Poltava, 2013

Potential of Poltava region IT-industry Market

Outline

• Ukrainian IT-industry Market – Ukraine is one of the leaders in IT-industry

– IT outsourcing in Ukraine

– Consumers of Ukrainian IT products

– Number of Internet users in Ukraine

– Potential of IT education in Ukraine

– Potential of Ukrainian domestic IT market

• Poltava region

– Geographical location of Poltava region

– Transport infrastructure of Poltava region

– IT-industry Market in Poltava region

• Poltava city

– Brief information about Poltava city

– Poltava is “The spiritual center of Ukraine"

– IT education in Poltava city

– Companies working in IT-industry in Poltava

• Kremenchuk city

– Brief information about Poltava city

– Kremenchuk is an industrial city

– IT education in Kremenchuk

– Companies working in IT-industry in Kremenchuk

– Land plot for IT technologies in "Central" Industrial park in Kremenchuk

– Benefits for IT in “Central” Industrial park in Kremenchuk

• Potential for creation of data-center in Ukraine and Poltava region

Ukrainian IT-industry Market

Ukrainian IT-industry Market

High quality software development

is traditionally based on the high

qualification of Ukrainian IT

specialists and maturity of

Ukrainian IT community.

In recent years, Ukraine remains one of the leading countries in

software development in Central and Eastern Europe. According to

Gartner research Ukraine is in the Top-30 list of countries that produce

demanded software. Also, according to Datamonitor, 7 of the top 10

software producers in Central and Eastern Europe are located on the

territory of Ukraine or have Ukrainian affiliates.

Source: 2012, PJSC «Deloitte & Touche USC»

The approximate volume of the Ukrainian IT outsourcing and

software development market exceed $ 1 billion a year.

Ukrainian IT-industry Market

Source: 2012, PJSC «Deloitte & Touche USC»

Market experts expect that the volume of the Ukrainian IT industry

market will continue to grow, both in terms of domestic sales and

exports of IT services.

The main consumers of IT products in Ukraine are: financial sector,

telecommunications, trade, industry and state administration.

Ukrainian IT- industry Market

Source: 2012, PJSC «Deloitte & Touche USC»

Currently, the number of Internet users in Ukraine is not high

enough comparing to the neighboring countries.

Ukrainian IT-industry

0 20 40 60 80 100

Source: 2012, Wikipedia

Ukraine is considered to be a country with a very strong

education system for training IT professionals. Ukraine is among

the top 10 countries with the largest number of certified IT

professionals after the United States, India and Russia in the global

rating of IT - community.

Ukrainian IT-industry

Each year the number of IT

professionals who are trained

in universities funded by the

national budget increases.

In addition, each year in

Ukraine 13000 - 14000

graduated IT-students continue

to study.

Source: 2012, PJSC «Deloitte & Touche USC»

Currently, there are over 4000 IT companies operating in Ukraine.

The total number of IT professionals employed in the IT industry

ranges from 40 to 50 thousand people.

The most developed IT - centers in Ukraine are concentrated in

large cities, which are the major industrial and cultural centers

of the country. These are the following cities: Kyiv, Kharkiv,

Dnipropetrovsk and Lviv.

Ukrainian IT-industry

Source: 2012, PJSC «Deloitte & Touche USC»

Poltava region

Geographical location of Poltava region

Poltava region is geographically located between major market

leaders of IT-industry in Ukraine, cities of Kyiv and Kharkiv and

also in relative proximity to Central and Eastern Europe.

Source: Poltava Regional Center of Investments and Development

Transport infrastructure of Poltava region

Roads – 8885,5 km

Highways:

Kyiv-Kharkiv (Е 40);

Poltava – Slobozia

(automobile road Е-584);

International transport

corridor:

Europe – Asia;

railroads – 853 km;

airport – 1.

Source: Poltava Regional Center of Investments and Development

IT-industry Market in Poltava region

Poltava city

regional center of Poltava region with a population of

about 297 thousand people. Also Poltava has 10

universities and university affiliates which allow to

train or improve skills for IT specialists. Number of IT

professionals in Poltava who are involved in

development of IT-industry is about 750 people.

Kremenchuk city

city of regional subordination in the Poltava region of

Ukraine, the administrative center of Kremenchuk

district. The population of the city - about 227

thousand people. Kremenchuk is a major industrial

center of Poltava. The city has nine universities and

university affiliates which allow to train and improve

skills for IT specialists. Number of IT specialists

involved in development of IT-industry market in

Kremenchuk is about 700 people.

Source: Poltava Regional Center of Investments and Development

Poltava city

Brief information about Poltava city

• Poltava city is "The spiritual center of Ukraine"

• City area: 10 300 ha

• City population: 297 thousand people

• Located at the intersection of highways (Kyiv - Kharkiv) and railways. It has two railway stations - Poltava-Kyiv and Poltava-Pivdenna.

• City has one airport.

• Distance to Kyiv: 339 km, to Boryspil: 307 km, to Kharkiv: 130 km, to Dnipropetrovsk: 183 km, to Lviv: 898 km, to Kremenchuk: 119 km.

Source: Poltava Regional Center of Investments and Development

IT education in Poltava city

Poltava National Technical University named after Yuriy

Kondratyuk

The university has about 10,000 students at

30 degrees and at 8 faculties. University owns

modern material and technical resources: nine

academic buildings with total area of 87000 m²

Faculty of Information & telecommunication technologies and

systems (the number of entrants from 2009 is 360 people per year)

After a deep analysis of the needs of the regional economy in IT

specialists the University received a license to prepare students for

promising areas: "Computer Engineering", "Computer Science",

"Telecommunications".

