The Ukrainian IT sector report

The Ukrainian IT Sector: An
Overview of Publicly Available
Data and Gaps in Market
Knowledge

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Executive Summary:
Overview of existing reports and data on Ukrainian IT
Data on the local IT market and industries, which are the biggest consumers of IT in
Ukraine.
Vertical specialization and cross-specialization of companies in modern technology, the
structure of exported IT services.
Reliable data on the number of IT companies and their structure. Official figures
overestimate actual numbers as one company often combines several legal entities, while
experts’ estimates vary substantially. On the other hand, some companies are operating in
Ukraine without a registered legal entity.
This report identifies available and, respectively, missing data, which would be necessary for
evaluating Ukrainian tech ecosystem. This study features all the reports we became aware of
and other statistical sources available on the Ukrainian IT market, which were meticulously
systematized and compared, along with the methodology behind them.
Market participants and stakeholders have already made substantial efforts to present
Ukraine’s tech ecosystem. There is a large number of reports available on the IT sector:
general, regional, specialized on specific sub-sector ones, maps of different ecosystem
components, etc. Overall, more than seventy sources on Ukraine’s tech ecosystem were
studied by the authors of this report.
We found useful information available on exports, output, and value added of IT industry,
investment deals, professionals working in IT companies, salaries, challenges in human
resources on the IT market. Profound regional information is available for several active local
IT clusters.
Still, notwithstanding the large number of reports, in many cases the data on critical elements
of the ecosystem is lacking or has significant drawbacks, including having questionable
sources and being outdated. Reciting unreliable data from one report to another misleads
market participants and stakeholders.
The objective of this report is to change this status quo, show the real picture with data about
UA Ecosystem, agree among stakeholders on common methodologies and lay good ground
for establishing new standards in reporting.
Based on our research we identified the following areas which lack sufficient and/or reliable
data:

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R&D: the market defines R&D companies as global in-house centers of large international
companies, however, it is not always clear whether these centers are actually involved in
R&D. There is a need to agree on the definition of R&D and to clearly distinguish R&D from
non-R&D activities.
Financial figures: data on profit and profit structure, comparable and detailed data on
taxes paid by IT, reliable data on investments structure vary in different sources.
Detailed analysis of infrastructure in a meaning of supportive businesses required for IT
companies to operate well, is missing.
Human Capital and labor market: data on school to work transition for IT specialists,
number of IT specialists who work in non-IT companies, migration of IT specialists, amount
of switchers, remote work for/from other countries is incomplete.
Regional data: while there is a good overview of Lviv, Kharkiv, and, Dnipro, and Kyiv being
well covered in general reports, data on other regions is scarce.
There is a need to develop the ecosystem mapping featuring key stakeholders on each
segment based on the findings of this report.
Filling out the gaps where the report has identified missing data is crucial for
understanding of the ecosystem needs. Thorough further research is required to cover
the existing gaps in the data needed for informed policy making.
This report is made possible with the support of the American People through the United
States Agency for International Development (USAID) under the Competitive Economy
Program. The authors’ views expressed in this report do not necessarily reflect the views of the
United States Agency for International Development or the United States Government.
Executive Summary:
Overview of existing reports and data on Ukrainian IT

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Table of contents
Tech ecosystem and business climate
1.1. Ecosystem structure and market size
Ecosystem map
Stakeholders, elements of the ecosystem and interconnection chain thereof
Characteristics of each element and added value for ecosystem
1.1.2 Local Market
Local market size (actual and potential) and market structure
Share of IT in GDP
Ukrainian industries that are the main clients of IT companies,
actual and potential
Identify, what is Ukrainian IT: companies, owned by Ukrainians or registered in UA
only or any other format?
1.1.3. UA Export
Size of export, and main export destinations, actual and potential
Main clients (companies) of Ukraine’s IT
Main products and services exported in 2019 and dynamics over the last years
Main countries of exporting destination and dynamics over the last years
Share of Ukrainian IT on the global market
1.1.4. Typology of companies
Number of companies registered in UA
If possible number (or share) of companies which are not registered in Ukraine and
main reasons why companies are not registering in UA
Legal types of companies and percent of each type
Types of companies by business models and percent of each type
Types of companies by number of employees and percent of each type
1.1.5 Scientific potential and innovation
Number of research institutes and universities
Number of patents issued
Size of investments in R&D
International cooperation in R&D
1.1.6. International rankings
Ecosystem rankings
ICT & digital economy indices
1.2 Financial and economic indicators of various types of IT companies
1.2.1. Profits
Profit structure of each type of companies
1.2.2. Taxes
Amount of taxes paid, distribution to local/state budgets
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Table of contents
1.2.3. Salaries
Structure of salaries in percent
Salary growth trends in the last and coming years by category/position
1.2.4. Capital and Investments
Size of investments in the IT sector
Types of investments by phase
Type of investments by sources
Number of exits and M&A
Types of investors and investor map
1.3 Infrastructure
1.3.1. Types of infrastructure, required for IT companies to operate well
1.3.2. Broadband internet, 4G and similar indicators in narrow understanding of infrastructure
4G
Fixed broadband
2. Human Capital
2.1. Human capital in IT: market overview
2.1.1. Specialists
Number of specialists that work in IT sphere in IT companies
Number of specialists that work in IT sphere in non-IT companies
Types of specialists by maturity level
Gender type
Language skills, soft skills
2.1.2. Professions
Types of professions in IT sector and percent of various professions in IT
2.1.3. Demand
Number of vacancies and their structure
2.1.4. Challenges
2.2.1. General numbers
2.2.2 Education market overview. Stakeholder map of education
2.3.1 Existing gaps analysis. comparing industry demand with existing supply (quality
and quantity)
3. Country niches for USP positioning and go-to-market strategy
3.1. Specialization
3.1.1 Vertical: percent of companies doing projects in various verticals
3.1.2. International trends: percent of companies having cross-specialization on
international trends (AI, AR/VR, Robotics, etc).
3.2 Regional distribution
3.2.1 Share of each region in each element of ecosystem structure
3.2.2. Smart specialization of regions
Methodology and uncovered needs for a comprehensive report of the IT Sector in
Ukraine and key criteria for comparing Ukrainian IT Sector with other countries
References
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List of abbreviations
B2B - Business-to-Business
B2C - Business-to-consumer
BRDO - Better Regulation Delivery Office
CEO - Chief Executive Officer
CVC - Corporate Venture Capital
CTO - Chief Technology Officer
EBOPS 2010 - Extended Balance of Payments Services Classification
FMCG- Fast-Moving Consumer Goods
GDP - Gross Domestic Product
GIC - Global In House Centers
HR - Human Resources
ICT - Information Communications Technology
IT - Information Technology
M&A - Mergers and Acquisitions
NACE - European Classification of Economic Activities
NBU - National Bank of Ukraine
NGO - Non-Governmental Organization
PR - Public Relations
R&D - Research and Development
SaaS - Software as a Service
SME - Small and Medium Enterprises
SSSU - State Statistics Service of Ukraine
WTO - World Trade Organization
UNESCO - United Nations Educational, Scientific and Cultural Organization
USAID - U.S. Agency for International Development
UVCA - Ukrainian Venture Capital and Private Equity Association

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Tech Ecosystem and
Business Climate
1. 2
Financial and
economic indicators
of various types of IT
companies
1. 3
Infrastructure
1. 1
Ecosystem structure
and market size
1

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By Cerulean Industries
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Stakeholders, elements of the ecosystem and interconnection chain thereof
The purpose of this report is to identify available data as well as gaps in the data for
Ukrainian tech ecosystem evaluation. There is no standardized approach to what tech
ecosystem consists of. Therefore we present here conceptual framework which we consider
appropriate for this purpose. The basis for this model is taken from the OC&C reports on
Tech entrepreneurship ecosystems (1). Additional Information is taken from the Export
Strategy of Ukraine for the ICT sector. Other materials were also studied. Table below gives
a detailed structure of the ecosystem, while the diagram presents software ecosystem
framework and interaction of ecosystem elements.
1.1.1
Ecosystem map
Ecosystem structure and market size
1 OC&C uses standardized approach and model to analyse tech ecosystems. There are several reports available, one of the
examples to illustrate approach is OC&C, 2018. Tech Entrepreneurship Ecosystem in Turkey.
Input/Prerequisites Business Markets Output/Results
Grants/subsidies/ donors
Individual investors
Venture capital
Public funding
Corporate investment
(CVCs and M&A)
Securities market
Debt financing
Educational foundations
Scientific institutes and
R&D centers
Think tanks
Skills development
Attracting local talent to
tech entrepreneurship
Acquiring international
talent
FINANCIAL CAPITAL:
- Crowdfunding
- Angel investors
- Personal networks
SKILLED TALENT AND
INNOVATION
- Schools, courses, programs
- On the job training
Technological Service
Providers
Product companies
Technological Startups
Service and System
Integrators
Vendors and resellers:
By types of services:
- Outsourcing
- Outstaffing
- Global InHouse Centers
(GIC)
(software, including SaaS
and other “-as-a-service”
product models, and
hardware)
- Hardware Vendors,
- Software Vendors
- Internet Providers
- Data-Centers
USA
UK
Canada
Germany
Israel
Sweden
Switzerland
Norway
Netherlands
Ireland
others
B2B
Corporations
SMEs
Startups
Public clients
B2C
Various audiences
By geographic location:
Local Market
International Market:
By types of clients:
Size of tech e-ship:
Workforce employed in
tech entrepreneurship
Growth rate
Value creation
Global reach
ECONOMIC
CONTRIBUTION
- Revenue
- Number of startups
- Share in GDP
- Revenue, Number
- Market cap, Unicorns
- Share of int’l revenues
- Number of int’l operations
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Input/Prerequisites Business Markets Output/Results
1.1.1 Ecosystem map
Communities,
Associations, Clusters,
other IT NGOs, public
organizations
Mentors and coaches
Accelerators / incubators
Diaspora networks
International linkages
Events (inspirational,
sharing knowledge,
teaming up, hackathons,
investors networking)
University-industry
partnership
Tech transfer offices
Physical clusters
NETWORKS
- Co-working spaces
- Technoparks
Telecom and data-
centers
Banks & insurance
Legal
Accounting
Recruiting
Creative businesses
(marketing and PR,
media, digital agencies)
Event companies
Educational
Consulting offices etc
Kindergartens,
Cafes, restaurants, bars,
clubs
Shops
Travel companies etc
Adjoining Industry
Companies to IT and Tech:
Providing B2B services:
Providing B2C services:
End clients
Intermediaries
By types of cooperation:
Innovation created by
tech entrepreneurs
INNOVATION CREATION
- Number of innovative
products, processes,
- business models
introduced in the country in
a given year
Tech-influencers, role-
models, evangelists, tech
bloggers,
Media
Society’s attitude to
entrepreneurship
Entrepreneurial
aspirations and appetite
Promotion of role models
/ success stories
Media coverage of
entrepreneurship
CULTURE
---------------
Tech Giants
Scaleups
IT SMEs
Freelancers
By size:
Agriculture
Manufacturing
Construction
Metallurgy
Logistics
Energy
Banking & Finance
FMCG
Air and Space
Entertainment & Social
Education
Health
Government
By industry segment:
Set of regulations,
improving:
Digital policies
Government R&D policies
REGULATIONS
- Ease of doing business
- Compliance
- Trading across borders
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Input/prerequisites Business Markets Output/results
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1.1.1 Ecosystem map
Digital literacy /
readiness
Domestic market size
Public procurement
Local market efficiency
LOCAL MARKET
POTENTIAL
- individual use
- cloud migration
- digitization of gov’t
services
- B2B
- B2C
Foreign Governments,
Embassies, Chambers of
Commerce, Associations,
Communities
Foreign Business
Foreign Events
Foreign Media and
influencers
Ukrainian Diaspora
INTERNATIONAL MARKET
POTENTIAL
Accessibility and
affordability of Internet
(mobile / fixed)
Cloud & data center
experience
Electricity
Hardware
Software
Airports, roads
ICT INFRASTRUCTURE

