The Ukrainian IT sector has entered the top three most powerful in the region
Despite the war, the Ukrainian IT sector grew by 5.8% last year and now ranks second in Central and Eastern Europe in terms of developer capacity, after Poland.
These findings were announced during a Ukrainian-Polish conference on the development of cooperation in the IT, fintech, and ICT sectors, as reported by UBN.
"70% of Ukrainian fintech companies have reached the breakeven point. This is a business that has already taken place and is now in the scaling stage. These companies can be an interesting asset for Polish companies to invest in. More than half of Ukrainian IT companies are interested in expanding into global markets," said Rostyslav Duk, the head of the Ukrainian Association of Fintech and Innovation Companies.
According to him, the key areas of cooperation between the Ukrainian and Polish IT businesses include the transformation and digitization of priority sectors and the creation of new infrastructure. In the fintech sector, crowdfunding platforms, accelerators, and financial access platforms can play a driving role in the recovery process.
According to IT-Ukraine Association data, the estimated value of the Ukrainian Tech Ecosystem in 2022 reached €23.3 billion, ranking second after Poland (€36.8 billion).
The association notes that Ukraine is gradually conquering the technology scene, becoming an increasingly relevant, professional, and experienced player on the global technological stage. "There couldn't be a better time for a country with historically strong technological skills to realize its potential," IT-Ukraine states.
According to analysts, the high-tech sector of Ukraine is expected to offer $10 billion by 2025. Ukrainians are known for their creativity and ability to come up with simple yet brilliant solutions to everyday problems.
Ukraine has always been known for its quality engineering education. New generations of graduates are becoming technical experts in software development, design, and quality assurance. The number of talented technical professionals has reached 252,000 specialists, and this number is expected to grow. Experts predict that this figure will double within the next 5 years.
Modern engineers continue to expand boundaries. Petcube, Grammarly, and GitLab are just a few startups created by Ukrainians in recent years.
According to the results of 2022, IT is the only export industry in Ukraine that is growing. It brought in foreign currency inflows of $7.34 billion to the Ukrainian economy, according to data from the National Bank of Ukraine. The export volume increased by $400 million compared to the pre-war year of 2021.
As of January 1, 2023, the amount of taxes and fees paid by the IT industry to the consolidated budget of Ukraine reached UAH 32.2 billion. This is UAH 4.4 billion and 16% higher than the previous year's figure.