Exports of IT services fell to the level of 2021 in Ukraine

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Ukraine presents the results of digital transformation of regions

According to the National Bank of Ukraine, exports of IT services showed an unprecedented drop in both volume and share of total exports.

Ukrainian IT trends

At the same time, in 2023, the IT industry:

  • It brought $6.7 billion to the Ukrainian economy (8.5% or $622 million less than in 2022).
  • Reduced its share in total exports of services to 42% (down from 45.3% in 2022).
  • It remained the largest among Ukrainian export industries.

Exports of IT services fell to the level of 2021, when they amounted to $6.8 billion, and in 2020 – $5 billion. The 8.3% increase in December ($611 million) compared to the previous months is not significant – the last month of the year, as well as the first of the next, are always characterized by an increase in financial performance due to the finalization of projects. This is how IT Ukraine Association comments on the results of the results.

Експорт ІТ-послуг впав до рівня 2021 року

Reasons for the fall

Experts say the drop in IT exports is likely due to two things:

  • Difficulties in working in the international market due to the almost non-existent possibility of short-term travel and the Ukrainian “residence” of IT teams.
  • An extremely low percentage of booked IT specialists and a shortage of highly qualified personnel, most of whom are involved in military projects.

“Exports of IT services in 2023 showed a decline for the first time compared to last year. And this is already a tangible trend towards a decrease in market volumes, as the share of the domestic market in the IT industry is insignificant. The drop in exports by almost 10% shows that it is incredibly difficult for Ukrainian IT to maintain its current position, despite the efforts of the Ministry of Digital Transformation and all the promotion opportunities we have now,” says Maria Shevchuk, Executive Director of ITU.

According to her, Ukraine’s IT is an important part of the country’s economic base in times of war, so the industry needs urgent solutions to curb the decline and additional tools to stimulate its development and, consequently, exports.

Other leaders are not losing ground

In the same period, the list of countries that received the largest export revenue in 2023 remained unchanged:

  1. The Group’s total assets were USD 1.5 billion ($2.677 million).
  2. Malta ($567 million).
  3. United Kingdom ($535 million).
  4. Cyprus ($362 million).
  5. Israel ($293 million).

As a reminder, in 2022, IT was the only sector of the Ukrainian economy that maintained positive dynamics and showed growth of 5.8%.

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