Financial Times: Ukraine
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Financial Times: Ukraine's IT Services Boom

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Financial Times: Ukraine's IT Services Boom PR Newswire KYIV, Ukraine, August 23, 2012 KYIV, Ukraine, August 23, 2012 /PRNewswire/ -- Ukraine's IT outsourcing sector has boomed over the last 10 years, reports the reputable British news source Financial

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Financial Times: Ukraine's IT Services Boom
PR Newswire KYIV, Ukraine, August 23, 2012
KYIV, Ukraine,August 23, 2012/PRNewswire/ --Ukraine'sIT outsourcing sector has boomed over the last 10 years, reports the reputable British news sourceFinancial Timesin its blog post "Tapping Ukraine's IT Potential". According to the post, the Eastern European country earned overUSD 1 billionon its IT services export in 2011 alone. http://blogs.ft.com/beyond-brics/2012/08/22/tapping-ukraines-it-outsourcing-potential/#axzz24LybZpeU The latest export figure marked the nearly tenfold increase in the last ten years.Ukrainedemonstrated a 30-40 percent annual growth since 2008, reads FT. Comparably, inRomaniathe IT outsourcing exports are estimated atUSD 586 million, inPoland-USD 451 millionto Central and Eastern, according European Outsourcing Association. IT outsourcing market volume in the neighboringHungaryroughly equalUSD 475 million. Ukrainian IT market still greatly benefits from strong science schools founded in the time of theSoviet Union, reports theFinancial Times. The scientific institutes that used to produce rocket scientists, under current market conditions, have switched to producing programmers, commented the author of the post. Remarkably, an estimated 16,000 IT specialists graduate each year in the country of some 46 million. The country boasts the largest pool of engineering resources in Central and Eastern Europewith around 25 percent of the regional IT offshoring market, stated a CEO of a US-based outsourcing company that employs 1,900 specialists inUkraine. Ukrainian software market demonstrates the highest ratio of research and development (R&D) to IT services. Moreover, startingJanuary 1, 2013, and up untilJanuary 1, 2023, enterprises producing software are exempt from paying value added tax on software supply operations inUkraine. VAT relief will apply to the supply of operating systems, regular computer programs, system administration, encryption software, websites, online services, testing and consulting in the area of IT, etc. The law also reduced the IT companies' employees' income tax rate to a symbolic five percent. Notably, almost 1,000 outsourcing companies are registered inUkraine. They provide services to numerous international companies including Microsoft, HP, IBM, Cisco, EBay, etc. Apart from that, many IT industry leaders employ Ukrainian specialists; some 700 Ukrainians work in theSeattleoffice of the world's top IT corporation Microsoft.