IT Dnipro Research 2019

IT Dnipro Research 2019
In its research, the company applies an interdisciplinary approach, which allows calculate the economic effect of the industries’ activities,
making forecasts, modelling. The study is based on clear indicators that allow tracking the contribution of the IT sector to the economy of
the region, in particular, the gross value added of IT industry or IT gross regional product, the share of gross value added in the regional GRP,
IT industry turnover, the forecast of the industry growth, the dynamics of taxes paid by the industry, the number of jobs created by direct and
induced employment. The results of the study provide signiﬁcant advantages for the positioning and development of the IT industry of a
particular city or region, as well as can become the basis for strategic planning of industry development.

IT Dnipro Community is a public organization missioned to
implement systematic changes in the region's business
environment, create favorable conditions for the IT-professional’s
work, development and improve specialized education quality.
Companies participating are notably different: ranging from
outsourcers to products, extensive companies to outstanding
new teams. The community is also supported by private
commercial centers, banks, and insurance brokers.
Since establishing in 2016, Community had managed and
organized its projects: IT Dnipro Conference, IT BizSchool,
IT BizMeet Up, CodeReview, IT Dnipro Research, supporting
The International Collegiate Programming Contest and RunIT
conference, promoting IT in the city.
itdni.pro
Contact@itcluster.dp.ua
+38 050 420 8245
Sociological Agency Fama is an all-Ukrainian independent
research company that has been conducting research projects
for international foundations, government bodies,
commercial and public entities for 10 years.
Over the course of its activity, the company has implemented
more than 300 projects, and due to the application
of its own innovative methods, Fama’s research results have
repeatedly become one of the most accurate.
Fama is accredited by the Sociological Association of Ukraine
as an all-Ukrainian research company.
famalviv.com.ua
fama.soc.agency@gmail.com
+38 032 247 2912

companies
were analyzed
IT specialists from Dnipro
and the region were surveyed
requests for public information
were sent to relevant institutions
companies gave information
about expenditures
expert interviews
were conducted
Research goals Tools
1deﬁning key indicators
and assessment of the IT market
of Dnipro and the region
2measuring the economic effect
of the IT industry
3estimating the strengths
and weaknesses of the IT industry
surveying the IT community of Dnipro
and the region
surveys of top management of companies
in Dnipro and the region
surveys about the speciﬁc aspects of
companies in Dnipro and the region
expert interviews with top management
of the companies
expert interviews with representatives
of accredited and non-accredited
educational institutions
desk-research
requests for public information about
statistics (State Fiscal Service,
state Statistics Service, accredited and
non-accredited educational institutions,
private commercial institutions)
use of data from open resources (OpenData)
START BRIEFLY ON THE MAIN FINDINGS OF THE STUDY

Summary. Briefly on the Main Findings of the Study
GOALS AND TOOLS IT COMPANIES OF DNIPRO AND THE REGION
The IT market in Dnipro and the region is one of the largest in Ukraine and is among the
top 5 IT hubs.
As of mid-2019, there were 378 IT companies functioning in the region. Of these, the vast
majority (over 90%) are concentrated in the city of Dnipro, while the rest are located in
other settlements of the region, including Kryvyi Rih, Kamianske, and Zhovti Vody.
Most of these companies are small in size (up to 80 employees). At the same time, every
third IT specialist works in a large company (201+ employees).
The majority of Dnipro IT companies are service providers by specification, that is, they
mostly provide outsourcing and outstaffing services; product companies and development
centers of international corporations are in the minority – 20% and 3% respectively.
Startups account for about 9%. Another 4% are service and product companies (based on
companies' self-identification). According to experts, there is a tendency among the
IT companies of the region for combining different types of services. In addition to
providing services, some companies start to develop their own products because, according
to them, this minimizes certain risks of the company's functioning in the IT market. Experts
also point out the blurring of the boundaries between outsourcing and outstaffing – according
to their observations, presently, the IT market has fewer and fewer companies that provide
only outsourcing or outstaffing services; nowadays, companies usually combine these types of
services.
In terms of industries, IT companies of Dnipro and the region specialize in E-commerce (15%),
Medicine&Healthcare (9%), Banking&Finance (8%).
As of mid-2019, the number of employees of the IT sector in Dnipro and the region amounts
to 15-16 thousand people, which makes up 10-11% in the structure of the IT sphere of Ukraine.
Senior specialists make up 28%, middle ones 45%, junior – 24%, and trainee – 3%.
Every third surveyed IT employee indicated that in addition to the main employment, they
performed other working activities – freelance, work in their own startups, engagement in
teaching or volunteering.
According to the results of the study, IT specialists are “quick off the mark” – over the course
of the last year, every third IT specialist has considered the possibility of relocating to another
city in Ukraine, over 40% have considered moving abroad, while 24% have considered both
options. The most popular destinations within Ukraine are Kyiv, Lviv, Kharkiv, Odesa; among
foreign destinations, there are countries of Europe and America.
At the same time, Dnipro has sufficiently high internal potential in terms of engaging new
employees – there are 11 higher educational institutions of III-IV levels of accreditation and
35 higher educational institutions of І-ІІ accreditation levels which train students of technical
specialities. As of the 2018-2019 academic year, there were nearly 14,000 students majoring
in IT-related specialities in Dnipro and the region, and by the end of 2019, more than 2,000
of them will be ready to start working (those who were in their 4th-7th year in the 2018-2019
academic year).
The total economic impact of the IT sector in Dnipro and the region in 2018 made up $630
million, of which the direct economic impact (calculated as gross value added (GVA), total
revenue, income, costs and jobs created by the results of the companies' activities over the
period under research) is $384 million, the indirect one (impact of IT on related industries) is
$245 million. The industry turnover ranged from $435 million to $452 million.
The number of direct jobs in IT is 13.5-14.5 thousand, indirect ones (in other related industries) –
29 thousand. The total number of jobs created by the IT industry in Dnipro is 42.5-43.5 thousand.
In general, one IT specialist creates 3.1 jobs in the city.
The average monthly income of one IT specialist in Dnipro and the region is $1,650 in 2019.
On average, following the salary review, the income of one IT specialist increases by 18%.
Three-quarters of the surveyed IT specialists in Dnipro and the region are saving money.
The average amount of savings is 30% of the monthly income.

