Ukrainian Government to Foster Growth in IT Industry
Within the decade, the Ukrainian IT industry will fully embrace and benefit from clear and consistent market regulations. This was announced by the Prime Minister of Ukraine Oleksiy Honcharuk during a government meeting with IT industry representatives.
Goncharuk said in his speech:
“Our Government is committed to creating a thriving environment for the IT industry in order to enable its further growth. One of the stumbling blocks to the development of the IT industry today is talent shortage. The industry is growing by 25,000-30,000 jobs annually, while only 16,000 graduates are entering the job market. That is why we are launching the IT Creative Foundation. This is the Human Capital Development Fund that will work to educate new talent for the industry.”
According to the Prime Minister, the Fund’s assets will be allocated to the following: setting up new campuses and educational courses for IT specialists, financing scholarships for Ukrainian students as well as grants for young scientists.
He also added that his government invited representatives of international organizations and the IT industry to contribute to the launch of IT Creative Foundation.
The IT Creative Foundation will be funded by a levy that is expected to grow from 1% in 2020 to 5% in 2024. The Fund is forecasted to go fully operational in 2020, with its assets amounting to some UAH 0.5 billion and counting.
The case for IT Creative Foundation has quite a long history. In particular, Better Regulation Delivery Office has been in charge of the project together with other interested third parties. As of now, a bill has already been drafted and submitted for the Members of Parliament to review. The proposed model will be voluntary, with no mandatory transition to it required.
The new plan is expected to provide the IT industry with consistent regulation and better opportunities for long-term planning as well as prevent speculation about the shadow job market.
“We are well aware of the fact that it’s hard for businesses to operate under the old Soviet Labor Code, which was designed to regulate large industrial enterprises. It’s ill-suited to regulate any creative industry. I’m planning to establish close cooperation with the Parliament to have this issue solved by the end of the year, ” Oleksiy Honcharuk added.