In late November, the Director of M & A / Strategic Alliances and the Business Development Manager of SSA Group visited Sweden to meet our current and potential clients.
October 9, 2018, The Kharkiv IT Cluster presented the results of extensive Kharkiv IT market research conducted by PricewaterhouseCoopers (PwC) and IRS-group. The project’s objective was to digitalize the local IT market for a better understanding of the IT ecosystem development directions. The research encompassed IT business and investments as well as the social life of the IT professionals in the Kharkiv region. More than 7,000 IT professionals from 36 local companies participated in surveys. The quantitative and qualitative results of the surveys were announced at a closed-door meeting. Here are the key findings.
According to PwC research, currently, there are 450 active IT companies in Kharkiv. About 25,000 IT specialists work in the industry and 76% of them are related to computer programming. Kharkiv occupies the second position in the number of IT specialists in Ukraine (after Kyiv) and according to estimates, the number of IT professionals is expected to double by 2025.
Due to the lack of demand for IT products and services inside Ukraine, most of Kharkiv IT companies are export-oriented and in 2017, more than 95% of all sales were related to foreign customers. 65% of the foreign clients were from to the USA and 25% of them were from Europe. Kharkiv IT industry does not have a distinct specialization but the main areas in which Kharkiv software developers cooperate with customers are entertainment, medicine and healthcare, insurance, media and advertising, education, retail and wholesale, banking and finance.
According to PwC analysis, the IT industry in the Kharkiv region is constantly growing. It is expected to double in size over the next 8 years and reach 1.85 billion USD by 2025. SWOT analysis of the regional IT sector reveals that Kharkiv IT industry remains attractive for investors due to a large number of educational institutions for IT specialists, sustainable industry growth that results in numerous positions for both IT and non-IT specialists, developed city infrastructure, and established cooperation between IT business and local educational institutions.
Full presentation you can find here.