IT INDUSTRYDEVELOPING UKRAINIAN ECONOMY AND TALENT
October 2015
INFORMATION & COMMUNICATION
TECHNOLOGY IS THE №3 EXPORT
5 bn.
14,3 bn.
17 bn.
*http://data.worldbank.org **Horizon Capital Data
The ICT industry is potentially becoming №2 by 2020 due to it’s stable growth
ICT
metallurgy
agricultural sector
STABLE TAX PAYMENT
* State Fiscal Service of Ukraine
м18.1*
bn. UAH (1.52 bn. USD IT PE revenue)
in 2014
74 000* IT specialists
in 2015
+88%tax revenue estimation in 2015 (UAH)
Highly Qualified ІT Specialists
COMPETITIVE ADVANTAGE OF UKRAINE
TOP-3Ukraine is among the TOP-3 in Central and Eastern Europe by IT market volume and IT talent pool
27*Average age of IT-specialist
5000**5000 experts left thecountry in 2014-2015 рр.
69%* IT specialists consider relocation
*DOU.ua **Experts’ estimate
*DOU.ua ** Experts’ estimate
Highly Qualified ІT Specialists
COMPETITIVE ADVANTAGE OF UKRAINE
180 000 Tech Specialists in Ukraine by 2020
~20 000** New highly paid jobsannually
$2 000* Average salary
2014 2015F 2016F 2017F 2018F 2019F 2020F0
20,00040,00060,00080,000
100,000120,000140,000160,000180,000
74,000 80,000 90,000 110,000 130,000 150,000180,000
• 15% - PE TAX in 2016-2020
• 50% of ITO market works illegally
• Emigration of ІТ-specialists
• Tax shrinks pro rata to revenues
ІТ INDUSTRYPESSIMISTIC SCENARIO
IT market declines due to rapid tax rate growth
• Gradual PE tax increaseover 5 years
• 6% PE tax rate in 2016
• 8% PE tax rate in 2017
• 10% PE tax rate in 2018-2020
• ~25% IT growth in 2017-2020
ІТ INDUSTRYSUPPORTS ECONOMY AND TALENT DEVELOPMENT
IT industry – economic driver of the country
IT INDUSTRY CONTRIBUTION TO UKRAINIAN ECONOMY
• Forming the investment attractiveness of
the country
• Investors rout funds to Ukraine and
strengthen the economy
• Strong and sustainable growth of the IT
industry
• Industry volume will be 3.2 times up to 7.7
bn. USD by 2020
• 1.5 bn. USD – cumulative tax revenue
(2016-2020)
• 106 000 new IT jobs
Revenue dynamics – optimistic vs pessimistic
2012 2013 2014 2015F 2016F 2017F 2018F 2019F 2020F-1,400 -2,000 -2,379 2,236 -1,118 -895 -805 -765 -7651,400 2,000 2,379 2,617 3,140 3,925 4,907 6,133 7,667
Market capacity MLN USD (OPTIMISTIC SCENARIO)
Market capacity MLN USD (PESSIMISTIC SCENARIO)
IT INDUSTRY CONTRIBUTION TO UKRAINIAN GDP BY 2020
* Estimations include 5% efficiency of ITO staff productivity annually
3.2 times
industry volume growth up to 7.7
bn. USD*
5.7%
GDP from ІТО industry in
2020р.
+3.8%
GDP from ІТО industry over
six years
working in ITO industry
jobs in other support
industries
180 000people*
400 000
Contacts
Konstantin Vasyuk, IT Committee Coordinator, European Business Association+38 067 656 08 [email protected]
Victor Valeyev, Director of the «IT Ukraine» Association +38 050 352 31 [email protected]