IT Services Market Research Articles

State policy of the investment processes development on the market of IT services: analytical and strategic aspects of implementation in Ukraine

Introduction. The globalization of the world economy, the rapid development of information and digitization objectively determine the dynamism of the priority areas for the investment projects implementation in the field of IT. Therefore, the governmental structures should regularly update the list of priority projects for state support, particularly in Ukraine, which is in crisis economic situation increasing its own dependence on external capital, technologies, products (services). The purpose of the study is to substantiate the analytical and strategic aspects of implementation of the state policy of investment processes development in the Ukrainian market of IT services. Methods. As the methodological basis of the study the expert and statistical methods (for instance, Delphi, M. Kendall and B. Smith methods; Gallup Institute methodology; Pearson’s rule; Harrington’s scale etc.), systematic and structural analysis, the theories of economic growth, the modern concepts of transitional economic systems are used. Results. The theoretical and methodological fundamentals and features of state regulation of the investment processes in the market of IT services are generalized. Using the Delphi method, an analytical study of the investment security of the IT services market subjects and the effectiveness of the state policy in this field are conducted. Accordingly, a number of IT companies which are the leaders of the Ukrainian market in the development, implementation and sales of information and communication products have been selected for our research in 2018-2020 (Ciklum, DataArt, Sigma Software, GlobalLogic, EPAM, N-iX, 2Event.com, Skelia, Intellias, Lohika). The M. Kendall and B. Smith method is used to determine the validity and objectivity of evaluation according to Pearson’s rules. The Gallup Institute methodology is used to justify the sampling size of IT enterprises. With reference to the investment development of the Ukrainian market of IT services, the impact of macroeconomic factors, the needs, the accessibility and the impediments of attracting investments, the development of investment infrastructure, the level of financial security and investment management, the prospects for state policy implementation are characterized. Quality and capability of business infrastructure elements in IT services market and high level of tax burden have been named by the experts as the factors of the macroeconomic environment with the very high level of influence on the security of investment. The scheme of strategic approaches and the consistent implementation of state policy of the investment processes development in the market of IT services are developed. The levels of implementation of the state policy of investment processes development in the IT services market are interpreted by using the Harrington’s scale. The main tasks, tools, means and priorities of the state policy of investment processes development in the IT services market are determined. Conclusion. It is proved that one of the most influential directions of state regulation of the IT services market development is the sphere of investment processes. The peculiarities of the investment process and the functioning of the IT services market affect the specifics of their state regulation updating the task of economic, financial and resource investments support. The effective state regulation of the investment process in the market of IT services should be economic in nature and directed primarily at achieving the strategic goal of creating a quality investment environment in the information technology sector.

ІТ-ПОСЛУГА ЯК ЕКОНОМІЧНА КАТЕГОРІЯ

У наукових фахових виданнях недостатньо уваги приділено дослідженню ІТ-послуги як економічної категорії. Це формує неправильне її трактування у практичній площині та обумовлює проблеми неефективної побудови системи управління фінансами в ІТ- компаніях. Автором запропоновано розглядати ІТ-послугу як ІТ-продукт, результат людської діяльності, який продається та купується на ринку; розмежовано поняття ІТ-продукт, ІТ-послуга та ІТ-товар. Встановлено, що первинним поняттям є ІТ- продукт, тобто результат діяльності розробника чи сукупності розробників, який конкретизується у ІТ-послузі, яка є ІТ-товаром, якщо вона виробляється для продажу, і цей продаж стає економічною діяльністю ІТ-компанії. Виділено та досліджено споживчу та мінову вартості ІТ-послуги. Споживча вартість виражається через усвідомлення споживачем корисності ІТ-послуги, її здатність забезпечувати можливість реалізації діджитал-інтересів споживача. Мінова вартість ІТ-послуги характеризується обсягом фінансових ресурсів та є платою споживача за можливість цифровізувати власні бізнес- процеси. У межах мінової вартості виділено тариф фінансової винагороди, що містить три взаємопов’язані складові: собівартість, операційні витрати та маржинальний прибуток.

