Ukrainian Outsourcing Firm Lands on America’s East Coast

Ukranian IT outsourcing firm Ciklum has expanded its operations to the United States with the launch of a delivery center on the East Coast. Ciklum has not disclosed the precise location of its new office, but a past report in the European press said the company was looking for an office space in New York City.

Last year the Kiev, Ukraine-based software maker acquired about half a dozen clients in North America. It is these clients who prompted the outsourcer to open an office in the US. “The expansion reflects the company’s continued growth in the North American market, its strategic client acquisitions in 2013,” said Ciklum in a press release.

Founded in 2001 with about four employees, Ciklum is now one of the fastest growing software development services providers in Eastern Europe. Over the past decade, its headcount has risen to 2,500 and the company has expanded to several countries, including Belarus, Pakistan, Denmark, Germany, Israel, Sweden, Switzerland and the UK.

Apart from Kiev, the company employs programmers in five other cities across Ukraine. Reports say Torben Majgaard – a young entrepreneur who dreamed of making millions by developing software – is still the driving force behind the company.

The outsourcer has recently devised a new shared-services model, under which Ciklum will offer a team of software developers to work for the client around-the-clock from its base in Europe.

“We are excited to respond to the rapidly growing US demand for software development services with the opening of a new office in the USA,” said Henrik Bak, Ciklum’s VP Sales & Marketing.

In the United States, its clients include RR Donnelley, CBS Interactive and ComScore.

Craig Wilson, who is currently in charge of Ciklum’s operation in the UK, will head the US operation. “We see the East Coast as being a logical first step in establishing our US operation and further growing our client base in North America,” said Wilson.