IT Companies of Dnipro and the Region
The majority of IT companies are located in
Dnipro – 92%; the rest are in Kryvyi Rih,
Kamianske, Zhovti Vody.
Small and medium size IT companies make up
almost 97% of the market, large companies
(201+) account for about 3%.
At the same time, 1
/3 of IT specialists of
Dnipro and the region work in large IT
companies (201-600 & 601+). Every ﬁfth
company has offices in other cities of Ukraine;
every fourth has offices abroad.
378the number of companies in
Dnipro and the region
number of companies, %
numberofemployees,%
Number of companies
by company size criterion:
2
8
23
95
250 66
XS
25
28 S
6
M
Extra large (601+)
Large (201-600)
Medium (81-200)
Small (21-80)
Extra Small (< 20)
The structure of IT companies
by company type:
62.6%
20.4%
4.2%
9.3%
3.4%
Service-based companies
[including outsourcing - 80%,
outstaff - 20%]
Product-based companies
Service- and product-based companies
Startups
Global In-House Center (GiC)
22
20 L
XL
2
BRIEFLY ON THE MAIN FINDINGS OF THE STUDY INDUSTRIES AND TECHNOLOGIES

Industries
E-commerce
14.6%
Medicine&Healthcare
9.0%
Technologie:
20.8%
14.9%
11.7%
9.7%
9.7%
7.1%
5.8%
4.5%
4.5%
4.5%
2.6%
1.9%
1.9%
Mobile Solutions
Database Services
Cloud
Data Science
FinTech
IoT
AR / VR
Distributed DB
AL
Blockchain
Virtual assets
Robotics
Enhanced Salesforce expertise
Banking&Finance
8.1%
Retail&Wholesale
7.8%
Entertainment
7.3%
Education&Learning
7.3%
Media&Advertising
6.4%
Transportation&Logistics
4.8%
Insurance
4.8%
Travel
4.8%
Automotive
4.5%
Telecommunications
4.5%
Construction
4.2%
Security
3.6%
Sports&Leisure
3.6%
Manufacturing
3.6%
Other
1.4%
IT COMPANIES OF DNIPRO AND THE REGION KEY SALES MARKETS

INDUSTRIES AND TECHNOLOGIES IT SPECIALISTS OF DNIPRO AND THE REGION
Key Sales Markets
Dnipro IT companies mainly operate globally and are exporters to the United States of America
and Canada (around 50-60%) and Northern and Western Europe (around 25%), with Germany
and Scandinavia accounting for a significant share here. The State of Israel is quite actively
involved as a sales market, and this is facilitated by both regular flights (5 flights a week) and
the similarity of the local business culture.
Managers of Dnipro IT companies consider Asian markets to be one of the most promising,
fast-growing and qualitatively developing markets. They are mostly interested in Japan,
Singapore and Hong Kong.
Some IT companies work with only one country due to the focus of the parent company,
which opened its office in Dnipro.
The predominant range of target markets: USA, Canada, Israel, Scandinavia (Denmark, Sweden,
Norway), Netherlands, Belgium, United Kingdom, Japan, Singapore, Malaysia, Hong Kong, China,
Kuwait, UAE, Australia
The work in the domestic market accounts for about 1-5% of the sales markets. This is mainly
the development of e-commerce platforms, servicing of the needs of large retailers,
development of websites. The CEOs of Dnipro IT companies emphasize some mutual lack of
interest in the cost and nature of this cooperation, as well as assume that Ukrainian companies
do not have proper understanding of Ukrainian IT companies as performers. Thus, we have a
situation when foreign companies order services and developments from Ukrainian companies,
while Ukrainian companies order from foreign ones, whereas sometimes the latter's IT solutions
might have been developed by Ukrainian IT companies.
It is noted that the cooperation between local authorities and Dnipro companies in the
development of software solutions has intensified recently. Among these solutions, there are
traffic lights management system, digitalization of administrative services, etc. However, a
full-fledged participation in tenders carried out by state-owned companies and entities still
remains a rather traumatic experience of collecting and submitting innumerable documents in
edition to developing technical documentation. A positive signal in the development of the local
sales market is the interest of large Ukrainian companies in Big Data analysis, for marketing
purposes in the first place. This area can and should be developed.
Dnipro companies work with markets all over the world – they are active on the American
and European markets, they are entering the Asian markets. The Scandinavian part of
Europe has always been a very promising area; the relations with Ukrainian companies
are quite good there. But in my opinion, Germany and the UK are still the most promising
markets”
–––
Eduard Lobas, WebiNerds
60% of customers come from the USA, 25% from Northern Europe, 10% from Israel.
Ukrainian clients mostly apply for expert evaluation. We show them that there is no need
to hire their own staff of developers, while it is much more beneficial to take advantage
of the experience of our company. It’s true that everybody wants to get the perfect
result at minimum costs. But we discuss all issues before the start of the project, so to
speak, from the get go. We observe the agreements and we expect our customers to
do so as well. First, we settle everything within the business field and only then we
proceed to the legal aspect, that is, the signing of the contracts”
–––
Sergey Mechikov, Civenty

