Export of Ukrainian IT sector reached USD 2 billion in 2015

Uktraine economy: doing business in Ukraine: Export of Ukrainian IT sector reached USD 2 billion

This article deals with amount of #export made by the #Ukrainian #IT sector, which became the third largest industries in Ukraine and shows #unprecedented #growth.

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In 2015 Ukrainian IT sector managed to export its production (software programmes) in the amount of approximately USD 2 billion. This resulted in the IT sector being the third largest sphere of Ukrainian economy after agriculture and metallurgy.

According to estimation made by the Administration of the President of Ukraine, Ukrainian IT sector attracted USD 132 million of investment in 2015 with almost half of such investment being of foreign origin.

We note that in summer 2015 the most well-known Estonian start-up TransferWise, which has attracted investment of up to USD 90 million from, inter alia, Andreessen Horowitz, Max Levchin and Richard Branson, entered into Ukraine. In addition, Richard Branson said that Ukraine is rich with IT talents, which makes the IT sector of the country very promising, and he is interested to invest in several Ukrainian start-ups, especially in bitcoin and blockchain start-ups.

The Ukrainian Government is very interested in developing the IT industry. Some new regulations were enacted in order to ease work of IT companies and freelancers. In addition, the companies active in the IT sector are one of the biggest taxpayers in Ukraine with approximately UAH 5 billion of taxes paid in 2015.

The IT industry of Ukraine is one of the most effective and buoyant sectors of the economy, being the third by export volumes, following agriculture and metallurgy. However, in 2020 the IT industry is expected to outgrow the latter. Currently, there are over 500 outsourcing companies in Ukraine and around 100 global R&D centers. In addition, more than 50,000 engineers are employed by IT companies in Ukraine. Under some studies and projections, it is expected to be 180,000 IT specialists in Ukraine by 2020 with the annual rate of almost 20,000 new IT employments.

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