Kharkiv_IT_Research_report

Macroeconomic
modeling of Kharkiv
IT industry
Sept 2018

LLC «PricewaterhouseCoopers Advisory» (PwC) was engaged by Kharkiv IT Cluster (Client) in order to provide consulting support
in development of mathematical model to quantify performance of Kharkiv IT industry and forecasting of its development
in future based on macroeconomic assumptions.
This report summarizes our vision of macroeconomic modeling results of Kharkiv IT industry performance and results of a comparative
analysis of various scenarios in the development of the industry as well as independent assessment of the impact of taxation on the
level of tax revenues to the state and local budgets of Ukraine from IT business.
We understand that the results of our work will be owned by the Client and will be used exclusively for informational purposes.
PwC does not accept any liability and responsibility for the actions of a third party other than the Client as a result of the use of this
report without the written consent of the PwC.
Copies of this record may be owned exclusively by the employees of the Client. It is understood that PwC bears no responsibility
to any other recipients of the report. This report may not be copied (partially or in whole) by any unauthorized person without
the written consent.
Regards, LLC «PricewaterhouseCoopers Advisory»
Disclaimer

Aims of the project:
To assess the performance of the IT industry in the Kharkiv region, forecast market growth and evaluate the current/future impact
of the industry on tax revenues of state and local budgets, identify key strengths of the region and areas for future development.
Methodology:
The research was based on the data provided by 36 IT-companies (7,225 specialists) located in the region during the survey conducted
jointly by Kharkiv IT Cluster and PwC;
Kharkiv IT-cluster organized a survey among HR-specialists in the IT industry in order to identify the sizes of more than 400 active
IT-companies in the Kharkiv region. The gathered data was reconciled by PwC with information obtained during the survey and open
data sources;
More than 20 information requests were sent to Kharkiv bureau of statistics and local educational establishments by PwC in order
to assess key trends and developments;
PwC has conducted more than 10 interviews with TOP-management of Kharkiv IT-companies in order to verify the hypothesis
for macroeconomic modeling and identify key trends in the industry;
PwC macroeconomic model of the Ukrainian IT industry was updated to reflect the realities of the Kharkiv region and used
as the main instrument for the purposes of this engagement.
PwC was engaged by the Kharkiv IT-cluster to develop a regional
IT industry assessment model and report back their key findings
on regional positioning.
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Kharkiv
KyivLviv
Dnipro
Odesa
53 000
29%
16 000
9% 25 000
14%
15 000
8%
10 000
5%
As of April 2018, there were 25,000 specialists in IT industry of Kharkiv region,
76% of them were related to computer programming
Estimated number and density of IT-specialists1 (by region), Apr’2018
Ths. persons / % from total number in Ukraine
IT-specialists per 1 000 of population:
- persons;
- % from total number in Ukraine.
>3.50
1.50 - 2.49
<1.49
2.50 - 3.49
x
x%
75,7%
10,6%
11,6%
1,4%
0,3%
0,3%
66,3%
17,3%
12,2%
2,9%
0,8%
0,5%
KHARKIV UKRAINE
Computer programming (62.01)
Data processing (63.11)
Other activity related to IT (62.09)
Web portals (63.12)
Informatization consulting (62.02)
Management of computer
equipment (62.03)
Source: State register of legal entities and individual entrepreneurs, Kharkiv IT Cluster, Portrait of IT-specialist 2018 - DOU, PwC analysis
For the purposes of the research, "IT-specialists" are defined as specialists engaged by IT-companies (i.e. freelancers and specialists in non-IT companies were not included)

More than half of IT-companies located
in Kharkiv region fall into «extra small» category
with less than 20 persons engaged Number and size of IT-companies
in the Kharkiv region
445
Active IT-companies
located in the region
(PwC analysis)
Total number of registered
IT-companies located in the
region (Ministry of Justice)871
Extra large
601+
Large
201 - 600
Medium
81 - 200
Small
21 - 80
Extra Small
up to 20
5
22
43
105
270
Source: Kharkiv IT Cluster, Ministry of Justice, PwC analysis
Based on information gathered during IT-companies survey, industry analysis and cross-check conducted by PwC and Kharkiv IT Cluster

Europe
25%incl. Ukraine: 5%
Asia
3%
Middle East
5%
Australia
& Oceania
2%
North America
65%
Sources: Kharkiv IT-companies, PwC analysis.
Due to lack of effective demand for IT services/products inside Ukraine,
the majority of companies are export-oriented – in 2017 more than 95%
of total sales were related to foreign clients
Sales geography of Kharkiv IT-companies
% of total sales, 2017

USA
64,7%
The United States of America is the largest export market
for Kharkiv IT companies – in 2017 it accounted for ca. 65% of total sales
Sales geography in North America, % of total sales, 2017
Canada
0,7% 88%
8%
3%
1%
IT services IT
Sales structure in North America
% of sales, 2017
Products IT
To IT business
Infrastructure Related

Sweden, Denmark, and the UK are the most popular export markets in Europe
for Kharkiv IT-companies – ca. 13% of total sales in 2017
Sales structure in Europe
% of sales, 2017
91%
5%
2%
2%
53%
2%
1%
44%
EUROPE UKRAINE
IT services
IT products
IT infrastructure
Related to IT business
Sweden
Ukraine
UK Denmark
Germany
Hungary
Norway
Poland
Belarus
RomaniaSlovenia
Switzerland
Italy
France
Spain
Greece
France
Italy
Sweden
Ukraine
Denmark
UK
Hungary
Germany
Netherlands
Switzerland
9%
5.2%
1.9%
1.9%
1.6%
1.4%
1.3%
1.2%
0.9%
0.6%
Other<1%
Sales geography in Europe, % of total sales, 2017

Among all global markets Israel is the third most popular export destination
for Kharkiv IT-companies — ca. 4% of total sales in 2017
Sales geography in Asia and Oceania, % of total sales, 2017
Israel
Kazakhstan
Uzbekistan
Armenia
Cyprus
UAE
Kuwait
Vietnam
Japan
Australia
Fiji
Israel
Australia
4.26%
1.41%
Kazakhstan
Uzbekistan
Vietnam
0.85%
0.43%
0.21%
UAE
Cyprus
Fiji
0.14%
0.12%
0.10%
Other<0.1%
Structure of sales
% of region’s sales
88%
7%
5%
IT services
IT products
Related to IT business

