Despite the ongoing war, Ukraine’s tech industry continues to demonstrate resilience, albeit with a slight downturn in export volume and IT specialist numbers, according to the latest IT Research Ukraine 2024 report.
Lviv IT Cluster, a key organization in Ukraine’s tech sector, recently released its annual in-depth analysis of the country’s IT industry. The report, titled “IT Research Ukraine 2024: Resilience as a New Reality”, offers a comprehensive look at the state of the industry, including its role in the economy, business activity, talent pool, and specialist income and expenditure.
“Every year we conduct large-scale research of the tech industry, because we understand that it is possible to implement qualitative changes and make informed business decisions only on the basis of accurate data,” says Stepan Veselovskyi, CEO of Lviv IT Cluster. “We are confident that IT Research Ukraine 2024 is an important tool for the government and Ukrainian technology companies, which allows us to assess potential risks in the face of constant changes, and thus adapt our strategies for stability and growth.”
Key findings from the report include:
- Continued economic contribution: The IT sector remains a crucial pillar of the Ukrainian economy, contributing 4.4% to the GDP and generating significant foreign currency earnings. It is the largest exporter of services, accounting for 38% of total service exports.
- Decline in export volume: The ongoing war has impacted export volumes, which are projected to decrease by 4-6% by the end of 2024 compared to 2023, reaching $6.3-$6.45 billion.
- Stable workforce: Despite challenges, the industry has maintained a workforce of 302,000 IT specialists, with 238,000 residing and working in Ukraine. The number of Ukrainian IT specialists abroad has slightly decreased to 62,000-64,000.
- High qualification levels: Over 43% of IT professionals have more than 6 years of experience, and over 82% hold Middle, Senior, or Lead positions.
- Shift in employment: While 44.2% of IT specialists work for service companies, this figure has decreased compared to the previous year. There is a growing trend towards employment in product companies and startups.
- Decreased income, increased expenses: The median income of IT specialists in Ukraine has slightly decreased to $2,590 per month. However, 75.6% of respondents reported an increase in their living expenses.
- Strong support for Ukraine: A vast majority of IT companies (97%) are actively supporting projects that contribute to Ukraine’s victory. 67.6% of companies have mobilized employees, and many provide support to their specialists serving in the Armed Forces.
“Technology is the foundation of our defense capability now and the path to a higher level of GDP in the future,” says Mykhailo Fedorov, Deputy Prime Minister and Minister of Digital Transformation of Ukraine. “That is why our strategic goal is to build an effective ecosystem in Ukraine for the development of innovative companies. IT Research Ukraine allows us to see situations in the industry at the macro and micro levels, in order to understand where to move next and what exactly companies lack in order to successfully resist challenges and grow.”
The report highlights the resilience of Ukraine’s tech industry in the face of adversity and its continued importance to the country’s economy.
Source: Lviv IT Cluster
