Ukrainian IT market review for 2018 (with statistics)
Crysberry, Marketing, Technology25 June 2019
Ukrainian IT specialists got the reputation of skilled experts and companies from around the world trust them the development of different types of software. In this article, we are going to make a review of the IT market changes during the 2018 year.
From the general to the specific. Global IT market review with the forecast
It’s no secret that the market of Informational Technologies has been growing year by year. Due to Gartner Reseach worldwide IT service market reached $987 Billion in the 2018 year and saw the 5.9% growth. Outsourcing services take 40% of all the IT services.
Most of IT demand comes from North America and Western Europe (46% and 24% respectively).
Companies give more attention to new technologies, apart from traditional technologies, tending to the global innovational technologization.
Export-oriented Ukrainian IT market
Many international IT companies who have headquarters abroad, opened one or few R&D centers in Ukraine.
Still, most IT companies are fully located in Ukraine and 45% of them have an LLC business structure.
IT sphere makes up 3% of Ukrainian GDP and it is achieved because of the orientation on the foreign market. Also, there aren’t enough internal orders, that is why most of Ukrainian IT companies work for the outside market.
The data for the review consists of IT services, IT products, Telecommunications, IT Security. Still, most Ukrainian IT companies are outsourcing providers (46,5% of developers work there). 11% of companies are outstaffing providers. 29% are product companies with their own development team and unique product or a set of products.
There are reasons why outsourcing to Ukraine is beneficial for other countries:
- comfortable time-zone (for European countries);
- nice rates (average rates are $33-65 per hour);
- the high quality of the code (8th place due to SkillValue world IT ranking, 18 Ukrainian companies listed to top100 outsourcing providers due to the International Association of Outsourcing Professionals in the 2018 year);
- a huge pool of IT professionals and IT companies (159 687 IT specialists, 11 932 IT companies).
TOP3 Ukrainian IT hubs are:
Around 50% of all the IT companies have 5-10 years of operation and 33% of companies are experienced firms with 10+ years of working.
The growth of Ukrainian IT specialists
Ukrainian IT market has been constantly growing since the 1999 year. Dou.ua research says that in 2018 the IT industry saw the most rapid growth equal to 26% and currently there are 159 687 IT specialists in Ukraine.
150 Ukrainian universities prepare future specialists for qualified work involvement.
The number of new vacancies increases every month and the Ukrainian IT platform dou.ua pointed the 45% vacancies growth in the 2018 year towards the 2017 year.
Industries Ukrainian IT outsourcing companies develop for
Ukrainian IT outsourcing companies cooperate with different industries, developing various types of software. The statistic says that still the most demanded is Entertainment industry (including games) – 16,2% of the whole mass of orders. This area marked to be the most dynamically developed, as the number of games and entertainment applications increase.
In Crysberry we strive to useful development, that is why focus on the application development for the education industry, which is in Top5 and сonstitutes 7,5%. However, we have splendid cases in game industry, that brought many active users to our clients.
Ukrainian IT market has been growing rapidly, increasing the requirements to the average technical and soft skillset of specialists, so that the clients get better service.
Kharkiv IT market review
Kharkiv region is the second large IT hub in Ukraine due to many technical universities located in the region, a favorable economic situation, wide IT community.
Some statistics about the region:
- 445 active IT companies;
- 25000 IT specialists;
- 72% of Kharkiv IT specialists have a Master’s degree;
- $803 million market size;
- $220 million approx of tax revenues.
Sales geography isn’t evenly distributed between regions and countries. As we see Ukrainian clients take only 5% and most of the foreign clients are from USA (65%) and Europe (25%).
IT industry develops and increasing every day, and the review proved that it will not stop growing in the nearest years. New companies appear and propose fresh ideas to the clients and the market in general, and experienced companies continue to grow their expertise and supply complex development solutions seasoned with innovative technologies. It is amazing to be a part of the IT family and bring help to our partners and customers.