Reliable software
development partner
since 1994
nixsolutions.com

NIX Solutions
NIX Solutions delivers expert-level software engineering services.
Since 1994, we have been helping clients achieve target business
outcomes using technology.
Who We Are
One of the IT industry pioneers in Ukraine;
1600 expert engineers are based in the Kharkiv headquarters;
90% of NIX Solutions’ tech leaders and managers have risen
from the company ranks;
Global client base spread over 20 countries;
Client profile ranges from start-ups to the major internationals
with billions in turnover;
Over 3000 completed projects with the per-project effort reaching
320 man-years / 645,000 man-hours;
Project profile ranges from small mobile apps to highly complex
corporate business systems;
Absolute majority of first-time deals have resulted in repeat projects;
Cultivates young talent via IT-related educational programs across the country;
NIX Solutions’ capital asset is a team of united, like-minded professionals
with expertise in every IT domain.
10 Facts about NIX Solutions
We deliver software solutions to empower our clients.
What We Do
JAVA ENTERPRISE
.NET
SHAREPOINT
IOS
ANDROID
Technology Expertise
LAMP
UX
HTML5
EXTJS
UNITY
C++
AMAZON AWS
SCRUM
AGILE
SAFE
Full-cycle software
development;
Rapid engagement;
Established process
engineering;
Technical versatility;
World class IT talent.
Key Features
Healthcare;
Pharmaceuticals;
E-learning;
Insurance;
Internet & social networks;
ERP;
Manufacturing.
Industry Expertise
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Gennadiy Bukshevalov
Development Center
Director SoftServe
The United States of America and Europe are the main sales markets.Many Kharkiv companies also
cooperate with Israel,since the country has a well-developed high-tech industry and a plenty of start-
ups.In order to embody such business ideas,you need highly qualified specialists that can be offered by
Kharkiv region.
There is a demand for IT services in Ukraine.Until 2014,there were companies specialised in providing
services at the CIS markets.The current situation is more complicated,as IT services’pegging to US
exchange rate has made them fairly expensive for the domestic economy.»
Eduard Rubin
Director Telesens International
Among European clients I can name Germany.As a large market this country is currently generating a truly
good deal of orders.Additionally,England and the Northern European countries with their well-developed
marketing and business demonstrate a significant demand.However,France and Italy are not the major
clients.The situation is caused by two factors,namely,language barrier and rigorous work standards.
When it comes to the domestic market,the development of a plenty of Ukrainian companies stopped after
2014,consequently,it has negatively affected their need in high-tech services.Improvement of the current
economic situation in the country will result in new plants and enterprises and so in the increased demand
for IT services.»
The opinions above are personal and may not reflect companies’ opinion on this matter.
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There is a demand at the domestic market,though very low one.The lack of domestic market is
a constraining factor for the industry in the entire Ukraine,and especially in Kharkiv.Currently,
technological innovations are not needed in Ukraine,as the low market purchase power
impedes these technological innovations from constituting a competitive advantage.
Although technological innovations are really developed in some specific,niche market
segments.E-commerce,for instance.Generally,at this point of time,there is no observable trend
that local businesses are ready to allocate their long-term investments into technologies and
innovations.This is exactly the reason why the majority of technological products developed in
Ukraine are focused on the markets and target audience of the Golden Billion countries.»
Oleksandr Medovoi
Founder, President & CEO
AltexSoft
«
Victor Shalnyev
CEO NIX Solutions
It is hard to distinguish one specialisation of Kharkiv IT companies,since they present a large variety
of IT industry specialisations at the market.However,outsourcing and outstaffing can be highlighted
among all types of the services.It is hard to identify an exact ratio between these two types of the
services,but recently companies are trying to avoid outstaffing,as it generates less margin and less
interesting for work.IT-specialists are more motivated to address holistic tasks resulting in a tangible
product or output.»
«

As for industries operated and technologies used,
Kharkiv IT industry is multi-vector and does not have a distinct specialization
Top-15 industries operated
% of total sales, 2017
16,2% Entertainment
14,2% Medicine & Healthcare
11,6% Insurance
7,9% Media & Advertising
7,5% Education & Learning
7,4% Reatil & Wholesale
5% Banking & Finance
4,7% Telecommunications
4,7% Sports & Leisure
3,1% E-commerce
2,8% Travel
2% Transportation & Logistics
1% Automotive
0,8% Construction
0,5% Manufacturing

Kharkiv IT companies are specialised in a very broad range of technologies and industries.Our
specialists are able to solve absolutely different holistic tasks,which is,probably,an advantage of
our region.In total,the companies,from healthcare to game developers,are presented in the market.
Speaking about the buzzword technologies,even the blockchain is presented in Kharkiv.I.e.,we have
everything in the market.
The situation represents a serious advantage for business,as if keen to start-up something new,
we will most probably find a required specialist even in a fairly narrow domain area.»
Sergiy Shkurupiy
Director Software Engineering EPAM
Kharkiv specialists possess a very broad spectrum of technical skills.It is wrong to say that,for instance,
our software engineers have the only command of Java and C++.However,there are not so many ‘product’
companies,and e-commerce and software integration companies in Kharkiv.Still,this deviation is small
and the situation at Kharkiv market is similar to other regions of Ukraine.»
Development Center
Director SoftServe
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Remuneration of IT-specialists in Kharkiv region is slightly lower
than country’s average, which is driven by higher level of salaries in Kyiv
Median income of IT-specialists1 (by function), Dec’2017, USD
Source: Kharkiv IT-companies, State statistics agency, PwC analysis
Average
income
$1 800 $265
Median income
of IT-specialists
$2 258 $313
UKRAINE
1.821
1,401
1,800
1,471
1,790
2,5632,565
2,088
2,7002,732
UA KH UA KH UA KH UA KH UA KH
Project
manager
BA Developer QA Other
(incl.design)
KHARKIV REGION

Pavlo Obod
Founder of Sloboda Studio
The amount of remuneration is increasing in Kharkiv and can reach up to USD 3,000 -4,000.
The total costs have increased significantly due to rent payments,leave allowances,costs for
administrative staff.The above can bring to the risk that for client it would be easier to hire its
domestic specialists,since they speak local language,reside in relevant time zone and have
a better insight of local market.»
Value of human capital in IT industry is growing faster than the value of IT services.Following the
trend,IT companies have to develop their business by incorporating new competencies: vertical,
horizontal and cross-functional; and with the help of these competencies,bring additional value
to the end client in the form of a service.In other words,many IT companies already provide
not a baseline of IT services to their client,but are able with their extra competencies to develop
tailored solutions based on the client’s business needs.Therefore,service business remains
competitive at external market even despite the growth of its specialists’remuneration.»ёOleksandr Medovoi
Founder, President & CEO
AltexSoft
«
«
Current level of remuneration for Kharkiv IT specialists is driven by the market.This trend has
a negative effect on start-ups.At the early stages,it is burdensome for a start-up not supported by
outside funding to pay a market remuneration for developers.Therefore,they face a problem to
engage highly qualified specialists,since such specialists have high expectations for remuneration.
At the same time,such level of remuneration is a market one for companies engaged in
outsourcing,and consequently,it is a fair one.»Maksym Makarenko
Founder, CEO Docsify
«

After the drastic decrease in 2015, the volume of foreign direct investments
in Information and Telecom has remained almost at the same level over the past 3 years
Inflow of FDI1 in the Kharkiv region, Mln. USD Inflow of FDI in Information and Telecom sector, Mln. USD
1,632.9
2,216.3
1,726.0
1,569.5
13.2 17.9 6.6 6.4
658.2
6.2
SHARE OF INFORMATION AND TELECOM IN TOTAL FDI
0.6% 1.0% 0.4% 0.4% 0.9%
2013 2014 2015 2016 2017
-70%
Total FDI in the Kharkiv region FDI in Information and Telecom
3.5
2.4
7.2
10.5
3.7
3.7
1.1
3.0
6.6
13.2
17.9
2.4
1.1
3.2
6.4
2.1
1.0
3.1
6.2
2.1
SHARE OF INFORMATION AND TELECOM IN TOTAL FDI
18.4% 20.8% 46.0% 49.5% 49.0%
2013 2014 2015 2016 2017
Telecom
Computer programming,
consulting and related
activities
Other2
Source: Kharkiv bureau of statistics. 1 - Foreign direct investments; 2 - Category includes Publishing; Movies and TV films production, sound recording; Radio and TV broadcasting; Provision of information services.

According to the macroeconomic model developed by PwC, the IT industry of the Kharkiv
region will double in size over the next eight years and reach 1.85 billion USD by 2025
Kharkiv IT market volume, Mln USD
Share of IT industry in Kharkiv region as a percentage of GRP:
Source: PwC macroeconomic model of Kharkiv IT industry, Kharkiv bureau of statistics, World Economic Outlook.
2015 2018 2022 2025
0
500
1,000
1,500
2,000
9.0% 11.5%
11.7%
11.0%
11.4%
12.3%
9.1%
11.5%
13.3%
8.3%
Positive Basic Negative
Key model driver:
The number of senior developers, particularly share of senior
solution architects among total IT specialists, is a key driver
of the PwC macroeconomic model.
Model scenarios comparison
(market volume in 2018/2022/2025 mln USD)
Positive (926 / 1,360 / 1,848)
The share of senior solution architects among total
IT specialists will have increased by 2 times until 2025.
Basic (912 / 1,257 / 1,604):
The share of senior solution architects among total
IT specialists is fixed at the current level and will remain
unchanged during the forecast period until 2025.
Negative (869 / 1,010 / 1,163):
All senior solution architects will have left the country by 2025.
The share of senior developers will decline almost 3 times,
while the share of testers will grow by the same amount.

