On November 21, Lviv IT Cluster unveiled the findings of the IT Research Ukraine 2024 project: Resilience as the New Reality. This is the only comprehensive, detailed study of Ukraine’s tech industry during wartime. The collected data offer insights into the current state of the tech market and provide forecasts for the next year.
IT Research Ukraine 2024 addresses all key questions for the tech industry:
“Every year, we conduct large-scale studies of the tech industry because we understand that implementing meaningful changes and making informed business decisions is only possible based on precise data. We are confident that IT Research Ukraine 2024 is a crucial tool for both the government and Ukrainian tech companies, enabling them to assess potential risks amidst constant change and thereby adjust strategies for stability and growth,” says Stepan Veselovskyi, CEO of Lviv IT Cluster.
“Technology is not only the cornerstone of modern defense but also the driver of tomorrow’s stronger GDP. That is why our strategic goal is to build an effective ecosystem in Ukraine for the development of innovative companies. The IT Research Ukraine study provides a macro and micro-level view of the industry, helping us identify the way forward and understand what companies need to overcome challenges and grow successfully,” says Mykhailo Fedorov, Deputy Prime Minister for Innovations, Education, Science, and Technology Development of Ukraine, Minister of Digital Transformation of Ukraine.
Dynamics of the tech industry
Despite the challenges of the full-scale war, the technology sector remains one of the key pillars of Ukraine’s economy, contributing significantly to foreign exchange inflows. The tech sector is Ukraine’s largest exporter of services, with computer services accounting for 38% of the total service export volume. It ranks second in Ukraine’s overall export structure, following only the export of food products.
The tech sector contributes 4.4% to the gross domestic product (GDP). Additionally, each tech company by hiring one specialist generates and maintains 2.8 jobs*. In 2023, this figure was 2.7. Overall, the industry has preserved approximately 663,000-668,000 jobs, encompassing direct and indirect employment.
*This indicator illustrates the indirect relationship between the number of jobs in related industries and the spending dynamics of tech industry specialists over one year from creating a single tech specialist’s job.
Tech companies and talent market
Currently, Ukraine has 2,118 active, verified tech companies. Of these, about half are service-oriented, with 47% focused on outsourcing and 3% on outstaffing. Another 31% are product-based companies, while the rest operate with a mixed business model.
Ukrainian tech companies are actively opening new offices, mostly abroad. Among the 51% of CEOs planning to expand, more than a third are looking to establish branches in other countries. The top location choice is Poland.
Most companies – 97% – financially support projects contributing to Ukraine’s victory. Additionally, 67.6% of surveyed companies have mobilized employees. Many companies continue to support these employees serving in Ukraine’s defense forces by securing their positions, offering fixed pay, or providing partial compensation.
The number of industry professionals amounts to 302,000, with 238,000 tech specialists living and working in Ukraine. Ukraine is rich in highly qualified tech talent: over 43% have more than 6 years of tech experience, including 9% with over 15 years. More than 82% of the tech talent pool consists of specialists at Middle, Senior, and Lead qualification levels. Nearly half of those employed in the industry have or are pursuing a tech education in computer science; however, an increasing number of tech specialists come from non-technical fields. This year it is equal to 39.2%.
Profile of tech specialist: income and expenses
The largest group of tech specialists in Ukraine is between 26 and 35 years old. The number of specialists under 25 has decreased, and the average age has slightly risen to 31.5. The majority, about 68%, do not have children.
Most tech specialists – 44.2% – are employed in service companies, a 6.9% decrease from the previous year. Meanwhile, the proportion of those involved in product companies and startups has increased by 4.2% and now stands at 36.4%. Another 17.4% of tech specialists are engaged in companies with a mixed business model, while 2.2% have chosen other types of companies.
According to IT Research Ukraine 2024, the median income of a tech specialist in Ukraine amounts to $2,590. At the same time, most respondents reported an expense increase of 75.6% in 2024, up from 72.9% the previous year. The largest portion of income goes toward basic needs, such as rent and food, with an average of no more than 23% allocated to other categories.
A notable 91.3% of tech professionals allocate part of their budget to charity, with 5% donating over a quarter of their income. The average monthly charitable contribution of one tech specialist is $235.
Find more details on the key trends of Ukraine’s tech industry in the third year of full-scale war in the IT Research Ukraine 2024: Resilience as the New Reality report, which can be downloaded here.
IT Research Ukraine 2024: Resilience as the New Reality was released by Lviv IT Cluster with support from the Ministry of Digital Transformation of Ukraine. The partners of IT Research Ukraine 2024 are PrivatBank – the bank for business with the best digital solutions; Visa – a reliable leader in the area of digital payments; and Nasdaq – an American stock exchange based in New York. Positioned at the nexus of technology and the capital markets, Nasdaq provides premier platforms and services for global capital markets and beyond with unmatched technology, insights and market expertise.
Lviv IT Cluster conducted the research as part of the IT Research project, which has been deeply analyzing and studying Ukraine’s tech sector since 2015. You can explore the portfolio of research products via the link.
The data from prior market monitoring and its structural understanding were used for sample weighting to optimize representativeness. With indicators close to 50% and a confidence probability of 0.954, the theoretical margin of error does not exceed 2.1%. The sociological and economic analysis, as well as data verification, were provided by Fama Research Agency, at the request of Lviv IT Cluster.
The study excludes territories temporarily occupied by Russia and areas with ongoing active hostilities.
On November 21, Lviv IT Cluster unveiled the findings of the IT Research Ukraine 2024 project: Resilience as the New Reality. This is the only comprehensive, detailed study of Ukraine’s tech industry during wartime. The collected data offer insights into the current state of the tech market and provide forecasts for the next year. IT […]
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