Software Outsourcingin Ukraine

European Entrepreneurship & Innovation Program

Michael Shraybman, CEO, Cogniance Inc.February 8, 2010

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“An orange and two lemons”Sunday Feb. 7 presidential election - does it matter?

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Facts & stats

• 78% Ukrainians• 18% Russians

Ethnicities

• 84% Orthodox Christian• 10% Catholic Christian• 2% Protestant

Religion

• Trade: USA, Germany, UK, Japan, China, Russia, Poland• EU & NATO cooperation agreements• No visa required for citizens of EU, US, Canada, Japan

InternationalRelations

• 98% literacy rate (top 10 rank worldwide)• 70% of adults have secondary or higher education

Education

603,600 km2 (largest contiguous country in Europe)Area

47 million (5th in Europe)Population

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Born in the Ukraine

Trotsky

BulgakovKorolev

DrinfeldGogol

Mechnikov

Meir Hoffmann

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900-1200

Condensed history timeline

4500 BC

Scythians,Greeks,Romans,

Byzantines

First humansettlements

600 BC -600 AD

Golden Age ofKievan Rus’

1200-1900

Turks,Mongols,

Poles, Austro-Hungarians,

Russians

WWI,WWII,USSR

Great Famine(Holodomor)

1930’s, 10M dead

1900-1990

Babiy Yar and othermass exterminations

WWII, 3M dead

1991

Independence(USSR collapses)

2004

DemocraticOrange

Revolution

2012

Ukraine hostsUEFA EURO

2012

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Notable technical achievements

First electronic computer in continentalEurope, 1950 (MESM)

World’s largest aircraft (Antonov-225) - 1988

DniproHES, 1930, largesthydroelectric station inEurope at the time

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Ukrainian SoftwareOutsourcing Sector

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Strong basis & support for outsourcing

world-class engineering

high talent availabilitycultural alignment with the West

manageable time differences

low turnover competitive

growing English & Internet penetrationUS and EU travel-friendly

motivated

Law: “Foundations of the Development of Ukrainian Information Society in 2007-2015”

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Ukraine leads CEE outsourcing

2008 SOFTWARE OUTSOURCING REVENUE BY COUNTRY, $ MLN

Source: Central & Eastern Europe IT Outsourcing Review 2008Booz Allen Hamilton

CEE share of global software engineering market: 15%Ukraine’s share: ~3%

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Fragmented and plentiful supply

NUMBER OF OUTSOURCING COMPANIES2008

NUMBER OF OUTSOURCING PROFESSIONALS2008

Ukraine has abundant supply of software engineering talent,with more than 16,000 new grads with Bachelors degree and14,000 new grads with Masters degree each year

Source: Central & Eastern Europe IT Outsourcing Review 2008

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Top clients of Ukrainian outsourcing

Company Overview

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Competent & cutting-edge

• Established in March 2008• Silicon Valley and Kiev, Ukraine• 75 employees and growing

Full-service software outsourcing partner for early-stage,venture-funded Web 2.0 & Mobile companies globally

• Cash-flow positive from Month 2• < 3% annual staff turnover• 13 venture-funded customers in

US, UK, Scandinavia, Germany,and Israel

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Covering end-to-end product lifecycle

• Full-service delivery partner• Ability to define, design, architect, build, and support the solution• Delivering projects faster, at better value and lower risk

Design Development Operations

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World-class leadership

Juha ChristensenChairman & Founder(Denmark)

• Time Magazine’s 25 most influential Europeans in technology• Founder of Symbian• VP of Mobile at Microsoft• President at Macromedia• Board member at Teleca, VirtualLogix, and an active VC

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Happy customers and happy VCs

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Customer successes

CloudmadeLondon, UK

• “Wikipedia” of maps. Provides developers with tools and APIs to makethe most out of maps in their web and mobile applications.

• Cogniance scaled Cloudmade team from 2 to 25 Designers, Engineers,QA, and Network Operators in less than 30 days.

• RESULT:• 20,000+ registered developers one year later• Selected by the White House for tracking Obama’s “Change” progress• Nominated for Mobile Premier Award at Mobile World Congress next

week

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Customer successes

Ad InfuseSan Francisco, CA

• Mobile advertisement insertion and routing platform for carriers,ad aggregators, publishers and mobile subscribers

• Cogniance provided complete UI design, Engineering, and QAteams

• RESULT: Ad Infuse was acquired by Velti in 2009 for 8X theinvested capital

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Thank you!

Michael ShraybmanCEO and Co-FounderCogniance Inc.www.cogniance.com

michael@cogniance.com

@mshraybman, @cogniance

www.facebook.com/mshraybman

www.linkedin.com/in/mshraybman