PwC and Kharkiv IT Cluster Presented the 2nd Research of Kharkiv IT Industry

Kharkiv, Ukraine – December 4, 2019 – PwC and Kharkiv IT Cluster held an event to present the results of the second research on the state of the Kharkiv IT industry. The goal of the research was to assess the current state and perspectives of local IT industry development. Under favorable market conditions, the Kharkiv IT industry may reach $1.9 billion by 2025, which is $0.1 billion more than previous research forecasted.

The new research was conducted to update the state of the Kharkiv IT industry and compare it with the previous year’s results. The research reveals that Kharkiv remains Ukraine’s second largest IT hub (14 percent of all Ukrainian tech professionals) with 31,000 IT specialists and 480 IT companies. As of April 2019, 77 percent of professionals were engaged in computer programming, which is 6,000 more individuals compared to 2018. In contrast to the previous year, the average company size has increased: 165 IT companies moved up from the extra small (less than 20 employees) category to the small (21-80 employees) category.

According to the research, Kharkiv IT companies continue to focus on these industries: insurance (14.3 percent), healthcare (10.2 percent), education and learning (10.2 percent), media and advertising (7.0 percent), and retail and wholesale (6.3 percent). North America remains the single largest market for the industry with 75 percent of companies naming it as their main export destination. Other regions that make the top three export destinations are Europe (19 percent) and the Middle East (2 percent).

This year’s research shows that 100 percent of TOP managers in the industry consider business conditions to be favorable. The SWOT analysis shows transport infrastructure, the number of R&D centers, education quality, cooperation with local authorities, and residential areas as strengths of the Kharkiv region.

Over 7800 IT specialists and 30 companies took part in the survey. Also, nine top managers of Kharkiv IT companies, including Oleksandr Medovoi, CEO at AltexSoft, were interviewed for the research.

About PwC

PwC (PricewaterhouseCoopers) is the second largest professional service company in the world, established in 1998 after the merger of Coopers & Lybrand with Price Waterhouse. The firm operates across 158 countries and 743 locations. Their main expertise branches are financial audits and assurance, advisory services, data analysis, and tax planning.

About the Kharkiv IT Cluster

The Kharkiv IT Cluster is an NGO that unites leading IT companies, local authorities, and higher education institutions to introduce comprehensive changes to the city’s IT ecosystem. Kharkiv IT Cluster’s mission is to create an innovative environment that develops the technology business. The organization was established in 2015 by six local IT companies: AltexSoft, INSART, Promodo, Sloboda Studio, Telesens, and Videal. Currently, Kharkiv IT Cluster has over 66 member companies and more than 41 partners.

About AltexSoft

AltexSoft is a Travel and Hospitality Technology Consulting company. We work with online travel agencies, travel management solution providers, and travel tech startups to build custom software. In business for over 10 years, we help implement new or modernize existing solutions, improve the experience of your customers, utilize available data science and machine learning opportunities to accelerate revenue growth and optimize your expenses. Over 200 businesses worldwide have chosen us as their Technology Consulting Partner. AltexSoft is one of the cofounding companies of Kharkiv IT Cluster. Oleksandr Medovoi, CEO at AltexSoft, is the Chairman of Kharkiv IT Cluster Supervisory Board.