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

Multimedia Obama Defends Immigration Action

Obama says with his executive action on immigration, enforcement resources will be focused on 'felons, not families; criminals, not children' More

US-Led Airstrikes in Syria Kill Over 900: Monitoring Group

British-based Syrian Observatory for Human Rights says the toll includes more than 50 civilians, five of them women and eight of them children More

Report: Obama Broadens US Combat Role in Afghanistan

The New York Times says resident Barack Obama has signed a classified order extending the role of US troops in Afghanistan for another year 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.
New Skateboard Defies Gravityi
X
November 21, 2014 5:07 AM
A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Gay Evangelicals Argue That Bible Does Not Condemn Homosexuality

More than 30 U.S. states now recognize same-sex marriages, and an increasing number of mainline American churches are blessing them. But evangelical church members- which account for around 30 percent of the U.S. adult population - believe the Bible unequivocally condemns homosexuality. VOA's Jerome Socolovsky reports that gay, lesbian, bisexual and transgender evangelicals are coming out. Backed by a prominent evangelical scholar, they argue that the traditional reading of the bible is wrong.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Mexico Protests Escalate Over Disappearances

Protests in Mexico over 43 students missing since September continue to escalate, reflecting growing anger among Mexicans about a political system they view as corrupt, and increasingly tainted by the drug trade. Mounting outrage over the disappearances is now focused on the government of President Enrique Pena Nieto, accused of not doing enough to end insecurity in the country. More from VOA's Victoria Macchi.
Video

Video US Senate Votes Down Controversial Oil Pipeline - For Now

The U.S. Senate has rejected construction of a controversial pipeline to transport Canadian oil to American refineries. The $5 billion project still could be approved next year, but it faces a possible veto by President Barack Obama. As VOA’s Michael Bowman reports, the pipeline has exposed deep divisions in Congress about America’s energy future.
Video

Video Can Minsk Cease-fire Agreement Hold?

Growing tensions between government troops and separatists in eastern Ukraine further threaten a cease-fire agreement reached two months ago in the Belarusian capital of Minsk. Critics of U.S. policy in Ukraine say it is time the Obama administration gives up on that much-violated cease-fire and moves toward a new deal with Russia. VOA's Scott Stearns has more.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.
Video

Video Ferguson Church Grapples with Race Relations

Many white residents of Ferguson, Missouri, say they chose to live there because of the American Midwest community's diversity. So, they were shocked when a white police officer killed an unarmed black teenager in August – and shaken by the resulting protests and violence. Some local churches are leading conversations on how to go forward. VOA’s Ayesha Tanzeem reports.

All About America

AppleAndroid