Before the full-scale invasion, Lviv was one of the largest Ukraine’s IT hubs, alongside Kyiv and Kharkiv. Since February 24, the city has also become the relocation center for Ukrainians, particularly the IT business. According to the latest tech industry study IT Research Resilience, currently, there are 563 tech companies in Lviv and the region. 371 new companies emerged in the past 7 years: from 192 in 2015 to 563 in 2022.
19 companies in the TOP 50 largest IT companies ranking by DOU are members of the Lviv IT Cluster, and 26 companies have offices in Lviv. In 2021, 12 Ukrainian IT companies were enlisted in the IAOP Global Outsourcing 100, ranking the world’s best development, outsourcing, and consulting service providers. 7 of these companies are members of the Lviv IT Cluster.
Lviv has an economically attractive environment and is relatively safe for opening new offices and starting tech business. 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. In 2021, Ukraine’s IT industry also demonstrated 38% growth. And during Q1 2022, the IT sphere of Ukraine brought an unprecedented $2 billion of export revenue despite working in times of war.
The city boasts its qualified human capital – in 2022, the number of IT professionals working in Lviv and the region amounted to 37 000. Most IT specialists, namely 40%, have a Middle qualification level. 4 city universities offer 18 innovative bachelor’s programs created by Lviv IT Cluster in cooperation with the IT companies and education representatives. Within these programs, more than 4,500 students study various areas of tech: from Cybersecurity, Artificial Intelligence to HR, IT Sales, and Management.
Despite the ongoing war, the IT industry turned out to be highly resilient and remains the only sphere that continues growing in 2022, providing Ukraine’s economy with significant foreign exchange earnings. The share of the IT industry in Lviv’s GRP has been within 20% for the last 6 years, and the turnover of the IT industry is growing every year: from $280 million in 2015 to $895 million in 2020. And Ukraine’s forecasted IT export may reach $8,5 in 2022.
Today Lviv is a cost-effective and relatively safe city for opening new offices and representative offices of companies. The overall economic impact of the IT industry has doubled over the past 5 years, according to IT Research 6.0: from $734 million in 2016 to $1.4 billion in 2020. 2021 demonstrated the growth of the IT industry by 38%. And during the first quarter of 2022, the IT industry of Ukraine provided a record $ 2 billion in revenues, despite working under martial law.
The professional community in Lviv is growing partly due to a large number of educational institutions. About 4,500 IT students graduate from the city’s higher education institutions each year. Among the leading universities in Lviv for a tech degree are Ivan Franko National University of Lviv, Lviv Polytechnic National University, Ukrainian Catholic University, etc.
As part of the Lviv IT Cluster’s educational initiatives, there are 18 programs in three universities in the city: Ivan Franko National University of Lviv, Lviv Polytechnic National University, Lviv State University of Life Safety, and Lviv National Academy of Arts.
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.
On average, one IT specialist in Lviv creates three jobs. In 2015, the total number of created jobs was 53,000, and in 2020 – 74,000. In 2022, despite all the challenges, the city has managed to maintain a positive image and create a safe business climate for potential companies and investors.
Lviv IT Cluster, together with the community members, initiated a number of Victory projects aimed at bringing Ukraine’s victory closer and strengthening the safety and stability of the Western region. Among them: Sky, Vision, Armor, Second Home, Providing Ukraine’s western region with the backup internet initiative, and Mental Health Center as part of the National Rehabilitation Center Unbroken.
On average, one IT specialist in Lviv creates three jobs. In 2015, the total number of jobs created was 53 thousand, and in 2020 – 74 thousand. Despite all the challenges, in 2022 the city managed to maintain a positive image and create a safe business climate for potential companies and investors.
Lviv IT Cluster together with community members have created a number of Victory projects to bring Ukraine’s victory closer, as well as to strengthen security and stability in the Western region. Among them are Sky, Vision, Armor, Second Home, a project to provide the western region of Ukraine with backup Internet access, and the Mental Health Center as part of the initiative to build the National Rehabilitation Center “Unbreakable”.