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The core of the IT sector and ecosystem is the
business part: companies that create goods
(services and products) in IT and Tech
sectors and companies that sell to IT and
Tech companies. Then, these companies
operate on specific markets to generate
profits, so markets are the next important
aspect of the ecosystem.
For the effective work of these two elements:
value creation and money flows, there need
to exist certain prerequisites that fill the
needs and gaps of the business, empower it
and allow it to bring results, described in the
output section: economic contribution and
innovation creation.
The prerequisites are: Capital, Talent,
Networks, Culture, Regulations,
Infrastructure and Markets Potential.
Markets potential creates an opportunity for
business creation.
Talents generate innovation and are executing
on the ideas generated, that aim at fulfilling
market needs. Infrastructure gives the
instruments and basis for their work.
Capital gives resources to work before the
market pays back. Networks empower talent to
share tangible and intangible resources.
Culture and regulations establish public and
private rules of such interactions.
Missing any element will affect the
effectiveness of the system overall and the end
results - economic contribution and innovation
creation. The task of Ecosystem stakeholders -
grow the elements of the ecosystem evenly,
make sure all parts are represented and grow
simultaneously to maximize the results.
Further parts of the report represent various
data to evaluate the ecosystem and to be used
for strategic initiatives on ecosystem
development.
Source: F. Kon, D. Cukier, C. Melo, O. Hazzan, H. Yuklea, 2015. Conceptual Framework for Software
Startup Ecosystems: the case of Israel. Technical Report RT-MAC-2015-01
Characteristics of each element and added value for ecosystem
While table above named components of tech ecosystem in detail, scheme below
describes interconnection between tech startup ecosystem elements
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1.1.1 Ecosystem map

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Share of IT in GDP - which exact economic activity is covered by this indicator in
IT part
Most of the reports show the share of IT in Gross Domestic Product (GDP) at 4% in 2018
(National Investment Council of Ukraine 2018, UNIT.City and StrategIst 2017, UkraineInvest,
2020).
This corresponds to Information and communication category in GDP data reported by the
State Statistics Service of Ukraine. PwC reports different figures, but their adjustments and
methodology are not presented in the report (EBA and PwC 2016).
Data on the local market size is scarce.
Development of the local market, as well as reliable data regarding it, are essential as local
market cross-fertilizes the tech ecosystem. Currently, the IT sector is mostly export-oriented
as the local market does not have a substantial demand for IT services.
The source that presented local market size and structure was the report by the Aequo,
International Data Corporation (IDC), Baker Tilly and SI BIS (2017) Information technology
industry in Ukraine. Total consumption of IT services (intermediate and final) can also be
estimated using State Statistics Service of Ukraine IO tables. It constituted in 2017 $1.8bn
including intermediate consumption in the IT sector.
1.1.2 Local Market
Local market size (actual and potential) and market structure
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Source: : AEQUO, IDC, Baker Tilly, SiBiS, 2017. Information technology industry in Ukraine as cited in the National Investment Council of Ukraine,
2018. IT industry of Ukraine: Creating value on the global scale, page 7

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J 58 Publishing activities
J 59 Production of film and video films, television programs,
sound recordings
J 60 Radio editing and television activities
J 61 Telecommunications (telecommunication)
J 62 Computer programming, consulting and presentation of
their work
J 63 Presentation of information services
58.2 Software publishing,
62 Computer programming, consultancy and related activities,
63.1 Data processing, hosting and related activities; web
portals.
63.9 Other information services are also often used in the IT
sector.
26.1 Manufacture of electronic components and boards
26.11 Manufacture of electronic components
26.12 Manufacture of loaded electronic boards
26.2 Manufacture of computers and peripheral equipment
26.3 Manufacture of communication equipment
26.4 Manufacture of consumer electronics
26.5 Manufacture of instruments and appliances for measuring,
testing and navigation; watches and clocks
26.51 Manufacture of instruments and appliances for
measuring, testing and navigation 2651
26.52 Manufacture of watches and clocks
26.6 Manufacture of irradiation, electromedical and
electrotherapeutic equipment
26.7 Manufacture of optical instruments and photographic
equipment
26.8 Manufacture of magnetic and optical media
More detailed information can be found in input output
tables produced by State Statistics Service of
Ukraine (SSSU), but they are available with a lag (latest
available 2017). It contains balanced data on output, export,
import and value added.
1.1.2 Local Market
Information and
communication category
contains both IT and non-
–IT activities:
At the same time, IT
services are presented in
the following categories:
Hardware production is
contained in 26
Manufacture of computer,
electronic and optical
products:
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NACE codes (2)
2 Industry standard classification system used in the European Union

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Code
Publishing activities; production of film and
video films, television programs, sound
recordings; radio and television
broadcasting activities
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Unbalanced but even more disaggregated data is available in the Structural survey of the enterprises.
It is more recent (latest available is 2018). On the other hand, this data goes through several stages of
adjustment to construct input-output tables, including adjustment for consumption level, i.e. partly
includes shadow economy.
Value added for IT sectors (58.2 Software publishing,62 Computer programming, consultancy
and related activities, 63.1 Data processing, hosting and related activities; web portals)
constituted 2.6% of total value added
J58-J60
J61
J62-J63
C26
Title
Telecommunications (telecommunication)
Computer programming, consultancy and
information services
Manufacture of computers, electronic and
optical products
Value
added
UAH mln
Import
UAH mln
Output
UAH mln
Share in
GDP, %
Export
UAH mln
14 982
29 994 877 -4 302 10 149 0.3%
58 778 8 297 -11 201 32 948 1.1%
136 887 73 269 -16 869 67 199 2.3%
9 104 -85 882 4 403 0.1%
Source: State Statistics Service of Ukraine, input-output tables, 2017
Source: AEQUO, IDC, Baker Tilly, SiBiS (2017) gives the following statistics on IT consumption structure in Ukraine in 2016
In the tables mentioned above the following information is available.
1.1.2 Local Market

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Ukrainian industries that are the main clients of IT companies, actual and
potential
Data on the Ukrainian traditional industries that are the main clients of IT companies scarce
in the literature. Two available sources are hard to compare as they have different
methodology and purpose. However, very different results suggest that more in-depth
analysis is required. Analysis and forecasts on Ukrainian sectors which can be potential
clients of IT companies are unavailable.
AEQUO, IDC, Baker Tilly, SiBiS (2017) gives the following statistics on IT consumption
structure in Ukraine in 2016
Source: AEQUO, IDC, Baker Tilly, SiBiS (2017) gives the following statistics on IT consumption structure in Ukraine in 2016
1.1.2 Local Market

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Intermediate consumption of IT services in Ukraine is available in input-output tables of State Statistics
Service of Ukraine. Over 70% of IT services are consumed by IT sector itself. 8.5% is consumed by trade.
Other intermediate consumers include advertising, scientific and technical activities, activities in the
fields of law and accounting etc. Intermediate consumption of Computer programming, consultancy
and information services (NACE codes 62-63).
Identify, what is Ukrainian IT: companies, owned by Ukrainians or registered in UA
only or any other format?
Data is unavailable
Some of the reports state that they focus on companies registered in Ukraine (SaaS Nation,
UNIT.City, Center42 Innovation Agency 2019), though most of the reports do not mention
which companies they cover.
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Intermediate consumption of Computer programming, consultancy and information
services (NACE codes 62-63)
1.1.2 Local Market

