Ukrainian IT Market to Grow by 30% in 2019
According to GlobalLogic, the Ukrainian IT market could grow by 30% in 2019. The forecast indicates that exports of digital services alone will bring approximately $3.5 billion to the country in 2019 and another $4.5 billion are forecasted for 2020.
“The average annual growth rate for the IT industry varied between 20% and 25%; we expect even faster growth this year due to favorable global market conditions and growing demand for Ukrainian IT talent. We estimate that the market can grow by 30% by the end of 2019. GlobalLogic’s revenue in Ukraine is traditionally growing slightly faster than the industry averages – up 32% from the first half of 2019. We expect to maintain a robust growth rate till the end of the year,” says Andriy Yavorskyy, VP of Strategy and Technology at GlobalLogic.
The company reported $1.6 billion in exports of computer services in Q1 2019 and Q2 2019, up 31% compared to the same period in 2018. The industry is also showing remarkable growth in terms of new talent entering the job market. It is estimated that by mid-2018 there were approximately 130,000 professionals employed by the industry.
Over the past six months, this number has grown by some 20,000 people. According to the IT Association Ukraine, there are 160,000+ specialists on the job market, which is up 22% compared to last year.
“However, despite the positive growth trend, the industry still lacks engineers,” GlobalLogic reports.
As well as that, there is also a steady increase in taxes paid by the IT industry, which is up 29% in Q1 2019-Q2 2019 compared to the same period in 2018, amounting to nearly UAH 8 billion, (UAH 6 billion in 2018.)