If you want to open a company branch in Ukraine, you should explore the market in this country, its specifics and tendencies, in order to understand the state of the IT industry in Ukraine.
IT industry outline in Ukraine
In the last ten years, the Ukrainian market in IT services has grown significantly. Despite an increasing number of product companies and start-ups, the leading segment of the Ukrainian IT sector has been outsourcing.
The IT services market keeps growing: according to PwC data, exports in 2018 reached $4.5 billion and forecasts predict coverage of about $5.4 billion by 2020.
Market share for each technology is presented below in the pie chart:
Developer’s maintenance analysis in different countries
To visually compare the maintenance cost for one developer in different countries, see the collected information in the table below:
|MEDIAN SALARY OF SENIOR SOFTWARE ENGINEER PER YEAR||$42,000||$139,300||$97,300||$29,000–52,000|
|RECRUITING AGENCY COSTS||Each company has a different recruiting cost. In all countries, it is 15–20% of a specialist’s annual salary rate. So the costs depend on the level of salaries in a particular country. The following table shows the costs calculation of recruitment process per one Senior Software Engineer:|
|OFFICE RENT PER 1M²/YEAR||$120–500||$300–830||$220–390||$200–360|
22% — social security taxes;
18% — corporate income tax ;
20% — VAT.
|7,65% + 6% — federal unemployment taxes (FUTA) / state unemployment taxes (SUTA) depending on the state;
21% — corporate income tax.
|3,55–7,6% — social security taxes (3,55% — if the salary amounts are up to 6164 ILS, and 7,6% — if the salary is higher);
24% — corporate income tax;
17% — VAT.
|19,21– 35,2% — social and health contributions;
9–21% — corporate income tax;
20–27% — VAT.
The number of Ukrainian companies delivering software development services grows every year. At the moment this figure exceeds 1500 companies, the staff of which includes over 10 developers.
Overall, more than 130,000 developers, with 47% based in Kyiv, work in Ukraine.Other popular Ukrainian IT locations include Kharkiv, Lviv, Dnipro and Odesa.
Market share by IT companies in each city is shown below in the pie chart:
The IT industry in Ukraine has great growth potential. The average salary of a developer is $1900 while the salary of professionals in other industries is $430. This encourages young people in Ukraine to choose the profession of the developer more and more frequently.
You can see the average salary per industry in the diagram.
You will find more details about the state of the IT market in each city in this article: “How to open an office in Ukraine: choosing a city”.
Leading countries to which Ukraine exports IT services are the United States, the UK, Germany, the Netherlands and Canada. The top 10 key markets also include
The most popular industries for which Ukrainian companies develop software are e-commerce, financial services, education, healthcare and more…
In Ukraine, there are a large number of technical universities. Every year thousands of entry-level IT specialists graduate from Kyiv-Mohyla Academy, Simon Kuznets Kharkiv National University of Economics, Kharkiv National University of Radio Electronics, National Technical University “Kharkiv Polytechnic Institute,” Taras Shevchenko National University of Kyiv, Yurii Fedkovych Chernivtsi National University, Sumy State University, and Petro Mohyla Black Sea National University. Currently, technical university programs are practice-oriented.
The annual number of university graduates in the industry with region division is shown at the chart:
It is very common for large IT companies to offer internships, nurturing recent graduates for their own business needs and customers.
In addition to on-the-job training, there are a lot of schools and courses in Ukraine, which produce more than 2500 entry-level IT professionals annually. The largest of them include Step It Academy, Cyber Bionic, and the IT Education Academy.
Conferences and meetups on different topics are regularly held in every Ukrainian city. You can check the IT events calendar at DOU.
Average salaries in Ukraine
The diagram below shows the median salary for the major programming languages among Ukrainian developers:
If you are interested in finding more information on the salaries of developers with other technological stacks by cities, use the DOU widget. You can also check out the detailed DOU report about salaries of Ukrainian developers.