UKRAINE’S IT INDUSTRY Overview Kyiv, Ukraine February 2020
GLOBAL TECH TRENDS 2 INTERNET of THINKING ECOSYSTEM GET to POWERPLAYS KNOW ME AI is THE NEW FRICTIONLESS DARQ POWER USERS INTERFACE BUSINESS 2017 2018 2019 WORKFORCE SECURE US MARKETPLACE to SECURE ME EXTENDED The UNCHARTED MY MARKETS REALITY DESIGN for HUMAN+ HUMANS WORKER CITIZEN AI DATA VERACITY SOURCE: Accenture Technology Vision 2019: Full Report
REGIONAL IT MARKET Overview 3 Ukraine, Poland, Belarus and Romania Belarus together present a formidable competition to other development hot spots $1.8 B * 49 K ** Poland 14 14 ** $7.8 B * 255 K ** $4.5 B * 31 ** 31 Ukraine 184 K ** Romania 150 150 ** $5.5 B * 105 K ** 15 15 ** IT export IT specialists tech universities & colleges * for 2018 ** for 2017 SOURCE: Trade map – International Trade Statistics, “Software Development in Ukraine, Poland, Belarus and Romania in 2019” report by Aventures, Aventis Capital, Capital Times, Tech Ecosystem Guide to Ukraine 2019 by Unit City
IT SPECIALIST COST in the region 4 Median monthly salaries of IT specialists in the region, $ 1.9 2.5 2.2 1.5 4 3.9 2.7 2.5 EXPERIENCED PROJECT MANAGER SOFTWARE DEVELOPER Ukraine Poland Romania Belarus SOURCE: “Software Development in Ukraine, Poland, Belarus and Romania in 2019” report by Aventures, Aventis Capital, Capital Times, jobs.dou.ua
UKRAINE: 5 PREDICTABLE & STABLE EMERGING MARKET In 2018 Ukraine demonstrated THE MOST RAPID GROWTH In the past 7 years GDP DP Gro Growth, h, % EBA Investment Ease of Doing Attractiveness Index Business Index by WB (comparing to respective period in previous year) (index, as at year end) 64 3.1 71 3.0 3.3 3.3 2.5 76 2.9 2015 2.3 80 81 2016 2017 2018 2019E 2.6 96 -9.8 2015 2016 2017 2018 2015 2016 2017 2018 2019 2020 “UKRAINE IS OPEN FOR BUSINESS SOURCE: World Bank, State Statistics Service because of THE SUCCESS OF REFORMS” of Ukraine, Dragon Capital EBRD President Suma Chakrabarti, in Davos 2019
Ukraine in GLOBAL INNOVATION 6 INDEXES 1 1 Good Country Index Category Science & Technology 2018 2019 27 27 European Innovation Scoreboard Ranking 2017 2018 35 31 Startup Ecosystems Blink Ranking 2017 2018 54 31 Global Open Data Index 2015 2018 50 47 Global Innovation Index 2017 2019
INNOVATION 7 TECHNOLOGIES in Ukraine The ITC industry is among the country’s FASTEST GROWING industries and A MAJOR DRIVING FORCE of Ukraine’s economy 2 nd > 4,000 184k + 100 + $ 337 M 18 the largest export tech companies software developers Fortune 500 total value of IT service providers service industry (the number is companies have venture capital in the 2018 Global expected to rise to chosen Ukrainian deals in 2018 Outsourcing-100 250k by 2025) IT services It is also diverse, from cutting edge work in AI, cyber security, natural language processing and nanotechnologies to highly commercial ventures in Overview of the Ukraine’s blockchain, FinTech, big data management, gaming, agribusiness and ecommerce IT industry
IT SECTOR in Ukraine 8 4500 IT industry has grown by nearly 40 times over the last fifteen years, 3600 from $ 110 million in 2003 3000 to about $ 4.5 billion in 2018 2500 2379 2000 1400 1100 874 697 544 530 390 250 165 110 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 4% 17% 28% share in Ukraine’s share in export share in IT export GDP 2018 services of Eastern Europe* for 2018 in 2017 *Ukraine, Belarus, Poland and Romania SOURCE: Ukrainian Hi-Tech Initiative, Symphony-solutions, Tech Ecosystem Guide to Ukraine, MoEDT estimates, State Statistics Service , “Software Development in Ukraine, Poland, Belarus and Romania in 2019” report by Aventures, Aventis Capital, Capital Times