Thus, today more than 300 students from different regions of Ukraine

and Poltava region study modern information technology at the faculty

chairs each year.

Source: Poltava Regional Center of Investments and Development

Companies working in IT-industry in Poltava

There are 75 IT companies in Poltava that work in different areas of IT-

industry ranging from the sale of computer hardware and software

development to services in the IT sector. The total number of IT

professionals employed is about 750 people (average salary is about

300 euros). Major IT company in Poltava are:

Source: Poltava Regional Center of Investments and Development

Kremenchuk city

Brief information about Kremenchuk city

• Kremenchuk is an industrial city

• City territory: 10 000 ha

• City population: 227 thousand people

• Located at the intersection of highways (Borispil - Kyiv and Poltava-Olexandria-Odessa) and railways

• Advanced river transport. Requirements for vessels in the river port: draft 3.2 m, length 125 m, ships of "river-sea" type, load capacity up to 3.5 thousand tons

• Distance to Kyiv: 286 km, to Boryspil: 254 km, to Kharkiv: 250 km, to Dnipropetrovsk: 162 km, to Lviv: 780 km, to Poltava: 119 km

Source: Poltava Regional Center of Investments and Development

IT education in Kremenchuk city

Mykhailo Ostrogradskiy Kremenchuk National University

The university has about 10,000 students in 15 academic

buildings, which have 26 computer classes with Internet

access. The University is actively working on the

development of international ties, which aims to enhance

cooperation with educational and research institutions of

foreign countries to enhance the learning and research

process at the university.

Faculty of Electrical Engineering, Energy and Computer

Technology (number of students per year is 170 people, since

2005)

The Faculty trains students in "Systems Engineering",

"Electromechanics", "Electrical Engineering and Electrotechnology.“

Faculty of Electronics and Computer Engineering (number of

students per year is about 240 people, since 2005)

The Faculty trains students in "Informatics", "Computer Engineering",

"Radio Electronic Devices." Source: Poltava Regional Center of Investments and Development

Companies working in IT-industry in

Kremenchuk

There are about 70 IT companies currently in Kremenchuk that work

in different areas of IT - industry from the sale of computer hardware

and software development to services in the IT sector. The total

number of IT professionals employed in them is about 700 people

(average salary is about 300 euros). List of major IT companies in

the Kremenchuk:

Source: Poltava Regional Center of Investments and Development

Land plot for IT technologies in "Central" Industrial park

in Kremenchuk

Sector 3 -

«TechnoPolis» 27,35 ha

(direction of economic

activity - IT and

electronics): platform for

the development of

advanced information and

telecommunications

technology,

nanotechnology,

electronics manufacturing.

Toral area 168,55 ha

Land owner–

Kremenchuk City Council

Source: Poltava Regional Center of Investments and Development

Benefits for IT in “Central” Industrial park in

Kremenchuk

• Strategic location of Ukraine : access to the markets of the European Union, Asia and

the Middle East;

• Low operational costs for business;

• «0» duty rate for equipment and components that are not produced in Ukraine and

imported by the initiator and / or managing company for the installation within the

Industrial park.

• «0» duty rate for equipment and components that are not produced in Ukraine and are

not excise goods for doing business within the Industrial park.

• Exemption from equity participation in infrastructure development of localities in

which the Industrial park is located;

• State support in equipping (supply of engineering and transport infrastructure) of

Industrial park;

• Transparent and simple procedure of ownership rights acquisition for land within

the Industrial park;

• Time to market for participants of Industrial park is 6 - 9 months;

• Skilled workforce (average salary - 250 Euros);

• Great inner market - 46 million people.

Potential for creation of data-center in Ukraine and

Poltava region

Traditionally, the best places to build data centers are the great

technology centers with more powerful IT-companies. Such places as

Silicon Valley, northern Virginia and Manhattan.

It should also be noted that according to a report Datacenter

Dynamics Industry Census, Scandinavian countries are still the

smallest markets of data centers that are developing in Europe

despite interest from the world's leading IT companies. The main

factor that hinders the development of a market there high labor

costs and relatively low level of telecommunications.

Currently, the U.S. continues to occupy the leading

position as the most reliable place to host and

operate data centers, and first and second place in

Europe is still occupied by the United Kingdom and

Germany. But also attention should be paid to

Ukraine as the place to locate new data centers

for consumer of IT market of the European

Union, Asia and the Middle East.

Potential for creation of data-center in Ukraine and

Poltava region

Nowadays there are all the conditions for investment in various

sectors of economy in Ukraine, including one of the priority areas –

IT-industry. The process of creation of industrial parks is guided by

the state authorities through «National project «Industrial parks

of Ukraine»

Kremenchuk Industrial Park "Central" is the first such park in

the Poltava region and one of the first in Ukraine. So we hope

that representatives of IT industry will be able to see the

attractiveness to locate businesses in Ukraine and in Poltava region

in particular.

We invite you to invest in the market of IT industry

of Poltava region!

For full support from the government

Poltava RCID is ready to provide all

necessary assistance to the investor,

and do everything possible to ensure

that your investments were

successful.

Contacts

4, Shkilny Lane, of. 41, 45. Poltava, Ukraine,36003

Leta Dmytro - Acting Director of Poltava Regional

Center of Investments and Development

tel.: +38-0532-50-08-64

mob. tel.: +38-066-816-52-09

e-mail: leta.dima@gmail.com

skype: leta.dima

www.investinpoltava.com.ua