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Ukrainian IT is a highly export oriented
industry. The limited size of the internal
market, lack of financial resources, digital
literacy and management maturity of local
companies stimulates extensive export of IT
from Ukraine. Ukraine imports a comparably
limited amount of IT services while the key
share of IT import remains hardware. Over the
past 10 years, IT exports increased
significantly, growing on average by 20.7%
annually (Export strategy IT sector 2019-
2023).
Compared to 2013 Export of ICT services
increased almost twice (based on NBU data).
Data on exports vary based on the source.
The sources include State Statistics Service
of Ukraine, National Bank of Ukraine,
international organizations (WorldBank,
WTO).
According to State Statistics Service of
Ukraine, export of ICT services amounted to
USD 2.1 bn in 2018, including USD 1.6 bn of
computer services.
National bank of Ukraine (NBU) uses banks’
reporting on operations with non-residents
(NBU resolution 129 as of 01.03.2016) for
more precise figures.
NBU figures for ICT exports amounted to USD
3.5 bn in 2018 and USD 4.3 bn in 2019. World
Trade Organization (WTO) database
corresponds to NBU figures and also gives
statistics on services trade for other countries.
PwC estimates Ukrainian IT export (USD 3.6
billion in 2017) based on cost models and data
provided by market participants (IT Ukraine
and BRDO 2018).
IT market stakeholders also publish the figures
on exports. For instance, figure of USD 4.5B is
widespread in reports (National Investment
Council of Ukraine, 2018; Ni-X, 2019; Unit.City,
Western NIS Enterprise Fund 2019) but it is a
forecast for 2018 made in 2017 by PwC.
Computer services have already become an
important component of Ukrainian exports.
Overall Ukrainian merchandise exports
constituted USD 46 bn in 2019, while exports
of services amounted to USD 17bn (27% of
total trade). IT services amounted to USD 4.3
bn (all based on NBU data). Export of computer
services was the second-largest services export
in 2019 after the transport services and
demonstrated high growth of 30% year on year
in 2019.
Source: State Statistics Service of Ukraine
1.1.3 UA Export
Size of export, and main export destinations, actual and potential
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Telecommunications services
Computer services consist of hardware- and software-related
services and data processing services:
Information services are divided into
Research and development services: basic and applied research,
experimental development of new products and processes
Professional and management consulting services:
Technical, trade-related and other business services:
Computer software and
Other computer services
News agency services
Other information services
Legal, accounting, management consulting and public relations
services
Advertising, market research and public opinion polling
Architectural, engineering, scientific and other technical services
Waste treatment and de-pollution, agricultural and mining
services
Operating leasing services
Trade-related services
Other business services n.i.e.
BRDO (2017) states that the
World Bank classifies other
business services as part of ICT
services trade. We do not
consider it as a widespread
practice. According to
Extended Balance of Payments
Services Classification (EBOP
2010) ICT services consist of:
Other business services consist
of:
What should be in ICT services
exports (3):
Overall Ukrainian merchandise exports constituted $46 bn in 2019, exports of services
amounted to $17bn, of which IT services amounted to $4.3 bn (all based on NBU data).
Export of computer services is the second largest services export in 2019 after the
transport services and demonstrates high growth - 30% year on year in 2019.
Main clients (companies) of Ukraine’s IT
There are two sources that name clients of IT companies, one is AVentures, Aventis Capital,
Capital Times (2019) and AVentures Capital & Ukraine Digital News (2016). AVentures
Capital & Ukraine Digital News (2016) presents companies by regions, while AVentures,
Aventis Capital, Capital Times (2019) gives a smaller overview for Ukraine overall.
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9.1 Telecommunications services
9.2 Computer services
9.2.1 Computer services - Computer software
9.2.2 Computer services - Other computer services
8.3 Licenses to reproduce and/or distribute computer software
1.1.3 UA Export
3 United Nations Conference on Trade and Development (UNCTAD), 2015. International trade in ICT services and ICT-
enabled services. Proposed Indicators from the Partnership on Measuring ICT for Development. UNCTAD Technical
Notes on ICT for Development N˚3

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Delphi - Motorola, EMC2, Nuance, bwin.com
AMCBridge3E - 3D Space Pro, Albitech Ltd, jaccomo, aPriori, Exadel, TaskPoint
Archer - room2care.corr, Musketeer, Renault, Volvo, Phone and Pay Rimed,
Columbia Law School
Viseven - Novartis, Strato, Abbott, Teva, Sanofi, CodeSters, GaraioLabs
Master of Code - Mercedes-Benz Bank, Acton Institute, IDG Links, CNS, YouVersion
Yalantis - Voki, Street EASY
Sam Solutions - Zerolag, PrintSafari.com, Craft Kidisto.de
NIX Solutions - Cengage, Learning, zoodog, FlipClips, Yandex, Fiat, Thomson,
Reuters, Connecture, Meanbee
Sigma Software - Aol. Collective, Fortum, Gtech, Formpipe, JLoop, SAS, Viaplay
QArea - Microsoft, RebelMouse, Givelife, BuzzFeed, The Huffington Post
iTeam - international Telenor, Bond, BullsEye, Telecom, ITC, iTeam, Network
Altexsoft - Microsoft imshealth, Fareboom, Scientific Games
Telesens - Kcell, Kyivstar, NEC, Ukrtelecom
CodeIT - Brewed, Gem II NI, Omega Media, RedApple, Rankly, SST Net, Teknas Inc/
It should be noted that the list of clients changed considerably over the time covered in these
two reports mentioned above.
Luxoft – Continental, Alcatel Lucent, Boeing, Bosch, Aepona, City, Harman, Dell
GlobalLogic - Brady, Converse, BMC Sky Oracle, LinkedIn
Ciklum – Google, Jabra, Micron, Berlingske, OpenText, ThomasCook, Augaroo
Infopulse – Allianz, Gorenje,Bics, Quantum, British American Tobacco, Bosch, Evry,
ING
Softengi – Boeing, Enviance, Kyivstar, Intel
Daxx – Euretos, Kwebbl, Viber, Vliegtickets.nl
Adyax Sony, Johnson & Johnson, LVMH, Slate. EC, United Nations, McDonald's
Itera – Schibsted, Santander, Bluegarden, Storebrand
Lohika – HP, Cisco, Twilio, EMC2, Microsoft, Oliver Wyman, Monster, BuzzFeed
Innovecs – Elementum, edX, WB Turbine
Softserve – Unilever, IBM, Johnson & Johnson, P&G, Kimberly-Clark, Costco, Pearson,
Tripadvisor
Eleks – Xceedium, Xyleme, States of Jersey, Autodesk, Havas, Eagle, tip.ly, Phoenix
Intellias – Adswizz, Magix, SEP, Core Banking, e-fon, Soreco, FTS, Swissclick.com
Consensia – Spar Nord, Saxo, Zentuvo, Systematic, Kamstrup
CoreValue Health decisions, Recyclebank, Xtiva Logs Network, Rolls-Royce
N-iX – Currency cloud, Streamserve, Anoto, b-to-v, HotSchedules, Novell, Cure Forward
GeeksForLess - Deluxe, Hostopia, EMC2, BriskMobile, EXG
Provectus – Vegaster, Selectica, Qwyrk, Men’s Wearhouse
Intersog – CDW, SAMLearning, Mitsuishi, VideoMedisine, Innomos. Travian Games,
Neustar
Envion Software – Adobe, Atex, Chase, AOInternational, Quark
Dnipro
Kharkiv
Kyiv
Lviv
Odesa
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1.1.3 UA Export

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Ciklum – ThomasCook, Just Eat, Jabra, Kantar Retail
DataArt Nasdaq, Travelport, Ocado, Betfair
Daxx – Studytube, Pricena, Oktopost, Kwebbl
Epam – Amazon, Adobe, SAP, Hotels.com
Infopulse – Vodafone, ING, Microsoft, Allianz, Bosch.
Intellias – KIA, Playbuzz. Every Matrix, RTL group
N-iX – Lebara, Currencycloud, Anoto, HotSchedules,
Sigma Software – SAS, Volvo, Viaplay, Oath
IBM, Fiducia & GAD, PTC, Atlassian Corporation, Dassault
Systemes, Oracle Corporation , Autodesk, Inc, Microsoft,
CISC, NASA, Manchester City FC, Siemens, Obamacare,
Deutsche Bank, TOYOTA, Nissan, Jaguar, Mercedes-Benz,
Peugeot , Toshiba , Infinity, Nestle, L’Oreal, Land Rover,
Signal Iduna
Source AVentures, Aventis Capital, Capital Times, 2019. Software development in Ukraine,
Poland, Belarus and Romania
IT Dnipro Community, Sociological Agency Fama, 2019. IT Dnipro Research 2019.
Main countries of exporting destination and dynamics over the last years
Main products and services exported in 2019 and dynamics over the last years
Product companies and startups do not constitute a significant share of Ukraine’s exports
so far but there is great potential for growth in the near future provided favourable
conditions are created for such growth.
IT Services Export: 70% development, 30% consulting, R&D, analytics, and other services
(Tech ecosystem guide to Ukraine 2019, Unit). An absolute majority does web and mobile
application development, followed by architecture consulting and testing services
No data on exports in the sectors such as data management, gaming, e-commerce, etc.
The US market is the main destination with an estimated more than 50% (2019 INNOVATIVE
UKRAINE, Unit) or 80% (Invest in Ukraine Now Innovation and Opportunities, 2018) volume
of exported services.
The UK is in second place (2019 INNOVATIVE UKRAINE, Unit). Ukrainian companies also
have a long record of cooperation with Germany, Canada, Israel, Sweden, and Switzerland.
Despite positive trends the Ukrainian market still cannot boast a large amount of
orders.
According to the State Statistics Service of Ukraine, key export markets for Ukrainian ICT
services are EU (including UK, Cyprus, Germany, the Netherlands, Ireland, Sweden), USA,
Russian Federation, Switzerland, Norway, Israel, Canada and South Korea.
20
1.1.3 UA Export