INDUSTRIES AND TECHNOLOGIES IT SPECIALISTS OF DNIPRO AND THE REGION
Europe – for the most part Northern Europe – and America are our largest sales niche.
These are the most attractive but very saturated markets. The interest in Asian markets
is increasing presently. The economy of the Asian region has grown significantly in recent
years and, accordingly, the need for IT services has also increased”
---
Dmitry Vasilinenko, Sitecore Ukraine
I think that the Ukrainian market accounts for a very small share of IT solutions sales –
up to 10%. First of all, both in the region and in the whole country we do not have a
well-organized business dialogue. There is communication within certain sectors, but in
general, I do not see a great desire to interact wider yet. And the second important
point is the fact that IT companies in the region do not seek cooperation with Ukrainian
customers – for example, working with government orders, participating in tenders.
This is due to the fact that there is a high probability of such cooperation resulting in
unpleasant consequences in the form of close monitoring by the state audit office or
the prosecutor's office. Nobody wants this. As for working for the private sector, as far as
I can see, Ukrainian companies prefer ready-made foreign solutions (for example, CRM
systems) and are reluctant to work with local companies to create something new of
their own. Yet I cannot explain this paradox. Probably, it is easier that way, when
something is ready to be used, because working with something new, starting from
scratch is frightening”
Irina Schmidt, Comparus
Some notable clients include:

In terms of qualified specialists,
Dnipro is not lagging
behind other cities of Ukraine
Arslan Tayliyev,
CEO & Founder at LANARS
LANARS IT company started its journey from the city
of Dnipro - the first office was opened in 2016.
Today office in Dnipro is the companies' headquarter.
During the last 3 years LANARS has grown up to
near 60 people and has created a full-fledged
development center. Apart from that the company
opened two representative offices outside Ukraine.
What was it Dnipro, that the team chose to start with,
how it developed there and generally how well does
the city suit for doing IT business – reveals
Arslan Tayliyev, LANARS founder.
Why exactly did you start a business in Dnipro?
I am originally from Donetsk, I started my career
there. In 2014, when I worked in another IT company,
we moved to Dnipro. We thought it was temporary,
but eventually we stayed in Dnipro. When in 2016,
together with the team we started our own company,
we didn't think long – we liked it in Dnipro, so we
decided not to go anywhere.
There were no problems opening the office. At first
we were based in a coworking and then moved to
an office. The landlord offered a favourable scheme;
initially, there was a small fee – about 15% a month
of the total cost – and then it gradually increased.
Neither there were any legal issues. A while ago I
had faced this problem in Donetsk. Back then it had
been much more complicated. We can see that the
conditions for doing business in Ukraine are gradually
improving.
How did you grow over time? How many
employees are there now?
The Dnipro office is the headquarters – it has about
50 people working there, including the technical
department. Lanars also has offices in Norway and
Georgia, with 6-7 more employees. We have been
growing organically. At first, we looked for employees
on our own, then we hired an HR specialist. By the
end of 2018, we had almost no staff turnover, and
there are still many of those people who have been
with us from the very beginning.
What are the spheres you are working in?
We develop software for the web and mobile devices.
We also do hardware projects – I consider it our
advantage. We develop both the very devices and
software for them. We design and perform tasks

Now our customers are mainly from Europe, there
are also several from the USA. For a long time,
clients came to us upon recommendations, we
have only recently engaged in marketing.
Were there any problems connected with the
fact that Lanars is located in Ukraine and in
Dnipro, in particular?
No, there was nothing like this. And the fact that
Dnipro is near the front line did not cause any
difficulties either. Customers and partners from
Europe and America often come to us, and they
like everything. Americans, for example, compare
Dnipro to Boston. Some clients came and stayed
here for a month – they worked, played sports, had
a rest. They like the infrastructure and local
restaurant industry.
Why does work with Lanars attract them?
First of all, it costs less. However, the trend now is
that the salaries of Ukrainian developers are almost
equal to the European and American ones. But we
pay far less taxes, that's where the difference comes
from. To be honest, to me, this is more of a
drawback than a benefit. Secondly, we are a stable
company, which is very important for our
customers. The market knows a lot of examples
when studios were created, did something and
then closed down.
Was it easier to open offices abroad than in
Dnipro?
It depended. Georgia has transparent legislation;
it is easy to run a company there. There is a single
centre where you register a legal entity and open a
bank account – it all takes just a couple of hours.
We have a representative office in Georgia where
we plan to form a development centre.
right here in Dnipro. In addition, we cooperate with
a design office in Switzerland.
What specific projects are you working on?
For example, we developed an intercom which is
now installed in many houses in Oslo. We are also
working with one of the oldest European plants
which produces coolers for CNC machines.
The coolers are quite expensive, so the plant used
to send engineers around the world to check their
condition. We are now designing devices for them
that do it automatically and add the right
components as needed.
How did you get into this sphere?
Initially, there was a client request. We only did the
software for him, and then he asked to do the
hardware. We thought about it and decided that we
could do that. We contacted Yuzhnoye Design Office
and had the first version of the device made for us
there. Then we started producing them on our own.
Can you say that the industrial heritage of
Dnipro helped you?
Yes, of course. Yuzhnoye Design Office has very
intelligent employees, but they lack advanced
technologies – they do everything on paper. Later
we stopped cooperating with them, but it was due
to them that we were able to start.
Where do your customers come from? How did
you look for the first ones?
We started with the Upwork platform – we managed
to find a person for a long-term cooperation. Then
this person started recommending our company to
other customers. Apart from that, we kept in touch
with colleagues from Dnipro and helped them with
projects several times.
It is more difficult to open an office in Norway than
in Ukraine. Firstly, there are many nuances
associated with foreign companies. Secondly, the
processes take longer. For example, it can take up
to a month to open a dollar account in the bank.
But we need local representation to find clients
more effectively.
What are your future plans?
We want to finish the cycle with opening a
representative office in Norway and to see how it
works. In addition, we plan to open an office in Kyiv
in order to get access to resources. In two-three
years we plan to increase the staff in Dnipro up to
100 people.
How easy is it to find developers in Dnipro?
There are fewer of them in Dnipro than in Kyiv or
Lviv, for example. But we manage to find a balance.
There are no problems finding people for common
specialties. In my experience, developers in Dnipro
and other major cities of Ukraine are on par. When
they go to Kyiv, it is mostly because of seeking
higher salaries or a position in a large company.
How do you look for employees?
We use our website, Djinni service, Facebook,
LinkedIn. We were sponsors at some events in
Dnipro with the aim of increasing our brand
recognition. There was also our advertisement in
cinemas. It helped – many novice specialists said
that they fancied that kind of promotion.
What is the level of IT education in Dnipro?
I can't compare to other cities, but I think it's about
the same. We always try to hire students or fresh
graduates. They are ambitious and active. We
believe this is the best option for us. It is worth
Customers and partners
from Europe and America
often come to us,
and they like everything.
Americans, for example,
compare Dnipro
to Boston.
Some clients came and
stayed here for a month –
they worked, played
sports, had a rest.
They like the infrastructure
and local restaurant
industry.

