Ukraine IT Landscape:
Software Development

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Ukraine's expanding private sector will require various software solutions and packages.  However, the poor enforcement of intellectual property rights in Ukraine is a factor to note. Microsoft's Office and Windows programs are currently the most widely used office software in Ukraine.  This software is installed on approximately 98% of all PCs operating in the country. A more legitimate and transparent market for computer software is slowly taking shape, largely due to dealers selling computer hardware with preinstalled, legally acquired software. However, the presence of many talented programmers, combined with weak International Property Rights (IPR) legislation and enforcement, have encouraged piracy and flagrant misuse of software. The level of corruption is high, tender procedures lack  transparency, and court decisions are not enforced.  A more legitimate and transparent market for computer software is slowly taking shape, which is largely attributable to dealers selling computer hardware with preinstalled, legally- acquired software. 12  Ukraine has witnessed an increasing demand for specialized financial, statistical, management, and manufacturing software.  Rounding out this demand is the need for bilingual (Ukrainian/Russian and English) software, as well as the necessary bilingual written instructions and after-sales service.  The existing legal environment in Ukraine does not include many important norms that would regulate the localization of software products.  Legitimate localization of foreign software products is almost non-existent, which is partially due to competition from products localized in Russia.  Ukraine is slowly emerging as a low cost site for high quality software development.  The producers work mostly alone or in small groups on outsourcing projects ordered from abroad. There is an increasing presence in the Ukrainian market for Compaq, Microsoft, Oracle and Informix. This activity is usually not reflected in official statistics. There is a growing interest in Ukrainian computer companies to organize software production centers that could participate in international software development projects. However, high levels of emigration among qualified programmers and controversial Ukrainian legislation delay development of software techno parks in Ukraine.  Market Size Data (in $ Millions)  Data:                             1998     1999       2000 Total Market Size:         22.0      22.0        22.0 Total Local Production:   1.0       1.0           1.0 Total Exports:                     0          0              0 Total Imports:                   21.0      21.0       21.0 (The above statistics are unofficial estimates.)

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