Digital Tiger: the Power of Ukrainian IT—2023

Publication date:

01.04.2024

Publication from:

IT Ukraine

The IT Ukraine Association has presented a unique research project entitled “Digital Tiger: the Power of Ukrainian IT – 2023”. We compare the state and potential of Ukrainian IT with those of other countries and provide an objective assessment of the advantages of the Ukrainian IT industry on the global market, considering the challenges we face in all honesty and showcasing our overcoming them — a first for the industry. The research consists of four sections: Ukraine as an IT state, Ukraine in the Global IT Market, IT Ecosystem, and Value of Ukraine’s IT Industry.

Digital Tiger: the Power of Ukrainian IT—2023 was developed by the IT Ukraine Association and the Top Lead agency with the support of the Ministry of Digital Transformation of Ukraine. General partners of the research: UKRSIBBANK BNP Paribas Group, and Payoneer. Media partner—MC.Today.

Every year the IT Ukraine Association team works on making the research interesting, useful, and practical for our industry. Considering the latest data on IT services exports, we understand that the Ukrainian IT sector faces a challenge to retain new international clients and attract new ones. Therefore, in this year’s research, we decided to focus on supporting companies’ interaction with partners. For the first time, we compare Ukraine with key competitors and present Ukrainian IT from different perspectives,

opened the presentation ITU’s CEO Mariia Shevchuk.

Dozens of pages of the “Digital Tiger” (Research findings are presented in English) are packed with validated data that reflect the state of the Ukrainian IT industry in many parameters: the geography of cooperation and competitive advantage in markets, the state and prospects of IT education development in Ukraine, the IT ecosystem and its key elements, the top areas of IT development, leading technologies and developed verticals, and Digitalisation in the lives of Ukrainians.

The Ukrainian IT industry was compared with the industries of Brazil, the Czech Republic, India, and Poland according to the following criteria: business climate, human resources and the level of technical education, and competitiveness and infrastructure. According to the Global Skills Report Coursera, Ukraine’s level of technological skills is the highest among the compared countries. Ukraine ranks 15th in the world in terms of technical skills.

Hundreds of government services have been digitised in Ukraine. In 2023, 64% of Ukrainians used government e-services, and 20 million Ukrainians used the Diia app.

For us, this research is very important, as we are always interested in a deep understanding of the trends and challenges facing our industry. This allows us to respond to changes and promote the development of innovations effectively. Ukraine is known in the world not only for its resilience in the face of russian aggression but also as a country that offers wide opportunities for partnership and investment in various sectors. However, there is currently some level of caution and even uncertainty in the international market when it comes to Ukrainian companies. Therefore, Digital Tiger will allow us to convincingly demonstrate the strength of Ukrainian IT and its potential for international cooperation,

remarks Oleksandr Bornyakov, Deputy Minister for IT Development of the Ministry of Digital Transformation of Ukraine.

The research debunks myths about Ukraine that hinder IT partnerships. Contrary to the belief that Ukraine is predominantly an agrarian country, the IT industry has become the second-largest export industry as of 2023, accounting for 42% of total service exports from Ukraine. Despite a 3.1% decrease in the number of IT taxpayers in 2023, taxes paid by the industry increased by 11.5%.

We live with you during a war that humanity has not seen before since this one is largely digital. Technology plays a significant role both on the battlefield and in the general cyber defence of our country — not only on the front lines. The IT industry remains the driving force of the country’s economy. Even despite all the challenges, the industry gives Ukraine about 5% of GDP, and one IT worker who works creates and saves almost three jobs in the economy. And this is only for today. We believe that after the war, the IT workers’ potential will be fully unleashed. So, for us, supporting the development of Ukrainian technologies and the IT industry is part of the global strategy of both the BNP Paribas Group and UKRSIBBANK. We have had a fruitful relationship with the IT sector since 2015, and we are serving more than 100 thousand accounts as of today. Being a 9-year IT Ukraine Association supporter, we are glad to have sponsored the research, as we believe in the future of Ukraine and the IT industry, and we want to see our country strong and innovative,

comments Andrey Kashperuk, Deputy Chairman of the Board for Retail Business at UKRSIBBANK BNP Paribas Group.

ITU has identified areas where Ukraine has strong positions in the global IT landscape and outlined the IT areas that the state intends to develop in accordance with the National 2030 Innovation Strategy “WIN-WIN” of Ukraine.

The geography of Ukrainian exports, however, has not changed significantly. Over the past ten years, IT services exports have grown by an average of 18.7% per year, reaching a record $7.3 billion in 2022. In 2023, exports declined slightly, but the United States remains the leading export partner, as it was ten years ago.

We are extremely proud of the resilience and dynamic development of the Ukrainian IT industry. Even in the most challenging times, Ukrainian IT specialists continue to demonstrate high results, adapting to new challenges and finding innovative ways to grow. Payoneer—as a research partner—supports the Ukrainian IT sector by helping SMBs and freelancers make cross-border payments and establish international cooperation. We are glad that Ukrainian IT specialists continue to create a success story, making a significant contribution to the development of the Ukrainian economy and strengthening Ukraine’s position in the global arena. Our joint effort will ensure that Ukraine remains a “Digital Tiger” in the global IT space,

adds Liubov Danylina, Senior Director and Country Manager at Director of Payoneer Ukraine.

The maturity of our IT industry is evidenced by its high rankings in global ratings. For instance, we have grown by 12.8% in terms of innovation. In 2023, Ukraine ranked first among lower-middle-income countries. According to The Chain Analysis Geography of Cryptocurrency Report, Ukraine is one of the leaders in cryptocurrency adoption. Moreover, according to the E-Government Development Index, Ukraine has improved its ranking by 59.6% over the past 8 years. An EU study shows that Ukraine has one of the highest open data rates among EU member states and candidate countries — 97%.

We are observing a trend whereby the export of IT services exceeds even such industries as gas or sunflower oil exports. Every year, the IT industry outperforms other industries and increases its weight in the global market. The tiger symbolises the hard work and flexibility needed to succeed in this competitive environment,

notes Stanislav Shum, Top Lead CEO & Co-Founder

The Digital Tiger: the Power of Ukrainian IT—2023 Research Project will be an effective tool for promoting Ukrainian IT. It will be freely available to every Ukrainian company working with international partners and to all experts, market participants, media and partners who aim to have an objective understanding of the Ukrainian IT industry.