noting the Faculty of Mechanics and Mathematics
of Dnipro National University – very smart guys
come from there.
Is it possible to find employees in neighbouring
cities and move them to Dnipro?
Yes, it is. We have some examples when we found
experts in Kryvyi Rih. People do not mind moving
from Zaporizhia and other cities of Eastern Ukraine
either. Generally speaking, it is quite possible to find
quality developers and invite them to Dnipro.
How much is the IT community developed in
Dnipro?
Dnipro is a concentrated place in this regard, where
everyone communicates with everyone. This is
mostly staff related. We often reach out to our
fellow colleagues to learn something about some
specialists. In addition, there are offices of almost
all major IT companies in Dnipro, as well as many
product companies and startups. Broadly speaking,
there are people with whom you can share
experience.
There are conferences, meetups – however, most
are related to management. I shall single out ITEM,
which is a cool event with powerful speakers.
People come from other cities to attend and you
can make a lot of new acquaintances there.
How would you evaluate Dnipro's infrastructure
in terms of doing business?
Dnipro is a rather compact city. This is an advantage.
Our office is in the centre – it is a very convenient
location. Employees from the right bank can easily
get to it; it is a little more difficult to get from the
left bank. By and large, Dnipro has developed well
over the last five years in terms of infrastructure.
How easy is it for companies in Dnipro to hold
informal meetings for employees?
Dnipro is great in this regard. I like it even more
than Kyiv. We have everything here – bars,
restaurants, cinemas. We often go to the countryside
with the team. On the other hand, we lack some
more concerts and sports events – there are far
fewer of them here as compared to Kyiv.
What features of Dnipro have a positive impact
on business?
I see many young and active people in Dnipro. They
open something, launch their projects and so on.
This is also true about the IT industry, which has a
positive impact on employee search. In addition, one
can feel that Dnipro is an industrial city. There are
very strong engineers here; it is important that we
have Yuzhnoye Design Office and other companies
in this field operating here.
Are there any problems you are facing in the city?
The main problem is the airport. We often fly and
receive guests from other countries. Our airport
offers very few connections and ticket prices are
too high. Customers who come here also emphasize
this. In addition, I would like to see the city become
more powerful in terms of infrastructure – it is
necessary to improve public transport, repair roads.
Then Dnipro would become an even more interesting
location.
There are fewer of developers in Dnipro than
in Kyiv or Lviv, for example. But we manage to
find a balance. There are no problems finding
people for common specialties. In my experience,
developers in Dnipro and other major cities of
Ukraine are on par. When they go to Kyiv, it is mostly
because of seeking higher salaries or a position
in a large company.
I see many young and active people in Dnipro.
They open something, launch their projects
and so on.
This is also true about the IT industry, which has a
positive impact on employee search. In addition,
one can feel that Dnipro is an industrial city.
There are very strong engineers here

Software Development Specialists
45.2%
Quality Assurance Specialists
13.8%
Other technical staff
7.1%
Other non-technical staff
19.7%
Managers of the highest level
6.7%
Project Management Specialists
7.6%
IT Specialists of Dnipro and the Region
15-16Kthe number of IT specialists in Dnipro and
the region, as of mid-2019*.
The share of IT specialists of Dnipro and
the region in the structure of the IT
sphere in Ukraine makes up 10-11%**.
24.6% – the share of IT specialists who work
under the employment contract, 72.8% – the
share of IT specialists who work under the
contract of service (individual entrepreneurs),
2.5% – the share of IT specialists who work on
the basis of other forms of employment.
95% of the IT specialists of the region that
work as individual entrepreneurs are registered
in the Dnipropetrovsk region. The rest are
registered in the other regions of Ukraine, the
greatest part of them – 2.7% – in Zaporizhia region.
73.1% of IT specialists in Dnipro and the region
that provide their services as individual
entrepreneurs use code #62 in the Classiﬁer
of economic activities [Computer programming,
counselling and related activities], while 26.8%
use code #63 [Provision of information services].
Middle
45.1%
Senior
27.9%
Junior
24.0%
Trainee
3.0%
** Including freelancers; there are 2.4 thousand freelancers in Dnipro and the region.
The number of freelancers was calculated through the analysis of websites for freelancers
** Based on DOU data about IT specialists of Ukraine
KEY SALES MARKETS MASTERING PROGRAMMING LANGUAGES

