The world has witnessed news about the Russian attack on Ukraine. Since the attack, unrest for civilians has been devastating, displacing nearly ten million people from their homes and civilians from surrounding countries. In addition to danger to its citizens, the invasion has devastated the Ukrainian economy. The World Bank has projected Ukraine’s economy to be nearly cut in half this year, as economic activity in most areas is impossible. Besides being a major exporter of agricultural products, Ukraine is a tech hub with nearly 300,000 IT professionals in the country supporting tech giants like Microsoft, Google, and Amazon. In this article, we’ll discuss Ukraine’s tech ecosystem, including trends and frequently asked questions (FAQs) about the country’s tech community.
Growing talent in eastern Europe
Over the last decade, Ukraine has become a hub for tech talent throughout the world. Not only does it lead in eastern Europe as a country with a competitive market of third-party outsourcing for e-commerce, banking and fintech, but it’s also pumping out another generation of students focused on IT as a career path with every 3 out of 4 Ukrainians being IT Specialists . According to the 2021 Ukraine IT Report, 54% of high schoolers in Ukraine want a career in tech along with nearly 36,000 students graduating from local universities with degrees in computer science and software engineering. Not only has Ukraine established a strong incoming workforce, but it is also nurturing its entrepreneurs and startup community with incubators, VC investment firms, and accelerators.
Tech trends in Ukraine
Ukraine wasn’t always a tech hub, but over the last ten years, it has seen a huge tech boom, growing annually by 25-30%. Two major cities where Ukraine has the largest quantity and density of IT professionals are its capital, Kyiv, and another major city, Kharkiv. In 2021, Kharkiv’s IT industry generated a sales volume of an estimated $1.5 billion, or a 53% growth in comparison to 2019. One particular area where Ukraine shines is with the export of IT solutions and IT products, especially to industries in healthcare, e-commerce, education, insurance, and retail. With nearly 78% of its exports going to the United States, 15% going to the European Union and Israeli markets, exports in Kharkiv account for nearly 95% of the IT industry sales.
The other major tech hub in Ukraine is its capital, Kyiv, which was ranked by StartupBlink as one of the top tech cities in Europe for the best startup environment in 2019. In addition to being home to the $1B+ unicorns, Grammarly and GitLab, the capital, Kyiv, is home to almost 60% of the tech ecosystem in Ukraine.
Frequently Asked Questions About Ukraine’s Tech Scene
How many IT companies are there in Ukraine?
According to the IT Ukraine Association, Ukraine is home to an estimated 5,000 tech companies.
Which IT companies are based in Ukraine?
Ukraine is home to many companies that have offices and employees in the country, but ones that standout are:
What companies are doing to help employees in Ukraine
With a $6.8 billion industry amongst 500 companies, many organizations are putting work on hold in solidarity and doing their part to support employees experiencing hardship. An estimated 6.5 million refugees throughout the country have had to seek safety in other countries along with another 4 million in surrounding countries along the Romania-Moldova border. Data has shown that surrounding countries like Poland, Hungary, and Slovakia have also taken in hundreds of thousands of refugees. If you’d interested in more ways to support Ukraine during this difficult time, here are a list of links for forms of support: