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The total value of IT outsourcing contracts signed in the second quarter of 2010 is down 30 percent from the first quarter and 23 percent year-over-year, according to outsourcing consultancy TPI.

The outlook for the IT outsourcing market is not unlike the outlook for the economy as a whole: It's "unusually uncertain," to use U.S. Federal Reserve Chairman Ben Bernanke's words.

IT outsourcing activity for the first half of 2010 is up 5 percent over the first half of 2009, but that's only because of all the restructuring and renegotiating that occurred in the first three months of the year, according to outsourcing consultancy TPI. The total contract value of IT services deals signed in the second quarter of this year (April through June) is down nearly thirty percent over the first quarter and 23 percent year-over-year. TPI notes there were few big deals among the 89 IT outsourcing contracts worth $12.2 billion dollars awarded between April and June.

"The global uncertainties of the economy are definitely weighing on the ITO market," says TPI partner Mark Mayo. "Clients are relatively slow to make significant outsourcing decisions."

Business process outsourcing activity, which often spurs IT outsourcing deals, also continues to be slow.

Industry watchers expected that the pipeline of IT services deals would return to more robust levels by now, and Mayo says he does expect the outsourcing market to recover eventually.

In the meantime, outsourcers are working their current customers for new revenue. "Tactically, many service providers are focused on expanding their services with existing clients in smaller scopes, always a good strategy in tough economic times," Mayo says. "We are not seeing a lot of low-ball pricing."

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• Real sector data showed acceleration of economic activity in April. In May, however, the external environment started to deteriorate.
• Retail trade turnover grew by 1.1% yoy, indicating that domestic consumption has started to revive.
• The state budget deficit notably widened in May on the back below-target revenues and high expenditures.
• During May-June, the government negotiated a new loan program with the IMF. At the beginning of July, a staff-level agreement was reached.
• In June, government authorities initiated tax reform in the country.
• Consumer price index growth declined to 8.5% in May.
• On June 8th, the NBU reduced its discount rate by 0.75 percentage points to 9.5% to stimulate sluggish credit activity.
• Ukraine's Balance of Payments notably improved during April-May, contributing to foreign exchange market stability and replenishment of NBU international reserves.

A favorable external environment kept supporting Ukraine's economic recovery. Industrial production grew by 12.6% yoy over January-May 2010, led by export-focused machine-building, chemicals and metallurgy. At the same time, in May 2010 economic activity cooled somewhat in response to easing world commodity prices. However, despite continued price corrections, their current levels remain comfortable for economic recovery in Ukraine to continue. In addition, May's real sector data indicated noticeable improvement in domestic demand.

At the beginning of July, a staff-level agreement with the IMF was achieved on a new loan program of up to $14.9 billion for 2.5 years.

During April-May 2010, Ukraine made significant progress in reducing inflation. Annual consumer price index growth fell to 8.5% in May 2010 on the back of still weak domestic demand, a delay in utility tariff increases, correction of world commodity prices and favorable developments on the foreign exchange market.

Read the full article here.

On July 15, 2010 Ukrainian Softline JSC successfully passed the supervisory audit of the quality management system in compliance with the requirements of ISO 9001:2000.

Every year since 2000, Softline confirms the status of high-tech and mature company, which even in difficult periods has not stopped efforts to improve the quality of its products and keeps getting better in production and organizational processes.

An independent audit has shown that an efficient and quality work is the norm of every employee.

During the audit the following processes were verified:

• quality assurance and monitoring, process development and improvement activities (QA department)
• project management (PMO)
• personnel management (HR department)
• IT infrastructure maintenance and development (IT department)
• request management system (Hotline services department)
• random project check
• top management audit (CTO)

Softengi congratulates our partner company Softline with conformance to high quality standards, maturity and corporate culture.

On July 14, 2010 Softengi has been approved  for membership  in the Ukrainian Hi-Tech Initiative.

Ukrainian Hi-Tech Initiative is a leading Ukrainian alliance in Offshore Software Development and IT industry.

Main mission of alliance is to promote Ukrainian software development companies to the outer markets.

Hi-Tech Initiative offers Ukrainian software development companies an opportunity to enhance their IT potential in outsourcing and offshore programming by utilizing a partner network and Initiative's marketing channels on the foreign markets.

Ukrainian Hi-Tech Initiative provides services in establishing partner relationship, collaboration in IT projects implementation, work in the sphere of business process outsourcing between Ukrainian and western companies.

Membership in Ukrainian Hi-Tech Initiative enables Softengi broader access to international markets and brings new opportunities in establishing partner relations with other companies and expanding client base.

www.hi-tech.org.ua