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Ukraine Tech Industry 2022: IT Exports Volume, Talent Pool and More

Recapping key takeaways from Ukraine IT Report 2022

Over the past 25 years, the Ukrainian IT sector has made a quantum leap forward. It has transformed from a very niche into a highly intelligent industry, employing almost 300,000 professionals and growing by 25-30% annually.

Ukraine's IT exports allegedly generate more than 4% of the country's GDP, with their volume exceeding $6 billion as of 2021. Ukraine is now one of the largest exporters of IT services in Europe, growing 27% annually.

For the first time in its history, the IT industry has transformed from a highly-niche sector into a trailblazing domain attracting as many as 54% of Ukrainian high school students and foreign investments worth on average $300-700 million a year.

IT Ukraine Association has recently published a comprehensive Ukraine IT Report 2022. We at couldn’t help recapping its most interesting and thought-provoking findings for a broader audience. So, here you go.


Ukraine as one of Europe's leading IT hubs

Ukraine is among five European countries that create two-thirds of IT value-added in the region (along with Romania, Poland, Czechia, and Hungary). 

Ukraine IT sector diversity

  • Ukraine is home to more than 5,000 companies, most of which are small (up to 80 employees) and medium-sized (up to 800).
  • Half of the companies (51%) are service companies; 33% provide custom software development services while having at least one product; 16% are purely product companies.
  • Many Ukraine-based outsourcing companies specialize in Cloud, artificial intelligence (AI), and Big Data technologies.
  • Other areas of expertise in Ukraine are DevOps, Blockchain, embedded/IoT, robotics, and digital assurance.


IT Exports in 2021

As of 2021, the Ukrainian IT exports market is assessed at 6.8 billion, accounting for 37% of all service exports from the country.

On average, exports of IT and software services from Ukraine have seen a 27% increase annually for four consecutive years.

The main growth drivers are the US (40% of exports) and the UK (10%).

In 2020, Ukraine’s IT generated:

  • Twice as much export revenue as the gas transmission system.
  • 1.5x more export revenue than in mechanical engineering.
  • About a quarter of the export revenue of the agricultural sector.


ukraine IT exports 2016-2021

In the baseline scenario, Ukraine’s IT sector could double its export revenues over the next four years.

Ukraine's tech talent pool

Demand for IT services and relatively high salaries lead to a significant increase in the number of IT talents in Ukraine. Cooperation with Individual Entrepreneurs (IE) is attractive for companies because IT often involves project work. The IT industry actively attracts young people: 80% of employees of IT companies are aged 18 to 32.

As of 2021, the Ukrainian tech talent pool counts 285,000 specialists: 80% have IE contracts with IT companies.

In addition, 25% of all IT specialists and 32% of management are female.

Significant demand for Ukrainian talents is due to the high educational level of Ukrainians. Ukraine ranks 47 out of 189 (between the UAE and Italy) according to the UN Education Index 2021. In general, the education index of Ukraine corresponds to the level of Western countries. A typical Ukrainian IT specialist has a higher (often technical) education, an average English proficiency (80% have an intermediate level), and an average work experience of 3 years or more.

According to Korn Ferry’s 2021 IT Rewards Study, the labor market in Ukraine is quite fragmented, as evidenced by the differences in wages within the same position. The salaries of project managers (PMs) vary little by region. The salaries of tech specialists in the capital are up to 25% higher than the national average.

Speaking about Ukrainian IT specialists’ remuneration, the monthly median for different positions looks as follows:

  • Project Manager (PM) – $3,100
  • Software Engineer (mid-level) – $3,000
  • QA Automation – $2,500
  • QA Manual – $2,000


Regions with below-average wage levels are economically more attractive for companies to enter.

Higher education

Of the 1,700 educational institutions in Ukraine, 150 offer undergraduate programs in IT. The most powerful educational centers form clusters of companies in their regions.

Ukrainian universities annually prepare about 17,000 new bachelors. The increased interest of applicants in the specialty and state funding for education will increase the number of graduates to 23,000 in 2025. In the medium term, up to 35,000 bachelors are expected to graduate due to the peak birth rate in 2008-2013.

Most bachelor’s graduates (54% in 2020) choose to enroll in a master’s program. Colleges and technical schools graduate junior specialists. The modernization of the curricula of technical schools and colleges is a potential point of growth for the IT industry.

In 2021, engineering and computer science were the two most popular majors, followed by automation and cybersecurity.

IT business is an interested stakeholder in the education system of Ukraine. So far, the demand for new IT specialists significantly exceeds the capabilities of Ukrainian higher educational institutions (HEIs). The response to this was the emergence of numerous non-formal IT education institutions offering intensive training courses for junior-level specialists. Non-formal education annually trains and adds 10,000-12,000 new IT specialists to the national pool. According to the forecasts of the Ukraine IT Association, in the coming years, their number will grow to 20,000-25,000.

IT outsourcing ukraine

Image: IT Ukraine Association

Are you looking to outsource your software project or hire top-notch software engineering talents in Ukraine?

Diia City

From 2022, the government is expected to introduce a special legal framework for the IT industry – the so-called Diia City.

It will apply to the entire territory of Ukraine and should provide several benefits for IT companies that choose to become Diia City residents: a special tax regime, special (more flexible) forms of attracting IT specialists (gig and labor contracts), additional legal instruments in the field of investment protection and corporate governance.

how to become diia city resident in ukraine Image: IT Ukraine Association


Given the long-standing dialogue between the IT industry and the authorities, the implementation of Diia City will be seen as an additional stimulus for the growth of the digital economy in Ukraine.


The Ukrainian IT industry actively attracts foreign investments for its development. On average, deals and transactions concluded are worth $300-700 million annually. Most of the deals are related to investments and grants for startups (Seed and Pre-seed stages), but most of the funding goes to some of the largest companies.

the largest Ukraine startup funding deals 2021 

The largest funding agreements concluded by Ukrainian startups in 2020-2021

Notable M&A deals in Ukraine in 2021

  • March 2021 – GlobalLogic was acquired by Hitachi for $9.6 million;
  • October 2021 – acquisition of portmone by for $15 million;
  • October 2021 – acquisition of DepositPhotos by VistaPrint for $85 million. 

Remote work trends

In IT, remote work is a common thing: IT projects, in particular outsourcing projects, involve remote collaboration with clients.

The COVID-19 pandemic is additionally forcing people to work outside the office. Instead, this gives additional opportunities for IT businesses:

  • remote work allows for hiring candidates from any region of Ukraine (elimination of physical and geo boundaries), 
  • it allows both employers and employees to achieve significant cost savings as a result of not using a physical office, commute elimination, etc.


As a result of the pandemic:

  • 87% of Ukrainian IT companies switched to a hybrid work mode (wfh + office);
  • 59% started hiring talents from other cities of Ukraine;
  • 43% started tapping into foreign talent pools for hire;
  • 24% reduced office rent;
  • 6% completely abandoned office space.


Should the quarantine restrictions be lifted, 42% of companies in Ukraine plan to return at least part of their employees to the office.

For more insights and trends pertaining to the Ukrainian IT industry in 2022, please check out the actual Report by IT Ukraine Association.

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