Lviv in numbers

31k
IT professionals work in Lviv
4k
specialists annually graduate from Lviv universities
30%
average annual forecast for industry growth

About Lviv

Lviv today is not only a city with magnificent architecture and historical heritage, which boasts a vast number of tourists and various cultural events, it is also one of the three largest Ukrainian IT hubs alongside Kyiv and Kharkiv.

According to IT Research 6.0, currently, there are 511 tech companies in Lviv. 328 new companies emerged in the past 6 years: from 192 in 2015 to 511 in 2021.

17 companies in the TOP 50 largest IT companies ranking by DOU are members of the Lviv IT Cluster, and 24 companies have offices in Lviv. In 2021, 11 Ukrainian IT companies were included in the last best outsourcing companies in the world according to AIOP (The Best of The Global Outsourcing). 7 of these companies are members of the Lviv IT Cluster.

In 2021, Lviv climbed 99 positions in the global ranking of startup systems according to StartupBlink and took 225th place among 1,000 startup ecosystems in the world.

The advantages of the city on the international IT market

economic-attractivenessEconomic attractiveness

As an attractive investment destination, the Lviv IT market is economically feasible for starting a tech business. The city boasts its qualified human capital: in 6 years the number of IT professionals working in Lviv has increased from 13 thousand to 31 thousand. Most IT professionals, namely 41%, have a Middle level of qualification.

According to IT Research 6.0, the overall economic impact of the IT industry has doubled in the last 5 years: from $734 million in 2016 to $1.4 billion in 2020.

Lviv also has an attractive environment for opening new companies and company branches. Highly-qualified professionals bring Lviv closer to a world-class high-tech center.

human-capital
Highly-qualified human capital

The city has seven universities that prepare more than four thousand talented graduates with tech majors every year. Academies and IT companies’ schools support the students and others who wish to learn a profession in tech. Besides, there are about 30 academies that offer short-term courses, with more than 10,000 graduates in 2020. Three universities offer 17 brand-new BSc for more than 4,000 students in various areas of tech: from the Internet of Things, Artificial Intelligence to HR, IT Sales and Management. According to a survey conducted by DOU, Lviv is the only city to which many return after studying at a university in another region.

geographic-proximity
Geographic proximity to European countries

Lviv is located close to the EU and at the crossroads of international transport routes, so it is an attractive place for talents looking for new opportunities, young entrepreneurs and foreign investors. Due to its historical past and location, Lviv has embraced European culture and mentality. More than one-third of Lviv IT professionals know a second European language apart from English. Since the city is located in the very heart of Europe, it is a convenient outsourcing destination: a flight from Lviv to major business centers in Europe takes approximately three hours. Therefore, one-third of Lviv IT companies’ clients are Europeans, and half of them are Americans.

Over the past five years, IT market in Lviv has increased threefold. 90% of IT companies’ CEOs consider Lviv a favourable place for business, and more than 83% of them plan to continue investing in it.  Many local companies open branch offices abroad, the export market is growing, and a large number of Ukrainian IT specialists are moving to Lviv from other cities. Also, Lviv hosts large-scale tech events.

positive-dynamicsPositive dynamics

Many local companies open branch offices abroad, the export market is growing, and a large number of Ukrainian IT specialists are moving to Lviv from other cities. Lviv hosts large-scale tech events, including IT Arena, which brings together more than 5000 tech professionals, designers, top managers, entrepreneurs, business analysts and startupers annually.

A unique B2B platform, Lviv Tech has been recently launched in Lviv.  The platform connects the city’s IT industry with American and European clients.

Location

Lviv is located in the very heart of Eastern Europe at the crossroads of important highways and railways. The cultural capital of Ukraine can be easily accessible from any major European city.

Over the past few years, both flight and railway networks in Lviv have been expanded. Currently, you can reach the city basically from any other place in the world. Some of the airline companies operating in Lviv include Wizz Air, Ryanair, Turkish Airlines, Lufthansa, Austrian Airlines, LOT, Pegasus, Buta Airlines, AirSerbia, Belavia, SkyUP, UIA. It is also possible to travel by train from Poland, Belarus, Slovakia, Austria, and Bulgaria. International bus operators such as LeoExpress, ECOLINES and FlixBus offer a regular bus connection to Lviv as well.

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ІТ environment

IT specialists

According to Lviv IT Cluster’s IT Research 6.0, more than 31,000 employees are working in the IT sector now, and their number is growing annually.

In comparison with 2020, in 2021:

  • the number of IT professionals in Lviv increased by 17%.
  • the average income of an IT specialist in Lviv is $2102.
  • most IT professionals are employed in Software Development Specialist positions – 48%; top managers from the total number of IT employees make up 5%.
  • Local IT professionals have the following levels of qualification Middle – 41%, Senior – 25%, Junior – 24%.

Professional community

The professional community in Lviv is growing partly due to the large number of educational institutions. Each year, about 4,000 IT students graduate from higher education institutions. Among the leading universities in Lviv, which offer tech degrees are Ivan Franko National University of Lviv, Lviv Polytechnic National University, Ukrainian Catholic University, etc.

Students generally choose the following degrees:

  • Computer Science and Information Technology
  • Computer Engineering
  • Applied Mathematics and Informatics
  • Electronics and computer technology
Within the frames of Lviv IT Cluster’s educational projects, there are 17 programs in three universities of the city: Ivan Franko National University of Lviv, Lviv Polytechnic National University, and Lviv State University of Life Safety.

In 2021, Lviv IT Cluster launched the Lviv IT Cluster Academy project – a new type of vocational education institution aimed at training highly-qualified technical specialists. Within the framework of the project, Lviv IT Cluster together with IT professionals updates the curriculum at the Lviv Vocational School №29.

 

Development rates

The dynamic development of the IT environment makes Lviv an attractive center for investment, work, and study. No wonder international companies with a world name trust local experts, which certainly has a positive economic effect on the city.

The increase in economic effect in 2020, despite the COVID-19 pandemic, was 10%. The share of the IT industry in Lviv’s GRP has been within 20% for the last 6 years. The turnover of the IT industry is growing every year: from $280 million in 2015 to $895 million in 2020.

The number of jobs created through the IT sector is also impressive. On average, one IT specialist in Lviv creates/maintains three jobs. In 2015, the total number of created/saved jobs was 53 thousand, and in 2020 – 74 thousand. The city has managed to create a positive image and develop a safe business climate for potential companies and investors.

Forecasts for industry turnover growth  in 2021, taking into account the growth of employment in the IT industry of Lviv by 17% and salaries by 19% in the baseline and optimistic scenario will be $1152 million (+30%) and $1196 million (+34%) respectively.

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Stepan Veselovskyi
CEO, Lviv IT Cluster

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