Ukraine’s IT industry is among the country’s fastest growing industries. It is also diverse – from cutting edge work in AI, cybersecurity, natural language processing, and nanotechnologies, to highly commercial ventures in blockchain, FinTech, big data management, gaming, agritech, and e-commerce.
IT industry has grown by nearly 40 times over the last fifteen years from $110 million in 2003 to about $4.5billion in 2018
With a sustainable growth rate of 20-25% the development of the Ukrainian IT industry is far ahead of the average growth rate of the sector in the world. The number of IT specialists in Ukraine is expected to surpass 200,000 people in 2020. This growth has already allowed IT to emerge as Ukraine’s third-largest export behind agriculture and metallurgy.
Ukraine is on its way to becoming the world’s major tech powerhouse. The Ukrainian IT industry consists of over 4,000 local IT service companies and more than 110 leading global companies have subsidiaries in the country. Samsung, Microsoft, Ring, Snap, Magento, Plarium, Boeing, Siemens, Ericsson – all have established R&D centers in Ukraine.
The key to the success of Ukraine’s IT industry lies in combining an extensive IT talent pool, favourable geographical position and time zone, strong technical and scientific legacy and cost-competitive benefits.
Ukraine presents a huge untapped opportunity for tech companies. It is home to a massive labor pool of educated and talented IT workers, and wages are very competitive to other developed countries. By opening an R&D division in Ukraine, companies in any vertical can give themselves a major boost in innovation and productivity
Ukraine has traditionally been one of Europe’s leading countries in terms of engineering graduates, producing twice as many annually as nations such as Britain and Poland. Each year, thousands of skilled educated IT experts, most of whom have English fluency, graduate and start their professional IT careers. Further major Ukrainian companies tend to organize their own IT schools to train and hire the top talent.
Kyiv is the largest IT hub in Ukraine and home to over 1,000 startups and product companies. Successful software companies like Terrasoft, MacPaw, PetCube, Netpeak, Jooble, TemplateMonster and Grammarly got their start in Kyiv. However, Kharkiv, Odesa, Dnipro, Lviv, and Vinnytsia also are all developing as major centers of IT activity. These success stories are helping to attract investor attention, with investment into the startup sector rising from $39 million in 2014 to $509 million in 2019 as the search continues for the next big breakthrough among Ukrainian startup projects.