Mastering Programming Languages
IT SPECIALISTS OF DNIPRO AND THE REGION PROFILE OF IT SPECIALIST
Python
45%
Kotlin
16%
C
57%
Objective-C
20%
C#
55%
Ruby
21%
Pascal / Delphi
39%
C++
59%
Swift
16%
PHP
48%
Java
59%
T-SQL
35%
PL-SQL
33%
JavaScript
51%
TypeScript
45%
On average, IT specialists in Dnipro and the
region know 1.6 languages at a high level.
On average 2 languages at an intermediate
level, 3 languages – at a beginner level.
The share of respondents who know the programming language
Level of knowledge: beginner / basic intermediate high
Top programming languages that ІТ specialists intend to learn in the future: Python {31.8%}, JavaScript {31.7%}, Java {21.6%}, Go {21.1%}, TypeScript {15.8%}, Kotlin {11.3%},
C# {10.7%}, PHP {8.6%}, Swift {7.8%}, Ruby {7.8%}, C++ {7.7%}, Scala {7.2%}, Erlang {4.6%}, T-SQL {3.4%}, Objective-C {3.1%}
** The list presents the languages that are most popular for potential learning.
** The total sum is more than 100% since respondents could choose more than 1 answer option.

Proﬁle of IT Specialist
up to 1 year
Duration of work in IT
1-3 year 3-5 years 5-10 years more than 10 years
4.8%
17.3%18.2%
26.2%
13.9%
24.5%
40.1%
22.7%
31.5%
9.3%
the average age of IT specialists in Dnipro and
the region
29 years old
Duration of work in the current company% %
The educational level of IT specialists
Junior specialist
Bachelor
Specialist
Master
Master of Business Administration
[MBA]
Academic degree
[Candidate of Sciences, Doctor of Sciences]
5.2%
18.5%
39.6%
34.9%
0.7%
1.2%
IT specialists’ major
Information technologies
Management and administration
Electronics and telecommunications
Social and behavioral sciences
Mechanical engineering
38.5%
9.2%
7.0%
6.3%
6.3%
Top universities that IT specialists of
Dnipro and the region graduated from:
Oles Honchar
Dnipro National University
(35.7%)
Dnipro Polytechnic National
Technical University
(14.4%)
V. Lazarian
Dnipro National University
of Railway Transport
(6.9%)
Ukrainian State University
of Chemical Technology
(5.4%)
National Metallurgical
Academy of Ukraine
(5.2%)
Alfred Nobel
University
(4,1%)
MASTERING PROGRAMMING LANGUAGES INCOME OF IT SPECIALISTS

MASTERING PROGRAMMING LANGUAGES INCOME OF IT SPECIALISTS
In spite of the fact that IT specialists have been getting “younger” lately, the personnel market
of Dnipro can boast of a great concentration of senior IT specialists who have an
understanding of technological and product specifics. The powerful math training offered by
our universities provides the city with a pool of quality programmers. The engineering and
mathematical training obtained at the universities gives the necessary basic knowledge,
teaches how to think properly and systematically and helps to apply an engineering
approach in solving complex problems. Due to the local entrepreneurial spirit, local IT
professionals can solve interesting business cases, understand and solve real customers’
problems, not just what was stated by their manager in the terms of reference.
Nevertheless, staff shortage is still tangible, which is emphasized by all company executives.
Therefore, companies are competing with one another not so much for interesting large-scale
projects but for high-quality personnel market representatives. Dnipro IT specialists are
competing on the global level and due to their expertise and cost of work they are beginning
to become an alternative not to Indian or Pakistani developers but to IT specialists in Eastern
Europe (for example, Poland). These 2 factors also present the flip side of the coin –
IT specialists (especially young programmers) more and more often request a pay level which
does not correspond to their abilities and competencies. It is also worth noting that managers
are not always satisfied with the level of employees' English, so companies organize relevant
courses. Moreover, CEOs of IT companies see the need for overseas internships for
their employees for the sake of engaging new markets and raising their
companies’ standards of work.
The quality of services has increased. There are more specialists now, a wider range
of choice. But the rates have grown as well. Good specialists began to demand much
higher salaries. A huge flow of people went into the IT industry and a gap in the labor
market appeared. The gap has become very tangible between the junior and senior
level specialists. That is, young trainees who have just started working are ready to work
almost for peanuts, while seniors require $4000 and more. I believe the market is a little
messy now due to the fact that many experts cannot adequately evaluate themselves.
There might be two applicants for the same position, but the first one will say, “I want
1,000,” while the other – having exactly the same level of knowledge and experience –
will ask for 3,000. This is a significant difference”
---
Maya Styupan, Lanars
Many clients pay for our employees' participation in various conferences. We have
created a professional community for our employees inside the company, even though
these people work in different teams and on different projects. They all can gather
once a month, share cases, participate in workshops. That is, here they do not only
share their experience, but can also help each other. In addition, we provide the
possibility of Agile certification. We also have a native speaker in the office, with whom
employees can improve their English free of charge. We place great emphasis on the
exchange of knowledge between employees. In addition to internal events, we also
organize external events several times a month and motivate our employees to have
speeches there and share their experience. We support staff initiatives to improve their
public speaking skills. We help them try their hand at internal events first, then they can
try their hand at external ones. We cooperate with local IT communities like the Google
Developers Group. There is definitely a shortage of specialists in the market. The
knowledge of English and the seniority level do not always reach the necessary level”
---
Olena Kaplunova, Ciklum
We have a lot of quality professionals, bright people who really love to work and do
their work qualitatively. They develop and improve their skills all the time. And that is
probably the most important factor, because quality personnel is crucial”
---
Nikita Bobnev, Sistema