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01
21
The global information technology industry is on pace to reach $5.2 trillion in 2020,
according to the research consultancy IDC. CompTIA (4) projects the global information
technology industry will grow at a rate of 3.7% in 2020.
The United States is the largest tech market in the world, representing 32% of the total, or
approximately $1.7 trillion for 2020.
BOP6 - SI -Telecommunications, computer,
and information services
Share of Ukraine in global ICT services export
BOP6 - SI1 - Telecommunications services
BOP6 - SI2 - Computer services
BOP6 - SI3 - Information services
2018
2017
2015 2016
0.45% 0.48% 0.52% 0.57%
0.44% 0.34% 0.29% 0.26%
0.47% 0.54% 0.61% 0.67%
0.15% 0.09% 0.06% 0.06%
Source: WTO database (BOP6)
Share of Ukrainian IT on the global market
4 CompTIA, 2019. IT Industry Outlook 2020. Taking the Next Step. Viewed 3 Apr 2020
Source: CompTIA, 2019. IT Industry Outlook 2020. Taking the Next Step.
Overview of trends and demand in global markets (potential niches for our
companies)
1.1.3 UA Export

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01
22
While emerging technologies currently account for only 17% of the overall global revenue,
they are expected to drive nearly half of the growth in new revenue. At the same time, while
emerging technologies will be the driver for growth, they must be used in conjunction with
more established technologies to create innovative solutions.
Global Market structure:
1.1.3 UA Export

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01
23
So the biggest and most promising niche for our companies are emerging technologies and
focus on providing solutions, rather than resources.
More detailed overview of the niches in the area of emerging technology is provided below.
1.1.3 UA Export

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Data on the number of companies registered in Ukraine vary among sources. According to
SSSU there were 16465 legal entities in the IT sector (58.2 Software publishing,62 Computer
programming, consultancy and related activities,63.1 Data processing, hosting and related
activities; web portals) plus 2894 legal entities in other informational services (63.99) often
used in IT sector. However, all sources agree that this is not reliable data for a number of IT
companies as many companies can operate several legal entities. In addition, a part of
companies can be not active on the market. According to SSSU there were only 6241 of
economically active legal entities in IT in 2018 plus 976 in other informational services
(63.99). Most sources rely on experts’ estimations of IT companies in Ukraine in general (not
focusing on the fact whether company is registered in Ukraine or not). And these estimations
vary widely, including:
bureaucratic restrictions on accepting payments,
inability to process smaller and numerous payments for applications from the
App Store and other sites,
absence of electronic money and consequently no PayPal or similar method,
lack of planning security checks,
limited protection of IP rights,
complicated processes of managing a company.
Reliable data on the number of IT companies registered in Ukraine is missing, while experts’
estimate vary substantially
Number of companies registered in UA
1.1.4 Typology of companies
4000 IT companies in IT Ukraine Association, BRDO, Forbiz, EU4Business
report (2018). Only 2309 IT companies were active on the labour market
1650 IT companies in 2016 in IT Ukraine and BRDO report (2018).
1000+ IT outsourcing companies and 2000 startups in 2016 in AVentures
Capital & Ukraine Digital News (2016) and National Investment Council of
Ukraine (2018).
750+ IT service companies in AVentures, Aventis Capital, Capital Times report
(2019).
More precise estimates can be found in regional reports, though they do not cover Ukraine
overall.
Number (or share) of companies which are not registered in Ukraine and main
reasons why companies are not registering in UA
Legislative limitations, which are the main reasons not to register in Ukraine are summarized
in Export strategy for information technologies sector for 2019-2023 and include:
24

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01
25
Outdated or nonexistent laws to adapt and use the latest information
technologies hinder sector expansion at the national level. A number of laws
are either not in place, as is the case with electronic money (very limited
regulation and extremely inefficient, which makes this instrument dormant),
or outdated, as is the case with labour legislation that comes from Soviet
times and restricts the IT sector development to a significant extent.
In addition, there is a worldwide competition of jurisdictions that compete
for the opportunity to attract as many technological startups and mature
companies as possible, and Ukraine is currently losing it to primarily systems
with Anglo–American law, because they have a lot of experience and
reliability in dealing with intellectual property. (page 34)
Legal types of companies and percent of each type
Not available
Types of companies by business models (outsourcing, product, startups, etc)
and percent of each type
Data is based on the survey of IT specialists, not clear whether the sample is representative
Based on 9387 responses of IT specialists DOU (5) gives the following distribution of
workforce:
IT outsourcing
company
45%
IT product company
28%
IT outstaffing company
9%
non IT company
5%
Startup
3%
Freelance
3%
IT Ukraine Association, BRDO, Forbiz, EU4Business (6) (2018 ) based on their sample of
companies state that “around 70% of companies provide services to a broad range of clients
(EPAM, GlobalLogic, Netcracker and others), around 15% work as Global InHouse Centers
(GIC) for one parent company (Wargaming.net, Ring, Samsung R&D Institute Ukraine,
Oracle) and 15% create their own product (Genesis, EVO, Terrasoft)” (page 5-6).
5 DOU, 2019. Portrait of IT specialist in 2019. Infographics.
6 IT Ukraine Association, BRDO, Forbiz, EU4Business, 2018. Розвиток української IT- ндустр ї.
In addition, the strategy states the following:

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01
Types of companies by number of employees and percent of each type
No updated data on companies by size for Ukraine overall.
245 companies employ 50 employees and more (out of 750 total (AVentures, Aventis
Capital, Capital Times 2019)
DOU in its TOP 50 report states that 17,9% of respondents work in companies with 1000+
employees». (7)
Ukrainian Hi-Tech Initiative (2012) (8) estimated the following distribution of companies (6)
7. DOU, 2020. Labour market in 2019: 20% growth and hype over taxes
8. Ukrainian Hi-Tech Initiative., 2012. Exploring Ukraine - IT outsourcing industry.
9. IT Dnipro Community., Sociological Agency Fama, 2019. IT Dnipro Research 2019.
10. Kharkiv IT Cluster., PricewaterhouseCoopers Advisory., 2019. Kharkiv IT Research
11 Lviv IT Cluster, 2019. IT RESEARCH 4.0
12 Lobova O., Sudolskiy R., 2018. Game Development in Ukraine, Industry Guide. Achievers Hub, UNIT.City
13 SaaS Nation, UNIT.City, Center42 Innovation Agency, 2019. SaaS industry in Ukraine 2019: Key trends and tech
companies, operating on a subscription business model.
14 MarTech Made in Ukraine, 2019. Marketing and Advertising Technologies created in Ukraine.
Less than 10 employees – 18%
11-50 employees- 38%
51-100 employees- 16%
More than 101 employees- 27%
More precise data is presented in IT clusters reports (Dnipro, Lviv, Kharkiv) and in sector
reports, such as Game development, SaaS, MarTech.
<20 - 20% of employees (250
companies)
21-80 - 28% (95)
81-200 - 22% (23)
201-600 - ~19% (8)
>600 - ~11% (2)
Dnipro claster (9)
<20 -141 companies
21--80– 270
81-200 – 44
201-600 -23
>600 – 5
Kharkiv cluster (10)
<10 -3.6% (142)
11-50 – 23.5% (243)
51-250 – 27.2% (67)
251-400 -2.5% (2)
>401 – 43.2% (7)
Lviv cluster 11)
>500 – 3 companies
100-500 - 5
50-100 6
10-50 - 22
<10 - 32
Game Development (12)
>100 - 16.2% of companies
61-100 - 8.6%
41-60 - 8.6%
21-40 - 21%
11-20 - 20%
1-10 - 25.6%
SaaS (13)
>100 - 8.4% of companies
61-100 - 1.68%
41-60 - 19.33%
21-40 - 23.53%
11-20 - 11.76%
1-10 - 36.13%
MarTech (14)
26
Big difference on what usually is reported in market overviews as R&D and what is state
statistics on R&D

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01
IT sector reports define R&D centers as captive
centers of international companies. Reports
usually state that there are 90-110 R&D centers
in Ukraine (AVentures Capital & Ukraine Digital
News 2016, Unit.City, Western NIS Enterprise
Fund 2019), though it is not actually known
whether they do R&D or just provide services to
their companies as Global InHouse Centers. In
terms of number of employed IT professionals,
the most popular industries for R&D in IT are
telecommunications, e-commerce, gaming and
other software (AVentures Capital & Ukraine
Digital News 2016).
Ukrainian patenting is well described in
Innolytics Group, SingularityU Kyiv Chapter,
Unit City and DLA Piper, 2018 (16) . Data
covers 2007-2017 years. Number of patents
registered abroad with priority in Ukraine
amounted to 4 096 in 2007-2017, including
152 patents in computer technologies.
In comparison, patents registered abroad
with foreign jurisdictions only (i.e. without
priority in Ukraine) amounted to 4 633,
including 1079 patens in computer
technologies.
The National Academy of Sciences counts
R&D organizations in another way. Data is
collected based on statistical forms for
enterprises, scientific organizations,
educational institutions. Number of
organizations which conducted R&D
activities was 950 in all sectors in 2018 and
this number decreases steadily over years
(SSSU 2019, page 12)(15). Number of
employees in R&D activities amounted 88.1
thousand,
Out of 950 organizations in R&D, 457 were
in the public sector, 351 in business, 142 in
higher education and 0 in the private non-
profit sector.
Number of research institutes and universities
15 State Statistics Service of Ukraine(SSSU), 2019. Scientific and innovation activity in Ukraine in 2018 (in Ukrainian).
Statistical digest.
16 Innolytics Group, SingularityU Kyiv Chapter, Unit City and DLA Piper, 2018. Ukraine in the Global Innovation Dimension
Report 2007-2017.
Number of patents issued
This implies that patents in computer
technologies are focused on foreign
markets.
Patenting of IT sector is summarized on
the figure below (see Innolytics Group,
SingularityU Kyiv Chapter, Unit City and
DLA Piper 2018, page 26).
There was no significant increase in patent
activity over 2014-2017.
27

