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Ukraine's expanding private sector will
require various software solutions and packages. However, the poor
enforcement of intellectual property rights in Ukraine is a factor to note.
Microsoft's Office and Windows programs
are currently the most widely used office software in Ukraine. This
software is installed on approximately 98% of all PCs operating in the
country. A more legitimate and transparent market for computer software
is slowly taking shape, largely due to dealers selling computer hardware
with preinstalled, legally acquired software.
However, the presence of many talented
programmers, combined with weak International Property Rights (IPR) legislation
and enforcement, have encouraged piracy and flagrant misuse of software.
The level of corruption is high, tender procedures lack transparency,
and court decisions are not enforced. A more legitimate and transparent
market for computer software is slowly taking shape, which is largely attributable
to dealers selling computer hardware with preinstalled, legally- acquired
software. 12
Ukraine has witnessed an increasing demand
for specialized financial, statistical, management, and manufacturing software.
Rounding out this demand is the need for bilingual (Ukrainian/Russian and
English) software, as well as the necessary bilingual written instructions
and after-sales service. The existing legal environment in Ukraine
does not include many important norms that would regulate the localization
of software products. Legitimate localization of foreign software
products is almost non-existent, which is partially due to competition
from products localized in Russia.
Ukraine is slowly emerging as a low cost
site for high quality software development. The producers work mostly
alone or in small groups on outsourcing projects ordered from abroad. There
is an increasing presence in the Ukrainian market for Compaq, Microsoft,
Oracle and Informix. This activity is usually not reflected in official
statistics. There is a growing interest in Ukrainian computer companies
to organize software production centers that could participate in international
software development projects. However, high levels of emigration among
qualified programmers and controversial Ukrainian legislation delay development
of software techno parks in Ukraine.
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