Income of IT Specialists
$1650
The average income of IT specialists in Dnipro and the region in 2019
[median = $1400]
Software Development
Specialists
$1766
Project Management
Specialists
$1711
61.3% of IT professionals receive a fixed
rate monthly, without bonuses; 24.5% –
receive a fixed monthly rate with bonuses,
10.2% – receive hourly wages, 3.9% –
receive salary by amount or estimation
of the performed work.
On average, IT specialists’ incomes
increase by 18% after a salary review.
Every second IT specialist said that their
salary was reviewed once every six months
(49.0%), one third indicated that the salary
review took place once a year (29.9%), and
3.9% said that their companies had salary
reviews individually for each employee, while
17.2% never had a salary review at all.
74.4% of IT specialists save. On average,
they save 30% of their monthly income.
Every third IT specialist is engaged in extra
activities: 15.1% – freelance work, 8.2% –
development of their IT startup, 6.2% –
teaching in an educational institution or at
courses, 3.4% – a startup in another field of
activity, 0.6% - volunteering.
Trainee
$465
Junior
$627
Other non-technical
staff
$994
Other technical
staff
$1308
Quality Assurance
Specialists
$1190
Middle
$1432
Senior
$2530
Managers
of the highest level
$2994
PROFILE OF IT SPECIALIST OF DNIPRO AND THE REGION MIGRATION ATTITUDES OF IT SPECIALISTS

Before the start of their IT career, 86.9% of
the region's specialists lived in the same
locality as they do now.
From among those who moved, every second
person lived in another settlement of
Dnipropetrovsk region; 17.0% – in Zaporizhia
region, 14.6% – Donetsk region, 4.7% –
Luhansk region, 3.2% – Kharkiv region, 3.2% –
Odesa region, 2.2% – Poltava region, 1.8% –
Lviv region, 1.8% – Zhytomyr region, 0.7% –
Kyiv region, 0.7% - Kirovohrad region.
By the level of qualiﬁcation, during the year,
almost every second junior IT specialist
(43.2%) and every third middle and senior
specialist (35.2% and 31.6% respectively)
has considered the possibility of moving to
another city of Ukraine to continue working
in IT. While, 35.9% of junior, 45.0% of middle
and 34.8% of senior specialists have
considered the possibility of moving abroad.
According to the results, particularly “quick off
the mark” ones are those IT professionals who
are engaged in additional activities – during
this year, every second person from among
them has considered an option of relocating
abroad for the continuation of their career.
Migration Attitudes of IT Specialists
41%
have consider
the possibility
of relocating
abroad during this year
35%
have considered
the possibility
of relocating
to another city
in Ukraine this year
are considering
both variants
24%
Migration sentiment among IT specialists
by position
outbound
relocation
internal
migration
46%
Software Development
Specialists
Project Management
Specialists
Other non-technical
staff
Other technical
staff
Quality Assurance
Specialists
Managers of
the highest level49% 27%
43% 40%
46% 37%
35% 34%
30% 36%
41% 30%
INCOME OF IT SPECIALISTS AN ANALYSIS OF THE DNIPRO AND REGION EDUCATION MARKET

TOP-5 countries:
USA
30% 25%
Germany
24%
Canada
16%
Poland
13%
Netherlands
TOP-5 Ukrainian cities:
Kyiv
75% 28%
Lviv
20%
Kharkiv
11%
Odesa
2%
Ivano-
Frankivsk
Directions of the possible relocation of IT specialists in Dnipro and the region: the share of IT specialists
among those who consider
the possibility of relocation,
who choose different
directions
0-5%
5-10%
10-15%
15-20%
20-25%
25% +
INCOME OF IT SPECIALISTS AN ANALYSIS OF THE EDUCATION MARKET

According to experts, the mobility of IT professionals is quite high and their attitude towards
migration is rather positive. However, unlike in previous years, when the relocation was mainly
due to the lack of large projects and corresponding salaries, as well as the region's proximity to
the area of military conflict, these indicators are now fluctuating in sync with all-Ukrainian
trends. Nowadays, among the main reasons for IT professionals to leave Dnipro, there
are higher salaries, better quality of life, desire for greater development and
challenges, as well as higher level of cultural surrounding (festivals, concerts, entertainment,
travelling) and professional environment (conferences, professional events, training).
The outflow is partly compensated by specialists who, in their turn, move not only from other
cities of the region but also from other regions of Ukraine. In addition, CEOs of IT companies
point out that there is a tendency when some specialists return to Dnipro (from
abroad, from Kyiv and Kharkiv).
Companies themselves, including through the IT cluster's capabilities, are developing a system
of possible ways of retaining IT professionals in the city, as well as attracting employees from
neighboring cities and regions (they note that the most difficult task is to "poach" employees
from Zaporizhia, since it seems they feel comfortable working there). Among such retaining and
attracting tools, there are additional training within companies, professional events and
networking, creation of a supporting network for professionals, and stimulation of their
personal development. Cooperation with local authorities aimed at improving the
quality of life in the city is crucial in this process.
We are also very sensitive to migration. A lot of specialists go to Poland and the Czech
Republic. Of course, the employees of big companies move mostly to the United States,
Germany, the Netherlands, the UK”
---
Eduard Lobas, WebiNerds
Of course people want to develop. Active people want something bigger, want to go
beyond their capabilities, they start moving to Kyiv, Europe, America and realize their
potential in the same sphere but in a completely different region”
---
Konstantin Foksha, WorkRocks
The flow of personnel is one of the biggest problems that companies face in our region.
It is often due to the fact that a lot of qualified and promising people move somewhere.
One of the reasons behind this problem is the lack of quality professional events,
exhibitions, conferences, perhaps even some cultural events like concerts, theatrical
performances and so on. For example, if you look at afisha.ua (or a similar resource
featuring events in a particular locality) and compare the number of concerts in Dnipro
and in Kyiv, the former will largely lag behind. Cultural life could be more varied”
---
Sergey Gladun, Agilie
The problem of specialists' migration is definitely there and it is very urgent for Dnipro. But
I believe that a couple of years ago it was much more acute. Many of our specialists
used to move to Kyiv because it offered a greater choice of projects and higher salaries.
Presently this trend is decreasing, though it still remains a concern. As a rule, experts move
to Kyiv, US, Scandinavia. Our main task now is to create conditions that will help us retain
talented people in Dnipro. This is not only about the level of salaries but also the support
of their professional development”
---
INCOME OF IT SPECIALISTS AN ANALYSIS OF THE EDUCATION MARKET

