Tech startups and software developers are both rapidly rising in Ukraine, and international industries are partnering with the country for their tech solutions. GSA named it the Offshoring Destination of the year, A. T. Kearney Services Location Index places it in the top 20, and the country has garnered several more awards in this ilk.
The following are some hard and fast facts about the tech industry in Ukraine that will help you decide if it is the best country for your business. Let’s start with some figures:
- 4.5% growth rate on GDP
- 23 thousand graduates into software and IT annually
- The largest country in Europe by km2
- 1,600 IT service companies and 4,000 tech companies
- 20 million people in the workforce, close to 185k of these are in IT
- $4.5 billion IT export
These exciting facts are only the start of what Ukraine has to offer. For investors, companies looking for development centers or partners, and other market players, here is a glimpse of the top ten boons Ukraine can bring:
1. Time Zone and Geographical Advantages
Ukraine is in a favorable geographic position to serve Europe, bordering many countries, and having a constant influx of tech professionals. With various shift patterns as well as an excellent advantage for lining up with other country’s business times, Ukraine’s geographical situation stands to benefit companies globally.
2. Regulation and Associations
Ukraine is a member ofthe following:
- The World Trade Organization,
- The IMF,
- The World Bank,
- The European Bank for Reconstruction and Development,
- DCFTA with the EU and EFTA,
- The United Nations,
- The Council of Europe,
- EU–Ukraine Association Agreement,
- Many more organizations and coalitions for business.
3. Continual Growth
Ukraine’s GDP continues to grow, expanding by 3.5% in just one year (2018). Inflation is shrinking, and it has gone up 76 places in the World Bank’s Ease of Doing Business rankings since 2012, 23 of those positions in the last three years. In 2018, foreign investment in the country totaled almost $2,500 million in 2018.
4. The Human Factor
Ukraine has less than half of the cost of living on average than the USA, while still being in the top third-rated countries in the Human Capital Index. In terms of education, the country continues to outshine itself. Ukraine currently boasts:
- 99.8% literacy,
- 70% with secondary or higher education,
- 38th place on the National Higher Education Systems ranking,
- 4th place in the World Bank Tertiary Education Index.
5. A Tech Marketthat Keeps Growing
The Ukrainian technology market is experiencing a quick and steady growth at a 26% rate. Some quick facts:
- ICT is the third-largest service export industry, with 20% of the total;
- More than 4000 tech companies operate in the country, along with more than 1600 software development companies employing 185,000 developers;
- Over a fifth of all Fortune 500 Companies have investments in Ukraine.
6. An OutsourcingParadise
IT outsourcing companies employ over 60% of all engineers in Ukraine, and this figure keeps rising as more global companies invest, both startups and international leaders. The USA and Western Europe are the largest players here.
7. A Growing – andSuccessful – Talent Pool
Ukraine currently has an impressive pool of specialists in IT and computing, including:
- Around 200,000 specialists in IT – a 142% raise since 2015;
- A considerable range of specializations in programming tools and languages;
- 11th place in the HackerRank survey of best software developers in the world;
- 6th place in the TopCoder rating of best programmers.
8. City Living
67% of all Ukrainian IT specialists live in one of the big cities of Kyiv, Kharkiv, and Lviv.
Kyiv is a top location for software and IT companies, boasting all of Ukraine’s most significant of these, as well as many international companies and startups. It features:
- Close to 40 universities and colleges with tech options;
- 173rd place on the Cost of Living Index;
- 40% of the country’s talent pool.
Lviv, meanwhile, focuses on student training as well as on outsourcing companies. In this city, there are:
- Over 600 million dollars of turnover in IT;
- A million dollars spent on IT training annually;
- 24 thousand IT specialists in 2019.
Finally, 14% live inKharkiv.
9. Global Service
The top nine countriesinvested in IT in the country are:
- The USA,
- The UK,
- The Netherlands,
10. A Haven forStart-Ups
As well as new companies, startups worldwide have been flocking to Ukraine for their business. An average of 500 entrepreneurs every month invest in Ukrainian business.