МАРКЕТИНГ ТЕЛЕКОМУНІКАЦІЙНИХ ТА ІНФОРМАЦІЙНИХ ТЕХНОЛОГІЙ: СВІТОВИЙ ТА НАЦІОНАЛЬНИЙ ВИМІРИ

Introduction. The development of the information and communication technologies (ICT) market creates the conditions for further growth of other sectors of the economy. ICT companies provide companies, individuals and government with software, Internet, mobile and fixed communications, and so on. The purpose of the article is to study the current state of the ICT market in the world and in Ukraine, to identify major trends and threats for further development of the ICT market. Results. The ICT market is one of the largest dynamically developing markets in the world. Research conducted by leading consulting companies in the world shows that after 2020, the market can grow from 13 to 33 trillion and the blockchain market to 3.1 trillion $. International Data Corporation emphasizes that digital technologies and solutions can reach 60% of global GDP by the end of 2022. The world leader in the number of ICT corporations is the United States, with headquarters of the 65 world's largest companies, 20 in China, Taiwan - 17, Japan - 14, South Korea - 6, India - 5 companies. The IT services market accounts for 0,5% of the global IT services market. In Ukraine there are 125 registered self-employed individuals that are used by large companies to optimize their tax burden. Income of such American ICT companies such as Apple, Amazon, Alphabet, Microsoft significantly exceeds the size of the state budget of Ukraine, and part of the revenues from the ICT market occupies only 4,5% of GDP, which is clearly insufficient and is evidence of an economic development lag. Conclusions. The imperfection of domestic legislation, the lack of incentives for ICT organizations, the possibility to monopolize the market, the insecurity of the interests of individuals and private companies do not stimulate foreign investments in this sector of the economy. In spite of this, Ukraine has a great potential for its growth, for which it is necessary to develop a national concept and model for the development of the ICT market, to restrain the departure of specialists abroad, to ensure the implementation of the business-state partnership strategy, etc. Keywords: telecommunications market, IT market, telecommunications market and IT services, marketing research, investments, ICT companies.

How can an IT organization earn its customers’ trust: A practical approach

The paper describes a practical approach which can be used by internal IT organizations to gain their business customers’ trust. The variety of customers of the internal IT service provider is limited to internal customers only. The distinguishing feature of the proposed approach is that it is completely practice-oriented, i.e. primarily aimed at building trust among IT service providers and their customers in a particular organization. The approach is based on the idea that there are measurable prerequisites for the emergence of a customer’s trust which allow you to partially formalize the IT organization’s intention to earn its customers’ trust. A model of intra-organizational trust is proposed; it is progressively improved as the IT organization develops its trust-building capabilities. The model comprises all IT service customers in an organization along with their communications and accounts for internal organizational IT service market specifics. A high-level blueprint of the trust model is described which can serve as a starting point when developing a full-scale trust model in a particular IT organization. We present an approach to the trust model improvement which builds upon principles adopted from widely recognized CMMI model. With this approach, an internal IT service provider can benefit from maturity assessment methods to improve its trust building capabilities.

Eyetracking jako metoda badania użyteczności portali e-learningowych


 The purpose of this article is to indicate the usefulness of digital technologies, in particular eyetracking, in the analysis of information architecture on e-learning platforms. In the era of ubiquitous computerization, a significant expansion of the discussed technologies is noticeable for all branches of the economy and science. We also note the continuing development of the IT services market. New tools and technologies available on the market affect and significantly change the face of previously understood education, which evolves from its original shape into new forms. The effect of this phenomenon is the requirement to use ever newer didactic aids, and thus, proper preparation of children and young people for the skillful use of available technologies. A characteristic example of this type of assistance is e-learning, which currently supports education for both students and teachers. The article will present the results of pilot studies, based on the analysis of selected educational platforms using the method of tracking eye movements. The aim of the study was to check how and at what time participants were able to find and analyze relevant information on e-learning portals depending on their architecture and legibility. The analysis of the results of the study and data collected has allowed us to identify weaknesses and strengths in the structure of information contained on e-learning platforms, the improvement of which can significantly contribute to the increase of the quality and usability of distance learning tools. The results of the research indicate the problem of the readability of large information giants and navigational complexity.

