45,000 IT Specialists in Kharkiv and 53-percent Growth of Sales Volume over Two Years: KPMG and Kharkiv IT Cluster Research Published

Kharkiv, Ukraine – September 10, 2021 — KPMG and Kharkiv IT Cluster research shows that IT revenue in Kharkiv has grown by 53 percent over two years during the pandemic, which corresponds to 29 percent growth in the number of employees during the same period. In 2021, the overall sales volume is expected to reach $1.5 billion. Currently, the Kharkiv region talent pool is 45,000 IT specialists across all competencies. 

These figures make Kharkiv the second largest technology hub in Ukraine: 16-percent of IT specialists work here. The capital city of Kyiv houses 29 percent of IT professionals.

Other takeaways from the research highlight the structure of the industry and its strong impact on the local community:

• Kharkiv has a diverse set of companies, including international enterprises such as NIX Solutions, SoftServe, EPAM, Sigma Software, and midsize or small businesses accounting for the majority of 511 active IT businesses in the region.
• The market leans towards export with 78 percent of products and services sold in the US and 15 percent in the European Union.
• The IT industry benefits the local community, generating about 3.5 additional jobs per each IT specialist, donating 2 percent of income to charity initiatives, and paying $450 million in taxes.

Yet, the Kharkiv IT industry lacks human capital, as challenge companies can’t address alone. Executives expect both the government and businesses to cooperate in tech education, resolving regulation uncertainties, and making engineering careers even more attractive to young people:

“Just as with the challenge of government regulations, the only way we can address the problems of IT education and shortage of skilled specialists is through teamwork. One company, no matter how big, will not be able to address the deficit of skilled specialists — the only way it can be done is through the IT industry’s joint effort,” said Oleksandr Medovoi, Head of Kharkiv IT Cluster Supervisory Board, President and CEO of AltexSoft.

About KPMG

KPMG is the fourth-largest accounting firm in the world with 227,000 employees across 147 countries. Along with Deloitte, PwC, and EY, it belongs to the so-called Big Four professional services networks. The organization focuses on three main service lines: advisory, financial audit, and tax planning. In Ukraine, it operates from two offices in Kyiv and Lviv.

About Kharkiv IT Cluster

The Kharkiv IT Cluster is an NGO that unites leading IT companies, local authorities, and higher education institutions in development of 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 87 member companies and 56 partners.

About AltexSoft

AltexSoft is a technology consulting company that focuses on travel tech and data services. For over 14 years, we have modernized existing solutions, improved customer experience, and helped companies tap into their data potential with predictive analytics and machine learning. Over 200 clients worldwide have chosen AltexSoft as their technology consulting partner.

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