On December 13, the Lviv IT Cluster presented the results of the IT Research Ukraine 2023: Adaptability and Resilience Amidst War project. This study stands out as the most extensive examination of the current state and future outlook of the tech industry in Ukraine and its regions, setting it apart from any comparable research. The Lviv IT Cluster implemented the project in partnership with the Ministry of Digital Transformation of Ukraine and with the support of the USAID Competitive Economy Program in Ukraine.
As part of the study, over 7,000 tech specialists and more than 400 companies from all regions of Ukraine were surveyed*. With a margin of error staying under 2,1%, IT Research Ukraine 2023 is the most precise study of the tech industry among existing ones.
The acquired data responds to important industry questions through numerical representation. How does the tech industry impact Ukraine’s economy, and what awaits the sphere in 2024? How has the income level of specialists changed, and what portion of the budget do they allocate to charity? What are the major changes in the employment structure of tech professionals, and how many of them have legalized abroad or plans to do so? Have migration attitudes changed? Explore key findings in IT Research Ukraine 2023: Adaptability and Resilience Amidst War.
Despite the challenges of a full-scale war, the Ukrainian technology industry continues to develop. Over the past year, the number of tech specialists has increased by over 7%, reaching a total of 307,600 people. Among them, 242,000 live and work in Ukraine. At the same time, the count of Ukrainian experts abroad has grown by 20%, with the current figure standing at 65,000 compared to 55-57,000 last year.
Ukrainian tech companies continue to open new offices. For the approaching year, 36% of CEOs surveyed have these plans in mind. Among them, 28% aim to establish offices abroad. The most popular choice for a new location is Poland.
59,5% of tech specialists want to live in Ukraine, marking a 2,5% increase compared to 2022. However, there are people who intend to relocate to another country either in the current year or at the beginning of the next. This accounts for approximately 4%, equating to 9,000-11,000 individuals.
Ukrainian specialists have a high level of qualification: nearly 43% of them have over 6 years of experience in the technology industry, with around 8% having 15 years of experience. Furthermore, 59,8% of all professionals have a technical specialization.
According to IT Research Ukraine, the median income across Ukraine is $2,630, which is $270 higher than in 2022. The majority of tech specialists are in the 26 to 35 age range, with one-third being female.
The research indicates that the earnings of one out of every ten professionals have dropped. However, compared to the preceding year, there has been a notable rise in the percentage of specialists whose income has increased: from 14% in 2022 to nearly 44% in 2023.
At the same time, the majority of respondents noted an increase in their expenses: 72,9% in 2023, compared to 62% last year. The highest portion of their earnings is spent on basic needs such as rental costs for housing, food, and more. Over 80% of tech specialists have the opportunity to save, on average setting aside a quarter of their income. However, every tenth individual saves more than half of their monthly remuneration.
More than 213,000 tech specialists, which is equal to 93,6% of all, allocate a part of their budget to charity. This is 4,6% more than last year. On average, they donate a tenth of their income, which amounts to approximately $264.
“According to the findings of the IT Research Ukraine 2023 study, the Ukrainian technology sector has adapted to the new realities brought about by the war and shows signs of recovery and potential future growth. In 2023, overall, the level of export of technological services has been maintained, and thousands of new jobs have been created both in the tech industry and in hardware and innovative production. The USAID Competitive Economy Program in Ukraine has been systematically supporting exports, investments, and stimulating employment in the technology sector since 2019 and will continue to support these trends with an active focus on grants and other assistance to Ukrainian companies that can create new jobs,” says Olesya Zaluska, Head of the USAID Competitive Economy Program in Ukraine.
Since the beginning of the full-scale war, some tech specialists have joined in defending the country. Three-quarters of surveyed companies have mobilized specialists in the headcount. Mostly, their share does not exceed 5% of the total number of employees. The majority of surveyed companies support their specialists currently in the ranks of the Armed Forces. Specifically, 48% ensure job retention, and 56% of companies provide financial assistance, either one-time, fixed amounts, or partial salary compensation every month.
“The technology sector remains a pivotal force in Ukraine’s economy, contributing significantly to foreign currency inflows, with computer services representing 41.5% of the total service export volume. While slightly less than the previous year, which was 45.5%, computer services still constitute the largest share among other exported services. To ensure stability and growth in the tech sphere, we continue to actively implement and conduct extensive industry research. IT Research Ukraine 2023 will help Ukrainian companies to make informed decisions based on precise numbers and data, optimize their strategies and grow, contributing to the economic stability of the country,” comments Stepan Veselovskyi, CEO of the Lviv IT Cluster.
The share of the tech industry in the Gross Domestic Product (GDP) equals 4,9%. In addition to that, by hiring one tech professional, a company creates and maintains 2,7 jobs.
Regarding the forecast for the export of tech services for 2023, it is likely to amount to $6,7-7,1 billion, according to IT Research Ukraine data.
“IT Research Ukraine 2023: Adaptability and Resilience Amidst War is a comprehensive and systematic market study that allows us to see, analyze, and consider the real situation in the tech industry for making informed decisions. This is important for us as the relevant ministry, as our goal is to provide maximum support to the industry to ensure its resilience and development. Based on objective information and quality analytics, we shape our strategic goals for the development of Ukraine as a high-tech digital state,” emphasized Oleksandr Bornyakov, Deputy Minister of Digital Transformation of Ukraine.
Find more information on the key trends in the Ukrainian tech industry in the second year of full-scale war in the IT Research Ukraine 2023: Adaptability and Resilience Amidst War report which can be downloaded here.
IT Research Ukraine 2023 is a comprehensive all-Ukrainian study that the Lviv IT Cluster implemented as part of the IT Research project. Launched by the Lviv IT Cluster in 2015 to conduct analytical research on the tech industry, it has a unique methodology.
IT Research Ukraine 2023: Adaptability and Resilience Amidst War was implemented in partnership with the Ministry of Digital Transformation of Ukraine and with the support of the USAID Competitive Economy Program in Ukraine. Data collection and analysis of key information within the sociological part were provided by the Research Agency Fama.
The USAID Competitive Economy Program in Ukraine (USAID CEP) supports Ukrainian bussiness aiming to provide support for competitive industries and firms on Ukrainian and international markets, foster a better business enabling environment, and enabling Ukrainian companies to benefit from international trade.
* The temporarily occupied territories by Russia and the regions where active fighting is taking place were not included in the study.
On December 13, the Lviv IT Cluster presented the results of the IT Research Ukraine 2023: Adaptability and Resilience Amidst War project. This study stands out as the most extensive examination of the current state and future outlook of the tech industry in Ukraine and its regions, setting it apart from any comparable research. The […]
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