Strategic Areas of Partner Relationships Marketing for IT Company Under Crisis Conditions

The Russian IT market is in crisis. The reason is a complex geopolitical environment and a national economic policy, resulting in a low ruble exchange rate, the absence of low-interest credits, general economic decline, reduction of IT companies’ budget, sanctions. The decline of the IT service market for 2015 exceeded the values forecast by IDC analysts (International Data Corporation) by virtually two times. Properly selected marketing strategies can provide a way out from this difficult situation. To keep its strong positions at the IT service market, the company can use a strategy to develop partner relationships on the basis of the following basic principles: orientation towards partner business interests, boosting a loyal attitude to clients; entering new prospective markets; broadening the business geography due to the development of a network of IT branches in the regions.

IT Services market as a driver for the development of the artificial intelligence market

The market of artificial intelligence is currently one of the most dynamically developing markets for advanced technologies of the 6th technological order due to the complexity and versatility of solutions developed within this set of technologies. The key hypothesis of the study is the assumption about the dependence of the development dynamics of artificial intelligence market on environmental factors that form the dynamics of the development of the IT services market. The key research method was the classical toolkit of multiple regression analysis. As a result, an econometric model was obtained describing the structure of the influence of environmental factors on the development of the global IT services market, and the determining influence of the IT services market on the artificial intelligence market was established and substantiated.

Current trends in the IT services market

Relevance. Today, in the context of global digitalization, the world IT services market is developing at quite a rapid pace and remains one of the fastest growing segments of the IT industry. Researchers of this market in their works describe direct dependence between globalization of IT services market and development of national economic systems. Thus, today it is most important to determine the key trends in the development of IT services world market. In this paper, the most important trends of the most significant segments of IT service market are determined and described, such as: IT consulting, system integration, custom software development, IT outsourcing, IT support, and IT education and training. Understanding and following the current trends contributes not only to the development of existing opportunities for companies’ growth, but also to the emergence of new ones, due to which the companies will not only retain, but also increase their competitive advantages on the global market. Goal. To identify and analyze the most important current trends in the global IT service market development, which contribute not only to the reformation of the market itself, but also to change in the relationship of its constituent elements. To systemize the latest trends in the global IT service market and evaluate them in terms of their impact on the economic development of the countries. Methodology. The methodology of system analysis, methods of structural, logical and comparative analysis are used in this paper. Results. The key trends in the development of the main segments of the modern IT service market have been determined and described. Among them, cloud computing technologies, cybersecurity and innovative business models are particularly important. Conclusions. It is obvious that the identified trends in the development of the global IT services market are critical to the effective performance of each enterprise both in terms of understanding, forming a business strategy, timely implementation of innovative business models, following the latest trends, and in terms of building up their competitive advantages in extremely difficult conditions on the global market.

THE ROLE OF HUMAN CAPITAL OF IT-SERVICES IN THE DEVELOPMENT OF FOREIGN ECONOMIC ACTIVITIES OF UKRAINE

The article deals with the current state of the information technology market in Ukraine, the role of human capital and peculiarities of its influence on the country's foreign economic activity. The basic processes and tendencies of Ukrainian IT market functioning, the main prospects of IT sector development were analyzed as well as the main problems of the information technology market and directions of their solution. At present, the internal IT service market in Ukraine meets the following characteristics: minimization of IT service costs; infringement of intellectual property law; satisfactory demand for IT services; shortage supply of qualified IT specialists due to imbalances in the training of technical specialists in higher education institutions; imperfection of IT management in companies leads to the inability to implement the growth strategy. There are two main factors that stimulate the development of the internal IT sector: first, is a human capital situation; second, is a public policy and its priorities in supporting competitive industries. The key success factor of a rapid development of foreign economic activity in Ukraine is to establish balance between the external and internal IT service markets. In order to improve the foreign economic activity of Ukraine, it is necessary for the state and the owners of IT companies to force on the development of the internal IT service market as the low level of the internal market hinders the development of the external IT relationships. The internal sector is not attractive to IT companies usually because of low pay and poor management quality. Therefore, in our work we considered in details the problems related to human capital in the search of any opportunities for the development of foreign economic activity of our country. It was concluded that IT market will remain one of the most prospective sectors of Ukraine that develops its foreign economic activity.

