UKRAINES IT INDUSTRY Overview Kyiv, Ukraine February 2020 GLOBAL - - PowerPoint PPT Presentation

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UKRAINES IT INDUSTRY Overview Kyiv, Ukraine February 2020 GLOBAL - - PowerPoint PPT Presentation

UKRAINES IT INDUSTRY Overview Kyiv, Ukraine February 2020 GLOBAL TECH TRENDS 2 INTERNET of THINKING ECOSYSTEM GET to POWERPLAYS KNOW ME AI is THE NEW FRICTIONLESS DARQ POWER USERS INTERFACE BUSINESS 2017 2018 2019 WORKFORCE


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SLIDE 1

UKRAINE’S IT INDUSTRY

Overview

Kyiv, Ukraine February 2020

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SLIDE 2

SOURCE: Accenture Technology Vision 2019: Full Report

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GLOBAL TECH TRENDS

DARQ POWER GET to KNOW ME HUMAN+ WORKER SECURE US to SECURE ME MY MARKETS CITIZEN AI EXTENDED REALITY DATA VERACITY FRICTIONLESS BUSINESS INTERNET of THINKING AI is THE NEW USERS INTERFACE ECOSYSTEM POWERPLAYS WORKFORCE MARKETPLACE DESIGN for HUMANS The UNCHARTED

2019 2018 2017

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SLIDE 3

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REGIONAL IT MARKET Overview

Ukraine, Poland, Belarus and Romania together present a formidable competition to other development hot spots

SOURCE: Trade map – International Trade Statistics, “Software Development in Ukraine, Poland, Belarus and Romania in 2019” report by Aventures, Aventis Capital, Capital Times, Tech Ecosystem Guide to Ukraine 2019 by Unit City

Belarus Poland Romania

$1.8 B * 49 K ** 14 14 ** $7.8 B * 255 K ** 31 31** $5.5 B * 105 K ** 15 15**

Ukraine

$4.5 B * 184 K ** 150 150 **

IT export IT specialists tech universities & colleges * for 2018 ** for 2017

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SLIDE 4

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IT SPECIALIST COST in the region

SOURCE: “Software Development in Ukraine, Poland, Belarus and Romania in 2019” report by Aventures, Aventis Capital, Capital Times, jobs.dou.ua

Median monthly salaries of IT specialists

in the region, $

Poland Ukraine Belarus Romania SOFTWARE DEVELOPER EXPERIENCED PROJECT MANAGER

1.9 2.5 2.2 1.5 4 3.9 2.7 2.5

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SLIDE 5

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UKRAINE: PREDICTABLE & STABLE EMERGING MARKET

SOURCE: World Bank, State Statistics Service

  • f Ukraine, Dragon Capital

In 2018 Ukraine demonstrated THE MOST RAPID GROWTH In the past 7 years

GDP DP Gro Growth, h, %

(comparing to respective period in previous year)

Ease of Doing Business Index by WB EBA Investment Attractiveness Index

(index, as at year end)

  • 9.8

2.3 2.5 3.3 3.3

2015 2016 2017 2018 2019E

76 71 64

2016 2017 2018 2019 2020

80 81 96

2015 2016 2017 2018 2015

2.6 2.9 3.0 3.1

“UKRAINE IS OPEN FOR BUSINESS because of THE SUCCESS OF REFORMS”

EBRD President Suma Chakrabarti, in Davos 2019

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SLIDE 6

1 27 54 35 50

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Ukraine in GLOBAL INNOVATION INDEXES

Global Innovation Index Global Open Data Index European Innovation Scoreboard Ranking Startup Ecosystems Blink Ranking Good Country Index

Category Science & Technology

2018

1

2019 2017

27

2018 2015

31

2018 2017

31

2018 2017

47

2019

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SLIDE 7

7

Overview of the Ukraine’s IT industry

INNOVATION TECHNOLOGIES in Ukraine

The ITC industry is among the country’s FASTEST GROWING industries and A MAJOR DRIVING FORCE

  • f Ukraine’s economy

It is also diverse, from cutting edge work in AI, cyber security, natural language processing and nanotechnologies to highly commercial ventures in blockchain, FinTech, big data management, gaming, agribusiness and ecommerce

$ 337 M

total value of venture capital deals in 2018

> 4,000

tech companies

18

IT service providers in the 2018 Global Outsourcing-100

100 +

Fortune 500 companies have chosen Ukrainian IT services

184k +

software developers (the number is expected to rise to 250k by 2025)

2nd

largest export service industry

the

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SLIDE 8

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IT SECTOR in Ukraine

IT industry has grown by nearly 40 times over the last fifteen years, from $ 110 million in 2003 to about $ 4.5 billion in 2018

SOURCE: Ukrainian Hi-Tech Initiative, Symphony-solutions, Tech Ecosystem Guide to Ukraine, MoEDT estimates, State Statistics Service , “Software Development in Ukraine, Poland, Belarus and Romania in 2019” report by Aventures, Aventis Capital, Capital Times *Ukraine, Belarus, Poland and Romania

110 2003 165 2004 250 2005 390 2006 544 2007 530 2008 697 2009 874 2010 1100 2011 1400 2012 2000 2013 2379 2014 2500 2015 3000 2016 3600 2017 4500 2018

