Archive for the 'Ukraine' Category

Ukraine: a Prospective Player on the World Software Outsourcing Market

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The destruction of the Soviet Union about 15 years ago, made a huge country with a great level of IT science divided into small bricks. Nowadays, despite Russia’s expansion into the world software development market, Ukraine keeps playing an important role here too. There are several prerequisites for this.

Prerequisites

Traditionally, Ukraine always was a technical region of the USSR. No wonder, the IT education was and still is one of the most popular and respective education in the region. Such well-known Ukrainian universities as Kyiv National Technical University, Donetsk National Technical University etc. as well as new establishments with more innovative approach for IT specialists education, such as Donetsk State Institute of Artificial Intelligence and others, educate a new prospective generation of young IT professionals, ambitious and purposeful.

It’s obvious, Ukrainian students win in international contests, and show true professionalism and ability to enter a business life immediately, hence, to play the first fiddle in the labor market. As the latest example, one can remember students of Kharkiv National University of Radio Electronics that became first place winners of the International Web Development Contest (I.C.W.D.I.C. 2005) held by XITEX Software Company in spring 2005.

That is why governments of European countries encourage Ukrainian programmers to come and to work there. Germany is the best example of a country that understands all pros and cons of Ukrainian IT professional, thus it’s the country that sees its benefits of employing Ukrainian programmers.

Another one important factor is the cost of labor. In Ukraine, usual hourly rates for programmers are $10-$15. Although they are little bigger than Indian ones, they are still 1.5 times lesser than Russian ones and several times lesser than American or European costs. If you consider the high level of professionalism and responsibility, then you add a European mind and time zone, plus a fluent English of the most of IT people, you realize that Ukraine is that happy medium each company looks for. Hence, many companies that outsource have already realized it.

Ukraine’s Prospects

Due to the Market Visio’s research http://research.aventures.biz/eng/result.html, the volume of Ukrainian IT-services export in 2003 was estimated to be $70M, 40% more in comparison with 2002. The market prospects for 2005 were to be $150M; that is three times more in three years.

There are about 300 public companies that work for export. They are located mainly in big cities such as Kyiv, Donetsk, Kharkiv, Dnipropetrovsk etc. There are also a huge amount of groups of professionals who are mainly engaged in export on a level of freelancers. The total number of IT specialists engaged in IT-export services was about 10,000 in 2003 and grew considerably during next years.

Everything mentioned above shows that Ukraine has great prospects to become and equal player to the most known leaders of the market. Its well-developed IT infrastructure, level of services, and professionalism of programmers made Ukrainian companies able to compete for complex and complicated projects with other well-known developers. There are several companies that invest in their own software solutions and market them internationally with success. However, all of them are engaged into smaller or bigger software development projects as subcontractors.

The next step of Ukrainian gait into the world IT market seems to be a wide establishment of offshore development centers based on currently existing software development companies. Prerequisites are obvious:

1. Ukrainian IT companies have whole infrastructure required to develop reliable custom application and deliver it in time.

2. The gross yearly expenditure per one programmer will vary from $20,000 to $30,000.

3. Ukraine’s time zone is GMT +02:00. Hence, all programmers and project managers will be available on daytime for any European company.

The only thing remains to be done, though. Ukrainian IT companies are making only their first steps in self-promotion. The more professional they become in this field, the more obvious it would be that Ukraine becomes a competitive player on the world software outsourcing market.

Alex Polonski is a Senior Sales Manager at XITEX Software Company, Ukraine. The company works in offshore software development market since 1999 and has a fair expertise in J2EE and .NET technologies. Among company’s own-developed and marketed solutions, one can see a J2EE content management system, Xitex WebContent M1.

Article Source: http://EzineArticles.com/?expert=Alex_Polonski


Recent Software Programming Contest Provides Example of Flattening World

BusinessWeek Online:

Duke wasn’t the only U.S. school to be skunked at the prestigious computing contest. Of the home teams, only Massachusetts Institute of Technology ranked among the 12 highest finishers. Most top spots were seized by teams from Eastern Europe and Asia. Until the late 1990s, U.S. teams dominated these contests. But the tide has turned. Last year not one was in the top dozen.