The IT industry of Kharkiv region generated ca. 5 billion UAH of tax revenues
in 2017 by approximate estimates – of which 43% to local budgets
Tax revenues1 to Local and State budgets from Kharkiv IT industry, Bln UAH
2015
1,432
2,122
2,812
844
1,458
2,937
2,276
3,581
4,937
2016 2017
37% 41% 44%
% of tax revenues paid to local budgets
+
201720162015
201720162015
757
1,236
1,536
168
268
308
14
20 26
237
481
498
317
640
553
3,401
1,589
1,680
2,345
1,000
1,262
559
904
1,519
132
83
56 VAT
Army tax
Personal tax
Corporate tax
Army tax
PE tax
Personal tax
Total tax revenues Direct taxes
Indirect taxes
& Mediated effects
1 - Amount of tax revenues includes direct (Corporate income tax, Personal income tax, Single tax for PEs, Army tax) and indirect (VAT) taxes paid by IT and related industries

Taking into account potential of IT industry’s growth, amount of tax revenues to
State and local budgets may almost triple by 2025 to reach 14.6 billion UAH
Tax revenues1
to Local and State budgets from Kharkiv IT industry, Bln UAH
Positive scenario
Under favorable market conditions, the estimated
tax revenues from the IT industry to state and
local budgets will amount to ca. 14,630 billion UAH
in 2025.
+8.9% compared to the basic scenario.
Negative scenario
Adverse market conditions will lead to a decline in
the amount of estimated tax revenues to state and
local budgets up to ca. 11,100 million UAH in 2025.
-17.4% compared to the basic scenario.
2015
1,432
2,276
2016 2017 2018 2022 2025
844
2,122
3,581
1,458
2,812
4,937
2,124
3,382
5,974
2,592
5,462
9,769
4,306
7,375
13,437
6,062
State budget Local budget
FORECAST
x2.7
Basic scenario
1 - Amount of tax revenues includes direct (Corporate income tax, Personal income tax, Single tax for PEs, Army tax) and indirect (VAT) taxes paid by IT and related industries

Building trust in society
through solving important
problems
pwc.com

PwC
At PwC, our purpose is to build trust in society and solve
important problems. We’re a network of firms in 158 countries
with over 250,000 people who are committed to delivering
quality in assurance, advisory and tax services.
Our clients are the largest Ukrainian and multinational
companies, as well as government institutions.
Who We Are
- 25 years in Ukraine;
- 3 offices: Kyiv, Lviv, Dnipro;
- Shared Delivery Center in Lviv;
- 400 staff.
Facts & Figures
- Assurance services;
- Tax & Legal services;
- Advisory services;
- PwC Academy (CIMA, ACCA,
CIA, CIPD, CISA, CISM).
Out services
pwc.com

2017 2020*
average working space
per 1 IT-specialist
average investment into
1 IT-specialist’s work place
199 ths. m2
Most of available commercial real estate in Kharkiv does not meet
requirements of IT-companies, and this issue potentially can become
a bottleneck for the industry’s growth
Key indicators of demand for commercial real estate
of commercial real estate
are occupied by IT-companies
8 m2
10 USD
1,242 USD
average cost of rent
of 1 m2 in Kharkiv
of additional commercial
real-estate will be needed
to meet industry’s growth
59 ths. m2
>
Sources: Kharkiv IT-companies, PwC macroeconomic model of Kharkiv IT industry. * - Estimated according to “basic” scenario of PwC macroeconomic model of Kharkiv IT industry

Export orientation and fast-pace industry’s growth generate the need
for large number of business trips both within Ukraine and abroad
Structure of business trips, % of total trips, 2017
38% 62%
Ukraine
145 USD
average cost of a business trip
Abroad
2 045 USD
average cost of a business trip
80% Train 9% Plane 5% Bus6% Car
25%
Business
class
75%
Economy
class
20%
Company-own
80%
Employee-own
97% direct fights
in UkraineSources: Kharkiv IT-companies, PwC analysis.

More than half of business trips in 2017 were made
with transfers due to lack of direct flights from Kharkiv airport
Most popular connection airports,
% of trips abroad by plane, 2017
Kyiv
Amsterdam
Paris
Munich
Istanbul
Warsaw
Minsk
Other
24
Paris Munich
Amsterdam Warsaw
Minsk
Kyiv
Istanbul
59%
13%
10%
5%
4%
3%
2%
4%
Types of transport for abroad trips,
% of total trips abroad, 2017
93% Plane
5% Train
1% Bus
1% Car
Types of flights
63%
Indirect
37%
Direct

Not all Kharkiv companies are satisfied with the number of direct flights from Kharkiv Airport.The situation
has improved,when a new direct flight to Istanbul was introduced,as Istanbul Airport is a sufficiently large
air hub.Still,such a trip takes a lot of time and is not very comfortable.Though it is acceptable for our
specialists,it is uneasy for clients to get to Kharkiv.Flights to Vienna,Frankfurt and London would improve
the situation significantly.»
Despite the possibility of a remote business,we need efficient transport connection with the whole world.
There are options now,but they need to be improved enabling easy flights to America and European countries.
Certainly,Kyiv is not so far,though fewer transfers to the destination will make client’s trip more convenient.
Easier access to Kharkiv will guarantee more visits,so we can introduce the city to people.Moreover,there is
no sufficient transport communication within the country.For instance,Ukrainian head office of our company
is located in Lviv,and there is no direct flight from Kharkiv to Lviv.Such situation substantially complicates
domestic business trips for our employees.»
International connection in Kharkiv is not so developed as the one in Kyiv,though Kharkiv Airport
is definitely good.With a transfer in Warsaw or Minsk Airport,it is actually possible to get wherever
you want,but there is always a certain discomfort in such trips.
For our clients and partners,it is still not easy to reach Kharkiv.To avoid extra inconveniences
for clients and partners,I usually arrange business meetings in Kyiv.»
Oleksandr Podolskiy
Director Insoft
Development Center
Director SoftServe
Oleksandr Kolb
CEO Promodo
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2
Evaluation
of business
environment

