Kharkiv, the IT industry has transformed the city into a technological hub

Харьковская IT-индустрия превратила город в технологический хаб

Does IT Cluster with the support of international consulting companies PricewaterhouseCoopers Advisory (PwC) and IRS Group conducted a study of IT industry in the region.

On 9 October, with the participation of Kharkiv city Council, the Cluster is summed up and voiced the prospects of development of the local IT sector.

Харьковская IT-индустрия превратила город в технологический хаб



The results of the research of Kharkiv IT Research

According to PwC, Kharkov is the second after Kiev’s largest IT specialists. In techindustria city with 25 thousand employees, i.e. 14% of all people employed in the IT sector of the country. The city recorded more than 450 IT companies, 40 of them are part of Kharkiv IT Cluster.

In 2017, the representatives of IT-business of Kharkiv has listed 5 billion hryvnias of tax payments to the state budget, of which 43% — to the local budget of the region. 95% of sales in Kharkiv IT-companies go to foreign customers: 65% in USA and 25% to Europe. At current growth rates it can be expected that tax deductions of Kharkiv IT industry by 2025 will increase to 14.6 billion.

The founder of the company Artjoker, Roman Katerinchik, noted the high significance of the PwC study for the entire region: “Today is a special day for our city and the entire industry. Many years are we talking about Kharkiv as one of the flagships of Ukrainian IT and today we have confirmed that the figures […]. IT in Kharkov region bumit, the demand is growing and interviewing the leading players in the market confirms this. Given the high export component of the industry and a reasonable barrier of entry for professionals, today we have all prerequisites to make IT the leading sector of the state.”


The vector of future development

Харьковская IT-индустрия превратила город в технологический хаб



The PwC study outlined a number of external constraints that inhibit the development of the industry. Most commercial real estate does not satisfy the demand of the IT companies in 2017 occupied 200 thousand m2. By 2020, they will need another 60 thousand m2.

The city is clearly a shortage of direct flights from the local airport. About necessity of development of urban infrastructure, says General Director of DCH I&RE Daniil Vladov: “IT-industry every year shows a steady and consistent growth. Today, the IT segment has all chances to become the new driver for the Ukrainian economy. To Ukraine and Kharkiv became the new world centre of technologies necessary revolutionary infrastructure, which will provide high quality growth.”

A serious challenge for the IT business is the lack of qualified personnel. In 2018, the demand for IT professionals in two times exceeded the number of graduates in IT companies expect to hire 3 329 experts, and local Universities graduated 1 517 people.

Summing up, experts are optimistic. They predicted the Kharkov the role of major technology hub, attractive to foreign investment. As noted by SEO major of Kharkiv IT-companies NIXSolutions, Victor Shal’nev: “Kharkiv is the birthplace of three Nobel laureates […], the strongest academic school of Sciences and prestigious universities, each year occupying the top in the international rankings. In such favorable conditions there grew the most powerful of the regional IT community and thanks to extensive research by PwC and IRS Group we can now confirm our well-deserved reputation impressive numbers[…] Our IT-expertise, fundamental education, business reliability and traditional Ukrainian hospitality is an ultra-combo, attract business partners and customers around the world.”