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01
Total
natural sciences
technical sciences
medical sciences
agricultural sciences
social sciences
humanities
28
16 773.7 100%
3 457.0 21%
10 678.6 64%
616.1 4%
976.0 6%
687.9 4%
358.2 2%
Total R&D expenditures amounted to UAH 16.8 bn in 2018, including 3.8 bn on fundamental
research, 3.6 bn on applied research, 9.4 bn on experimental development.R&D
expenditures constituted 0.45% in 2017 (0.47% of GDP in 2018), compared to 2.06% in EU-
28, 1.03% in Poland, 1.29% in Estonia, 0.51% in Latvia, 0.89% in Lithuania, 0.50% in Romania.
For more details, please see SSSU 2019 or World Development Indicators database by the
World Bank.
SSSU gives the following distribution of R&D expenditures by sector (SSSU 2019, page 54)
Size of investments in R&D
Source: Innolytics Group, SingularityU Kyiv Chapter, Unit City and DLA Piper, 2018. Ukraine in the Global Innovation Dimension Report
2007-2017, page 26
UAH mln Share, %

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01
29
Ukraine’s largest partner for joint R&D activities in IT remains the United States, followed by
the EU countries, Israel and others. (AVentures Capital & Ukraine Digital News 2016). Out of
96 R&D centers in the report, 44 were from the US.
International cooperation in R&D
Source: AVentures Capital & Ukraine Digital News, 2016. IT Ukraine. IT services and software R&D in Europe’s rising tech nation, page 145

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01
Overall, Ukraine usually scores higher in education (due to the higher education rollover
ratio), skills and knowledge output and lower on macroeconomic stability, institutions,
and business environment.
1.1.6 International rankings
Ecosystem rankings
StartupBlink Startup Ecosystem Rankings (17)
A.T. Kearney Global Services locations (18)
31/100
Financial attractiveness
20/50
People skills and availability
3
Business environment
33
Digital resonance
47
34
30
17 StartupBlink, 2019. Startup Ecosystem Rankings Report 2019
18 A.T..Kearney, 2019 Digital resonance: the new factor influencing location attractiveness. The 2019 Kearney Global Services
Location Index

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01
Ecosystem rankings
Global Competitiveness Index (19) 85/141
Institutions
Infrastructure
ICT adoption
Macroeconomic stability
Health
Skills
Product market
Labour market
Financial system
Market size
Business dynamism
Innovation capability
104
57
78
133
101
44
57
59
136
47
85
60
Bloomberg Innovation Index 2019
(21)
56/60
R&D
Manufacturing value added
Productivity
Hi-tech density
Tertiary efficiency
Researcher concentration
Patents
57
57
57
35
48
49
36
The Good Country Index (22) 76/153
Science & Technology Global
Contribution
Culture
World Order
Planet & Climate
Prosperity & Equality
Health & Wellbeing
1
55
131
41
87
103
Global Innovation Index (20) 47/153
Output rank
- Knowledge & technology
outputs
- Creative outputs
Input rank
- Institutions…
- Human capital & research
- Infrastructure
- Market sophistication.
- Business sophistication
32
28
42
82
96
51
97
90
47
19 Schwab K. (ed.), 2019. The Global Competitiveness Report 2019. Geneva: World Economic Forum.
20 Cornell University, INSEAD, and WIPO (2019); The Global Innovation Index 2019: Creating Healthy Lives—The Future of
Medical Innovation, Ithaca, Fontainebleau, and Geneva.
21 Ukrinform, 2020. Ukraine down in Bloomberg Innovation Index.
22 The Good Country Index - Results". Goodcountryindex.org. 2019
23 IMD World Competitiveness Center, 2019. The IMD World Digital Competitiveness Ranking 2019.
24 Portulans Institute (2019): Network Readiness Index 2019, Washington D.C., USA.
25 The ICT Development Index 2017. Ukraine.
IMD World Digital Competitiveness
(23)
60/63
Knowledge
Technology
Future readiness
40
62
62
Networked Readiness Index (24) 67/121
A. Technology pillar
B. People pillar
C. Governance pillar
D. Impact pillar
71
63
67
65
The ICT Development Index (IDI)
2017 (25)
79/176
ICT access sub-index 2017
ICT use sub-index 2017
ICT skills sub-index 2017
71
161
15
ICT & digital economy indices
31
1.1.6 International rankings

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01
Global Competitiveness Index (15)
Year 2018
The volume of production* (SSSU)/
Turnover/FAMA)
6580
Source SSSU
Ukraine
427
SSSU
Dnipro
435-452
FAMA
647
SSSU
658-718
FAMA
Lviv
*NACE codes 58.2, 62, 63
32
1.2.1 Profits
Financial and economic indicators
of various types of IT companies
Profit structure of each type of companies
Data on profit and profit structure of each type of Ukrainian IT companies is not covered in the
literature.
Still there are estimates of the turnover and economic impact of the industry (impact on GDP),
mainly conducted by FAMA. The turnover of the industry was calculated with the help of the
Income Approach and the Production Approach.
Production volumes can also be provided by the State Statistics Service.

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01
Amount of taxes paid, distribution to local/state budgets
Outdated data for Ukraine overall, cluster estimates made by two companies (FAMA, PwC)
Based on assessed literature, the amount of taxes paid is estimated by two companies: PwC and
FAMA sociologic agency. FAMA estimated taxes paid for IT Dnipro Clusters (26). PwC estimated
for Kharkiv (27) and Ukraine overall (28). Results are presented in the table below:
26 IT Dnipro Community., Sociological Agency Fama, 2019. IT Dnipro Research 2019.
27 Kharkiv IT Cluster., PricewaterhouseCoopers Advisory., 2019. Kharkiv IT Research
28 European Business Association (EBA), PricewaterhouseCoopers (PwC). 2016. Export-oriented segment if Ukraine’s IT
services market: Status quo and prospects
Estimation of Taxes paid by IT industry, UAH mln
Year
Taxes total
Direct taxes
Indirect taxes
Local budget
State budget
Methodology
Source
5717 7411 9915 12656 10300
Ukraine
2016 2017 2018 2019 2015
2 276
37%
63%
Kharkiv
2015 2016 2017
3 581
1 236
2 345
41%
59%
4 937
1 536
3 401
43%
57%
2018
6 359
2 048
4 311
45%
55%
Dnipro
2016 2017
953
402
550
43,8%
56,2%
1 290
507
784
46,5%
53,5%
2018
1 565
631
934
46.8%
53,2%
PwC macroeconomic model
of Kharkiv IT industry, Kharkiv
IT Cluster
Based on the information
provided by the State
Fiscal Service in
Dnipropetrovsk region
IT Ukraine PwC
FAMA
sociologic agency
33
1.2.2
Taxes

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01
Structure of salaries in percent, (white, PE, black)
Data is based on the survey of IT specialists, not clear whether the sample is representative
Salaries size and trends are well covered in the literature. One of the most cited sources is
DOU. DOU conducts regular surveys of IT specialists. Based on the latest survey in mid-2019
of 9387 responses DOU presents the following structure of salaries (29)
29 DOU, 2019. Portrait of IT specialist in 2019. Infographics (in Ukrainian) DOU.ua
30 DOU, 2020. Salaries. DOU.ua
31 IT Ukraine Association, BRDO, Forbiz, EU4Business, 2018. Розвиток української IT- ндустр ї. Page 11
Salary growth trends in the last and coming years by category/position
Position
Jr. Software Engineer
Software Engineer
Sr. Software Engineer
Software Tech Lead
System Architect
768
2200
3800
4600
6150
650
2000
3775
4000
5600
800
2000
3500
4500
5050
900
2150
3750
4100
4350
650
1800
3500
4000
4500
Java
Java
script
C#/.
NET
C++ PHP
700
2000
3950
4000
6000
Python
Ruby/
Rails
800
2300
4000
4000
-
10% in envelope or on personal bank card
5% minimal salary + salary in envelope
10% officially employed
70% private entrepreneur
No data on coming years in the reports
DOU also provide salaries by categories of Senior software engineer, Software engineer,
Junior Software engineer by cities and specialization every half a year (30). Average income
in IT sector exceeds average salary in Ukraine by 7 times (31) and the difference persists
over time.
Number of jobs in IT continue to grow. The demand for Ukrainian IT talent exceeds the
supply. Amid the growing demand, the salaries have been on a constant rise for the past
decade. In Ukraine salaries range from $650 for Junior Developer to $5000 (on average) for
a Team Lead (see table below)
Average Gross monthly salary in 2019 (in USD)
Source: DOU.ua
34
1.2.3
Salaries

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01
35
As the demand greatly exceeds supply, companies compete not only with salaries but also
offer other employee benefits, including modern office spaces, flexible working schedules,
appealing food and challenging projects (32).
Among Belarus, Poland, Romania and Ukraine, the salary rates are similar with Belarus being
a slightly cheaper talent market (33).
32 AVentures, Aventis Capital, Capital Times, 2019. Software development in Ukraine, Poland, Belarus and Romania
33 AVentures, Aventis Capital, Capital Times, 2019. Software development in Ukraine, Poland, Belarus and Romania,
page 15
Source: AVentures, Aventis Capital, Capital Times, 2019. Software development in Ukraine, Poland, Belarus and Romania
1.2.3
Salaries