4%

share in Ukraine’s GDP 2018

17%

share in export services for 2018

28%

share in IT export

  • f Eastern Europe*

in 2017

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SLIDE 9

create their

  • wn product

IT COMPANIES in Ukraine

work as an in-house center for the parent company

70 %

provide IT services to a wide range of clients

15 % 15 %

work as an in-house center for the parent company

SOURCE: “Software Development in Ukraine, Poland, Belarus and Romania in 2019” report by Aventures, Aventis Capital, Capital Times

Ukrainian IT companies get majority

  • f revenues from software/hi-tech vertical

73 % Software / high tech 31 % Financial services / fintech 23 % Healthcare & life sciences 17 % 12 % 11 % 4 % 2 % Media & entertainment Retail Telecom Insurance Security

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SLIDE 10

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IT TALENT POOL

Ukrainians are historically strong in cybernetics

180k +

Ukrainian tech specialists work for startups and IT service companies worldwide

Romania Italy Spain 130

European countries by number

  • f engineering graduates

(thousand people)

Poland UK Turkey Germany France Ukraine 105 93 75 71 66 56 48 39

130k

engineering graduates

16k

Over &

IT graduates

annually

SOURCE: World Economic Forum, Forbes

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SLIDE 11

Lviv

11

MAJOR TECH UNIVERSITIES

in Ukraine, 2018

Kyiv

Lviv Polytechnic University

2,675 tech graduates

National Technical University

  • f Ukraine "Igor Sikorsky Kyiv

Polytechnic Institute“

4,314 tech graduates

Taras Shevchenko National University of Kyiv

1,324 tech graduates

National Aviation University

1,692 tech graduates

National Technical University “Kharkiv Polytechnic Institute”

2,105 tech graduates

Kharkiv National University

  • f Radioelectronics

2,698 tech graduates

Odesa National Polytechnic University

1,366 tech graduates

National Technical University Dnipro Polytechnic

1,014 tech graduates

Odesa Kharkiv Dnipro

Overview of the Ukraine’s IT industry

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SLIDE 12

12

COST-EFFICIENT IT PLATFORM

1.9

Average Annual Software Engineering Salary,

February 2019, $ thousand

Median Net Salaries of IT Specialists,

2018, $ thousand

SOURCE: “Software Development in Ukraine, Poland, Belarus and Romania in 2019” report by Aventures, Aventis Capital, Capital Times SOURCE: daxx.com, payscale.com

According to Gartner, a global research and advisory firm, Ukraine’s IT specialists rank first in Eastern Europe in terms of price/quality ratio

USA 108 Norway Denmark Israel Germany Australia Canada France United Kingdom Ukraine 72 70 64 54 49 48 41 40 25

QA ENGINEER PROJECT MANAGER TEAM LEADER

1,5 1,4 1,4 1,2 1,4 2 1,4 1,8 1,3 1,9 3,8 3,35 3,2 3 3

Odesa Kyiv Kharkiv Dnipro Lviv

4x5

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13

IT CLUSTERS

in Ukraine

Odesa

150+ 150+ 8 K K+

Dnipro

170 + 9 K+ K+

Kharkiv

40 400 + 25 25 K+ K+

Lviv

250 50 + 20 20 K+ K+

Kyiv

300 300 + 40 40 K+ K+

From more concentrated to less

IT clusters

IT companies IT specialists

Khmelny- tskyi Ivano- Frankivsk Zhytomyr Lutsk Uzhhorod Chernivtsi Ternopil Rivne Kherson Mykolaiv Chernihiv Vinnytsia Sumy Cherkasy Poltava Donetsk Zaporizhia Luhansk Kropyvnytskyi Simferopol

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SLIDE 14

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STARTUPS in Ukraine

SOURCE: Tech Ecosystem Guide to Ukraine 2019 by Unit City

2k

startups

1k +

Events for IT specialists, startups and investors

146k

patents and utility models since 2007

Startup investment

in Ukraine, $ million

2011 2012 2013 2017 2018 2016 2015 2014

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SLIDE 15

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STARTUPS in Ukraine

Most prominent Ukrainian startups

cloud service for programmers

$110 m

full-service blockchain technology

$110 m

synthetic data platform for deep learning applications

$70 m

platform for sales based on artificial intelligence

$37 m

cloud service for programmers

$130 m

LARGEST INVESTMENT in Ukrainian startups

2017-2018

each valued at >$1 billion

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SLIDE 16

Kharkiv

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GLOBAL R&D In Ukraine

Ukraine emerges as a global R&D hub

Ring Success story

In 2018, Ring which has a 900-empoyees R&D office in Ukraine, was acquired for $1B by Amazon

100 +

have located R&D facilities in Ukraine, further driving the high-tech sector

global players

Lviv Odesa Kyiv Dnipro

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UkraineInvest is the Government’s Investment promotion office reporting to the Prime Minister created to attract and support investments in Ukraine.

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About UKRAINEINVEST

WE PROVIDE:

Navigation & Guidance Information & Insight Advocacy Key Sector Expertise Introductions Regional Support

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Your investment

Cabinet of Ministers of Ukraine 12/2 Hrushevskoho St., Office 148 Kyiv-01008, Ukraine www.ukraineinvest.gov.ua +38 044 256 7832

matters

howcanwehelp@ukraineinvest.com