UKRAINE

UKRAINEThe past and the future

What happened at the end of 2013?The start of the Revolution of Dignity

As USSR collapsed Ukraine had a reasonably good starting point3

Source: World Bank

..but populist, corrupt, incompetent governments resisted reforms4

Ukraines ranking in Ease of Doing Business Source: World Bank, 2010-20122011 rank138Madagascar139Micronesia140Bhutan141Sierra Leone142Syria143Ukraine144Gambia145Cambodia146Philippines147Bolivia

2012 rank149Iran, Islamic Rep.150Malawi151Mali152Tajikistan153Algeria154Gambia155Burkina Faso156Liberia157Ukraine158Bolivia

2010 rank137Iran138Ecuador139West Bank and Gaza140Gambia141Honduras142Ukraine143Syria144Philippines145Cambodia146Cape Verde

which kept foreign investors away5

EstoniaCzechRomaniaUkrainePolandLithuaniaSlovakiaHungaryLatvia Source: Economist Intelligence UnitNet FDI stock in each country per capita, $

Can this be also the story of Ukraine in 2015?6

Kyiv Maidan, 15 December 2013The Revolution of Dignity marks a paradigm shift in Ukrainian society, politics and inevitably, the economy

The active, pro-European civil society the Maidan generation, intolerant of abuses and relentless in their controlling function, warrants a point of no return for the transformation of the country

Maidan had a peaceful start but a tragic ending

BUTUkraine changed own GovernmentUkraine is regenerating own army and policyUkraine is changing laws and economyAnd

Ukraine is changing!We lost more than 100 people in KievWe lost the CrimeaWe received a war in DonbassWe near default in economy

What about the future?

A critical perspective: ground-floor starting point9

Economic StagnationAuthoritarian LegacyConflictBlack Sheep of Europe

10

32104+14%-6%201420102005200019951990Saakashvili ReformAdministration

Starting point: 2004Endemic corruptionCrippling energy blackoutsEconomy in shambles

Outcomes:Corruption Perception ranking: #132 to #51 by 2012 (i.e. higher than Czech)From #98th to #8th in Ease of Doing Business by 2014One of the fastest growing economies in the worldFrom laggard to leader: GeorgiaGDP per capita, in 000 USD

A ground-floor opportunityWhy this time is different and what makes us optimistic about the Ukrainian economy now11

A clear pro-European majority, for the first time 12

Source: Razumkov Centre, Democratic Initiatives, Kyiv Post

50%55%60%65%35%40%45%40%53%64%48%53%44%49%Population support for joining the EU, percent

A critical mass of active, tech-savvy civil society13

Source: Euromonitor, Internetlivestats, BBC, USAID

5.7Russia4.5Romania3.6Ukraine3.3Czech2.6BelarusCivil Society Organization Index in 2014, 1-7 scale, lower=stronger civil society+0.1+0.40-0.2+0.1

Improvement vs. 2008172014 saw the rise of self-organized public and a strong volunteer movementThroughout this turbulent period, Ukrainian civil society stepped up to the plate, playing a key role in forming the new governments policy priorities and providing critical services to the public USAID, 2015

Percent of population using internet, %

20082014

Ukraines ranking in Ease of Doing Business, inversed scale 15

100150200201596201411220131372012152 Source: World Bank, Ministry of Economic Development and Trade of Ukraine

Brains and Hands: two lasting, competitive advantages

1. Brains2. HandsThe #1 IT engineering force in CEELowest-cost work platform in Europe16

Brains: #1 CEE IT force

Top math and science education, starting with primary school18China1US2Ukraine6Romania11Netherlands13Germany16Czech Republic32India39France45Belgium59

Source: International Mathematical Olympiad, Eurostat, Ukrstat 2014

Results at the International Math Olympiad, global rank

10%4%2%8%6%0%4.4%Romania4.9%Ukraine5.1%Bulgaria6.3%6.8%Latvia9.8%PolandHungaryLithuania3.9%Share of math, science and computing graduates, %

