IT Outsourcing Opens the Way for Exports to Russia and Ukraine

How about outsourced IT development work that not just works well for the bottom line but also opens the way to a new export market? That is exactly the summary of our new concept that has already helped 4 companies to raise an additional turnover of 14 million Euros on the Russian-Ukrainian market so far.

At Ciklum over 700 employees are engaged in the development work for various IT companies, but in addition to that in 2009 we have worked with some of our clients to market and sell their products on the large Russian speaking market. The Danish company CC-Interactive is one of the companies that have both developed software and generated export sales in the region. "My business is small and relatively young, and it's been of great assistance to gain an easy access to this exciting market. We have already generated a turnover of millions," says Harald Riis Thomson, the CEO of CC-Interactive.

IT outsourcing as a base for export
When performing IT development work for various companies Ciklum establishes a sort of sub-division of the company that the work is done fore and hires Ukrainian and/or Russian employees dedicated to the particular company only. "Following our usual practice of establishing dedicated development teams it has been easy and natural for us to hire salespeople to work for our customers wanting to penetrate this market here - just as we employ developers today," says Torben Majgaard, the CEO of Ciklum.

Ciklum has also hired a sales manager who controls, trains and guides the salespeople working for various Western European companies under this initiative. In addition, Ciklum supports its clients export drive by developing an easy access to the dealers networks, organizing trade exhibitions and shows, and acting as a sparring partner.

4 test cycles produced 14 million Euros
Out of Ciklum's approximately 100 customers 4 have tested our new concept in 2009 – this has generated a turnover exceeding 14 million Euros for them. In the coming weeks all Ciklum's customers will be presented with this option. "The Russian-Ukrainian market is a growth market. The number of Internet users is at the level of the United Kingdom, and GDP is on a par with Germany. This makes the region very interesting. By using your software development process as a bridge you get a cheap and low-risk market access," explains Torben Majgaard.

Several set-up models
Your company can choose between different cooperation models that can be combined to fit the corporate strategy. For example, Ciklum can help against cash settlements or you can enter into a partnership agreement where Ciklum is covering parts or all costs associated with the promotion. You can choose to be responsible for billing and collection from home or have Ciklum ensure it. And if you wish, Ciklum will provide a full "hosted business" in the customer's name.