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01
Size of investments in the IT sector
Data on investment in IT comes from two sources: AVentures annual dealbook reports (34) and
Ukranian Venture Capital Association and Aventures (35) publications.
According to Aventures, investment to tech sector was USD 544 m (compared to USD 323 in
2018). 77% of investment went to three companies Gitlab, Grammarly, People.ai. (AVentures
Capital 2020, page 5-6)
Investments amounted to USD 510m according to UVCA report (337m in 2018), including USD
460m of M&A deals, USD 6.1m of angel investment, USD 38m of private equity investment.
34 AVentures Capital, 2020. DealBook of Ukraine. 2020 edition.
35 Ukrainian Venture Capital and Private Equity Association (UVCA), Delloitte, 2020. Ukrainian venture Capital and Private
Equity Overview 2019.
Types of investments by phase (seed, growth, etc)
Two sources give the following estimates on funding on each stage.
USD m
Year
Total investment
Seed
544
20
Aventures
337
18
337
12
323
30
UVCA, Deloitte
2018 2019 2018 2019
Round A
Round B
26
0
18
30
15
0
19
30
Growth
Undisclosed deals
498
-
180
87
439
40
244
-
Type of investments by sources (UA located, attracted foreign capital etc.)
Data vary between two sources
Share of foreign capital in 2018: 53% (~11m out of 20) in seed stage and 61% (~16m out of
26m) in Series A. Aventures notes that Ukraine-born companies typically build physical
presence in their target markets (US/ EU) and raise Series A-C abroad. As a result, Ukrainian
startups compete globally for early stage financing in international financing hubs.
According to UVCA Ukranian funds constituted only USD 8m (1.7% of disclosed deals). Main
countries of origin are US (423M), UAE, EU etc.
Local VC funds slowed down new investments, waiting for exits to raise next funds.
36
1.2.4
Capital & Investments

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01
Number of exits and M&A
According to UVCA and Deloitte (2020), number of exits has jumped to 29 in 2019 compared to
8 in 2018
Types of investors and investor map
Maps are not complete
Aventures (2020) and UVCA and Deloitte (2020) gives the following information on investors
37
36 Ukrainian Venture Capital and Private Equity Association (UVCA), 2017. Investors Book. Who is who on the Ukrainian
investment market.
Source: Aventures 2020, page 10
UVCA and Deloitte (2020) cites the following companies: Aventures, Horizon Capital, SMRK
VC Fund, ICU, FISON, Overkill, Genesis, Wise Guys, TA ventures, TAAS Capital Fund,
Innovation D.TEK. Also in 2017 UVCA published investors’ book Who is who on the
Ukrainian investment market with more detailed description of investors (36).
1.2.4
Capital & Investments

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01
Types of infrastructure, required for IT companies to operate
well (interconnections of IT sphere and infrastructure through analysis of cost
structure - spending on infrastructure by companies as a share in costs)
N/A
1.3 1.3.1 Infrastructure
1.3.2 Broadband internet, 4g and similar
indicators
Infrastructure
37 BRDO, 2019. 900 MHz band use expands 4G coverage throughout Ukraine within 1.5 year.
38 Boyland P., 2019. The State of mobile network experience. Benchmarking mobile on the eve of the 5G revolution.
Opensignal.
39 World bank. Fixed broadband subscriptions – Ukraine.World Development Indicatos, The World Bank Group.
40 State Statistical Service of Ukraine (SSSU), 2019. Communication subscribers as of January 1, 2019
4G
BRDO cites unofficial data on 4G coverage.
“In Europe, 4G communication is available
to more than 90% of the population: in the
Czech – to 98.8%, in Sweden – to 100% of
the population. In Ukraine, according to
unofficial data, this figure goes up to 65%
(37).
Similar data is provided in Opensignal report
“The State of mobile network experience”
(38). The report aims to provide comparable
data across countries on mobile user
experience as 4G Availability for 87
countries. 4G Availability shows the
proportion of time Opensignal users with a
4G device have a 4G connection. 4G
Availability is not a measure of coverage or
the geographic extent of a network.
According to the report, 4G is available
66.4% of the time in Ukraine.
The Radio-Frequency Resource (RFR) is a
key in 4G provision: low frequencies provide
a larger coverage range, while high
frequencies are better suited for the
transmission of large volumes of
information.
It is costly to provide coverage for the
countryside and roads in these bans. In
February, the Cabinet of Ministers of Ukraine
lifted a prohibition on the use of 4G in the
800-900 MHz bands (Order No. 41 of
05.02.2020), which is better suited for large
open spaces and countryside.
Fixed broadband
World Bank provides data on Fixed
broadband subscription. For Ukraine it
constitutes 5,405 (39).1 thousand as of end-
2018. This corresponds to 12.8
subscriptions per 100 people, compared to
14.49 world average and 35.02 for the EU in
2018. World Bank data comes from the
International Telecommunication Union,
World Telecommunication/ICT
Development Report and database. SSSU
also gives the number of internet
subscribers, including 5288.3 thousand of
fixed broadband subscribers as of end-2018
(40).
38
Broadband internet, 4G and similar indicators (narrow understanding of
infrastructure)

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Human Capital
2. 1
Human capital in IT:
market overview
2
2. 2
Education market
overview
2. 3
Existing gaps analysis

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01
Junior 27%
Middle 36%
Senior 19%
Lead 11%
DOU, Ukraine Total
Junior 25%
Middle 42%
Senior 33%
Kharkiv (43)
Trainee 3%
Junior 24%
Middle 45%
Senior 28%
Dnipro (44)
Trainee 3%
Junior 26%
Middle 42%
Senior 30%
Lviv (45)
40
2.1.1 Specialists
Human capital in IT: market overview
Number of specialists that work in IT sphere in IT companies
There are different sources on the number of people working in IT sector, but they all give
very similar results
41 DOU, 2019. Ринок прац 2019: р ст 20% й аж отаж навколо податк в.
42 IT Ukraine Association, BRDO, Forbiz, EU4Business, 2018. Розвиток української IT- ндустр ї
43 Kharkiv IT Cluster., PricewaterhouseCoopers Advisory., 2019. Kharkiv IT Research.
45 Lviv IT Cluster, 2017. Economic impact of IT industry
As industry development is very dynamic, even several months lag between the
reports results in substantial difference in figures.
191.8 thousand persons as of end-2019 according to DOU estimates (41)
(compared to 159.7 thousand in 2018)
192.1 thousand persons according to the State of European Tech Report 2019
by Atomico.
Unofficial estimates are very close to official data if number of employees is
combined active private entrepreneurs. IT Ukraine Association, BRDO, Forbiz,
EU4Business (2018) (42) compared DOU estimates (127 thousands in 2017)
with official data for employees (46 thousands) and private entrepreneurs (94
thousand total, but when liquidated individual entrepreneurs are excluded, 80
thousand persons remains)
SSSU gives slightly higher numbers: 201 thousand as of end-2018 in IT (both
individual entrepreneurs and official employees)
Number of specialists that work in IT sphere in non-IT companies
This issue is not covered in the literature and is impossible to receive from official statistical
sources. 4% of DOU sample work in non-IT companies.
Types of specialists by maturity level
Based on the online survey of 9387 respondents, DOU presents results for Ukraine overall.
Similar distributions of IT specialists are also available in cluster reports.

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01
41
Gender type
As in previous question, data is provided by DOU and cluster reports DOU survey reports
that there are 24% (46) of women in IT. They usually start career as quality assurance,
developers, testers, designers, and non-technical jobs such as HR, PR, and Sales. 11% of
developers and 38% of testers and project managers are women.
Language skills, soft skills
10% of angel investors are women according to the State of European
Tech Report 2019 by Atomico
Kharkiv cluster reports 28% of women, 72% of men in IT, while Lviv figures
constitute 34% and 66% respectively in 2019
Data on English knowledge is usually based on DOU survey as well. It is self-reported by IT
specialists:
These figures are hard to compare with data from other countries.
Therefore, comparison is usually based on English proficiency index (47) , though it is for
the country overall, not for the ICT sector. In this index Ukraine is classified as a country with
low proficiency (rank 49) and is placed just after Belarus and Russia, compared to high
proficiency in Hungary and Romania and very high proficiency in Poland.
Ukrainian software developers are culturally close to European and American partners and is
usually considered as strength (48) of Ukraine. More peculiarities are described by NIX (49).
46 DOU, 2019. Portrait of IT specialist in 2019. Infographics.
47 Education First. English Proficiency Index.
48 Agile Engine, 2018. Top outsourcing destinations to watch in 2018
49 Serheichuk, N., 2019. An honest look at Ukrainian software developers: cross-cultural communication in outsourcing, Ni-X
2.1.1 Specialists

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50 Kharkiv IT Cluster., PricewaterhouseCoopers Advisory., 2019. Kharkiv IT Research.
52 Lviv IT Cluster, 2017. Economic impact of IT industry
In addition, IT Ukraine Association, BRDO, Forbiz, EU4Business (2018) gave more aggregate
classification in 2017:
Developers 53%
QA/QC testers 15%
Non-technical professions
(HR, PR, Sales) 6%
Other technical
Professions 5%
System administrators 3%
Business analysts 3%
Designers 3%
DOU, Ukraine Total
Software Development -
56.8%,
Quality Assurance - 23.2%,
business analysts - 2.5%,
Project Management - 7.9%,
Kharkiv (50)
Software Development 45.2%
Quality Assurance 13.8%
Other technical staff 7.1%
Other non-technical staff
19.7%
Project management 7.6%,
Top-level Management 6.7%
Dnipro (51)
Software Development
48,3%,
Quality Assurance 18,7%,
Other technical staff 4.6%
Other non-technical staff
15.9%
Project Management
Specialist10,6%,
Top-level Management 2%,
Lviv (52)
Engineers (software engineer, quality assurance etc.) 74%
Other staff (project managers, business analysts, designers) 15%
Administrative staff (HR, PR, legal) 10%
Service personnel (cleaners, security men, etc.) 1%
Types of professions in IT sector and percent of various professions in IT
The table below summarizes available data on the structure of IT processions in Ukraine
overall and regional perspective as well.
Main programming language
JavaScript 28,3%
Java 16,2%
C#/.NET 15,6%
PHP 13,0%
Python 6,2%
C++ 3,7%
Swift 3,6%
Kotlin 3,4%
Ruby 2,2%
Go 1,6%
Other 6,3%
SQL 60%
JavaScript 45%
Java 32%
C# 28%%
C++ 27%%
Python 26%
PHP 21%
Node.js 16%
Android/Kotlin 7%
Objective-C/Swift 4%
Golang 4%
Ruby 3%
Scala 2%
Assembly 1%
Other 5%
Java 59%
C++ 59%
JavaScript 51%
C57%
C# 55%
PHP 48%
Python 45%
TypeScript 45%
Pascal / Delphi 39%
T-SQL 35%
PL-SQL 33%
Ruby 21%
Objective-C 20%
Kotlin 16%
Swift 16%
The most popular
programming languages
among
IT specialists in Lviv
JavaScript 71%
C++ 47.8%
Java 47.5%
C# 44.7%
Python 43.4%
42
2.1.2 Professions