WAKE-UP CALL
The poor showings should serve as a wake-up call for government, industry, and educators. The output of American computer science programs is plummeting, even while that of Eastern European and Asian schools is rising. China and India, the new global tech powerhouses, are fueled by 900,000 engineering graduates of all types each year, more than triple the number of U.S. grads. Computer science is a key subset of engineering. “If our talent base weakens, our lead in technology, business, and economics will fade faster than any of us can imagine,” warns Richard Florida, a professor at George Mason University and author of The Flight of the Creative Class.

Software programmers are the seed corn of the Information Economy, yet America isn’t producing enough. The Labor Dept. forecasts that “computer/math scientist” jobs, which include programming, will increase by 40%, from 2.5 million in 2002 to 3.5 million in 2012. Colleges aren’t keeping up with demand. A 2005 survey of freshmen showed that just 1.1% planned to major in computer science, down from 3.7% in 2000.

This really isn’t news is it?  I mean, we all see this coming, right?  We all clearly see the pros and cons in the leveling of the playing field.  We know anyone can access global software programming talent at sites like oDesk, RentACoder, Elance, etc. (For more complete list, see list of Outsource Marketplace Providers on this site).

Have you read the “The World is Flat” yet? (Amazon.ca, Amazon.co.uk)  I know some people think this book is a bit far fetched; I’d love to hear some kind of rebuttal to the points presented in the book. 

 


Earn On Offshore Web Design and Development

If you have some experience in web site design and want to make good money you can try acting as IT-outsourcing partner. Learn more what you should know and how to start.

Why offshore web design and development

Offshore web site design and development help to keep prices at least 3-5 times less, for example, average hourly rate of web development services in USA is $35-75; in UK - $25-50, in Ukraine - $5-20.

How it works?

Typical plan:

  • You find a client who needs a web site, ask his/her requirements for the project and send to your offshore partner company.
  • The partner makes a proposal and gives you the project estimation basing on his hourly rate, for example, $10.
  • You mark up the rate $10/hour as high as you wish (and can - taking into consideration competition in your region, level of demand for web design services, and other marketing factors), for example to $30/hour, and sends the proposal to the client. So if the web design project is estimated on 50 man-hours of work, you charge the customer $1500, from which $500 you pay to your offshore partner company, and $1000 is your profit.
  • The partner company works on the project and delivers it to you along with copyright for the work.
  • You deliver the site to the customer.

Result - you have a satisfied client and good profit from the marked up price.

How to start?

The first and most important step is to analyze market in your region and decide if it’s worth to start this business.

If you already have your own web design company it is easier for you because you already know situation in the market, gain certain reputation, have clients list, etc.

But don’t be afraid if you are new to web design business. Believe in yourself and work hard and finally you will be rewarded for all your efforts.

As in any type of business, starting the one in web design area, you must ask yourself general marketing questions:

  1. Who will be your customers?
  2. Why they will order the web design services exactly form you?
  3. Where and how they will get to know about you?

Without having clear answers to these questions you shouldn’t try to start anything.

The second step is to find trustful and reliable partner – offshore web design company – that will work as “development center� for your business. This company must have good experience in web design and development area, good reputation, top level of customer care and communication. There are many resources in the Internet where you can find necessary information – search engines, web design directories, outsourcing portals.

For example, you can try searching in search engines for appropriate key phrases “offshore web design�, “offshore web site design�, “offshore web development� and analyze sites of your potential partners.

Also here are several sites where you can find lists of offshore web design companies sorted by country.

http://web-designers.bluegeckonetwork.com/

http://www.theoutsourceguide.com/

http://www.1234-find-web-designers.org/

How to choose the right offshore web design partner company?

There are 2 main factors that determine your choice – cost and quality of web design work.

Cost

Basing on the average web design prices in your local market and your competitive abilities you set prices that you will charge to your customers. There are several methods of web design price calculation, most used are flat price for fixed web site packages, and price based on man-hour rate. Most web design companies operate with both and choose one depending on each project type and requirements.

Then you decide which profit you want to have and narrow down your search choosing companies with appropriate price range.

Quality

Consider the company reputation, portfolio of previous works, testimonials of previous customers, level of communication. Pay attention to payment policy and method, conditions of ready projects delivery, warranties, post-development support and maintenance.

If all details are agreed you may start partnership. Sometimes the first project is quite simple to test abilities of both parties and if everything is going well the partnership will bring mutual benefits.

About The Author
Julia Ramyalg
Marketing Director
http://www.it-inventors.com