Development of IT-business environment and improvement
of comfort of living can be outlined as key trends in the region
Kharkiv IT industry Kharkiv City
Emergence of specialized financial, legal and other relevant
service providers focused on provision of professional services
to IT industry;
Absence of high entry barriers for new market players that
results in increasing number of new IT-companies on the
market;
Active development of IT-community in the city accompanied
by large number of specialized events (conferences,
hackathons, start-up battles etc.);
Establishment of long-term cooperation between educational
institutions and major regional IT-companies;
Significant improvement of technical expertise and
professionalism of local IT-specialists;
Further development of soft skills (incl. knowledge of English)
among IT-specialists that resulted in better development of
business relations with English-speaking countries.
Stabilization of political situation that results in better
willingness of foreign partners to visit Kharkiv for
business purposes;
Decrease in migration of specialists to other countries
or other regions of Ukraine;
Increase in migration from other Ukrainian regions
due to comfortable living conditions and job availability;
Improvement of the city infrastructure:
- Launch of new air-carriers in Kharkiv airport;
- Construction of new residential complexes;
- Gradual improvement of pavement quality in the city;
- Launch of single e-ticket for public transport.
Sources: Interviews with TOP-management of Kharkiv IT-companies, PwC analysis.
Key trends in the recent years
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Despite the fact that proximity to the conflict zone appears to be the main
threat to the region, Kharkiv IT industry remains attractive for investors
Sources: Interviews with TOP-management of Kharkiv IT companies, PwC analysis.
SWOT-analysis of Kharkiv IT industry
STRENGTHS
Large number of an educational institution for IT-specialists which
creates a strong talent pool for potential recruitment;
Sustained IT industry’s growth that results in numerous positions
for both IT and non-IT specialists;
Good balance between IT-specialist’s income and average spendings;
Developed city infrastructure that creates comfortable living
conditions (public transport, residential real estate, green zones etc.);
Established cooperation between IT-business and local educational institutions.
Lack of promotion of Kharkiv as an IT-oriented region;
Industry’s demand for IT specialists outpaces its supply;
Insufficient number of direct flights from Kharkiv airport;
Deficit of high-quality commercial real estate;
Inconsistency of educational programs in local universities
with industry requirements for IT-specialists;
Uncertainty with tax regime for private entrepreneurs;
Location of the region close to the zone of military conflict.
Further development of a dialogue between IT community and local/state
authorities, in order to lobby industry’s interests (set its development as one
of the priorities for the region);
Further cooperation of IT-business and educational institutions;
Promotion of Kharkiv as one of the TOP IT-cities of Ukraine in order to attract
clients, investors and human capital;
Attraction of investors to continue developing IT sphere in the region;
Attraction of developers to construct high-quality commercial real estate in Kharkiv.
Escalation of the military conflict in the East of Ukraine;
Socio-economic and political instability at local or state level;
Deficit of qualified IT specialists due to industry’s fast-paced growth;
Launch of unfavorable tax regime for private entrepreneurs;
Intensified competition for human resources, which will result
in significant growth in compensation level and loss of competitiveness
by smaller IT-companies.
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WEAKNESSES
OPPORTUNITIES THREATS
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Majority of TOP-managers of Kharkiv IT-companies evaluated
general business conditions in Kharkiv region as favourable
Evaluation of business conditions in Kharkiv
Supportive and friendly IT-community, fair competition on the market;
Large number of educational institutions, which creates a strong talent
pool for recruitment;
Establishment of Kharkiv IT Cluster, which helped to start a dialogue
with local authorities to promote industry’s interests;
Improved relationships with local law-enforcement authorities.
TOP-management opinion
Evaluate business conditions in Kharkiv,
compared to other Ukrainian regions.»
Unfavourable
Areas for development Suggestions for improvement
Lack of business education for IT and non-IT specialists in the region;
Insufficient promotion of Kharkiv as one of the TOP IT-cities of Ukraine;
Imperfect legislation prevents registration of «product-oriented»
IT companies in Ukraine;
Threat of sharp increase of tax rates for PE brings uncertainty to
industry’s future.
Sources: Interviews with TOP-management of Kharkiv IT-companies
Invitation of foreign experts in order to share their knowledge and bring expertise
of business administration;
Promotion of Kharkiv as IT-oriented city through participation in specialized events
on international level;
Cooperation with state authorities in order to improve legislation regarding intellectual
property rights protection;
Transition of IT industry out of the «grey zone» through gradual increase of the tax rates
for PE and creation of technological parks with preferential tax regimes.
Positive trends
—
—
—
—
—
—
—
—
>
—
—
—
—
73% 27%
Favourable
Highly
favourable
0%
«

At the moment most of the respondents see deficit of high-quality
commercial real estate and lack of direct flights from Kharkiv
airport as the main factors limiting further growth
Positive trends TOP-management opinion
«Kharkiv City infrastructure is...»
Suggestions for improvement
Attraction of developers in order to construct high-quality real estate (class A, B+);
Attraction of air carriers to arrange more direct flights to popular hub airports
(Amsterdam, Paris, Munich, Frankfurt, Vien, London) and increase frequency
of flights to large Ukrainian cities (Kyiv, Lviv, Odesa);
Cooperation with local authorities to improve public transport.
One of the best City infrastructure in Ukraine;
Gradual improvement of road surface quality;
Availability of City’s underground, which allows to travel
around the city in a quick and comfortable way;
Availability of green zones and entertainment infrastructure;
Availability of affordable residential real estate;
Launch of low-cost air-carriers from Kharkiv airport.
Deficit of high-quality commercial real estate (A, B+ class);
Lack of direct flights to the majority of European countries and the USA;
Public transport fleet requires renovation;
Low-quality transport infrastructure in the region outside of the Kharkiv city.
Areas for development
Evaluation of Kharkiv City infrastructure
>
—
—
—
—
—
—
—
—
—
—
—
—
—
Well-developed
Requires
91% 9%
Minor changes
Requires
Serious
changes
0%

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Sergiy Shkurupiy
Director Software Engineering EPAM
Kharkiv’s situation with commercial real estate is drastically different from the Kyiv’s one. Here, like in Lviv, currently, there is
a lack of big floors and rent is not always compliant with the proposed quality. Even power supply, air-conditioning and other
systems of new business centres very often do not meet requirements of IT companies.
Since 2008, only two business centres were built in Kharkiv. Other buildings of earlier periods actually have no free spaces. That
is why many IT companies rent premises in former design and planning institutes. Certainly, such offices have an entire set of
peculiarities and issues in their use. In order to address the situation, the city is currently considering drafts of modernisation and
reconstruction of former plant facilities into offices. The ideas, hopefully, will be implemented in the future.»
Yevhen Birenbaum
HR Manager Gameloft
Pavlo Obod
Founder of Sloboda Studio
Lack of office premises and related office infrastructure is a problem for Kharkiv IT companies, in particular, for those with more than 400
employees. For instance, some companies cannot find an office big enough for all their personnel so they have to rent 2-3 offices. For the
recent years, the city does not construct really high-quality real estate in good districts. Even those new buildings available now are not
completely modern. At the same time, rent and office service is slightly overpriced in Kharkiv market and not completely compliant with
the quality. The problem can be solved by the development of a separate land plot with high-quality business centres and excellent
adjacent infrastructure, including transportation one».
There is a competition for office spaces in Kharkiv. The average growth of IT companies by 20% annually creates a need for the equal growth
of office real estate (especially with the floor space of 500-1,000 sq.m.). However, it does not happen.
Regarding requirements for commercial real estate, companies of more than 10 employees want to work in a spacious offices with modern
refurbishment and good air-conditioning. Office location also plays a significant role. Many companies strive to rent an office in the downtown
or Pavlovo Pole areas, as other locations cannot be suitable for their employees due to the lack of a transportation infrastructure.
Consequently, close metro stations and parking lots should be taking into account at the construction of new business centers.»
«
«
«

The majority of the TOP-managers of Kharkiv IT-companies
agree that education in the region requires serious changes
Evaluation of IT-graduates’ training
Positive trends
One of the largest number of IT-graduates in Ukraine;
Provision of excellent training for students on fundamentals
of mathematics and IT;
Numerous opportunities for internships for IT-students provided
by local companies;
Introduction of own courses, lectures and computer classes
in universities by major IT-companies;
Readiness of universities for cooperation with IT-business.
Knowledges of IT-specialists graduated
from Kharkiv universities...»
Areas for development Suggestions for improvement
Inconsistency of educational programs in local universities with industry
requirements for IT-specialists;
Majority of educational institutions are bureaucratic and not ready
for significant changes;
Students of 3d-4th grade early start their careers and are not interested
in further education in universities;
Lecturers lack business experience and motivation to make educational
programs more practical.
Proactivity of IT-business in reforming of educational system on a state level;
Cooperation with authorities in order to pass the law on private-public
partnership and facilitate cooperation between universities and business;
Introduction of new specialized courses in the universities led by industry experts;
Provision of internships in IT-companies for lecturers to gain practical experience
in the industry.
>
—
—
—
—
—
—
—
—
—
—
—
—
—
Exceeds
employers’
expectations
73% 27%
Is below employers’
expectations and requires
serious changes
Matches
employers’
expectations
0%
«