Why did the company decide to open an office
in Dnipro?
I have been working in the company since 2011 and
at the time I joined the company, SoftServe already
had two offices in Dnipro. I know that the second
location was opened because they saw the potential
in the city – Dnipro has a market of experienced
developers and a number of universities training
students of technical specialities. The operational
performance indicators of SoftServe in Dnipro now
confirm that it was a good decision.
How did SoftServe representative office develop
in the city?
SoftServe opened its first office here in 2005. Back
then, there were only one or two big IT companies in
the local market, so we can say that ours was one of
the first. The growth was gradual. At the beginning
of 2011, there were 180 specialists working in the
Dnipro office, in August 2014 – 400 employees, and
in the last two years the number of employees has
doubled. Currently, there are over 940 employees in
all of the company's offices in the city.
SoftServe is the largest IT company by the number
of employees in the local market. We outnumber
our nearest competitors almost twice. On the
country scale, Dnipro has third largest SoftServe
representative office. We have more than 90% of
technical experts. The rest of the team are Global
Talent Operations department, which is responsible
for recruiting, as well as marketing department,
HR specialists, system administrators, and office
managers. We now have 2 permanent offices and 2
temporary offices, the third permanent office is
being prepared for opening. A large team is involved
in the process in order to ensure that new jobs
are introduced on time.
Yulia Lozynska,
Delivery Center Director, SoftServe
SoftServe company was one of the first major IT companies to
open its office in the city of Dnipro. This happened back in 2005.
The company has significantly expanded its presence in the city
ever since – three more locations have been opened, while the
total number of employees has grown to nearly 1,000 people.
Yulia Lozynska, SoftServe Delivery Centre Director, speaks about
how the company is developing in the local market and what Dnipro
can offer for IT business.
Dnipro market allows us
to fill more than 25 senior
vacancies a month

How fast are you expanding your staff?
300 new employees joined us in Dnipro in 2018. In
terms of the growth rate, we are among the leaders
of all SoftServe offices. Speaking about the technical
staff only, we have increased their number by almost
50%. It should be understood that even 27-30% is
considered a good indicator in this regard.
What were the prerequisites for such a growth
rate?
First of all, it is the company itself that is changing.
Today, SoftServe does not only develop turnkey
software, but also provides technology consulting
services. That is, it is not only development that we
offer, but also expertise concerning how to
implement and improve this development. Such
services are now in demand among large enterprise-
level businesses. Accordingly, their number among
our customers is increasing, in particular, in Dnipro.
In addition, it is the market itself that allows growth.
In 2013, there were approximately 3,500 IT
specialists in Dnipro. There are over 15,000 now.
What are the areas of work of the local
representative office?
We are mostly focused on healthcare, retail and
media. We work with such clients as Cisco, IBM
and Atlassian. The Dnipro office has a design
department with 30 employees. That's quite a lot.
We also have a very strong Big Data and Data
Science team.
What are the plans of the Dnipro branch for the
nearest future?
We are going to open another office this year. It's all
about the growth rate – by the end of the year, the
staff will cross the mark of 1,000 employees.
Why do you think customers are interested in
developing software in Ukraine?
I believe that the main reason is the skill and
experience level of our specialists and the quality
of solutions. There are many top-notch engineers in
Ukraine, they don’t lag behind European or American
developers. In addition, Ukraine is one of the leaders
in terms of the number of technological experts in
Europe. The country has great potential and
opportunities for development.
Are foreign clients concerned about the fact that
Dnipro is close to the front line?
In our case, clients do not choose a specific location,
but the company. And it is SoftServe that bears
responsibility for fulfilling the task. Our company's
reputation is the guarantee of high-quality work.
Of course, this industry is very sensitive to various
internal and external shocks. Both in 2014 and a
year ago, when martial law was introduced in
several regions of Ukraine, our customers were
concerned about the developments in the country
and how they would affect business. In such
situations we are guided by one simple rule –
always have an open dialogue with partners.
How do you look for employees in Dnipro?
We have a Global Talent Operations department
which is engaged in finding specialists. I can say
that the market in Dnipro and the region allows us
to fill more than 25 senior vacancies a month.
Do specialists from other regions come to work
in Dnipro?
Yes, we have a practice of relocation. These are
mainly specialists from Zaporizhia and Kryvyi Rih.
I believe that Dnipro has prospects of becoming
a regional IT hub and attracting professionals from
neighbouring cities.
Do you have courses for those who want to work
at SoftServe?
Yes, we are actively developing our IT Academy.
This is a separate education centre within the
company that is focused on students and graduates
with a technical background who lack the
knowledge to start working on IT projects. There is
an entry competition in order to get into
IT Academy. We offer a wide range of courses; the
training lasts for several months and is free of
charge. Mentors and technical experts of the
company work with students. We provide them with
a lot of practical work.
IT Academy is an important source of recruitment.
Last year, about 130 students graduated from the
Academy, of whom 75% got a job in the company.
There are going to be 180 IT Academy graduates
this year.
Do you cooperate with state universities?
Yes, we do. Our employees and IT Academy mentors
give lectures at Dnipro Polytechnic University and
Dnipro National University and soon they will
teach full-fledged courses. We are also launching
cooperation with Alfred Nobel University, since they
have introduced a major in Computer Science.
How can you assess the level of technical
education in Dnipro?
IT Academy focuses on practical tasks and real
projects, while universities largely teach theory.
However, higher education institutions in Dnipro
are becoming more flexible, more likely to agree
to cooperate with IT companies and support our
initiatives.
Ukraine is one
of the leaders
in terms of the number
of technological experts
in Europe.
The country has
great potential
and opportunities
for development

