Page 5

1 | CHARACTERISTICS OF THE SOFTWARE DEVELOPMENT MARKET 1.1 THE SOFTWARE DEVELOPMENT MARKET The software development market includes many components. Since this is a new industry based primarily on intellectual work, it is rather difficult to identify and distinguish between related processes and services provided in the market. The Green Paper addresses not only the development of software products, but also the testing, IT consulting and other services related to the software development.

Product companies, startups

Outsourcing companies, R&D centers

Put simply, the market can be divided into companies that develop software for a specific customer – outsourcing companies, R&D centers and companies, which independently assess the market situation and make decisions on the development of a product and its sale – these are startups and product companies. Accordingly, the creation of business processes in these groups is somewhat different. Business process Main tasks

Business process Main tasks

ORGANIZATIONAL ACTIVITIES Staff hiring and training

ORGANIZATIONAL ACTIVITIES Staff hiring and training

PRODUCT SALE Marketing, transfer of rights to a customer

PRODUCT DEVELOPMENT Business analysis, software development, testing



Market system analysis, software development, ownership registration

Marketing, software sale, sale of licenses

ORGANIZATIONAL ACTIVITIES provide a set of activities in different areas, which allow to start a company. Since the market is based on intellectual work, the main resource is people. The key activity related to the setting up the office is to hire staff, as well as to train and equip specialists with adequate skills and necessary competencies. Other organizational activities include choosing the premises, organizing data storage – using own servers, clouds in Ukraine or abroad, etc. The stability of business conditions, including tax regulation, is a key factor at this stage. PRODUCT DEVELOPMENT includes activities related directly to creating software or providing related services: management of projects, personnel, scientific and technical solutions and so on. The novelty of the market provides a low level of regulation and, accordingly, the active development, and the main issues are related to staff as in the previous stage: the possibility of remote work, flexible working schedule, etc. An important element is the possibility to import prototypes of equipment, for which software is being developed, from abroad. The third business process on the market is the SALE OF PRODUCTS/SERVICES. In this case, we are talking about the transfer or use of rights to developed software inside or outside the country, the sale of products in the open market, etc. Given the prevailing number of foreign orders, important issues are also the foreign currency regulation.


Green Book "Software Development Market Regulation"  
Green Book "Software Development Market Regulation"