IT COMPANIES in Ukraine 15 % create their own product Ukrainian IT companies get majority of revenues from software/hi-tech vertical Software / high tech 73 % Financial services / 31 % fintech 15 % work as an in-house center Healthcare & work as an in-house center 23 % life sciences for the parent company for the parent company Media & 17 % entertainment Retail 12 % Telecom 11 % Insurance 4 % 70 % provide IT services to a wide range of clients Security 2 % SOURCE: “Software Development in Ukraine, Poland, Belarus and Romania in 2019” report by Aventures, Aventis Capital, Capital Times
IT TALENT POOL 10 130k 16k Over & annually engineering IT graduates graduates Ukrainians are historically European countries by number of engineering graduates strong in cybernetics (thousand people) 180k + 130 105 Ukrainian tech specialists work 93 for startups and IT service 75 71 companies worldwide 66 56 48 39 Romania Italy Spain Poland UK Turkey Germany France Ukraine SOURCE: World Economic Forum, Forbes
MAJOR TECH UNIVERSITIES 11 in Ukraine, 2018 Kharkiv National Technical University of Ukraine "Igor Sikorsky Kyiv National Technical Polytechnic Institute“ University “ Kharkiv Odesa 4,314 tech graduates Polytechnic Institute” 2,105 tech Odesa National graduates Taras Shevchenko National Polytechnic University of Kyiv University Kharkiv National University 1,366 tech 1,324 tech graduates of Radioelectronics graduates 2,698 tech graduates National Aviation University 1,692 tech graduates Lviv Dnipro Kyiv Lviv Polytechnic National Technical University University Dnipro Polytechnic 2,675 tech 1,014 tech graduates graduates Overview of the Ukraine’s IT industry
COST-EFFICIENT IT PLATFORM 12 Average Annual Software Median Net Salaries of IT 3,8 Engineering Salary, Specialists, February 2019, $ thousand 2018, $ thousand 3,35 3,2 3 3 2 USA 108 1,9 1,8 1,5 Norway 72 1,4 1,4 1,4 1,4 1,3 1,2 Denmark 70 Israel 64 Germany 54 QA ENGINEER PROJECT MANAGER TEAM LEADER Australia 49 Canada 48 France 41 Kyiv Odesa Lviv Dnipro Kharkiv United 40 Kingdom SOURCE: “Software Development in Ukraine, Poland, Belarus and Romania in 2019” 1.9 4x5 report by Aventures, Aventis Capital, Capital Times Ukraine 25 According to Gartner, a global research and advisory firm, Ukraine’s SOURCE: daxx.com, payscale.com IT specialists rank first in Eastern Europe in terms of price/quality ratio
IT CLUSTERS 13 Kyiv 300 + 300 in Ukraine 40 40 K+ K+ Kharkiv 40 400 + Lutsk Chernihiv Rivne 25 25 K+ K+ Sumy Zhytomyr Lviv Poltava Khmelny- 250 50 + tskyi Ternopil Cherkasy 20 K+ 20 K+ Vinnytsia Ivano- Luhansk Frankivsk Kropyvnytskyi Uzhhorod Chernivtsi Donetsk Mykolaiv Odesa Zaporizhia Kherson 150+ 150+ Dnipro 8 K K+ IT specialists 170 + IT companies Simferopol 9 K+ K+ IT clusters From more concentrated to less
STARTUPS in Ukraine 14 2k 146k 1k + startups Events for IT patents and utility specialists, models since 2007 startups and investors SOURCE: Tech Ecosystem Guide to Ukraine 2019 by Unit City Startup investment in Ukraine, $ million 2011 2012 2013 2014 2015 2016 2017 2018
STARTUPS in Ukraine 15 $130 m cloud service for programmers each valued at >$1 billion $110 m Most prominent Ukrainian startups cloud service for programmers $110 m full-service blockchain technology $70 m LARGEST synthetic data platform for deep learning applications INVESTMENT $37 m in Ukrainian startups 2017-2018 platform for sales based on artificial intelligence
GLOBAL R&D In Ukraine 16 Kyiv 100 + global players have located R&D facilities in Ukraine, further driving the high-tech sector Ukraine emerges as a global R&D hub Lviv Ring Success story Odesa Dnipro Kharkiv In 2018, Ring which has a 900-empoyees R&D office in Ukraine, was acquired for $1B by Amazon
About 17 UKRAINEINVEST UkraineInvest is the Government’s Investment promotion office reporting to the Prime Minister created to attract and support investments in Ukraine. Navigation & WE PROVIDE: Introductions Advocacy Guidance Regional Information Key Sector Support & Insight Expertise
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