A newly released survey of the Kharkiv region IT industry has highlighted strong growth in 2020-21 despite the coronavirus (COVID-19) pandemic. The survey, conducted by KPMG and the Kharkiv IT Cluster, found that the Kharkiv region IT industry was on track to report total sales of $1.5bn in 2021, representing a 53% increase on the annual figure for 2019, despite pandemic restrictions. Thanks to foreign investment, Ukraine is also undergoing massive fibre-optic expansion, which will help further strengthen the country’s IT sector.

According to the latest data, Kharkiv is home to over 500 service and product tech companies employing in excess of 45,000 people. This makes the city comfortably Ukraine’s second-largest IT employer after Kyiv. The Ukrainian capital accounts for around 29% of all IT jobs in the country, followed by Kharkiv (16%), Lviv (9%), Dnipro (8%) and Odesa (5%).

In line with national IT industry trends, the vast majority of Kharkiv IT companies are focused on producing IT solutions and IT products for export. The main export markets for Kharkiv companies are the United States (78%), Europe (15%) and Israel. According to KPMG calculations, Kharkiv IT companies will contribute UAH12bn ($450mn) to the state in taxes this year.

According to this latest survey, the average salary in the Kharkiv IT industry is currently $2,260 per month. Almost half of all sector employees are between 21 and 30 years old, with women making up 35% of the overall workforce. At present, more than 50% of Kharkiv’s IT professionals are working from home as a result of ongoing COVID-19 measures and a shortage of suitable office space.