The IT Ukraine Association presented the research “Digital Tiger: the Power of Ukrainian IT – 2023”. In the study, experts analyzed and compared the state and potential of Ukrainian IT with other countries and reasonably identified the advantages of the Ukrainian IT industry in the global market.
Key results
- There are 2,150 operating IT companies and 2,600 startups in Ukraine.
- Although the number of taxpayers in IT decreased by 3.1% last year, the number of taxes paid by the IT industry increased by 11.5%.
- In 2022, the share of Ukrainian IT services exports in GDP was 4.6%. For comparison, it was 2.8% in India, 1.8% in the Czech Republic, 1.8% in Poland, and 0.2% in Brazil.
“Given the latest data on IT services exports, we understand that the Ukrainian IT sector is facing a challenge to retain new international clients and attract new ones. Therefore, in this year’s study, we decided to focus on supporting the interaction of companies with partners. For the first time, we are comparing Ukraine with key competitors and presenting Ukrainian IT from different perspectives,” says Maria Shevchuk, Executive Director of ITU.
Comparison with IT in other countries
The study compared Ukrainian IT with the industries of Brazil, the Czech Republic, India, and Poland by the following criteria:
- business climate;
- talent pool and level of technical education;
- competitiveness and infrastructure.
India leads in terms of the number of IT professionals not only in terms of the number of employees but also in terms of the number per 100 thousand people. However, Ukraine is catching up in this indicator.
At the same time, according to the Coursera Global Skills Report, the level of technological skills in Ukraine is the highest among these countries. Ukraine ranks 15th in the world in terms of technical skills.
Ukraine’s position
The geography of Ukrainian exports does not change significantly. Over the past ten years, exports of IT services have grown annually by an average of 18.7%, reaching a record high of $7.3 billion in 2022. In 2023, exports slightly decreased, but the United States remains the leading export partner, just like a decade ago.
“There is a tendency when the export of IT services exceeds even such industries as gas or sunflower oil exports. Every year, the IT industry outpaces other industries and increases its weight in the global market. The tiger symbolizes hard work and flexibility needed to succeed in this competitive environment,” says Stanislav Shum, CEO and founder of Top Lead.
Ukraine holds high positions in global rankings. For example, its position in the innovation level increased by 12.8%. In 2023, Ukraine was ranked 1st among lower-middle-income countries.
According to The Chain Analysis Geography of Cryptocurrencies Report, Ukraine is one of the best countries for cryptocurrency adoption. According to the E-Governance Development Index, Ukraine has improved its ranking by 59.6% over the past 8 years. An EU study shows that Ukraine has one of the highest rates of open data among member states and candidate countries – 97%.
