IT Sourcing Europe Limited, a UK-based market research and advisory firm, presents brief profile of Belarus and Belarussian ICT / IT outsourcing market trends

1. IT SOURCINGEUROPE Central and Eastern Europe’s Country Profile: Belarus

2. Area: 207,6 km2 Population (est. 2009): 9.648 million Human Development Index (est. 2007): 0.826 GDP/capita (est. 2009): 4,575€ GDP growth rate (est. 2009): -3.3% IT Outsourcing market value (est. 2009) – 227.5€ million GENERAL DATA

3. * Based on the 2009 Legatum Institute estimation PROSPERITY INDEX*

4. PROSPERITY INDEX

6. Unlike its neighbors Ukraine and Russia, in Belarus the economy has not yet been transfomed into a market economy. Like in the Soviet times, it is still a planned government-backed economy. Although the economy is considered to be stable, it largely depends on relationships with Russia. For instance, Russia’s intentions to establish export oil and gas prices for Belarus may significantly undermine Belarusian economy.

7. Foreign investments are hindered by the president’s actions towards protecting the national economy from foreign takeovers. Belarusian law is both complicated and contradictory. Additionally, the country is on the „watch list“ of the US Coalition “International Intellectual Property Alliance” (IIPA) as the country with the gravest copyright violations. Belarusian president Lukashenka is regarded as ‘persona non grata’ in a long list of democratic countries.MARKET TRENDS

10. Software development outsourcing market was one of the first to have been hit by the world economic downturn. In 2009 the ITO contracts reduced by 15-20% compared to 2008.

11. At the moment more than half of all Belarusian ITO services are exported to the United States, while only nearly 35% - to Western Europe.

12. Currently, Belarusian ITO services providers are focused on vertical market specialized solutions for the industrial sector, banking and finance, retail/e-commerce and education.

13. Belarus has a rather limited domestic demand for the IT labour force, which is a positive factor for availability of skilled specialists to be involved with IT outsourcing.MARKET TRENDS

14. THANK YOU by: IT Sourcing Europe Limited 2010 www.itsourcing-europe.com Info(at)itsourcing-europe.com