The ICT Sector in Ukraine Global Market Readiness Eric Candle ECdata, Inc. ECdata, Inc. New York

ECdata, Inc.  Global provider of Business Intelligence applications  Locations in the U.S. and Europe (in Ukraine since 1992)  Customers: Government Agencies, Banking Institutions, Fortune 500 companies  Solutions: Anti-Money Laundering platform, Vertical Search Engines, Content Management system  Co-founder, U.S.-Ukraine Digital Alliance

Ukraine, the IT-first Nation  The largest country in Europe  Software Development in Ukraine  Roadmap to success (traditional way vs. new approach)  Non-Fortune 500 in search for providers  Building a comprehensive Brand (Why choose Ukraine?) (Why choose Ukraine?)  Venture Capital & the IT providers

Software Development in Ukraine  2,400 software development companies  3,500 to 7,000 IT students/year (more students per 10,000 than Japan, (more students per 10,000 than Japan, Great Britain) Great Britain)  35,000 certified IT professionals (#4 in the world) (#4 in the world)  39 colleges/16 IT programs  Outsourcing market: $250 million  Major customers: AT&T Canada, Barclays Asset Finance, Delta Airlines, Unilever, Unilever,  U.S. is Ukraine’s top foreign investor (17% of FDI, 24% of portfolio investment)  Defense technologies commercialization  Centers of Excellence and Technology Incubators  “IT-first Ukraine” strategy  “Software capacity” – on way to the First Tier

Roadmap to Success  Domestic and international demand  National strategy  Diaspora, global trust, latitude of thought latitude of thought  Competition, clustering, club culture  Domestic Infrastructure: - Human factor - Human factor - Technology - Technology - FDI - FDI - R & D - R & D - Certification - Certification

non-Fortune 500 approach to find a provider  Cost containment  Personal factor  Core competences  U.S. affiliation  Western management  Functional culture  IPR protection  Laws & regulations  Bandwidth/utilities  Perception  Image & technological track record

Building a Comprehensive Brand for Ukraine Identifying Stakeholders & Target Audiences: - Industries, companies, executives - Industries, companies, executives - Government Dpts. (Finance, Development, Commerce) - Government Dpts. (Finance, Development, Commerce) - NGO’s (Development Banks, Funds, Chambers) - NGO’s (Development Banks, Funds, Chambers) Developing a clear, compelling, unique and distinct position for Ukraine in the mind of key stakeholders: - Aligning the National Brand with existing governmental & - Aligning the National Brand with existing governmental & industry initiatives industry initiatives - Creating a common repository of data, marketing - Creating a common repository of data, marketing materials, partner organizations, funding sources and other materials, partner organizations, funding sources and other useful tools useful tools

Why Choose Ukraine ? (following the Irish model)  The ICT sector employs (?) people, representing (%) of total employment  Created (?) new jobs in 2007  Accounts for ? of total revenue  ? out of Fortune Magazine’s top-ten leading ICT companies have a substantial (?) base in Ukraine  Accounts for ? of total value added proects  In 2007, - ? foreign-owned ICT companies  The indigenous software sector employs ? People  Technology accounts for ? of all exports and ? of total business expenditure on R&D

Why Choose Ukraine (cont.) (following the Irish model)  One of the lowest (?!) corporate tax rates and one of the best (?!) education systems in the world  The State Development Agency (?!) invested (?) in R&D projects in 2007  Ranks highest (?!) in terms of global innovation capability  The youngest population (?!) in Europe, ensuring future workforce availability  Low (?!) personal tax rates and freedom of movement (?!) attracts immigrant workers  GDP suggests productivity is among the highest (?!) in the world

Why Choose Ukraine (cont.) (following the Irish model)  Ranks among the top five (?!) economies in Europe in the Wall Street Journal Economic Freedom Index  According to the CEO surveys, political parties understand (?!) today’s economic challenges, and Government policy is responsive to changes in the economy  A high ratio of workers to dependents (?!) enables to fund its social services without overburdening the taxpayers

Venture Capital and Technology Transfer Model  Rigorous Selection Process with initial vetting of all applicants (candidates) by a select group of venture capitalists (vertical market experts)  Mentoring to improve presentations (case studies), reviewing presentations by judges (experts) to select companies for the final round  The finalists to present and exhibit their companies to venture capital investors, businesses and professional groups, financial institutions, corporate licensees, academic and research institutions  Buyers and investors criteria to buy  ECdata, Inc. promotes candidates through the consortium of agencies to investors and major corporate technology buyers  Presentation area and five-minute pitch time for each company  One-page write-up on each company to distribute to investors and buyers  Listing of each company for one year on the web site with hyperlinks back to company/country web sites. Web URL is advertised to the database of 3600 VC in the U.S.  Resources for U.S. subsidiaries