UKRAINE’S IT INDUSTRY
Overview
Kyiv, Ukraine February 2020
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
Kyiv, Ukraine February 2020
SOURCE: Accenture Technology Vision 2019: Full Report
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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
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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
$1.8 B * 49 K ** 14 14 ** $7.8 B * 255 K ** 31 31** $5.5 B * 105 K ** 15 15**
$4.5 B * 184 K ** 150 150 **
IT export IT specialists tech universities & colleges * for 2018 ** for 2017
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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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SOURCE: World Bank, State Statistics Service
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)
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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Global Innovation Index Global Open Data Index European Innovation Scoreboard Ranking Startup Ecosystems Blink Ranking Good Country Index
Category Science & Technology
2018
2019 2017
2018 2015
2018 2017
2018 2017
2019
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Overview of the Ukraine’s IT industry
The ITC industry is among the country’s FASTEST GROWING industries and A MAJOR DRIVING FORCE
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
total value of venture capital deals in 2018
tech companies
IT service providers in the 2018 Global Outsourcing-100
Fortune 500 companies have chosen Ukrainian IT services
software developers (the number is expected to rise to 250k by 2025)
largest export service industry
the
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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
share in Ukraine’s GDP 2018
share in export services for 2018
share in IT export
in 2017
create their
work as an in-house center for the parent company
provide IT services to a wide range of clients
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
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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Ukrainians are historically strong in cybernetics
Ukrainian tech specialists work for startups and IT service companies worldwide
Romania Italy Spain 130
European countries by number
(thousand people)
Poland UK Turkey Germany France Ukraine 105 93 75 71 66 56 48 39
engineering graduates
Over &
IT graduates
annually
SOURCE: World Economic Forum, Forbes
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Lviv Polytechnic University
2,675 tech graduates
National Technical University
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
2,698 tech graduates
Odesa National Polytechnic University
1,366 tech graduates
National Technical University Dnipro Polytechnic
1,014 tech graduates
Overview of the Ukraine’s IT industry
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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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150+ 150+ 8 K K+
170 + 9 K+ K+
40 400 + 25 25 K+ K+
250 50 + 20 20 K+ K+
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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SOURCE: Tech Ecosystem Guide to Ukraine 2019 by Unit City
startups
Events for IT specialists, startups and investors
patents and utility models since 2007
Startup investment
in Ukraine, $ million
2011 2012 2013 2017 2018 2016 2015 2014
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cloud service for programmers
full-service blockchain technology
synthetic data platform for deep learning applications
platform for sales based on artificial intelligence
cloud service for programmers
LARGEST INVESTMENT in Ukrainian startups
2017-2018
each valued at >$1 billion
Kharkiv
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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
have located R&D facilities in Ukraine, further driving the high-tech sector
global players
Lviv Odesa Kyiv Dnipro
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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Navigation & Guidance Information & Insight Advocacy Key Sector Expertise Introductions Regional Support
Cabinet of Ministers of Ukraine 12/2 Hrushevskoho St., Office 148 Kyiv-01008, Ukraine www.ukraineinvest.gov.ua +38 044 256 7832
howcanwehelp@ukraineinvest.com