Released on = January 17, 2007, 7:29 am

Press Release Author = TechnoPark Corp.

Industry = Software

Press Release Summary = 2006 showed that IT outsourcing remained one of the most
dynamic field of the Ukrainian economy. Because of the growing requirements for the
service, 2007 is expected to be successful for the industry.

Press Release Body = Information Technology market in the Ukraine has been growing
stably during the last five years. Although internal customers still cannot afford
ordering big IT projects, Ukrainian IT products are progressively more desired in
Western countries. The USA and Western Europe are unalterably the well-established
importers of software development services from the Ukraine.

The growth of IT industry export totaled 60% and rose to $280 million in 2006; the
growth of IT market totaled 25-30%. According to IDC forecast, Ukrainian Information
Technology market is expected to grow 15-17% and reach $2.4-2.5 million in 2007. It
means that outsourcing service market is going to maintain its stable growth.

The successful development of Information Technology Outsourcing Industry in the
Ukraine results from a number of advantage factors in the country.

In spite of the increase in developers' salaries and general price raising in 2006,
software development costs are still highly competitive and attractive for Western
customers.The attractive prices are accompanied with progressively improving quality
of products and knowledge of developers.

Still, low cost is the priority only for small and medium-sized Western companies
when they choose outsourcing service provider. It is the kind of customers which
will be critical for Ukrainian IT services export volume in 2007. In order to
attract big investors, governmental programs stimulating country's IT industry
development and making up positive image of the Ukrainian developers in the world
need to be conducted. The majority of US and Western European big business owners
still consider risks of IT outsourcing to the Ukraine to be very high. Several years
are needed to attract them to the country.

Nevertheless small and medium-sized customers are the good prospective. IDC
forecasts the increase of small and medium-sized businesses' (SMB) role for
providers searching for new markets.

Another factor, which is expected to contribute to the development of the Ukrainian
Information Technology market, is instable political situation in the Middle East.
The permanent threat of war conflicts in the region leads to customers' surrender of
co-operation with the traditional outsourcing market leaders: India, Israel,
Pakistani and other Middle Eastern countries. The process of reallocation of orders
will start in the near future providing Ukraine with a good chance to present itself
as a reliable and prospective service provider at the global market. Because of the
political instability in the Middle East, interest to Eastern and Central European
countries has increased.

The similarity of cultural code, traditions and religion are an important advantage
for outsourcers to work with the country. US and Western European customers like
western mentality of the Ukrainians and small time-zone difference. Thus, the new
trend called nearshoring is a prospective direction for the Ukraine. Nearshoring is
an offshore outsourcing to the countries situated nearby the customer's country. It
is popular in the developed Western European countries like Germany and other
countries. The former USSR republics which include Ukraine are within eyeshot of
customers who start exploiting nearshoring

Numerous Information Technology conferences and forums evidence the increased
interest to the Ukraine around the globe. Ukrainian Outsourcing Forum, which is one
of the most important outsourcing events, has expanded its borders and hosted
participants from the USA, Europe and Asia in 2006. Ukrainian showcase at the
international outsourcing exhibition CeBIT 2006 is another important shift.

Due to all these factors Ukraine was included into the five most attractive
outsourcing directions in some Western countries in 2006.

The progress of IT outsourcing decentralization process is an obvious trend. Regions
develop dynamically and compete with the capital, Kiev. It helps to keep prices down
along with improving the services quality. Regional companies are traditionally
small with the staff of no more than 100 employees however these are the companies
making up the basis of the Information Technology Industry in the Ukraine, where big
players can be counted on the fingers of one hand presently.

That is why swiftly developing medium-sized companies determine the development of
IT outsourcing industry in the Ukraine now. From TechnoPark Corp. Management, the
company's profit has grown by 70% in 2006. TechnoPark Corp. is outsourcing software
development company. Software development center is located in Dnepropetrovsk,
Ukraine, and company's headquarters is based in the USA, Florida. Due to the
US-based office it is easy for the company to find and contact Western clients. A
number of successful projects implemented by TechnoPark Corp. evidence that there
are mature companies able to provide reliable and stable co-operation in the field
of offshore software development outsourcing in the Ukraine.

Due to the growing interest to the Ukraine, a number of articles devoted to the
country as an attractive IT outsourcing direction increase in the US and European
mass media. "The country is quickly becoming a home for offshore development, with
outsourcing turnover apparently growing at 200 to 300 per cent annually. Locations
that buck the downward trend will provide competitive sourcing solutions for IT
directors. Ukraine might well be one of such centres," writes British online
magazine ITWeek.co.uk.

Publication devoted to outsourcing to Eastern Europe published at
Global-outsourcing.blogspot.com reads that "The attractive offshore work centers in
Eastern Europe include Russia, Ukraine, Poland, Belarus and the Baltic. These
markets not only offer low cost skilled labor force, but also an attractive
regulatory environment with a close proximity and cultural ties to Western Europe."

Ukrainian Information Technology Outsourcing Industry will continue growing. Even
though experts foresee the general decrease of IT outsourcing needs on the global
market, the Ukraine has good chances to find its niche and develop outsourcing
services due to the political stability and great intellectual resources.

For more information about reliable software development outsourcing partner in
Ukraine, visit http://www.technoparkcorp.com.



Web Site = http://www.technoparkcorp.com

Contact Details = TechnoPark Corp.
http://www.technoparkcorp.com
sales@technoparkcorp.com