. In 2008 Ukraine joined the World Trade Organization.
  2. In June 2014 Ukraine has signed Association Agreement with the European Union, including the Agreement on Deep and Comprehensive Free Trade Area.
  3. As of today a legal basis for the investment and public-private partnership development was established.
  4. The “national investment regime” in Ukraine is being applied to the foreign investors.
  5. In case of investment activity termination the full refund of investments and revenues to the foreign investor is guaranteed.
  6. With a view to increase the foreign investment protection Ukraine acceded to the Washington Convention on the Settlement of Investment Disputes dated 1965.
  7. Ukraine concluded bilateral agreements on promotion and protection of foreign investments with over 70 countries including the USA.
  8. With purpose to facilitate foreign investment projects the President’s Council of National and Foreign Investors was established.
  9. The Law of Ukraine “On preparation and realization of investment projects by the “open window” principle” was adopted.
  10. Amendments to the Law “On Investment Activity” and other relevant laws promoting the foreign investment were also adopted by the Parliament of Ukraine.
  11. The Law “On Industrial Parks”, which guarantees customs duty and taxes preferences for the innovation high-tech equipment imported to Ukraine, is applied.

The Foreign Direct Investments in the economy of Ukraine in the first quarter 2014 over reached 570 mln. USD.

Ukraine improved its competitiveness position for the second consecutive year and reached the pre-crisis level.

Moreover, according to the World Bank “Doing Business-2014” rating of Ukraine went up by 28 places comparing with “Doing Business-2013”.

Since 2000 Ukraine has been a leader in the software development and has been ranked at the top of IT outsourcing service providers in the global market. More and more companies come to Ukraine selecting it as a preferred destination for their offices.

Strong engineering education, popularity of engineering professions among the youth and rich history of the software engineering industry make Ukraine one of the most attractive Europe destinations for the IT outsourcing and software development businesses.

The history of Ukraine’s software development industry is deeply rooted. Officially, 1951 is considered as the beginning of the computer science era when the Ukrainian academician from Kyiv, Sergey Lebedev, introduced the first computer in the entire Continental Europe. A rapid growth of the industry was recorded in the middle of 1990s, when a large number of independent software development companies emerged.

Based on a 60 plus year history of the extensive network of educational and scientific institutions, the Ukrainian IT outsourcing services industry is rapidly developing into one of the most important sectors of the Ukrainian economy.

The Government of Ukraine actively supports industry growth through tax exemptions, and provides public financing for development of IT and innovation parks.

Governmental support will promote industry growth and further expansion of the software development and IT outsourcing service ecosystem in 2014–2015.

In this context I would like to stress that former Head of Microsoft Office in Ukraine Dmytro Shimkiv has been appointed as the Deputy Head of the Administration of the President of Ukraine. His appointment confirms the importance of further IT industry extension in our country.

Until today Ukraine has never tried to position itself as a major destination for outsourcing services, while concentrating on our traditional industries. But now 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 which 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 discover business opportunities in Ukraine. Together with tax preferences and support from the Government, Ukrainian IT industry is very profitable and perspective for the American investors, technology companies and project developers. Moreover, I’m sure that American businessmen currently involved in IT business in Russia have a good chance to move their facilities and contracts to more secure place with friendly environment, transparent policy and European future.

Today, Ukraine is in the top 4 IT outsourcing destination in the world, with up to $2 billion annual revenues. Companies which outsource to Ukraine include IBM, Google, Intel, Microsoft, Dell, Hewlett Packard, Motorola, Citibank, PepsyCo, Chrysler, Boeing, Reuters and many others from Fortune 500. Small and medium size business is also dynamic in Ukraine.

Ladies and Gentlemen,
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.

Let me thank you all for attention and encourage fruitful discussions on Ukraine’s IT opportunities!

The Fairmont Hotel
Sergiy Aloshyn, Ukrainian Consul General in San Francisco
Alex Konanykhin, CEO of TransparentBusiness
Oleksandr Krotenko, Ukrainian Consul for Economic Affairs in San Francisco
Oleksandr Zgurovsky, Marketing Director of "Kyivska Politechnica"
Juan Turruellas, Executive Vice President of SoftServe

Consulate General of Ukraine in San Francisco

The Ukraine’s IT Industry Presentation “Ukraine to become a Leader of Global Cloudsourcing”

On July 23rd 2014 under auspices of the Consulate General of Ukraine in San Francisco The Ukraine’s IT Industry Presentation “Ukraine to become a Leader of Global Cloudsourcing” was held in the Fairmont Hotel. This Presentation was organized in partnership with the "TransparentBusiness" and "SoftServe Inc." companies.

The main purpose of the event was to present to the Californian business leaders the Strategic Initiative of the Government of Ukraine aimed at increasing of the Ukrainian outsourcing companies’ image and facilitating them in establishment of direct business contacts with the Silicon Valley entrepreneurs.

Over 30 representatives of American technological, financial, consulting corporations («Silicon Valley Bank», «General Electric Healthcare», «The Wall Street Journal», «Arent Fox», «Huffington Post», «Albin Engineering») and Ukrainian ІТ companies («Ciklum», «Altexsoft», «Intetics») as well as local mass-media participated in the Presentation.

During the Welcome Remarks the Consul General of Ukraine in San Franciso emphasized on special attention, which is devoted by our state to develop the Ukrainian IT industry, its investment attractiveness and the measures to promote growth of national high-tech outsourcing services export to the US market, which foster the increase of new highly skilled new jobs in our country.

In their turn, the leaders of the American-Ukrainian outsourcing corporations «TransparentBusiness» and «SoftServe» confirmed the high qualification of the Ukrainian IT specialists and their European mentality, attractive labour costs and progressive approach in preparation of modern IT solutions, which provides unique opportunities for the American business in the Ukraine’s IT market.