According to the Ukrainian tech industry market overview, the largest customer for Ukrainian information technology, in terms of money, is the United States, which imports nearly 40% of the services, and the second largest is Great Britain, consuming 10% of the IT services provided by Ukraine.
Let us take a closer look at the recent trends in the Ukrainian IT industry and compare them with the current situation in 2022.
From 2016 to 2020 we can see a significant growth in the export of IT services by Ukraine, increasing up to 228% (in the case of Great Britain) or 50% (Canada). The U.S. has also increased its import of IT services from UA by 193% in the given period, as follows:
Great Britain: 228.75%↑
The only exception is Switzerland. The export decreased by 12.59%↓ to that country.
As to IT professionals, there are 285 thousand developers (and other IT specialists) in the sector of information technology in Ukraine in 2022. Importantly, this number increases by 25-30% annually.
Record Revenue in Q1 2022
Despite the war, the Ukrainian IT industry demonstrated a record of $2 billion in export revenue in the first quarter of 2022.
Market Сonjuncture in 2022
Many Western customers collapsed their business activities in the Russian Federation, making a notable change in the global IT market. That opened even more opportunities for the Ukrainians. Some IT companies report (according to Lviv IT cluster) an increase of 30% in revenue in 2022.
Lower Costs Attracting Foreign Customers
In terms of costs, the salaries of the Ukrainian developers are $2-5k per month ($24-60k per year) in 2022, which is much lower compared with the United States — $110k per year (according to US News: Money)
In 2021, 87% of Ukrainian IT companies had already tested the hybrid work mode, combining remote work from home with partial office attendance. As the war unfolded, 8.8 million Ukrainian citizens left the country for safer places, such as Germany, Poland, Netherlands. Those of them who worked in the IT sector continued their professional activity remotely. Surprisingly, 3.5 million of the Ukrainian refugees returned home, mostly to the Western parts of Ukraine. This shows their unique ability to adjust and adapt.
We can boldly say that the Ukrainian IT industry continues to grow strongly in 2022 despite the challenges, and the industry’s growing trend confirms that it is worth choosing Ukraine as IT service provider.