KHARKIV IT RESEARCH 2021 — THE THIRD LARGE-SCALE STUDY OF THE UKRAINIAN IT MARKET
IT ClusterIn February 2021, Kharkiv IT Cluster began conducting the third large-scale study of the Kharkiv IT market — Kharkiv IT Research 2021.
The project’s goal is to demonstrate the advantages and opportunities of the Kharkiv region using specific figures, positioning it as a key and most comfortable IT location in Eastern Europe for potential IT professionals from other cities and clients from around the world.
The key idea is that we aim to demonstrate, based on concrete facts and statistical data, that Kharkiv is an IT leader among Ukrainian regions and a leading IT location in Eastern Europe. Additionally, the results will contribute to improving conditions for conducting technology business in the region, Ukraine, and internationally.
The Kharkiv IT Research project involved:
- Kharkiv IT Cluster — the organizer and driving force of the research.
- KPMG in Ukraine — conducting research among leading companies and IT specialists in the Kharkiv region. KPMG is one of the world’s largest professional services networks and one of the Big Four audit firms.
You can view the results of Kharkiv IT Research 2021 at this link.
You can view the results of Kharkiv IT Research 2019 at this link.
You can view the results of Kharkiv IT Research 2018 at this link.
Milestones of Kharkiv IT Research 2021:
Milestone № 1. KPMG conducted a survey among IT companies:
- Analysis of last year’s results and adaptation of the questionnaire;
- Creation of a question pool for data collection;
- Distribution of the survey to IT companies;
- Interviews with top managers of leading companies in the region;
- Preparation of results modeling the IT market of the Kharkiv region.
Milestone № 2. The Sociology Department of V.N. Karazin Kharkiv National University conducted a survey among IT specialists in Kharkiv:
- Analysis of secondary data.
- Creation of a question pool for data collection.
- Distribution of the survey for completion.
- Preparation of a report according to the perspectives of the Kharkiv region.
- Preparation of an IT specialist profile.
Milestone № 3. Presentation of the results.
Presentation of the results at a large-scale event on September 9th at Superior Golf Club.
Milestone № 4. Dissemination of research results.
1. Distribution of press releases and results in national and regional media.
2. Creation of three video clips to promote Kharkiv as a leading IT location in Ukraine:
- For potential clients and partners abroad (in English);
- For the target audience Talents from Ukraine (in Ukrainian);
- Reporting video about the Kharkiv IT Research event at the golf club (in English and Ukrainian).
Expected results of Kharkiv IT Research 2021:
- Comprehensive Kharkiv IT Research Report 2019;
- Data update compared to last year’s indicators, tracking industry dynamics;
- Publication of key advantages of the Kharkiv region as an IT location;
- Increase in the number of students in technical specialties at Kharkiv universities;
- Increase in the number of workers from other regions who have decided to relocate to Kharkiv;
- Identification of main growth areas in the industry and challenges that need systematic attention;
- Attraction of foreign investments;
- Increase in contracts from Europe and America;
- Promotion of the Kharkiv region and strengthening its position as a competitive location in Eastern Europe on a global scale.
Funding: mixed, with contributions from partner funds and the budget of Kharkiv IT Cluster.
Media: national and regional media, international publications, distribution of videos with results to Ukrainian and international audiences (YouTube, Facebook, Instagram, LinkedIn), publications on Cluster’s media resources.
Summary of KHARKIV IT RESEARCH 2021’s IT Industry Study
On September 9th, Kharkiv IT Cluster presented the results of the KHARKIV IT RESEARCH 2021’s IT industry study, conducted with the participation of the “Big Four” company KPMG.
According to the results, the region’s IT industry comprises over 510 service and product IT companies, with the number of IT professionals exceeding 45,000 individuals. Over the two years of the pandemic, the IT industry in Kharkiv grew by 29%, and its total sales volume in 2021 is expected to reach $1.5 billion, representing a 53% growth compared to 2019.
The findings gathered by KPMG demonstrate key metrics of positioning IT Kharkiv as a key Tech location in Eastern Europe, attracting both IT specialists and clients from all over the world.
The report results show that, as of mid-2021, there are 511 active IT companies in Kharkiv working with 45 thousand specialists in various areas of specialization. Since 2019, the number of IT specialists has grown by 29%, and the industry volume growth, according to KPMG’s baseline assessment scenario, will hit nearly 1.5 billion USD by the end of 2021, which will correspond to a 53% growth.
Traditionally, Kharkiv vastly outnumbers the country’s other IT locations in terms of IT companies and IT specialists, second only to the capital. As far as concentration of IT specialists is concerned, Kharkiv is just as strong as Kyiv.
In the last two years, the IT industry has taken the lead in terms of not only the foreign currency revenue, but also the tax contribution it generates. Based on KPMG’s estimates, the volume of all taxes received by the country on account of the Kharkiv IT industry will reach almost 12 billion hryvnias in 2021, and this number will grow up to 16 billion by 2026, according to the baseline forecast.
The event put an increased focus on the Diia City project and its implementation. All of the panelists have agreed that it is critical to maintain the current tax level in the IT industry, ensuring that the budget gets more funds through a growing economy, not through growing tax rates.
The further development of the technology sector will confidently continue the path of investment in human capital development, joint charitable initiatives, and shaping a positive image of Kharkiv as a leading Tech location with the highest concentration of IT companies with high levels of technological expertise for international cooperation development.