IT Industry - Development of Economy and Talent (Vitaliy Nuzhnyy Business Stream)

IT Industry - Development of Economy and Talent (Vitaliy Nuzhnyy Business Stream)

• 1.
  IT INDUSTRY DEVELOPING UKRAINIANECONOMY AND TALENT October 2015
• 2.
  INFORMATION & COMMUNICATIONTECHNOLOGY IS THE №3 EXPORT 5bn. 14,3 bn. 17bn. *http://data.worldbank.org **Horizon Capital Data The ICT industry is potentially becoming №2 by 2020 due to it’s stable growth ICT metallurgy agricultural sector
• 3.
  STABLE TAX PAYMENT *State Fiscal Service of Ukraine м 18.1* bn. UAH (1.52 bn. USD IT PE revenue) in 2014 74 000* IT specialists in 2015 +88% tax revenue estimation in 2015 (UAH)
• 4.
  Highly Qualified ІTSpecialists COMPETITIVE ADVANTAGE OF UKRAINE TOP-3 Ukraine is among the TOP-3 in Central and Eastern Europe by IT market volume and IT talent pool 27* Average age of IT-specialist 5000** 5000 experts left the country in 2014-2015 рр. 69%* IT specialists consider relocation *DOU.ua **Experts’ estimate
• 5.
  *DOU.ua ** Experts’estimate Highly Qualified ІT Specialists COMPETITIVE ADVANTAGE OF UKRAINE 180 000 Tech Specialists in Ukraine by 2020 ~20 000** New highly paid jobs annually $2 000* Average salary 74,000 80,000 90,000 110,000 130,000 150,000 180,000 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 2014 2015F 2016F 2017F 2018F 2019F 2020F
• 6.
  • 15% -PE TAX in 2016-2020 • 50% of ITO market works illegally • Emigration of ІТ-specialists • Tax shrinks pro rata to revenues ІТ INDUSTRY PESSIMISTIC SCENARIO IT market declines due to rapid tax rate growth
• 7.
  • Gradual PEtax increase over 5 years • 6% PE tax rate in 2016 • 8% PE tax rate in 2017 • 10% PE tax rate in 2018-2020 • ~25% IT growth in 2017-2020 ІТ INDUSTRY SUPPORTS ECONOMY AND TALENT DEVELOPMENT IT industry – economic driver of the country
• 8.
  IT INDUSTRY CONTRIBUTIONTO UKRAINIAN ECONOMY • Forming the investment attractiveness of the country • Investors rout funds to Ukraine and strengthen the economy • Strong and sustainable growth of the IT industry • Industry volume will be 3.2 times up to 7.7 bn. USD by 2020 • 1.5 bn. USD – cumulative tax revenue (2016-2020) • 106 000 new IT jobs Revenue dynamics – optimistic vs pessimistic 1,400 2,000 2,379 2,236 1,118 895 805 765 765 1,400 2,000 2,379 2,617 3,140 3,925 4,907 6,133 7,667 2012 2013 2014 2015F 2016F 2017F 2018F 2019F 2020F Market capacity MLN USD (OPTIMISTIC SCENARIO) Market capacity MLN USD (PESSIMISTIC SCENARIO)
• 9.
  IT INDUSTRY CONTRIBUTIONTO UKRAINIAN GDP BY 2020 * Estimations include 5% efficiency of ITO staff productivity annually 3.2 times industry volume growth up to 7.7 bn. USD* 5.7% GDP from ІТО industry in 2020р. +3.8% GDP from ІТО industry over six years working in ITO industry jobs in other support industries 180 000 people* 400 000
• 10.
  Contacts Konstantin Vasyuk, ITCommittee Coordinator, European Business Association +38 067 656 08 65 [email protected] Victor Valeyev, Director of the «IT Ukraine» Association +38 050 352 31 88 [email protected]