UKRAINIAN IT INDUSTRY OVERVIEW: NEW REALITY

IT industry increases its share in the national export

Earlier this year the National Bank of Ukraine updated their external sector statistics, according to which the IT services export surpassed the $5 billion turnover mark despite the overall reduction in other spheres.

A growing number of vacant positions: demand exceeds the supply

Analyzing the number of open positions in the market, it is understandable that the industry is rather short-handed and current demand exceeds the supply. Engineers share that it has become normal to receive about 5 to 10 vacancy offers from recruitment specialists. According to DOU, there are almost 10 thousand open positions and this number is constantly growing.

  • QA Automation — 13.5%
  • JavaScript engineers — 10.4%
  • Java engineers — 9.3%

Increase in salaries and variety of bonuses

Since the demand for Ukrainian engineers today is higher than their supply, the rates, hence, the service costs are also growing. This year the salaries for the Ukrainian engineers have grown drastically compared to 2020 and, in some cases by 75% to 100%. The main increase is considered when it comes to hiring specialists for the Senior and Lead jobs.

  • Junior SE — — $1200–1500
  • Middle SE — $3500 and $4000
  • Senior SE ~ $5500
  • $600+ for Junior QA;
  • $1800–2000 for Middle QA;
  • $2500–3500 for Senior QA
  • $3500+ for QA Lead
  • Junior QA — $750
  • Middle QA — $2000+
  • Senior QA — $3500+
  • $800+ for Junior BA
  • $1800–2500+ for Middle BA
  • $4000+ for Senior BA

Rating of usability of programming languages, frameworks, and libraries

Having a lot to offer to the clients is one of the key things when it comes to the businesses that want to outsource their software development to Ukraine. Cultural and geographical proximity, level of English, and excellent service are the traits that are valued. Moreover, the pool of technologies and solutions tech companies have on their stack is immense.

The trend for tech education and most popular institutions

The Ukrainian tech sector used to be concentrated mainly in the TOP 5 cities: Kyiv, Lviv, Kharkiv, Odesa, and Dnipro. However, within the past years, the number of companies opening their offices in other cities grew. Amidst the most popular destinations today are Ivano-Frankivsk, Chernivtsi, Vinnytsya, Cherkasy, Mykolaiv, Mariupol.

Political impact on the Ukrainian software development industry

Many experts praise the success of the Ukrainian IT market as it has been developing rather independently without both support and interference from the state. Yet, things can’t stay the same with all the positive dynamics in the sector. There have been multiple attempts to introduce changes from the governing authorities to have more control over IT. One of the recent initiatives adopted by the Ukrainian Parliament called Diia City aims at transforming the industry with a variety of regulations. As to the authors of the Diia City, the bill will

  • Guarantee free business conduct and no intervention from the state;
  • Simplify the process of becoming a resident of the regime;
  • Ensure presumption of eligibility;
  • Not be mandatory to join;
  • Secure the tech companies and startups and their employees;
  • Transform the documentation part of the industry by changing the regular agreement to “gig-contracts” considered as an extra step in intellectual property rights protection; etc.

Summary

The events caused by the severe COVID pandemic helped to rearrange businesses, their internal policies, and their vision for the future. To bounce back, companies have to follow the recent trends and adapt to the new conditions the market dictates.

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Agiliway

Agiliway

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Custom software development company offering a wide range of IT Consulting, Web and Mobile development, Quality Management, BI and BigData services.