Ukraine, the second largest state in Europe, appeared on the map of the world in 1991 after the dissolution of the Soviet Union. It borders Russia to the east, Belarus to the north, Poland, Slovakia and Hungary to the west, Romania, Moldova to the southwest, and the Black Sea and the Sea of Azov to the south. The capital of Ukraine is Kyiv. The state language of Ukraine is Ukrainian. Russian language is widely spoken, especially in the eastern and southern part of Ukraine.
Although Ukraine has only been independent for seventeen years, it has an ancient history. In IX century the territory of Ukraine was a center of the East Slavic civilization, forming the state of Kievan Rus' which disintegrated in the 12th century [1]. At that period of time Kiev was the major political and cultural center in Eastern Europe. From the 14th century the territory of Ukraine was divided among a number of regional powers. As a result of such disintegration, in the 19th century the largest part of Ukraine was integrated into the Russian Empire, with the rest under Austro-Hungarian control [1].
In 1917 and 1918 three separate Ukrainian republics declared independence. However by 1921 the western part of the traditional territory had been incorporated into Poland and the larger central and eastern part became one of the founding republics of the Soviet Union. Later after the German and Soviet invasions of Poland in 1939 the western Ukrainian regions were also incorporated into the Soviet Union [2]. The Ukrainian national idea persevered during the Soviet period was pressed mostly by Stalin who imposed terror campaigns against the intellectual class. Ukraine declared its independence on Aug. 24, 1991 after the dissolution of the Soviet Union. It was quickly recognized by the international community and more then 100 countries have established diplomatic relations with Ukraine [3].
Ukraine is a big country with a population of 46.2 million inhabitants, 68 % of which are urban population [4]. Ukraine is considered to be in a demographic crisis because of its high death rate and a low birth rate (9.55 births/1,000 population and 15.93 deaths/1,000 population respectively, 2008) [4].
In Soviet times, the economy of Ukraine was the second largest in the Soviet Union, being an important industrial and agricultural component of the country's planned economy. [...]
Table of Contents
I. INTRODUCTION
II. IT INFRASTRUCTURE
1. The level of adoption of information communications technology (ICT) in Ukraine
2. Software market in Ukraine
III. UNIQUE CHARACTERISTICS OF IT
1. IT outsourcing in Ukraine
2. Governmental Policies in ICT industry
3. ICT and “Orange revolution”
IV. CULTURAL IMPACT ON THE UNIQUE IT APPLICATION
V. CONCLUSION
Objectives and Topics
This work examines the unique IT environment of Ukraine, analyzing the country's historical and economic transition from the Soviet era to a market-based economy and its implications for technological development. The central research question explores why, despite significant potential and a highly skilled workforce, Ukraine faces challenges in achieving widespread IT infrastructure adoption and meaningful government-driven technological progress.
- The current state of ICT infrastructure, including internet and mobile penetration.
- The growth and characteristics of the Ukrainian software and IT outsourcing market.
- The role of government policy and cultural factors in shaping the national IT landscape.
- The influence of socio-political events, such as the "Orange Revolution," on technology usage.
Excerpt from the Book
IT outsourcing in Ukraine
There are many Ukrainian software companies that are poised to play a role in the global IT economy. Ukrainian outsourcing providers have the ability to compete on a cost basis, which is considerably lower than in Western countries. For example, in the Ukraine, rates for software developers currently start as low as $12 per hour. On average, then, clients from developed economies should expect up to 50 to 60 percent cost savings [15]. These lower costs and the constantly improving work quality of Ukrainian providers have attracted many well-known Fortune 500 companies. For example, Tessart (Ukraine) successfully provides IS services for Delta Airlines. TelesensKSCL (Ukraine) provides services to Deutsche Telecom, British Telecom, and others. The Ukrainian supplier Eleks Software provides services for the U.S. State of New Jersey. In addition, companies such as Xerox and Motorola have established their own development facilities in the country. In the past, most offshore work performed by Ukrainian providers has been software development and Web design and development. With market maturation in recent years, we increasingly see providers completing sophisticated projects involving software engineering, application integration, ERP systems, and consulting.
Summary of Chapters
I. INTRODUCTION: Provides an overview of Ukraine’s history, demographic context, and the economic transition challenges following the dissolution of the Soviet Union.
II. IT INFRASTRUCTURE: Analyzes the adoption levels of ICT in Ukraine compared to other nations, highlighting the disparity between high mobile penetration and lagging fixed-line infrastructure.
III. UNIQUE CHARACTERISTICS OF IT: Examines the competitiveness of Ukraine's IT outsourcing sector, the current state of governmental ICT policy, and the strategic use of technology during the "Orange Revolution."
IV. CULTURAL IMPACT ON THE UNIQUE IT APPLICATION: Discusses how national cultural factors, such as management styles and socio-economic habits, influence the adoption and effectiveness of IT solutions.
V. CONCLUSION: Synthesizes the findings, noting that while institutional and economic hurdles remain, Ukraine holds significant potential for IT growth driven by an educated workforce and increasing global integration.
Keywords
Ukraine, IT Infrastructure, IT Outsourcing, ICT, Software Market, Economic Transition, Orange Revolution, Cultural Impact, Digital Development, ERP Solutions, Internet Penetration, Government Policy, Network Readiness, Global Economy, Technological Modernization
Frequently Asked Questions
What is the primary focus of this publication?
The work provides a comprehensive analysis of the IT environment in Ukraine, evaluating the current state of infrastructure, the outsourcing sector, and the socio-economic factors influencing digital development.
What are the core themes addressed in the paper?
The core themes include the historical transition of the Ukrainian economy, the specific challenges of IT infrastructure deployment, the competitive landscape of the outsourcing industry, and the impact of cultural and political dynamics on technology adoption.
What is the overarching research goal?
The goal is to understand the paradox of Ukraine's IT sector: possessing a highly skilled, well-educated workforce while simultaneously struggling with low national IT penetration and institutional challenges.
Which scientific methods are utilized?
The study relies on a descriptive and analytical approach, synthesizing statistical data from sources like the Global Competitiveness Report and the International Telecommunication Union with market analysis of the software and outsourcing industries.
What aspects are covered in the main body?
The main body covers the current level of ICT adoption, the market dynamics of software vendors (such as SAP, Oracle, and 1C), the growth of IT outsourcing, the role of government legislation, and the analysis of cultural factors affecting the business environment.
Which keywords characterize this document?
Key terms include Ukraine, IT outsourcing, economic transition, ICT infrastructure, cultural factors, software market, and network readiness.
How does the "Orange Revolution" relate to the IT context?
The authors explain that the Orange Revolution served as a catalyst that demonstrated the strategic power of ICT (mobile phones and the internet) for political mobilization, even though these technologies were otherwise less developed at the time.
Why is the Ukrainian IT outsourcing sector considered successful?
The sector's success is attributed to a combination of high-level technical education inherited from the Soviet era, low labor costs, and geographical proximity to Western European markets.
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- Alina Ignatiuk (Autor:in), Anton Pikus (Autor:in), 2008, Unique IT environment of Ukraine, München, GRIN Verlag, https://www.grin.com/document/124458