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53 DOU, 2019. Labour market in 2019: 20% growth and hype over taxes.
54 Ott M., Tymchenko O., 2020. Who to be: who are employers looking for and what specializations do students
choose? (in Ukrainian) VoxUkraine
55 DOU, 2020. Where, how and how much: we analyze hiring of juniors in 2019 (in Ukrainian).
Ott and Tymchenko (54) (2020) based on Jooble, report 136 275 vacancies in IT in 2019
(35% of total number), though as Jooble aggregates vacancies across job search websites,
double counting of vacancies is not excluded.
Front End 7 062
QA 6312
PHP 3979
.NET 3837
Java 3514
Marketing 2654
DevOps 2501
Project Manager 2270
Design 2246
Analyst 2043
Python 1995
Node.js 1854
Sales 1697
HR 1621
Support 1383
C++ 1365
iOS/macOS 1238
Other 1226
Number of university graduates, employed by IT sector
DOU reports 5047 vacancies per month in 2019 (53) , total of 60570 vacancies in 2019,
growing 9% year-on-year.
Android 1067
SysAdmin 934
Data Science 917
Ruby 837
Product Manager 689
DBA 547
React Native 492
Unity 413
ERP/CRM 395
Golang 393
Embedded 384
Technical Writer 339
Security 273
SEO 241
Scala 234
1С 234
Blockchain 85
Data is not available
DOU estimates 191.8 thousand people as of end-2019 (compared to 159.7 thousand in
2018). Share of juniors estimated at 27% in 2019, 26% in 2018 which corresponds to 51.8
and 41.5 thousand respectively.
DOU also surveyed 55 IT companies regarding employment of juniors in 2019 (55). Overall
these companies hired 5370 junior level specialists. Large Companies hire juniors through
their own free educational programs.
43
2.1.3 Demand

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Amount of switchers
This issue is not covered in the literature
Remote work of UA workforce for international companies
Remote work of International workforce for Ukrainian companies
44
Source: IT Ukraine Association as reported in Hlova M., 2018. Legal aspects of outsourced software development in Ukraine: Key
highlights , Ni-X. Amount of foreign workforce attracted
Migration of IT specialists and numbers of their return
This issue is poorly covered in the literature
2.1.3 Demand

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Lack of non-technical professionals, like sales, marketing, business analysis
and management specialists.
High competition for top class IT-specialists leads to significant increase in
senior employee compensation.
Staff shortage is still tangible. Huge flow of people went into the IT industry
creating a pay gap between the junior and senior level specialists.
Limited practical knowledge and skills hinder the school to transition.
Kharkiv cluster mention outflow of talented students abroad.
Cooperation of universities with corporate IT varies between regions. Cluster
reports emphasize the need for dual education so that students could gain
practical knowledge at the workplace.
Increase in labor cost – the rates are gradually reaching the cost of
development in the countries of Eastern Europe.
Big companies are aggressively growing. Entrance of large companies into the
market will redistribute the market and these companies will poach the best
specialists. Small IT-companies and startups experience challenges with
attracting and retaining top talents due to limited financial resources at the
beginning of their business life cycle.
Obsolete labour legislation restricts hiring of professionals, forcing companies
to use subcontractors instead; additionally, it limits the transition of students to
the work environment, impedes internship opportunities and prevents
professionals from teaching at universities.
01
List of challenges in human capital in IT
45
2.1.4 Challenges

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01
2.2.1 General numbers
Education market overview
Amount of universities, preparing technical personnel
In 2018 there were 143 universities preparing professionals (bachelors, specialists,
masters) in IT specializations, based on open database of territory education graduates of
Ministry of Education of Ukraine.
46

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Amount of universities, preparing technical personnel
Relevant tech specializations also include physics and mathematics from natural sciences
and automation and computer-integrated technologies. Other tech specializations may also
be relevant, like electronics, applied mechanics, etc, but to less extent. Full list of
specializations can be found in the list of specializations approved by the Cabinet of
Ministers of Ukraine (56)
Specializations
IT specializations include
Information Technology
121
122
123
124
125
12
Software engineering
Computer science and information
technology
Computer Engineering
System analysis
Cybersecurity
Natural sciences
104
105
Physics and astronomy
Applied physics and nanomaterials
10
Mathematics and
statistics
111
112
113
11
Math
Statistics
Applied Mathematics
Automation and
instrumentation
151
Automation and computer-integrated
technologies
15
47
56 Cabinet of Ministers of Ukraine, 2015. On approval of the list of specialties and specializations for the training of higher
education students. Resolution 266 Viewed April 3, 2020.
http://vnz.org.ua/zakonodavstvo/101-perelik-galuzej-znan-i-spetsialnostej

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Applied Mathematics
Computer science and information technology
Automation and computer-integrated technologies
Total Junior Specialist
179
2 503
739
2 485
1 353
7 259
113
121
122
123
151
Junior specialist
Math
Statistics
Applied Mathematics
System analysis
Cybersecurity
Total Barchelor
839
413
1 243
86
743
2 724
5 240
3 033
397
33
2 637
17 388
104
105
111
112
113
121
122
123
124
125
151
Bachelor
Math
Applied Mathematics
System analysis
Cybersecurity
Total
3
11
38
9
140
192
162
15
78
5
653
104
105
111
113
121
122
123
124
125
151
Specialist
Math
Statistics
Applied Mathematics
System analysis
Cybersecurity
Total
374
417
473
95
771
1 438
4 214
1 969
590
938
4
11 283
104
105
111
112
113
121
122
123
124
125
151
Master
Total IT
Total
26 890
36 583
48
Number of graduates general and per each specialization

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Number of IT courses (not in universities, private initiatives and corporate Academia)
Total number is not presented in the literature
Number of prepared students of courses
The number of IT schools is growing with 43K+ graduates per year.
49

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46
2.2.2 Stakeholder map in education
50

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2.3.1 Comparing industry demand with
existing supply (quality and quantity)
Existing gaps analysis
There is a significant mismatch between
education and labour market needs in
Ukraine. Ukraine is among the most educated
societies in the world with a tertiary gross
enrolment ratio (GER) of 83% (2014,
UNESCO). At the same time analysis of
vacancies in Jooble by Ott and Tymchenko
(57)(2020) shows that 82% of vacancies do
not require higher education.
Mismatch is present in specializations of
higher education as well and it also concerns
IT sector. Ott and Tymchenko (2020)
compare Jooble vacancies with application
to higher education. Number of vacancies in
IT (136 275) was 3 times higher than
applications to IT education (39908).
There is a labor shortage of both IT and
non-IT specialists due to a rapid industry
growth.
Number of vacancies increased by 30% in
2019. However, this gap cannot be filled just
with a higher number of graduates.
Market participants admit, that there is a
huge inflow of people into the IT industry
that stopped salary growth at junior level. In
2018 the number of graduates in IT (not
including math and other tech education)
was at around 24 thousand at the level of
bachelor and higher (if math is included this
number increases to 27 thousand), compared
to total number of junior level IT specialist,
that was at 51.8 thousand in 2019.
51
updated curriculum
academic integrity
more cooperation of universities with the
corporate sector in terms of curriculum
and internships/first jobs. Some of the
clusters mention
dual education as a possible solution as
well.
At the same time, there is still a significant
shortage of middle level and senior
specialists.
As a result, the wage gap between junior and
senior level widens.
Further increase in IT education should
match industry development. IT education
exceeds the growth of industry and
graduates are not able to find jobs at junior
level, they will hardly become senior level
employees in the IT industry. More likely they
will work in another specialization or even at
another level of qualification requirements.
Another issue is quality of education, that
includes:
57. Ott M., Tymchenko O., 2020. Who to be: who are employers looking for and what specializations do students choose?(in
Ukrainian) VoxUkraine.

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Country Niches for USP
Positioning and Go-to-
Market Strategy
3. 1
Specialization
3
3. 2
Regional distribution

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Ukrainian IT companies primarily specialize in data management, telecommunications,
cloud, gaming, e-commerce, media, fintech, healthcare, and others.
Most of the reports (AVentures Capital & Ukraine Digital News 2016, National investment
council of Ukraine 2018, Ni-X 2019) provide the same breakdown of almost 150 largest
companies of Ukrainian IT industry by sub-sectors. This breakdown is based on the report
by Ukraine Digital News "High Tech Ukraine From A To Z" as of 2015.
According to this data, most popular sub-sectors include Data management
(accounting for about 18%), Telecoms (13%), Cloud (12,5%), Gaming (11%), E-
commerce (11%), Media (8%), Finance (8%), etc.
53
3.1.1 Vertical: percent of companies doing
projects in various verticals
(FinTech, Agrotech, Adtech, Spacetech, etc)
Specialization
Besides, AVentures Capital & Ukraine Digital News (2016) provides data on R&D
subsidiaries of global companies working in Ukraine. They span many industries, with
gaming, software, telecommunications and e-commerce being the most represented
industry types in terms of number of employed IT professionals.
AVentures Capital & Ukraine Digital News (2016) also lists R&D developers that work in
certain sub-sectors:
Source: AVentures Capital & Ukraine Digital News, 2016. National investment council of Ukraine, 2018.

