The Ukrainian IT Market is growing rapidly.
Let’s take a closer look at the Ukrainian IT Market, its growth and trends during 2011-2012. The total sales of IT products and services in Ukraine hit UAH 14.5bn (€1.3bn) in 2011 while the annual growth rate of the IT market in the country declined to 18.1% last year from more than 43% in 2010. However this smaller market growth is more organic for the Ukrainian economic and business reality. It is important to explain that the value does not include the exports of software development outsourcing services in the country, which were more than a half of the domestic IT market value last year.
A positive trend of 2011 was some recovery of IT investments in the public sector and in the segment of state owned companies. These investments were partially connected to the upgrade of the transport infrastructure, as well as the financing of the creation of national databases. Some IT investments were also done by Naftogas, the national oil and gas monopoly which the government plans to reform, and the Ukrainian Post.
Current 2012 is going to be one more year with stable progress in IT market.
As you can see above, 2012 will not be a banner year (as to the growth rate) but it is recognized as the time of legitimate expectations and justified investments in CIS IT market. The Ukrainian IT Market is rapidly growing in both selling and buying and this year will bring Ukraine to the TOP5 of IT Exporter.
IT Market to keep on growing in 2012
General perspectives of the IT industry in Ukraine in 2012 and in the next years remain mixed but positive. The IT market in Ukraine is expected to maintain a double digit rate of growth in 2012 and 2013. This forecast is based on the assumption of macroeconomic and political stability and lack of economic shocks in the country. In this event the market is expected to increase by approximately 13.5% year on year to UAH 16.5bn (€1.48bn) this year. With increasing market maturity, growth is expected to slow. In 2013 growth could decline to approximately 10%. The main driver of market growth in the next years will be the demand for computer hardware.
Forecasted trends for 2012-2017:
- The Market will grow by 85% in the next 6 years with the average annual growth 14.2%;
- Maturity of the IT systems of the majority of Ukrainian companies is relatively low, that’s why there is an organic need for their development/upgrade;
- The market is experiencing a strong trend for the consolidation of IT infrastructures in Ukrainian banks, industry and energy holdings;
- IT market growth in Ukraine will be facilitated by the following factors:
- Expected tender for 3G-UMTS operating licenses;
- Restructuring and upgrade of Ukraine Naftogas, the state-owned gas distribution monopoly;
- Privatization of public railways and other assets;
- Stability of the fiscal policy and overall public regulation of small and mid-size business;
- The situation on the export market for Ukrainian metal and chemicals;
- Import conditions for energy resources.
Definitely, the CIS market is changing under the influence of increasing investments and IT innovations. No doubt, it is important to know rates and trends of the changing market.
Author: Anton Krivnev, PR Copywriter Ciklum Sales Office. Ciklum is Knowledge Partner of the German Austrian Swiss Outsourcing Association r.s.
Source and pictures: Ciklum Blog