Lviv IT companies generated more than $1 billion in direct and induced revenues in 2018

This story initially appeared in Ukraine Digital News, an English-language resource on digital innovation in Ukraine.

In late December, the Lviv IT Cluster released a third edition of its research about the IT industry in this major city of Western Ukraine. Completed with support from the FAMA poll agency, the research included a poll involving over 800 local IT specialists, a review of the 317 identified IT companies and eight in-depth interviews with local top managers.

The research highlights “consistently positive trends” including the following findings:

  • The total number of IT companies established in the city increased from 247 in 2017 to 317 in 2018 (up 28%). Ninety percent of these companies are small and middle-sized businesses, while 10% are companies over 250 employees.
  • A bit more than 20,000 people worked in the industry in 2018 – including 4,000 freelancers – with an estimated increase of 25% per year. (This number includes 1.8% of top managers and 16.4% of non-technical staff). Half of these people work in large companies. By comparison, Ukraine’s IT workforce nationwide is estimated between 100,000 and 200,000.
  • Indirect and induced employment in the city is estimated as 42,000 jobs.
  • Lviv’s IT workforce is predominantly made of men (67%) with an average of 28 years of age.
  • The average salary in the Lviv IT industry amounted to $1,880 in 2018 – a considerable amount for Ukraine, – up 8% from the previous year.
  • Lviv attracts IT specialists from other parts of the country. According to the research, some 39% of the IT workforce hired in Lviv are people who moved there from other cities (22% came from other regions of Ukraine).
  • The Lviv IT Industry generated $618 million in revenues in 2017, which accounted for 21% of city economy. Direct and indirect economic benefits amounted to $559 million and $360 million, respectively. (The report does not specify the meaning or methodology of such calculation.)

The prospects of the local IT industry are regarded as positive due to increasing demand, city attractivity, favorable investment environment, infrastructure development and strong ties with the city’s education system.

Click here to download the report