Oleksandr Medovoi
Founder, President & CEO AltexSoft
Eduard Rubin Director
Telesens International
Today, companies have an opportunity to prepare its own staff on the basis of regional Universities. Every large or middle-size university
has 1-2 and in some cases up to ten labs of IT-companies where we select students for our on-the-job training. It solves the staffing
problem at the regional, but not the national level.
Furthermore, to support the fast growth of the industry, IT companies have to prepare managerial staff. Lack of a reputable business
school in the region or non-technical education focused on technology management does not allow us to do it and is a constraining
factor for the further industry growth.
There are a plenty of good Universities in Kharkiv, but it is a merit of separate individuals, heads of departments. Hard and high-quality
work of a professor motivates students to learn hard and, as a result, to become professionals. Generally, the educational system
starting from secondary school is still a Soviet one. It has not been adjusted to meet the modern market requirements. For instance,
we still do not have an e-learning in Universities, and professors are poorly motivated, they do not compete with each other even
within the same University. Therefore, upon the graduation from the secondary school, young people having intention to work in IT
sphere leave abroad to obtain a higher education and often do not return.
The improved educational system will ensure that future specialists will remain in Kharkiv. Nevertheless, I do not see among today’s
new educational draft laws those that can really change the situation for the better.
Victor Shalnyev
CEO NIX Solutions Ltd
The market demand is constantly growing and the number of good students is diminishing, since neither students nor professor are
sufficiently motivated to study and teach well, and the market is ready to consume even ‘raw materials’. Time needed to train a newcomer
until he/she starts to generate revenues for the company is growing. We try to influence the situation on our own, though it is only
a temporary solution of the problem. Only modifications in the educational system and demographic policy will be able to improve
the situation.

Another concern of the respondents, is whether the supply of qualified
IT-specialists will be sufficient to support rapid IT industry's growth
Evaluation of demand on human capital
General comments
Due to fast-pace industry’s growth the deficit of qualified professionals
may increase;
Some companies mitigate this issue by opening additional offices
in small Ukrainian towns, where there is an excess of qualified
professionals who demand lower compensation.
General comments
Remuneration of IT-specialists is expected to grow further, which is in line with
worldwide IT industry trends;
Increasing production costs do not affect IT-service companies heavily, because such
business compete mostly on quality of provided services, rather than their price;
Abovementioned trend affects product companies and startups because it is difficult
to hire staff below the market average at the initial stage of a company’s
development when business is sensitive to extra costs.
Number of employees in the company
in the following year will...»
«Remuneration of IT-specialists in the following year will.»
Decrease
73% 27%
Increase Not change
0%
Decrease
100% 0%
Increase Not change
0%
«

According to the data provided by Kharkiv IT-companies, majority of IT-specialists
are in the age below 30, while women represent 29% of the local IT-community
Characteristics of Kharkiv IT-specialists:
29%
Women
71%
Men
Age structure
2%
60%
33%
4% 1%
<21 21-30 31-40 41-50 >50
60%
7%
3%
7%
23%
30% Senior 44% Middle 26% Junior
Division structure
Grade structure
Developers Project
managers
BA QA Other
Source: Kharkiv IT-companies, PwC analysis.

Students in Kharkiv have good opportunities
to gain practical experience — they account
for ca. 20% of total recruited IT-specialists
Recruited specialists
% of total recruited IT-specialists
Specialists left companies
% of total IT-specialists, that left companies
Left abroad
% of total IT specialists, that left abroad
With previous
experience
Without previous
experience
63% 37%
With IT experience
With non-IT experience
Students51%
12% Other
(incl. graduates)
20%
17%
51%
Left to
another
company
18%
12%
6% 4%
49%
23% 20%
3% 5%
Left
abroad
Left IT Transferred
to freelance
Started own
IT-business
Better life
abroad
Higher
salary
Family
issues
Client
requirements
Other

In order to enhance specialists’ knowledge up to the worldwide industry standards
IT-companies invest in both internal and external educational programs and initiatives.
Kharkiv IT specialists’ level of education
% of total specialists
Master's degree
(excl. MBA) 72.2%
Bachelor's
degree
No higher
education
Doctorate
degree
24.9%
2.1%
0.6%
MBA 0.2%
Availability of courses for internal personnel
% of total companies
of Kharkiv IT-companies provide
courses for internal personnel
of them also provide courses
for external public
Structure of companies’ educational investments
% of total educational investments
54.8%
23.7%
8.1% 7.0% 5.9% 0.5%
72%
48%
Company-
owned
courses
Kharkiv
universities
Kharkiv
schools
Conferences Workshops Online
courses

Lack of qualified graduates will remain an issue
for Kharkiv IT industry in the nearest future
Estimated number of IT-graduates1 in Kharkiv
by specialization, 2016 – 2022, Persons
Automation & ComputerizationInformation technology
Estimated demand2 for IT-specialists vs number
of IT-graduates in Kharkiv, 2016 – 2022, Persons
Sources: Kharkiv universities, Kharkiv IT-companies, PwC macroeconomic model of Kharkiv IT industry
1 - Number does not include graduates from local colleges, which accounted for 309 persons in 2017
2 - Estimated according to “positive” scenario of PwC macroeconomic model of Kharkiv IT industry
Applied mathematics
435
251
701
713
200
955
1,064
1,517
386
67
1,331
1,571
196
1,729
561
2,367
77
44
1,313
412
1,805
80
2,017
950
3,026
59
2016 2017 2018 2019 2020 2021 2022
FORECAST
2016 2017 2018 2019 2020 2021 2022
500
0
1,000
1,500
2,000
2,500
3,000
3,500
4,000
701
955
1,517 1,571
2,367
1,805
3,026
2,3952,243
2,075
2,349
3,329
3,688
2,509
Number of IT-graduatesIndustry demand for IT-specialists
FORECAST

Top-3 Universities according to opinions
of Kharkiv IT-companies
Kharkiv National University
of Radio Electronics
National Aerospace University
«Kharkiv Aviation Institute»
The National Technical University
«Kharkiv Polytechnic Institute»
© 2018 PricewaterhouseCoopers LLC. All rights reserved.
In this document, “PwC” refers to PricewatrhouseCoopers LLC which is a member firm PricewaterhouseCoopers International Limited, each of which is a separate legal entity.

Technology & solution
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altexsoft.com

AltexSoft
AltexSoft is Technology & Solution Consulting company. We co-build
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by leveraging our technical, process and domain expertise and access to the
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Who We Are
11 years in business;
200+ employees;
100+ clients from the USA and 200+ clients worldwide;
Projects ranging from 0.5 to 80 man-years of scope;
88% customer referral rate;
Dedicated Travel Technology Practice;
Organizers of largest Ukrainian conference on machine learning,
data science and artificial intelligence - AI Ukraine;
5% attrition rate;
3 R&D centers in Ukraine: Kharkiv, Lviv and Kremenchuk;
US Sales Office in San Diego, CA and Atlanta, GA.
10 Facts about AltexSoft
We help implement digital transformation projects to transform
the business model, implement new customer interactions, build
modern infrastructure and create data-driven organization.
What We Do
Microsoft.NET;
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Industry Expertise
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Software Product Development;
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Countries We Work With
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-
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Profile Of IT Specialist
In Kharkiv Region
Sept 2018

Study Design
Employment
Profile of IT Companies;
IT Job Titles;
Working experience;
Working Conditions;
Job Search Priorities.
Education and Personal Development
Education;
Improvement of IT Specialist Skills;
Knowledge of foreign languages;
Knowledge of programming languages.
Accommodation
Living conditions;
Own Dwelling.
Migrations
Moving to Kharkiv;
Possible moving from Kharkiv to another city;
Possible Moving From Kharkiv To A Foreign Country.
Banking services and savings
Criteria For Choosing A Bank;
Choosing A Bank;
Savings and Investments.
Structure Of The Report
Lifestyle
Traveling;
Nutrition at work;
Medicine;
Hobby;
Pets;
Transport.
Incomes and expenses
Salary;
Average monthly salary;
Average monthly income;
Expenses;
IT Specialist Profile
Portret;
Family.

