IBM Subsidiary Launched in Ukraine – helping local businesses to transform

IBM confirms its commitment to second largest IT market from former Soviet Union region

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KYIV, UKRAINE - 27 Oct 2006: IBM this week announced the opening of a subsidiary office in Ukraine and gave details of some key local customer engagements.

“IBM is very excited about Ukraine. We are excited about the business environment, market potential and our own business performance in the country”, said Brendon Riley, General Manager of IBM in the region. “Establishing a subsidiary office means that we are best positioned to serve the needs of our customers in Ukraine and offer them the best possible value, expertise and technology. It also sends a signal to the market about the importance of Ukraine to IBM”.

According to IDC, the Ukrainian IT market worth around 2 billion dollars and is growing at an average of 17.4% per year. IBM’s presence in the country dates back to 1992 when it opened its first representative office. The subsidiary office opened this week takes IBM’s business in the country to a new level.
About two thousand Ukrainian companies have already become IBM customers over the years. This week IBM announced details of its engagements with two of them:

Yogesh Malik, CTO of local client Kyivstar, the biggest Ukrainian mobile service provider, said “IBM is helping is helping to take our business in Ukraine to the next level. As the Ukrainian mobile market moves towards 100% consumer penetration, it is essential that we create greater efficiencies and deliver greater value to our clients. IBM is helping us with the hardware and software – which they are clearly good at. But more importantly IBM’s business consultants are helping us with the transformation of our business model. IBM is helping Kyivstar to drive efficiencies across key areas such as enterprise management, resource management and supply chain”.

Another local IBM client Ukrsotsbank is cooperating with IBM on a new centralized banking solution based on two parallel IBM System p servers and running software from Oracle and TEMENOS. The new solution is capable of processing more than a million of transactions a day, serving all of the bank’s clients across the country and ensuring the creation of a secure, central repository of transaction records compulsory for the National Bank of Ukraine.

“The new system from IBM offers unprecedented levels of functionality, reliability and security” said Boris Timonkin, chief executive officer in Ukrsotsbank. “Our customers will benefit directly from the new system by being able to step into any bank in Ukraine and access their banking records – something not possible previously with the legacy system based on 32 servers in different locations in the country. Our employees will also benefit from the centralized system by the greater and standardized visibility of data. It will also lower the level of operational risk significantly – ensuring business continuity during system malfunction and disaster situations”.

To mark the establishment of the new subsidiary, IBM launched its Academic Initiative in the Ukraine – a global program to provide Ukrainian universities with support and resources for students to gain skills in the open standards like Java, Web-Services and Grid-computing.
“It is essential that we educate students with the right mix of technological and business skills in order to support the changing economy and enable Ukraine to innovate and grow in the 21st century global economy” said Kirill Korniliev, Country General Manager, IBM East Europe/Asia “With the new Ukrainian subsidiary we will continue to leverage the outstanding talent available in Ukraine and support the continued development of the national education infrastructure”.

For more info on Ukrsotsbank go to:
For more info on Kyivstar go to:
For more info on IBM go to:

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