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Analysis / Business

What You Should Know About Ukraine’s Booming IT Sector

IT Worker

Today, the Ukrainian IT market is primarily an export industry aimed at selling software development services and various R&D projects. Therefore, the growth of the IT industry in the future will directly depend on the competitiveness of Ukrainian programmers in the international market. Let’s discover the main characteristics of the IT sector of this country, its trends, achievements and driving forces.

Main Facts About Ukrainian IT Sector

  • The market for Software Development. More than 3,000 service companies, more than 1,000 startups, about two dozen R&D centers, half a dozen profile associations and up to 15 IT clusters operate on the market. Several of the largest export-oriented companies feel quite confident in the market and have long-term development prospects. Moreover, according to Kyiv Post, 18 outsourcing companies were included in the list of the best high-tech companies in the world.
  • Export of IT-products and services. Ukraine is now the leading software development center in Eastern and Central Europe and is one of the largest exporters of IT products and services in the world. IT industry is one of the priority sectors for the export strategy of Ukraine.
  • Place in the world market of outsourcing. In Central and Eastern Europe, it is one of the most important countries – suppliers of outsourcing services. Meanwhile, the largest development companies working in Ukraine are struggling to get rid of the image of purely outsourcing companies whose main competitive advantage is cheap labor and low Ukrainian developer salary. The IT industry of Ukraine has a completely unique opportunity to do a very difficult job at the top level, which should be highly appreciated.

Great Achievements 2017 & Prediction For 2018

The main achievement of 2017 is the fact that the Ukrainian IT industry has finally returned to pre-crisis growth rates. If in the past three years they were closer to 10%, then this year the market has grown by about 18%. Taking into account that only as taxes for 10 months of 2017 IT companies brought about 6.5 billion to the budget, the stable development of the industry will positively affect the economy of the country. In general, such development is due to the fact that foreign customers appreciate Ukrainian programmers.

13 companies with offices in Ukraine were included in the annual ranking of the best suppliers of IT services The Global Outsourcing 100 for 2017. The branch association Global Sourcing Association (GSA UK) named Ukraine Outsourcing destination of the year.

If the positive balance in the external and internal markets continues, the Ukrainian IT will continue to quickly reveal its potential. There is every reason to believe that in 2018 Ukrainian IT will be able to finish with a growth of 20% or more. Such goals are set by large companies, which in many ways shape the dynamics of the entire market.

What Should Be Remembered About Ukrainian Developers

The key to the success of the Ukrainian IT industry, like any other business, is qualified Ukrainian developers, favorable conditions, proper management and ability to dispose of resources. Historically, Ukraine has always been the center of software development, technological solutions for analysis and data processing. An important role here is played by the level of technical education that has developed in the country for decades.

For this reason, the state annually takes the leading positions in the world in terms of the number of certified app developers from Ukraine. For example, according to the recent studies, Ukrainian coders were recognized as the most efficient specialists in tasks-solving.  And the leading Ukrainian universities, with the support of business, are launching educational programs in the most promising areas of information technology such as Data and Computer Science, Artificial Intelligence, Internet of Things.

Conclusion

Taking into account the dynamics of modern changes, it is difficult to make long-term forecasts. However, Ukrainian coders expect for the future with optimism. At the same time, any drastic change in taxation, economic situation, and legislative regulation of the industry can lead to a significant change in the performance indicators. Therefore, the main focus of the state should be the creation of favorable conditions for the development of economic potential and attraction of the investments.

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Myron Monets is a Marketing Assistant at Mobilunity. He is passionate about IT and modern technologies. As the company provides dedicated development teams, he is able to gain experience right from the developers and stay up-to-date with the trends.