The Ukrainian IT-Export Industry Market Overview
During September-November 2003 AVentures jointly with Market Visio/Gartner Group conducted the first internationally recognized research of Ukrainian IT-export industry. In order to facilitate the research process we convoked an Expert Group of the Research which included the representatives of the following companies and organizations: ESP-Consortium, Miratech, Softjourn, Tessart, The Ukrainian Association of Software Developers, The Ukrainian High-Tech Initiative, and Ukrainian Software Consortium. Over 60 companies have been interviewed during the research. The basic summary of research is presented below.
The volume of Ukrainian IT-services exports in 2003 is estimated to be $70M. It has increased by 40% in comparison with 2002.
In spite of the downsize of international IT market, this year became a new stage in Ukrainian IT-export industry development. Industry has recognized its strength and started consolidating and promoting itself internationally. Two business consortiums and one network of IT companies have been established. Later they (eSP Consortium and Ukrainian Hi-Tech Initiative) joined their efforts within the framework Ukrainian Software Consortium, that has consolidated strength of about 25 pre-evaluated companies. Industry leaders under support of the Ukrainian Embassy in the USA and the American Chamber of Commerce in Ukraine have joined their efforts to organize the The US-Ukraine IT Cooperation Forum on November 7, 2003.
There are about 300 companies in Ukraine involved in IT-export business. 30% of them have been established during last three years. 30% of Ukrainian IT companies have been working in the IT-export industry for about 10 years. Around 20-25 of Ukrainian companies are “public” (or known) and are mainly located in Kyiv, Lviv, Kharkiv, and Dnipropetrovsk. There are around 200 small companies and independent software developers’ groups, whose market share amounts to 50%. Practically in Ukraine there are no development centers for large corporations, but there are plenty of development centers for smaller companies, which are often not incorporated as such.