Goals
To provide socio-demographic information about IT specialists;
To present the amount of wages, incomes, expenses, and savings;
To show the amount of money spent on individual items of expenditure;
To explore immigration/emigration to the city; to determine the causes of these phenomena.
Method
Online survey.
Kharkiv and Kharkiv Region.
Geography Of Research
Study design
-
-
-
-

Employment
IT Company Profile: The vast majority of IT professionals work
in companies with a core business of Information Technologies.
Specialization
Economic Activity
Of The Enterprise 83% IT
Other
17%
Outsourcing
Service
Product
Outstaffing
Startup
Difficult to answer
39%
24%
16%
15%
1%
5%

5%
1%
1%
1%
1%
1%
1%
2%
2%
2%
2%
2%
3%
3%
3%
5%
6%
7%
9%
43%
Другое
Solution architect
CEO
Database administrator
System administrator
Sales Manager
Support
Business analyst
Development Manager
Data Scientist
DevOps Engineer
UI-UX specialist / Designer
Marketing Manager
Tech lead
Automation QA
HR Manager
Team lead
Project manager
Manual QA
Software engineer
IT Job Titles
The largest share
of IT specialists
are developers
Employment
Other

Work Experience In IT
Primary activity
Years of experience
in the IT sector
41%
1-2 years
29%
3-5 years
19%
6-10 years
10+ years 10% 1% Less than 1 year
Junior Middle Senior
1,9
4,4
7,5
Years of experience according
to the skill level
In the IT field generally
In one company
In the current position
At the last workplace
4,8
3,1
2,9
2,1
Average work
experience:
4.8 years

Working conditions: Most Kharkiv IT specialists work full-time in offices.
Every 4th IT specialist has their own project on the planning stage.
Occupation Workplace
Own Project
Primary activity
94%
In the office
2% OtherAt home 4%
98%
Full-time
2% Part-time
59% 25% 12% 4%
Don’t have an own project Is planned
Startup/
IT project
Startup/
non-IT project
THE PROJECT IS OR IS PLANNED
>

1%
1%
3%
5%
6%
9%
11%
11%
12%
14%
24%
31%
42%
48%
78%
Другое
Размер компании
Тип компании (аутсорсинг и…
Имидж/репутация компании
Наличие соц. пакета
Стиль руководства
Реализация своих…
Расположение офиса
График работы
Комфортный офис, рабочие…
Перспектива карьерного роста
Профессиональный рост
Атмосфера в коллективе
Интересные проекты/задачи
Хороший доход
Job Search Priorities: IT specialists consider a comfortable income, interesting projects
as well as the atmosphere in the team to be the major priorities when searching for a job.
Comfortable income
Interesting projects / tasks
The atmosphere in the team
Professional growth
Career prospects
Comfortable office,working conditions
Schedule
Office location
Realization of abilities
Executive management style
Social package
Company Image / Reputation
Company Type (Outsourcing,etc.)
Company scale
Other
Employment

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Artjoker — is a software provider for Loan Management,
Risk Analytics and Ecommerce
Who We Are
120+ employees in the team
Established in 2006
We are trusted by international brands
Over 300 projects
Offices in Kharkov, Los Angeles and Zurich
TOP-10 IT employer in Kharkiv region
Part of international technical conferences in Europe and the USA
Facts About Artjoker
We help startups and enterprise to accelerate
their time-to-market and digital growth
What We Do
- Lending
- Real Estate
- Travel
- Wealth management
Industry Expertise
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We developed software for TOP-3 Ukrainian
consumer credit market company
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market rental and sale of real estate
We created unique software development approach –
Artjoker Method®
We value long-term partnership and strategic plans
Why Choose Us
- Risk analytics
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- HealthCare
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Education
and Personal
Development

4%
2%
3%
4%
4%
6%
14%
27%
36%
Другое
Среднее
Несколько…
Базовое…
Несколько…
Аспирант, PhD
Базовое…
Полное…
Полное… 71%
46%
31%
26%
22%
2%
1%
Самообразование:
литература, статьи и т.д.
В своем высшем учебном заведении
Онлайн-курсы
Стажировка в ИТ-компании
Платные специализированные курсы
В процессе работы
Другое
Professional Knowledge SourcesDegree Level
Education: About 95% of specialists have a graduate degree.
Most people practice self-education to gain professional knowledge.
Graduate Industry-oriented degree
Graduate Non-core degree
Junior Industry-oriented Degree
Ph.D. Student
Multiple Educational Degrees (non-core)
Junior Non-core Degree
Multiple Educational Degrees (including field-oriented)
Secondary Education
Other
Self-education: literature, articles, etc.
At the university
Online courses
Internship in IT companies
Paid specialized courses
In progress
Other

How much time per week is devoted
to self-development in IT?
Ways to improve IT skills
Improvement IT Specialist Skills: On average, IT specialists devote 7.4 hours per week
to self-development. Mostly, specialists improve their skills in the working process and
by studying professional literature.
8% None at all
33%
Up to 5 hours
32%
5-9 hours
20%
10-15 hours
More than 15 hours 7%
3%
8%
19%
35%
41%
71%
83%
Занятия с репетитором
Профильное высшее…
Специализированные курсы
Онлайн курсы / тренинги
Профильные события…
Профессиональная…
В процессе работыDuring the working process
Studying professional literature
Conferences, meetings, etc.
Online courses/ trainings
Specialized courses
Industry higher education
Tutoring

98%
13%
11%
6%
4%
2%
1%
Английский
Немецкий
Французский
Польский
Испанский
Итальянский
Китайский
Knowledge of foreign languages
Knowledge of foreign languages
English
German
French
Polish
Spanish
Italian
Chinese
Don’t know
Planning/began to study
Elementary level
Pre-intermediate level
Intermediate level
Upper-intermediate level
Advanced level
1%
4%
11%
33%
38%
13%
—
74%
13%
7%
2%
2%
1%
1%
83%
6%
7%
2%
2%
—
—
English German French
84%
OF IT SPECIALISTS
HAVE INTERMEDIATE
AND HIGHER LEVELS
OF ENGLISH

55%
48%
33%
27%
27%
20%
18%
9%
8%
7%
5%
4%
6%
SQ L
JavaS cript
Java
C+ +
C#
Py th on
N ode. js
An droi d/ K otli n
PH P
Ru by
O bj ective -C / Swif t
G ola ng
Другие
Knowledge of programming languages
Programming Language: Basic and higher level
SQL and JavaScript
are the most popular
languages
SQL
JavaScript
Java
C ++
C #
Python
Node.js
Android / Kotlin
PHP
Ruby
Objective-C / Swift
Golang
Other
37
8
22
22
11
39
12
23
17
9
57
10
21
6
7
66
7
19
6
3
65
8
13
5
9
64
16
11
4
5
73
9
9
6
3
Don’t know
Planning/began to study
Junior level
Middle level
Senior level
SQL,% JavaScrip,% Java,% C++,% C#,% Python,% Node.js,%

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for Insurance
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Fortifier IT company provides first reliable IT engineering services
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Technical partner for a list of StartUps;
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Sponsor of Insurance conferences in the USA;
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10 Facts About Fortifier
Improve Insurance industry through reliable
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What We Do
Web: Java, Python,
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Cross-platform;
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Artificial Intelligence,
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Wage Form
Salary
Satisfaction with Salary
Most specialists receive a salary in the form of a constant monthly rate.
Almost one-third have pointed that they draw a constant monthly rate
with bonuses/rewards
22%
41%
15%
14%
8%
59%
Constant
monthly rate
Constant monthly rate
with bonuses/rewards
30%
Time Rate 10% 1% Other
Fully Satisfied
Rather satisfied than not
As satisfied as not
Rather dissatisfied
Totally dissatisfied

$ 600
$1 500
$3 000
$1 400
Average monthly salary (net)
$2 200
$1 500
$1 200
$1 200
By type of a company they work in
IT specialists who work in outstaffing
companies receive the highest wages.
Average salary
9%
16%
8%
7%
29%
14%
9%
6%
Salary level, $
Outstaffing
Outsourcing
Product
Service
Junior Middle Senior Median
4 000+
3 001 –4 000
2 001 –3 000
1 001 –2 000
801 –1 000
601 –800
401 –600
201 –400

