Ukraine's IT industry has recorded a decline: what is happening with the export of IT services

Against the backdrop of previous years, which were characterized by steady growth in the information technology industry in Ukraine, 2023 proved to be a challenging year for this sector. According to the Lviv IT Cluster, in the third quarter of this year, the total export revenue of IT services amounted to $1.6 billion. This figure shows a decline compared to previous years.

In the third quarter of 2023, export revenues are already 5.5% less than in the same period of 2022, which is $95 million less in monetary terms.

According to the results of the first nine months of this year, the volume of computer services decreased by 8.4% compared to the same period last year, amounting to $5 billion against $5.46 billion in 2022.

In September 2023, the volume of IT exports amounted to $521 million, which is 8% less than in August this year and 9.9% less than in September 2022.

The Association of IT Companies of Ukraine predicts that if the current trend continues, the volume of IT exports will be approximately $6.6 to $7.1 billion by the end of the year. However, it is important to note that in 2022, revenues from IT services amounted to $7.3 billion.

"Based on the results of the third quarter, we can state that 2023 will be the first year since Ukraine's independence when the technology industry will not show growth compared to the previous year. We, as the largest IT community, are doing our best to reduce the decline in IT exports and reach at least the level of 2022 by the end of the year," said Stepan Veselovsky, Chairman of the Board of Lviv IT Cluster.

In September, the share of computer services in Ukraine's services exports amounted to 41.7%, which is 4.5% less than in the same month last year.

The decline in this sector requires additional analysis and measures to restore its competitiveness, but it may also be due to global economic factors and circumstances, such as the crisis in the global labor market and other negative influences.