Consulate Pitches Ukraine
Consulate Pitches Ukraine for Outsourcing in Spite of Conflict
by Rachel King, The Wall Street Journal
Jul, 2014

As fighting in Ukraine continued on Wednesday, the Ukraine consulate and members of the country’s IT community were in San Francisco trying to convince a sparsely attended event that the region remains a viable destination for outsourcing.

“The government of Ukraine expects that exports revenue from the IT outsourcing industry to grow from $2 billion in 2013 up to $10 billion by 2020,” said Oleksandr Krotenko, consul on economic affairs at the Consulate General of Ukraine in San Francisco.

Few of the companies invited to the event, held at the elegant Fairmont Hotel, actually attended. About 40 people were there–approximately half the number expected, judging by the empty chairs and unused name badges. But Ukraine outsourcing firm SoftServe Inc., one of the organizers of the event, said that its outsourcing efforts have been successful.

The company, whose largest client is Cisco Systems CSCO +0.04%, said it had recently posted its best quarter ever in terms of revenue. The company’s Ukrainian location, in the western city of Lviv, is about 800 miles from the area where rebels are fighting. SoftServe said companies can be confident their work will be completed despite geopolitical circumstances.

SoftServe, along with embassy officials and Internet firm KMGi Group, which offers an online service called TransparentBusiness.com to help companies better monitor the work of remote employees first began a campaign on April 29 to appeal to Western businesses to support outsourcing as a way to stave off a “new Cold War.”

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