16%
15%
10%
9%
6%
5%
4%
4%
4%
3%
2%
2%
2%
2%
2%
2%
1%
1%
1%
6%
$ 235
$ 224
$ 147
$ 141
$ 85
$ 76
$ 63
$ 63
$ 58
$ 47
$ 37
$ 32
$ 31
$ 31
$ 29
$ 24
$ 21
$ 20
$ 19
$ 88
Expenses
Monthly expenses by types
Savings
Food
Rental Property
Loan/Debt Payment
Clothing/Style
Travels
Taxes
Hotels, cafes, restaurants
Housing maintenance
Cinema, theater, concerts, etc.
Alcohol and tobacco
Public transport
Childcare
Service of private vehicles
Medicine/Healthcare
Self-education
Telecommunication services
Sport
Education
Other expenses

3%
20%
26%
34%
17%40%
33%
12%
7%
3%
2%
1%
2%
Собственная квартира
Аренда жилья (дом/ квартира)
Живут у близких людей
Собственный частный дом
Аренда комнаты
Живут в общежитии
Другое
Затрудняюсь ответить
Home-ownership
Living Place
Housing Conditions
Rental duration
Accommodation
Most IT specialists own homes.
On average, those who live in temporary
apartments have been renting these
for 2.8 years
60% Yes
No 40%
Own flat
Rental flat/house
Live with relatives
Own house
Rental room
Live in a dormitory
Other
Difficult to answer
Less than 1 year
1-3 years
3-5 years
5-10 years
10+ years

32%
26%
16%
6%
6%
3%
2%
2%
2%
6%
Наследство
Покупка за свои средства
Подарили
Долг у близких людей
Покупка за счет продажи имуещества
Кредит/ заем в банке
Рассрочка
Обмен
Другое
Трудно сказать
1%
0%
1% 1% 1% 1%
10%
0%
2%
9% 9%
11% 11%
9%
18%
14%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2001 2002 2003 2004 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
21%
16%
10%
21%
26%
до 20 000
21000 - 30000
31000 - 40000
41000 - 50000
51 000 и выше
The means of acquisition Dwelling cost in US dollars
Year of the last purchase of a dwelling
Most IT specialists own 1 dwelling.
Predominantly, these are inherited
or bought for own money. A large
proportion of dwellings was purchased
in two recent years
(8 month)
Accommodation
Own Dwelling
The number
of objects
80% 1
17% 2
3% 3
Inheritance
Purchase by own money
Gifted
Purchase on money borrowed from relatives/friends
After selling an old flat/house
Bank loan
Installment loan
Exchange
Other
Difficult to answer
51,000 and more
41,000 - 50,000
31,000 - 40,000
21,000 - 30,000
Less than 20,000

Fintech Engineering
for Financial Wellness
insart.com

INSART
INSART is a software development partner for Fintech & financial companies.
We are headquartered in the heart of the financial world, New York, and our
R&D labs are located in Ukraine, famous for its highly skilled software engineers.
We believe in well-structured teams, processes, and architecture mixed with
the strong financial expertise to deliver exceptional results.
Who We Are
Key clients are Fintechs in the US and Europe;
The team of 60+ Fintech engineering professionals;
Provides end-to-end financial literacy training to its employees;
Established in 1993 as a spinoff of the major tech university in Ukraine;
Re-launched and went international in 2008;
Headquartered in New York, USA since 2015;
R&D labs in Kharkiv and Kyiv, Ukraine;
Runs PayTech & WealthTech Clubs, communities of Fintech experts and companies;
CEO has done 70+ research interviews with Fintech founders & executives;
Runs Smart Club in Ukraine, the meetup for software engineers.
10 Facts About INSART
We help Fintech & financial companies
build great Fintech products.
What We Do
Java, Spring, Hibernate, JBoss, Tomcat, WebLogic;
React, Angular, Vue, Backbone, Redux, Rest;
Docker, Kubernetes, Jenkins, Git, Bitbucket;
PostgreSQL, MySQL, Oracle, MS SQL Server;
MongoDB, Couchbase, Neo4j;
Spark, Hadoop, Hazelcast, Kafka, Elasticsearch;
Amazon AWS, Heroku.
-
-
-
-
-
-
-
-
-
-
We have multiple success stories from building software products
from scratch to helping our clients scale their software engineering operations;
Our specific focus on Fintech & financial services differentiates us
from other more generic software development providers;
We train engineers in capital markets, financial planning, wealth management,
payments, banking, insurance, lending and other areas of finance;
Our key values: Customers, Team, Professionalism, Learning, and Engagement.
Why Choose Us
- USA - UK - Sweden
- Switzerland - Germany
www.insart.com sales@insart.com +1-(917)-475-0008
-
-
-
-
-
-
-
WealthTech & Robo-advisors;
PayTech & Payment Processing;
Lending & Fundraising;
Trading Platforms & Algorithms;
Insurance & InsurTech;
Security & Fraud Detection;
Blockchain & Cryptocurrencies;
Big Data Analytics.
Industry Expertise
-
-
-
-
-
-
-
-
Fintech software products engineering;
Java backends, APIs, integrations, multilayering & microservices;
Software re-engineering & re-architecting;
ETL & big data processing, data analytics.
Company Services
-
-
-
-
-
-
-
-

Duration of residence in the city
Moving to Kharkiv
Reason for moving
Since birth
Since childhood
More than 10 years
5-10 years
3-5 years
1-3 years
Less than 1 year
65%
14%
6%
6%
2%
2%
2%
1%
1%
1%
48%
3%
18%
18%
7%
4%
2%
Migrations
About half of specialists have been living in the city since birth or since childhood.
The main reason for moving was to receive a quality education
Getting a quality education
More development opportunities
Favorable job offer
Developed infrastructure
Moving spouse home
ATO
Adventure/change of scenery
Family member's relocated career
Good living conditions
Difficult to answer

Criteria For Choosing A Bank
51%
48%
37%
18%
16%
15%
15%
10%
9%
9%
7%
5%
5%
4%
3%
2%
The availability of online services/applications,
as well as bank reliability and automated
payment processes, are the most important
criteria when choosing a bank
Online Services / Application
Bank reliability
Automated payment processes
Service Level
Universality and Availability
Bank Reputation and Image
Services
Bank Rating
Usage by most friends
Bank's history
Reliable user data protection
Customer Reviews
Bank location
Exchange Rates and Сurrency Сonditions
Online consultation
Other

5%
3%
1%
2%
3%
3%
4%
4%
4%
4%
5%
11%
12%
15%
35%
76%
PrivatBank and Ukrsibbank
are the most popular banks
among IT specialists
Choosing a bank
PrivatBank
Ukrsibbank
PUMB
Monobank
Alfa-Bank
Kredobank
Raiffeisen Bank Aval
Oschadbank
OTP Bank
Credit Agricole Bank
Ukrgasbank
Ukrsotsbank
ProCredit Bank
Ukreximbank
Other
Don’t use

6%
3%
4%
5%
5%
14%
19%
29%
37%
44%64%
63%
42%
35%
33%
33%
18%
15%
2%
1%
3%
The primary objective of savings
Savings and Investments
What do you invest in?
Do you
accumulate/save
money?
75%
Yes
No 25%
Buying real estate
Traveling
Buying transport
Consumer electronics
Hobby/entertainment
Investments
Personal education
Children's education
Home repair
Old-Age Insurance
Other
Foreign currency
Bank deposits
Real Estate
Difficult to answer
Cryptocurrency
Precious metals
Own business
Funds
Shareholding
Other
Most IT specialists accumulate money for buying real estate or for traveling.
IT specialists prefer to invest in foreign currency or bank deposits