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There are also specialized reports on Game Development in Ukraine, Agritech, MarTech,
Fintech, though it is hard to relate them to the total structure of companies in IT.
USAID Financial Sector Transformation Project, UNIT.City (2018) provides information
about participants of the FinTech ecosystem of Ukraine. According to it, there are about
80 providers active in the market. Based on the survey results for 59 FinTech providers of
Ukraine, it specifies different FinTech Categories, with Payments & Money transfers
accounting for 32% of all respondents, Infrastructure – 19%, Lending – 14%. Report on
MarTech states that there are 160 companies and 5000+ employees, $130M of disclosed
investments.
54
3.1.1 Vertical: percent of companies doing
projects in various verticals
(FinTech, Agrotech, Adtech, Spacetech, etc)
Specialization
Source: AVentures Capital & Ukraine Digital News, 2016.

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01
There is no data on percent of companies having cross-specialization on international
trends.There are reports on AI, AR/VR, Blockchain, but they are mostly focused on mapping.
3.1.2 International trends: percent of companies
having cross-specialization on international
trends (AI, AR/VR, Robotics, etc).
Specialization
55

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Distribution of legal entities.
According to UNIT.City and StrategEast, 2019. Innovative Ukraine, around 50% of the IT-
related legal entities are registered in Kyiv. Also a lot of the companies reside in Kharkiv
(7.5%), Dnipro (6%), Lviv (5%) and Odesa (4.5%).
Distribution of IT specialists.
DOU survey of the Ukrainian IT professionals demonstrates that 67% of Ukrainian IT
specialists live in Kyiv, Kharkiv, and Lviv: Kyiv (37%), Kharkiv (14%), and Lviv (15%).
IT clusters.
Most reports provide information on major regional IT clusters in Ukraine (National
investment council of Ukraine 2018, UNIT.City and StrategEast 2019, AVentures Capital &
Ukraine Digital News 2016).
According to UNIT.City and StrategEast, 2019. Innovative Ukraine, there are 16 IT clusters
in Ukraine, the most significant of which are located in Lviv, Kharkiv, Kyiv, Dnipro, Lutsk,
Ivano-Frankivsk, Chernigiv, Cherkasy. Lviv IT Cluster is the largest in Ukraine, uniting over
80 members.
However, the information about members of IT Clusters is outdated and some of the
NGOs, related to clusters mentioned here are not active at the moment (Odesa IT
Cluster).
There is a good overview of Lviv, Kharkiv, Dnipro. Kyiv is well covered in general reports.
Data on other regions is scarce.
3.2.1 Share of each region in each element of
ecosystem structure
56

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57
Source: National investment council of Ukraine, 2018
ecosystem structure
AVentures Capital & Ukraine Digital News (2016) maps regional distribution of most popular
locations in Ukraine for opening an international R&D center. According to the report,
Ukraine houses over 100 R&D centers of global companies, half of them are in Kyiv. Chief
among other major cities with high concentrations of R&D centers are Dnipropetrovsk (15
centers), Lviv (15), Odessa (13), Kharkiv (11) and Vinnytsia (6).

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ecosystem structure
Source: AVentures Capital & Ukraine Digital News, 2016.
According to MarTech Made in Ukraine, 2019, Kyiv is a key location for martech (marketing
technologies) companies with 68,4% of offices based here. Lviv 6.8%, Odesa 6.8%, Dnipro
3.8%, Kharkiv 3%, Chernigiv 2.3%. Only 5% of martech companies have their offices outside
of Ukraine. SaaS Nation, UNIT.City, Center42 Innovation Agency, 2019 explores the location
of Ukrainian SaaS-companies’ R&D offices: Кyiv - 51%, Оdesa - 9.5%, Dnipro - 8.4%.
58

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3.2.2 Smart specialization of regions
Not directly covered in the literature, scarce data is provided by clusters
Most reposts provide descriptions of major regional IT destinations in Ukraine that usually include
Kyiv, Lviv, Dnipro, Odesa, Kharkiv. Data on major characteristics of these regions (human capital,
educational system, number of companies, clusters) are almost consistent among different
reporters.
Kyiv
City
40,000 specialists in the IT
outsourcing sector, which
is 46.6% of all resources in
Ukraine
Human
capital
38+ universities and
colleges that prepare
future IT professionals
Educational
system
52+ Software
outsourcing firms with
80+ employees
52+ International R&D
centers Kyiv IT Cluster
Number of IT
companies
Lviv 20,000 qualified IT
software developers - 10%
of the Ukrainian IT
resources
10 colleges and 7 higher
technical educational
establishments.
Currently, more than
12,000 IT specialists are
studying in Lviv. Around
5,000 engineers
graduate from Lviv
educational institutions
every year
More than 192 IT
companies
32 Software
80+ employees
14 International R&D
centers
Lviv IT Cluster
22,000 specialists work in
the software development
sector - 16.2% of all IT
resources in Ukraine
5 Universities with
technology and
engineering faculties
35 Software
80+ employees
centers
Kharkiv IT Cluster
8,000 technical specialists,
which constitutes 5.5% of
the Ukrainian IT talent pool
10+ Universities and
colleges with technical
education
150 IT companies
(approximately half of
them are IT service
providers and the other
half are software
publishers)
28 Software
80+ employees
centers
Odesa IT Cluster
Around 9,000 IT or 7.9% of
all Ukrainian IT resources
5+ Universities and
colleges with technical
education, 17,000
technical graduates
More than 44 software
vendors
44 Software
80+ employees
centers
IT Dnipro Community
Kharkiv
Odesa
Dnipro
Source: UNIT.City, StrategEast, 2019. Innovative Ukraine 59

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60
3.2.2 Smart specialization of regions
IT Dnipro research, 2019 and Kharkiv IT research 2019 surveyed the IT provided details on IT
companies specialization in this region:

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Methodology and uncovered needs for a comprehensive
report of the IT Sector in Ukraine and key criteria for
comparing Ukrainian IT Sector with other countries
Despite a large number of reports, in many cases, the data on critical elements of the
ecosystem is lacking or has significant drawbacks, including questionable sources,
outdated information, or only regional covering of several clusters with no country
perspective. Reсiting of unreliable data from one report to another misleads market
participants and stakeholders. Based on our research we identified the following areas
which lack sufficient data:
Ecosystem mapping with key stakeholders on each segment
Data on the size and structure of the local IT services market: available data on the local
market is scarce, contradictory and outdated
Biggest consumers of IT on the local market: partial, contradictory and outdated data
Structure of exported IT products and services in 2019: fragmented and very scarce data
Number of companies registered in Ukraine: Official data is not representative as one
company often combines several legal entities, while experts’ estimates vary substantially
Number of companies operating in Ukraine but not officially registered as legal entity
Share of foreign companies in the Ukrainian IT sector
Legal types of companies and share of each type
Types of companies by business model: Data is based on the survey of IT specialists
(which company you work for), not clear whether the sample is representative
Structure of companies by the number of employees: fragmented cluster data is available,
but there is no updated data on companies by size for Ukraine overall
There is a big difference on what usually reported in market overviews as R&D and what is
state statistics on R&D and a need to agree on a definition
Size of investments in R&D in IT is also hard to measure and needs to be further
investigated
Profit Structure: Data on profit and profit structure of each type of Ukrainian IT companies
is not covered in the literature
Taxes: Overall estimates are up to date, but details are not revealed, cluster estimates
made by two companies (FAMA, PwC) give a more detailed overview
Structure of salaries: Data is based on the survey of IT specialists, but the
representativeness of the sample is not guaranteed
Salary growth trends in the last and coming years by category/position: No data on
coming years in the reports
Reliable data on investments structure (local vs foreign): Data vary between two sources
Types of investors and investor map: Maps are not complete
Data on infrastructure, required for IT companies to operate well: not available
The number of specialists that work in the IT sphere in non-IT companies is not presented
in the literature and is impossible to receive from official statistical sources
The number of university graduates employed by IT sector: data on school to work
transition for IT specialists is scarce, it is not known whether all IT graduates with IT
specializations can find a job in the IT sector, how many graduates leave the country, etc.
Migration of IT specialists is poorly covered in the literature
Amount of switchers
Remote work of UA workforce for international companies
Remote work of international workforce for Ukrainian companies
Share of companies doing projects in various verticals (FinTech, Agrotech, Adtech,
Spacetech, etc): fragmented and partial data 61

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Methodology and uncovered needs for a comprehensive
report of the IT Sector in Ukraine and key criteria for
comparing Ukrainian IT Sector with other countries
Cross-specialization of companies in modern technology (AI, AR/VR, Robotics, etc): data
is not available. There are reports on AI, AR/VR, Blockchain, but they are mostly focused
on mapping
Share of each region in each element of ecosystem structure. There is a good overview of
Lviv, Kharkiv, Dnipro. Kyiv is well covered in general reports. Information on other regions
is scarce
Smart specialization of regions. Not directly covered in the literature, scarce data is
provided by clusters
All global segments need to be analyzed
surveys of IT companies and IT specialists,
experts interviews;
desk research.
The data missing is crucial for the understanding of ecosystem needs.
Thorough further research is required to cover existing gaps in the data needed for
informed policy-making.
This research should include:
The next step is to compare Ukrainian tech ecosystem to its peers based on conceptual
framework and key elements presented in the ecosystem map of this report. In addition,
international experience should be studied.
Literature on startup ecosystems is developing, evaluation of policies and impact of
ecosystem elements is sporadic and rare.
Comprehensive literature review is required.
61

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References (p.1)
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fbclid=IwAR3feJDsxAIMubNi_ruEiQPSEtsHZRRqnHtP2a5VTfx28Y_gnkcjCqVWflo
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https://agileengine.com/top-outsourcing-destinations/
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