Ukraine's IT Market: Exports, Local Sales and Economic Impact

Maria Shevchuk, Executive Director of the IT Ukraine Association, for DOU:

• shared her thoughts on what currently has the most impact on business operations; 
• explained which factors could help IT exports grow; 
• laid the argument for why the success of Ukraine’s tech industry should not be measured solely by IT export figures.

To accurately assess data on IT exports, it is important to pay attention to how it is collected. In export and import reporting, companies list the export service code and the export amount, which forms the basis for analysis. For example, if a hardware company exports only its equipment abroad, the report will likely classify this as the export of equipment (products), not IT. However, if the company also provided software development services abroad, it would be classified as the export of services.

Overall, the size of the IT market is not limited to exports. It is crucial to consider sales on the local market, both of IT products and services, which generate significant revenue domestically. For example, well-known digital platforms contribute a considerable share to GDP, yet they do not appear in export statistics, even though they have a significant impact on the economy. Therefore, to properly assess the development of the tech industry, it is necessary to account for not only exports but also other factors, such as the penetration of IT into various sectors of the economy, which significantly contributes to overall economic growth.

Click here to read the full article. See our February 1st post for the qualified overview of the 2024 export data.