Strong technical education ensures high quality of students19United Kingdom1Hungary9Ukraine13Belgium15United States26Poland32Italy38Romania48India56Philippines115

Source: goodcountry.org, Universitas 21

Good Country Index: Science and Technology parameters reported to GDP, rankAre you know, a budget of Ukrainian Ministry Of Science and culture = a budget of the Oxford University?

and feeds abundant technical talent into the market20Engineering graduates per annum in European countries, thousand students

RomaniaItalySpainPolandUKTurkeyGermanyFranceUkraine Source: World Economic Forum, Forbes, 2014, IVC, www.business-standard.com

Possibilities of study353 Universities and Institutes

95 of them has technical direction

29 faculties of foreign languages

Largest IT outsourcing force in CEE & among top ones globally22

Source: dou.ua, Elance

3%Macedonia3%Croatia2%Moldova7%Other7%Poland4%Belarus4%BulgariaSerbia8%21%33%UkraineRussia9%RomaniaTop CEE countries by IT freelance outsourcing, %Ukraine is the #1 IT outsourcing country in CEE, by a wide margin; #3 by freelance outsourcing in the world after US, India

Ukrainian softs for CC

http://www.voiptime.net/

http://callway.com.ua/Gamification

http://www.naviwfm.com/

http://www.workandjoy.com/

CC softwareCloud CC softwareWFMhttps://www.oki-toki.net/

RESUMEUkraine has good educated populationA lot of people has technical educationA mentality of Ukrainians is close to mentality of western person

Brains: #2 Hands

Large, young, urban population26 Source: Ukrstat

KharkivLvivZaporizhyaKyivOdessaDnipropetrovsk70% urban population, concentrated mainly in and around large cities2.6 million student population with 640,000 graduates each yearSelect Ukrainian cities by population, thousand people

Top CEE cities by IT freelance outsourcing, %27

Kharkiv6.7%Kyiv6.6%Lviv3.4%Zaporizhya3.1%Omsk3.1%Moscow2.8%Minsk2.7%Novosibirsk2.6%Bucharest2.5%Belgrade2.3%

Source: dou.ua, Elance

21%33%

CC agents salaries among the most competitive in the world28

In Ukraine 2,5 !

RESUMEGood qualification with the cheapest price in the world best decision!

Some words about Ukrainian Outsource Contact Centersand foreign languages

Dynamics of changes in OCC market

Workplaces:2013 - 9600 2014 8440

ThereasonsforreducingthenumberofOCCarethefollowing:

ClosingThe cancellationofserviceson the partofbasiccustomers(that areoftenRussian)Passintostatusof"internal"Themerge withthelargerOCC.

Companies that work with foreign projectsUkrainianOCCinitiallywerefocusednot onlyonthe domestic market.

In 2013, a significant numberof them(in a varying degreealmost all)worked with Russian customers.In 2014, things began to changethough Russian projects still occupy a leading position in the list. EuropeanandAsiandestinationsarenotfarbehind.

The frequency of using foreign languagesDistribution of foreign languagesdependingon the frequency of using isthe following:thedefiniteprioritybelongs toEnglish,quite oftenGerman and Polish occur,other languages areless common,but their list is quite wide.

This suggests good potential fordevelopment of UkrainianOCCtowards foreign markets.

Ukraine CC Awards - DZWINNER

Start in 2014Special site http://dzwinner.com/11 nominations25 members of the Jury70 participants

From the 2015 nomination Customer service specialist (English speaking agents)

We are waiting for the participation of Kazahstan and Belorussia in 2016

The world's largest ranking of countries by English skillsAccording with EF EPI Rate UKRAINE:Moderate Proficiency EF EPI Score: 52,61#23/27 in Europe#34 out of 70 countries

Source: http://www.ef.se/epi/

Propositions of the Ukrainian Government2016 will be a year of English language in Ukraine

English must be a second official language in Ukraine

RESUMEGood qualified population with different languages and cheap price is ready for work

We are waiting for an orders from the West Europe

Ukraine is open for Uhttps://www.youtube.com/watch?v=jdSQuanI8Z8