Особливості формування маркетингової стратегії на ринку ІТ-послуг

Особливості формування маркетингової стратегії на ринку ІТ-послуг

Пріоритети державної політики фінансово-інвестиційної підтримки розвитку ринку ІТ-послуг України

Пріоритети державної політики фінансово-інвестиційної підтримки розвитку ринку ІТ-послуг України

Disadvantages of government regulation of investment process development at the IT-services market in Ukraine

The investigation of deficiencies of state regulation of the investment process development at the market of IT services of Ukraine has been made in the article. The positions of theories of economic growth, modern concepts of the institutional economy, transitional economic systems have been used as a methodological basis for the study. The monographic method of scientific knowledge has allowed to make wide and deep approach to the definition of preconditions that form the low level of implementation of state functions of investment management in the market of IT services. As a result of the research, such preconditions include: the formation of an investment strategy, the creation of organizational structures for the management of aspects of investment activity, the development of research and information support analysis and management of the investment process, investment planning, stimulating investment activation, control the development of the investment process. The author's conclusions can form the basis for scientific assumptions regarding the improvement of the system of state regulation of investment activity in the market of IT services of Ukraine. The formation of a list of key institutional and legal acts adopted and called upon to form a system of domestic legislation, regulatory processes for the development of the IT sector in general and the IT market in particular are the practical meaning of the research. The author's assumptions regarding the priority directions of state control over the development of the investment process in the market of IT services of Ukraine might form the scientific novelty of the study.

Стан та тенденції розвитку інвестиційної діяльності на ринку ІТ-послуг України

Стан та тенденції розвитку інвестиційної діяльності на ринку ІТ-послуг України

The rise of IT services clusters in India: A case of growth by replication

The Indian IT services sector has grown from small beginnings at the bottom of value creation to a major player in the global information and communications technology (ICT) industry. It commands a 55% share in the global market for IT services. India's IT sector value proposition in terms of low cost with large supply of high quality talent is compelling. As a result, India has become the premier choice not only for outsourcing IT services by the developed-world's multinational corporations (MNCs) but also for locating their own Global In-house Centers (GICs), which simultaneously compete and partner with local firms. This gave rise to six additional clusters beyond the earliest, largest and robust cluster, Bangalore. The paper provides a review of relevant literature; develops a conceptual framework for evaluation of clusters; and presents data and analysis with respect to relative size, growth, specialization, MNC presence and connectivity to local firms through expatriates and returning Indians, ,innovation; and discusses adequacy of ICT infrastructure for future growth. Although there are clear signs that the Indian IT sector has been moving towards a regime of providing high-end value added services, the sector's value proposition – lower cost combined with a large supply of high quality talent – remains the single most compelling reason for the rise and growth of multiple export clusters. Thus the sector's growth appears to be a case of growth by replication rather than innovation. The paper concludes that the Indian IT sector's value proposition in terms of lower cost combined with large supply of high quality talent remains the single most compelling reason for the rise and growth of multiple IT services export clusters. While the old adage, “people follow jobs” still holds for large part of the labor force, there is little doubt that the sprawling IT services clusters in India - with more to come from Tier II and Tier III cities – indicate, in fact, that “jobs follow talent." Both local firms and the MNCs, through their GICs, are pushing the boundaries of location farther and farther to continue to leverage cost advantage and available pools of talent.

THE RESEARCH OF THE LEADING POSITION OF A SMALL ENTERPRISE IN THE FIELD OF MARKET RELATIONS IN THE SPHERE OF IT SERVICES CONSIDERING THE FREELANCE RESOURCE

