Green Paper - Software Development Market Regulation

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A Green Paper, produced by the Better Regulation Delivery Office, with the support of the EU4Business FORBIZ project, on regulations in the software development market in Ukraine.

The report says software development has become a distinct industry, which ranks highly in the global economy, including in Ukraine. In 2016, global expenditure on IT services was $1,229 billion, and this industry is growing each year. At the same time, the significance of developing a software product will only increase with the development of technologies, the new technological revolution and the digitisation of the world.

Today, Ukraine is also involved in global processes, and is one of the best countries to place orders for outsourcing of business processes and IT, confirmed by its 24th position in the attractiveness ranking. Such achievements are largely due to the fact that this market is a completely new one. It began to develop during independence and does not have many of the flaws inherited by traditional sectors of economy from the Soviet Union: monopolisation, exploitation of resources, oligarchy and so on. The software development market is a great example of a new knowledge-based economy that can become a driver for the Ukraine’s transition to the post-industrial era, which has long been a reality for developed countries.

Today, the software development market is mostly export-oriented and ranks third in terms of revenue, so it is one of the main sources of foreign currency inflow into Ukraine. In 2016, the export-oriented sector of software development amounted to $3.2 billion, about 26% of exports of services for the corresponding period and 7% of total exports of goods and services. In this way, the market has a positive impact on the stability of the national currency and prices in the country, the BRDO says.

The Better Regulation Delivery Office, together with the Ministry for Economic Development and Trade and the State Regulatory Service of Ukraine, with the support of the FORBIZ project, has launched the ProDialogue under the EU4Business initiative. It aims to involve all stakeholders in reviewing regulatory solutions and working out ways to address them. As a result, a series of Green Papers has been developed, which analyse the current state of market issues and potential ways to improve the regulatory environment. A further set of White Papers represents a consolidated product of the groundwork by the business community and expert environment in the form of practical recommendations and suggestions for the authorities in order to improve the regulatory framework.