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.
Doug Bernard
— 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.

You May Like

EU Court Fines Poland for Hosting CIA 'Black Sites'

Ruling is first time a court has acknowledged suspects were held and tortured at the sites, under US program launched following the 9/11 terrorist attacks More

Migrant Issues Close to Home Spur Groups to Take Action

Groups placing water, food in the desert, or aiding detainees after release, have one common goal: no more deaths of migrants crossing illegally into the US More

Video At AIDS Conference, Prevention Pill Stirs Excitement

Truveda shows promise, spurring debate over access and other approaches 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.
Treatment for Childhood Epilepsy Heats up Medical Marijuana Debatei
X
Shelley Schlender
July 24, 2014 6:43 PM
In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Treatment for Childhood Epilepsy Heats up Medical Marijuana Debate

In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Airbus Adds Metal 3D Printed Parts to New Jets

By the end of this year, European aircraft manufacturing consortium Airbus plans to deliver the first of its new, extra-wide-body passenger jets, the A350-XWB. Among other technological innovations, the new plane will also incorporate metal parts made in a 3-D printer. VOA's George Putic has more.
Video

Video Death Toll From Israel-Gaza Conflict Surpasses 700

Gaza officials say a shelling hit a compound housing a United Nations-run school in the Gaza Strip, killing more than a dozen people, during an Israeli offensive in the area. Heavy fighting between the Israeli military and Hamas militants continued on Thursday, pushing up the death toll. So far, more than 730 Palestinians and 35 Israelis have been killed in the conflict. VOA's Scott Bobb has the latest from Jerusalem.
Video

Video AIDS Conference Welcomes Exciting Developments in HIV Treatment, Prevention

Significant strides have been made in recent years toward the treatment and prevention of HIV, the virus that causes AIDS. This year, at the International AIDS Conference, the AIDS community welcomed progress on a new pill that may prevent transmission of the deadly virus. VOA’s Anita Powell reports from Melbourne, Australia.
Video

Video Israel Targets Gaza Supply Tunnels

The Israeli military has launched a ground operation in Gaza to destroy the myriad tunnels that may have been used to smuggle weapons to Hamas. VOA's Zlatica Hoke reports that could mean more hardship for the people of Gaza, who obtain some of their essential supplies through these underground passages
Video

Video Researchers Target Low-Cost Avatar Technology

Scientists at the University of Southern California Institute for Creative Technologies say 3-dimensional representations could revolutionize social media. Elizabeth Lee has more from Los Angeles.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.

AppleAndroid