The subject of research. IT enterprise activities and methods of staff quantity optimization under the terms of freelance resources attracting with the aim of taking leadership positions in the market for IT services. Methodology: during the research, the following scientific methods are used – the methods of analysis, synthesis, and comparative analysis (studying demand and supply of freelance-resource of small IT enterprises), the economic-statistical method (statistical analysis of empirical data, analysis of variation series of demand and supply distribution of freelance applications for a small IT enterprise). The purpose of scientific research: the purpose of the article is to provide theoretical justification for using freelance-resource within a small IT enterprise under the terms of freelance services demand and supply studying, which allows taking leading positions in the field of market relations in the sphere of IT services. The conclusion of the research: the calculation of the full-time employees’ optimal quantity of small IT-company is made, which is the most important task of determining the reasonable need for staff to ensure the company’s leading position in the field of market relations of IT services. The purpose of the paper is to the research the competitive advantages and a leading position of a small company in the dimension of global market relations in the field of services, which is determined the use of online freelanceresource by small IT enterprises. This approach belongs to the strategic management of expenditures of a small enterprise, which is the basis of the effective resources using a small enterprise and there is a prerequisite for establishing its leading position. The scientific achievements, which consider freelance-resource in the context of the export-oriented sphere of services as a new vector of the economic growth of Ukraine, are systematized; the author’s approach to the definition of the category of “freelancers” and the consideration of the essence of freelance activity special features are presented. To determine the minimization of expenditures, the activity of a small IT enterprise is analysed, within which full-time employees are working, whose employment depends on the number of freelance-applications for jobs, which are receiving over a period of time for the IT enterprise needs. The statistical analysis of demand and supply within a small IT enterprise is proposed, which determines the optimal quantity of full-time employees who complete the technical tasks based on the freelance-resource, which enables a small IT enterprise to take a leading position in the field of market relations among similar small enterprises. Today, in the new concepts of the network economy and the global reputation economy, there are trends that represent an objective reflection of modern transformational changes in the economy, which are associated with the use of freelance-resource, which is an essential factor in establishing the leading positions of enterprises in competitive markets.

ІТ-ПОСЛУГИ ЯК ОБ'ЄКТ МІЖНАРОДНОЇ ТОРГІВЛІ

The purpose of the article is to study the features of IT services as an object of international trade. The specificity of trade in services and their contribution to global trade and prospects in the real sector of the Ukrainian economy are investigated. The trade in services of Ukraine in recent years has a stable positive balance. Exports of services in the first half of 2020 amounted to $ 5371,000,000, imports - $ 2,359,000,000, a surplus of $ 3,012,000,000. This made it possible to cover losses from trade in goods, as a result, the foreign trade balance for six months turned out to be with a plus of $ 1,070,000,000. In particular, the pandemic has accelerated the digitalization of business processes in. The implementation of IT solutions brings tangible results both in business and at the state level. Among the leaders in implementation are all solutions that ensure the availability of processes from anywhere in the world: tools and systems for effective remote work, electronic external document flow, cloud services, e-commerce solutions, delivery services. Trends have already formed in the context of the pandemic situation. And the load on IT services has increased dramatically due to the need to adapt enterprise information systems for remote work. The IT services market is undergoing structural changes, symmetric changes in demand from key customers. Now the IT sector creates 4% of Ukraine's GDP, which does not yet seem to be a serious force that can pull Ukraine out of the economic crisis. Although, it remains one of the few industries and sources of export, which will not be seriously affected by the crisis It was revealed that in the first six months of 2020, profit from trade in services was provided by two main articles: transport services remained the leader, decreased by $ 2,338,000,000, and decreased by 22.5% compared to the first half of 2019, and IT services - $ 1.4 billion, increased by 16.6%. They together accounted for 70% of the income. It was determined that the technology sector is of strategic importance for the Ukrainian economy and can help create the image of Ukraine in this era of digital transformation. And even a global recession will not be able to interrupt the positive dynamics of the profitability of IT services in the international arena.

A Theoretical Study on Improvement of Public Delivery System According to IT Service Cost Estimation

Forecasting ordering size and performance cost correctly in the ordering of IT service projects and the initial stage of performance is a very important factor not only to the ordering body but also the company who performs the project. Middle standing IT service companies receive/perform public IT service project, substituting large companies, after 2013 amendment of Software Industry Promotion Act. However, the business competence accumulated by middle standing IT service companies is relatively insufficient in project management ability compared with large companies, and the style that project companies bear all risks of the project, such as Turn-key order in the market focused on large companies in the past, has great risk to the ordering body, project company, and service beneficiaries in quality, costs, profit and delivery date. Currently, the market centered on middle standing IT service companies deteriorates the profitability of interested parties, which makes IT service ecosystem as an element of cost increase due to reduction of ordering size, low earnings yield, and increase of management expenses. Therefore, there is necessity that the cost calculation and order style structure for IT services, in which project companies should bear all the risk of project performance, should be improved. This treatise is going to analyze the IT service market ecosystem and agreement, project performance style upon current IT service project cost calculation method based on SW lifespan process and suggest improvement methods.

