News / Europe

'Cloudsource to Ukraine' to Boost Country's IT Sector

FILE - A supporter of the pro-presidential Party of the Regions takes pictures of a rally to support EU integration, with riot police and Interior Ministry personnel blocking a street in the foreground, in central Kyiv, December 2013.
FILE - A supporter of the pro-presidential Party of the Regions takes pictures of a rally to support EU integration, with riot police and Interior Ministry personnel blocking a street in the foreground, in central Kyiv, December 2013.
Even before the current standoff with Russia, the nation of Ukraine has been in dire need of economic expansion.
 
Now, some leaders in Internet technology say they have a solution that could help lift Ukraine economically, and at the same time, knit it more closely to Europe and the U.S.
 
Called "Cloudsource to Ukraine," the plan is designed to convince major European and American companies to move their IT operations to Ukraine through the Internet.
 
“This is one of the booming sectors in Ukraine," Pavlo Sheremeta, Ukraine's minister of economic development, said earlier this month. Sheremeta said his goal is to turn the beleaguered Ukrainian nation into "the Silicon Valley of Europe."
 
Global IT

Global IT outsourcing is a thriving economic field, generating an estimated $250 to $300 billion dollars of activity each year. Historically, India and Brazil have been among the leaders in the industry, due to their large, well-educated populations and extensive IT infrastructure.
 
But Ukraine has these assets as well, said Alex Konanykhin, who heads the IT outsourcing firm Transparent Business.
 
"Currently, Ukrainian IT outsourcing sector amounts to roughly $1.5 billion, while just one Indian outsourcing company - Infosys - has revenues four times higher and employs 160,000 people," Konanykhin told VOA. "IT outsourcing in India is a $140 billion a year business. So, you can see that Ukrainian outsourcing sector has huge room for growth and we are determined to fuel this growth."
 
Konanykhin's firm is assisting Ukrainian officials in making the case that Ukraine is a good place to do business. Ukraine has long been known for having a very tech-savvy, young population.
 
Konanykhin believes multi-national firms can outsource their IT needs to Ukraine at less cost than well-established locations like India.
 
But with parts of Ukraine under siege from pro-Russian separatists, that could prove a difficult sell, analysts say.

Russian reach

In general, the conflict between Kyiv and Russian-leaning separatists has destabilized Ukraine's economy as a whole. The threat of possible military action by Russia doesn't help matters.
 
Jeffrey Car, CEO of the IT security firm Taia Global, said Russia installed and still may have control over large portions of Ukraine's data and communications networks.
 
"After the break-up of the Soviet Union, Russia made a point to organize and install the communications systems of the newly independent states," Carr said.
 
"They pretty much own much of Ukraine's Internet,” he said. “If they wanted to shut it down, or just significantly slow it up, it would be no problem."
 
Still, Ukraine - unlike Georgia in 2008 for example - doesn't run  its electronic traffic through lines and servers to Russia. Much of Western Ukrainian data traffic flows through lines coming from Europe, which could prove much harder to shut down.
 
And analyst Konanykhin said that ultimately, economics will make the case for Ukrainian outsourcing, not geo-politics.
 
"Many business leaders are disturbed with Putin threatening political and economic stability of the world, but they don’t know how they can influence the situation," he said.
 
"Our message is that they can help simply by selecting Ukraine for their IT outsourcing needs,” he said. “They can increase profits and support democracy at the same time.

Doug Bernard

dbjohnson+voanews.com

Doug Bernard covers cyber-issues for VOA, focusing on Internet privacy, security and censorship circumvention. Previously he edited VOA’s “Digital Frontiers” blog, produced the “Daily Download” webcast and hosted “Talk to America”, for which he won the International Presenter of the Year award from the Association for International Broadcasting. He began his career at Michigan Public Radio, and has contributed to "The New York Times," the "Christian Science Monitor," SPIN and NPR, among others. You can follow him @dfrontiers.

You May Like

Photogallery Pistorius Sentenced, Taken to Prison

Pistorius, convicted of culpable homicide in shooting death of girlfriend Reeva Steenkamp, will likely serve about 10 months of five-year sentence, before completing it under house arrest More

UN to Aid Central Africa in Polio Vaccinations

Synchronized vaccinations will be conducted after Cameroon reports a fifth case of the wild polio virus in its territory More

WHO: Ebola Vaccine May Be in Use by Jan.

WHO assistant director Dr. Marie Paule Kieny says clinical trials of Ebola vaccines are underway or planned in Europe, US and Africa More

This forum has been closed.
Comment Sorting
Comments
     
by: Alexander Scheirer from: Connecticut, USA
April 29, 2014 8:33 PM
As an attorney, I must comment that Ukraine has a quite robust presence on the internet given the number fraud "scams" that are run out of and traced back to the Ukraine. Not a good move as proposed. At best, hare brained proposition..

In Response

by: Alex from: Illinois
April 30, 2014 11:08 AM
That would be the dummest move for any company. I had my website broken into, and site was set up to send future customer information to the hackers after US company outsourced the website building to Ukraine IT person. A cloudsourcing to Ukraine is like giving a robbber keys to the house on a silver plater. Too much corruption, poor man's mentality- everyone steals something, even petty stuff. I hope that people with brains in Washington realize that its not worth a penny at best, and back off from flushing the money and their competance because of brief, disconnected from reality political propoganda

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
After Decades of Pressure, Luxembourg Drops Bank Secrecy Rulesi
X
October 21, 2014 12:20 AM
European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Young Nairobi Tech Innovator on 'Track' in Security Business

A 24-year-old technology innovator in Nairobi has invented a tracking device that monitors and secures cars. He has also come up with what he claims is the most robust audio-visual surveillance system yet. As Lenny Ruvaga reports from the Kenyan capital, his innovations are offering alternative security solutions.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video North Carolina Emerges as Key Election Battleground

U.S. congressional midterm elections will be held on November 4th and most political analysts give Republicans an excellent chance to win a majority in the U.S. Senate, which Democrats now control. So what are the issues driving voters in this congressional election year? VOA National Correspondent Jim Malone traveled to North Carolina, one of the most politically competitive states in the country, to find out.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.

All About America

AppleAndroid