New numbers show that the IT companies working with foreign clients had a 29 percent increase in income last year.
The Ukrainian IT sector is growing with double digits every year, and the new numbers from this year are no different. The news site Epravda writes that the average income of Ukrainian IT companies working with foreign clients increased by 29 percent from the first half of 2020 to the first half of 2021.
Growth is, however, most vital in Kyiv. The average income of IT companies in Kyiv grew by 41 percent, while growth was 36 percent in Odesa, 29 percent in Kharkiv, 21 percent in Lviv, and 20 percent in Dnipro.
However, while Kyiv is growing most, it isn’t the city with the highest average income for IT companies. Instead, the numbers show that Kharkiv is the city in Ukraine with the highest revenue from its IT company’s, followed by Lviv, Odesa, Kyiv, and Dnipro.
Dreams of much more
The Ukrainian IT sector has been growing with double digits for years, but the Ukrainian government dreams of much more. Alex Bornyakov, the deputy minister for Digital Transformation in Ukraine, told Ukrainenu last year that much more is coming.
“Seven or eight months ago, when we took office, we were aware of this, and we were aware that if we did nothing, we would be able to continue with an annual increase of 20 to 30 percent, but that was not enough. for us. We want twice as much growth, so we had to look at what we could do to help the sector,” said Bornyakov.
At the time, his ministry was working on introducing Diia City – a digital framework for the IT sector in Ukraine, which aims to bring legal framework plus legal protection and tax benefits to the industry to secure growth. Diia City was approved by Ukrainian President Volodymyr Zelensky earlier this year. Ukraine is home to several successful startups, and the hope is that much more will follow in the coming years.
“We want Ukraine to be known as a country with the best tax system, as a country of startups and large food companies, as a country where it is easy to do business. Diia City is a unique opportunity for our country to provide this. At the same time, we will support the system that is currently working; we will act as its advocates,” the Minister of Digital Transformation Mykhailo Fedorov earlier this year.
“Today, the conditions available in Ukraine are not suitable for everyone, global companies also cannot enter, they do not trust the current system. Therefore, it was decided to create a virtual zone, which will extend to the whole country. Participation in it will be voluntary,” added David Arahamiya, a People’s Deputy and head of the Servant of the People faction, according to the government’s website.