We help ecommerce
businesses grow
promodo.com

Promodo
Promodo is a leading international performance agency that helps
marketing teams of medium and large ecommerce companies to
increase sales and customer loyalty. Our team of 160+ experts helps
clients from 60 countries to promote businesses in developed and
emerging markets. Promodo employs its cutting-edge proprietary
software and know-how to deliver better results.
Who We Are
- 14 years of experience in digital marketing;
- 5 offices around the world;
- 1,500 successfully completed projects;
- 160+ in-house experts;
- 50+ Google AdWords and Analytics certificats;
- 11 organized conferences;
- 3 completed social projects.
Facts about Promodo
We help companies develop businesses
through online marketing solutions.
What We Do
- Google AdWords;
- Google Analytics;
- Bing Ads;
- Facebook Ads;
- Promodo API;
- Online stores and retail businesses;
- Marketplaces/сlassifieds;
- Price comparison websites;
- Online travel agencies.
Industry Expertise
- Pay-per-click ads
(AdWords, Facebook, Bing);
- Search Engines Marketing;
Company Services
- Ukraine - UK - USA - Kazakhstan - Turkey
- Germany - Georgia - Lithuania and more
www.promodo.com contact@promodo.com +44 (0) 20 313 766 81
We employ cutting-edge proprietary software;
Our team can quickly launch and scale a marketing campaign;
Track record of success in the promotion of ecommerce
and destination marketing projects;
Our team takes a deeper dive into the client's niche to provide
the best marketing solution;
We go extra mile, strive to exceed the client’s expectations.
Why Choose Us
- Social Media Marketing;
- UX/UI design;
- Email Marketing.
-
-
-
-
-

Have you
ever been
abroad?
Traveling
18% of IT specialists have never been abroad.
European and Asian countries are the most
popular for foreign trips
Lifestyle
82%
Yes
No 18%
Long-distance trips for the last 12 months
15
17
34
14
20
48
23
19
4
5
78
16
3
1
2
89
10
-
-
1
93
5
-
-
2
98
1
-
-
1
Didn't travel
1 trip
2-3 trips
4-5 trips
5+ trips
Ukraine,% Europe,% Asia,% Africa %
North
America,%
South
America,%
Australia and
Oceania,%
98
1
-
-
1

21%
17%
11%
15%
36%
35%
7%
7%
5%
5%
3%
2%
Nutrition at work
Most experts prefer to have lunch cooked at home or visit restaurants or cafes.
Mostly, companies provide free food to their employees in the ratio of 50/50 or completely.
What do you usually eat during your lunch break at work? Does your company provide free food?
Lifestyle
Pre-cooked Meals
Meals in restaurants,cafes,etc.
Meals provided by the company
Food from store
Snacks,sandwiches,fast food,etc.
Make-ahead quick meals
Have lunch at home
Other
35%50/50
No
Yes
Only snacks/fruits
Other

Did you use
medical services
throughout a year?
Medicine
Type of Medical
Institution
Corporate
Health Insurance
One-third of IT specialists did not attend medical
institutions for therapeutic or prophylactic purposes
33%
Yes,for
therapeutic
purposes
No 27%
11%
Yes,for
prophylactic
purposes
28% Yes,for
therapeutic and
prophylactic
purposes
Lifestyle
27%
I have it
73%
I don’t
have it
71%
Private
29%
Public
Almost every 3rd IT specialist
has corporate health insurance

56%
49%
46%
29%
24%
18%
18%
10%
9%
9%
7%
6%
6%
5%
3%
3%
1%
6%
Hobby
Types of hobby
More than half of the specialists pointed
out IT self-development as a hobby.
Sport and reading are slightly less popular
types of activities.
Lifestyle
IT self-development
Sport
Reading
Tourism
Social networks and blogs
Pets
Cooking
Care for indoor plants
Photography
Needlework
Auto and Moto Vehicles
Computer and video games
Hunting and fishing
Collecting
Choreography / Dancing
Music
Painting
Other
88% Yes
No 12%
Do you have
a hobby?

Enterprise-level
software solutions
for telecommunications
telesens.co.uk

Telesens
Telesens is a global provider of enterprise level software products
and solutions for telecom and other business domains. We have
been operating since 1998 and serving customers in more than
twenty countries worldwide. The headquarters of the company
is situated in London with the development centre in Ukraine.
Who We Are
Over 20 years of experience with IT projects;
15+ own enterprise software products for telecom operators;
14 telecoms in 8 countries are among our clients;
130 million transactions per day processed with our software;
600+ successful IT projects;
100+ qualified software IT-professionals.
Facts about Telesens
Enterprise software solutions. Professionally!
What We Do
- Java;
- Oracle;
- DWH;
- Reporting;
- Mobile Security;
- Cryptography;
- Telecommunications;
- Security;
- Healthcare;
- Finance;
- Utility;
- Public Administration.
Industry Expertise
- Consulting;
- Implementation and Support;
- Software Development;
- Dedicated IT-resources;
- Training Courses.
Company Services
- USA - Canada - Germany - Great Britain - Ukraine
- Kazakhstan - Uzbekistan - Belarus - Turkey - Israel
- Finland - Sweden - Moldova and others
telesens.co.uk info@telesens.co.uk +38 (057) 719-94-71
- ISO-certified business processes;
- Competence in modern technologies and tools;
- Practical experience with complex multisite projects;
- Close cooperation with technical universities.
Why Choose Us
-
-
-
-
-
-
- Test automation;
- Cloud;
- High availability
and clustering;
- Blockchain.

58%
36%
21%
19%
10%
6%
4%
2%
Pets
Almost every second IT specialist has pets.
Cats are the most common among them.
Lifestyle
24%
One pet
Don’t have
36%
23%
Several
17%
Planning
to adopt
Cat
Dog
Fishes
Rodents
Birds
Amphibians and reptiles
Exotic
Other animals

61%
36%
36%
6%
3%
3%
How, and for how long, do you usually take to get to work?
32
24
27
29
17
17
Transport
Own vehicles
33%
15%
2%
1%
1%
54%
Lifestyle
By public transport
By car
In foot
By bicycle
By taxi
Other
min
A car (ICE)
A bicycle
A motorbike
A car (Hybrid)
A car (Electric)
Don't have own vehicles
Transport modes
Everyday/Weekdays
Several days a week
A few days a month
A few days in half a year
A few days a year
Once a year and rarely
Don't use
Walking,% Public transport, % Private car, % Taxi,% Bicycle,% Train/Suburban train, %
71
20
5
1
-
-
3
49
14
13
9
4
2
9
24
10
5
1
-
-
59
6
10
36
29
8
1
10
2
6
9
5
7
8
63
1
1
8
29
17
12
32
Usually,IT specialists walk,
use public transport or
private car.
Most of them get to work by
public transport.The average
travel time is 23 minutes.

Portrait (Description)
Most IT specialists live in Kharkiv.
Slightly more than a quarter of them are women.
Location
96%
Kharkiv
Kharkiv Region 4%
5%
35% 31%
17%
9%
2% 1%
18-20 21-25 26-30 31-35 36-40 41-45 46 и
более
The Age Structure
46+

38%
38%
18%
4%
3%
Income levels
Family
2%
5%
23%
41%
22%
7%
Marital status
Sometimes there is not enough money for food
Enough money for food
Enough money for food and clothes
Enough money for major appliances
Enough money for everything except real estate
No financial problems; can buy a flat if necessary
Single
Married
Civilly married
Divorced
Let’s just say it’s complicated

22%
36%
20%
12%
9%
2%
Family
Parental status
7,8
6,1 6,2
2,0
Children's age
1st child 2nd 3rd 4th
26%
12%
3% 1%
56%
2%
1 child 2 3 4 No
children
Refused to answer
Who knows?
Number of family members
1 (Alone)
2
3
4
5
5+

Companies which participated in the survey.
Not IT Cluster members.
KHARKIV

Universities-partners of Kharkiv IT Cluster

DEVELOPING THE KHARKIV IT-ECOSYSTEM.
FORMING AN INNOVATIVE ENVIRONMENT.
it-kharkiv.com
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