On January 18, 2018, the BBC highlighted the IT sector as one of the main driving forces of Ukraine’s economy, especially amidst the volatility due to the military conflict in the east. An industry report from PwC consulting shows that Ukraine’s annual income from IT outsourcing has grown from 0.6% to 3.3% of GDP. This makes IT outsourcing the third-largest export sector in the country, behind only agriculture and mining.
In the BBC article, Intellias CEO and co-founder Vitaly Sedler shares his thoughts on why Ukraine has become the fastest-growing IT outsourcing destination for global tech companies – and therefore why it contributes so much to the economic growth of the country.
Why IT has become a main economic engine in Ukraine
Ukraine now stands among the top 20 exporters of IT services in the world. Naturally, this tremendous leap has further encouraged the IT sector, which is flourishing as a principal driver of the Ukrainian economy. Vitaly identifies three distinctive factors that have influenced this growth:
- Ukraine is geographically close and only a time zone or two away from Western Europe, so outsourcing providers can work smoothly with clients.
- Ukraine is culturally close to European clients, making it easy to communicate.
- Ukraine has very strong technical education.
Engineering is kind of in our DNA, it’s in our blood.
IT takes third place among Ukraine’s export services
Providing outstanding software development services to tech companies around the globe, IT outsourcing companies like Intellias make up Ukraine’s third-largest export sector. According to PwC, the number of Ukrainian IT specialists has skyrocketed from 40,000 to nearly 92,000 in just four years. Ukraine already outpaces its competitors in Central and Eastern Europe, including Poland and Hungary, in terms of available talent on the market. And PwC predicts that the number of IT professionals will double again by 2020.