The Quest for Global Expansion: Xceed Re‐Visited

The contact center is considered the face of any corporation since it is the sole direct interface between its customers, stakeholders, vendors, and employees and the gateway to the global marketplace. Not only is it responsible for solving issues, but its role has grown to include sales, marketing, customer services, and general information requests. Contact centers that once just answered telephone calls, now field queries from multiple channels – phone, fax, email, and web interaction. The global offshore outsourcing market for IT and business services exceeded US$55 billion in 2008. It was estimated that an annual growth of 20% would be realized during the following five years (Willcocks et al., 2009). As the global spending on outsourcing is increasing, so is Egypt’s eagerness to be placed on the map. The government of Egypt has taken several actions to support the industry and aid in its nourishment. Leading the way and acting as the face of Egypt is Xceed Contact Center, which has placed its focus on positioning itself, not as an Egyptian contact center, but rather, a state-of-the-art contact center that is headquartered in Egypt. Their focus on global expansion is paving their way to generate high revenues and provide the best service possible. This article describes the progression of an Egyptian company from a local call center to an international provider of call center and data entry services. It demonstrates the uniqueness of an Egyptian company managed by local expertise and competing at the global level; a successful model that is unusual and arguably against the conventional wisdom in many developing economies.

Methodology for Evaluation and Forecasting of Russian IT-Services Market

The article describes the author's authentic methodology for evaluation of the Russian IT services market which allows improving the reliability of the estimation not only of the IT services market itself but the overall IT market. Owing to the implementation of the methodology it became possible to analyze the current state, the structure, the capacity and development perspectives of the Russian market of Information Technologies. The urgency of the topic under study is determined by instability, by the ambiguity of external conditions which can directly affect the development of business entities in the market conditions. Such a situation enables the necessity in the methodology for evaluation and forecasting of possible changes of market environment based on scientifically grounded methods. The methodologies introduced in the article can be of great interest not only for the specialists in this sphere of knowledge but they can attract the attention of many organizations operating in the market of information technologies, as precise information about the volumes and the structure of the Russian market (or any other developing market) of information technologies is of significant importance for successful business, yet it has been rather a complicated process to get it, alongside with the level of reliability which remains low due to the inaccessibility and non-transparency of the Russian economy. The author reckons that the evaluation approach proposed in the article can be applied not only to the IT market but to other services markets where the cost of services is the important characteristic.

Introduction: one thousand friends

The advent of the online world was first and primarily a revolution in information and access to data. We could gain much more information far more effectively and easier than, say, by going to the library, and access to individuals, groups and organizations became far more broadly available and generally cheaper than by phone, post or travel. In more recent years there has been a second revolution online— namely, the rise of social life. Social networking sites have become the predominant use of the internet. Google, for instance, has now fierce competition from Face-book. Facebook is now, together with Amazon, Google and Apple, a formidable force in the market for IT services. At the forefront of social life becoming the predominant use of the internet has been the pursuit of friendships online. In fact, as is now widely recognized, the average user conducts more than one hundred friendships online. Many users have hundreds of friends online and some have over one thousand. Of course, online social network use of the term ‘friend’ does not mean online users are necessarily imagining they have many hundred close companion friends, such as friends with whom one identifies intimately and broadly, rather than, say, narrowly as in friendships merely of pleasure or utility. And plainly, many users are clear enough about the general distinction and navigate the terrain easily—without mistaken or confused views—and so, for instance, have separate accounts divided along the line of their internet and ‘real’ friends. However, it is also plain that for many online users the term ‘‘friend’’ does import aspects and demands of ‘real’ friendship and, so, for instance, when requests to be a friend with another on social networking sites are ignored or denied, its often taken personally—for example, why don’t they want to be my friend? It is also hard to believe that young people—the dominant cohort of social networkers—rarely operate without clarity about the distinction between companion friendship and the appropriation of the term ‘friend’ by social networking sites. All of the articles ahead focus on the question of whether there are obstacles presented by online communication environments for achieving ideal companion friendship. In fact, while some apply their claim only to, say, purely textbased worlds, such as email, and some find obstacles across various different online worlds, including social networking sites, Skype and interactive games, all find much the same kind of obstacle for companion friendship online— namely, limited and distorted information. Indeed, all find much the same kind of limitation and distortion of information online to be the main problem.