Has the level of graduates' knowledge changed
in the last five years?
The age of those willing to study at the IT Academy
has decreased. Previously, they were only senior
students, now even first and second year students
apply.
I remember that eight years ago a low level of
English was a problem. Nowadays almost everyone
knows English. The new generation is more active.
Young people are well aware of the fact that no one
will come and give anything ready-made for them –
one must make efforts to succeed and success can
only be gained through your own work.
How developed is the local ecosystem in Dnipro?
To my mind, it all started moving in a positive
direction in 2017 when IT Dnipro Community
appeared. This was a really important step because
prior to that local companies hardly interacted with
each other.
But now the situation is changing. At least we have
started to exchange information, which is a
significant step forward.
Do you interact with the local government?
Yes, we do. As a matter of fact, creation of the
IT Dnipro Community involves the cooperation of
community members with local authorities. We
have let each other know about our presence and
we are going to launch our first projects soon.
I think it's a good achievement for a two-year-old
community.
What can you say about IT events in Dnipro?
Many thematic events take place annually in
the city. Last year we conducted about 30 events
on the topics of development, business,
management. We also hold a major IT Weekend
Dnipro conference every year, which brings
together over 300 participants from central and
eastern Ukraine. We believe that such events
develop community, facilitate the exchange of
experiences and ideas and are useful for the local
market.
To what extent is the infrastructure of the city
suitable for team building, out-of-office
activities?
There are various interesting locations in Dnipro
for organizing corporate events, even for such large
companies as ours – for 900 or more people.
What are the problems of the city that become
obstacles to work?
The airport. Dnipro offers a very limited number of
flights and destinations in comparison with Lviv or
Kharkiv. A new terminal would significantly improve
the development of business in Dnipro. City
authorities promise to build a new terminal within
two years. And we hope for this very much. The
airport is an important infrastructure object. Its
development would have a significant influence on
the business environment in Dnipro and on the city
in general.
What changes that have taken place in Dnipro
in recent years had a positive impact on doing
business?
A lot of new office spaces have appeared recently.
That means that companies can grow faster and
have more choice. The lack of parking spaces has
been an issue for a long time, but local authorities
are working to resolve the problem.
Dnipro is a city with a good engineering and
technical base. We have powerful industrial
production here, such as Yuzhnoye Design Office,
where rocket stations and space rocket systems
are developed. Powerful engineering school,
represented in Dnipro by several generations of
developers, is a great advantage of our region.
Young people are well aware of the fact
that no one will come and give anything
ready-made for them –
one must make efforts to succeed
and success can only be gained
through your own work

Growth Potential: An Analysis of the Education Market
Nowadays, there are 11 higher educational institutions of ІІІ-ІV levels of accreditation
(universities, institutes, academies) and 35 educational institutions of І-ІІ levels of
accreditation (colleges, technical colleges) which prepare IT specialists in Dnipro and the region.
Presently, 13,062 students study in educational institutions of the I-IV levels of
accreditation (certification).* From among them, 7,418 are in higher educational institutions
of III-IV levels of accreditation (certification) and 6,482 in higher educational institutions of
I-II levels of accreditation (certification). 2,253 students will be ready to work by the end of
2019 (4th-7th year students).
Most students majoring in technical specialities study at:
Oles Honchar Dnipro National University – 2,092 students
Dnipro Polytechnic National Technical University – 1,828 students
Dnipro State Technical University – 851 students.
Ukrainian State University of Chemical Technology – 645 students
Dnipro State Agrarian and Economic University – 405 students.
There are approximately 18 private IT centers that train IT specialists in Dnipro.
During the last 18 months (2018 and the first half of 2019) 4,283 persons have been
trained at such courses**.
11
6,48235
4,28318
** Source – educational institutions of Dnipropetrovsk region
** Of these, in 2018 – 2,742 people, in the first half of 2019 – 1,541 people
higher educational institutions
of III-IV levels of accreditation
higher educational institutions
of I-II levels of accreditation
private IT centers
7,418
MIGRATION ATTITUDES OF IT SPECIALISTS THE ECONOMIC EFFECT OF THE IT INDUSTRY

Some of the educational institutions of Dnipro and the region, which prepare IT specialists:

High quality of the future IT professionals’ education is one of the priorities for the development
of the local IT market. Therefore, in addition to organizing their own courses or internal
universities, local IT companies organize specialized lectures, training sessions, workshops,
internships for juniors, company tours, olympiads for students of the higher education
institutions in Dnipro.
Currently, the closest cooperation has been established with the Oles Honchar Dnipro National
University, since these are the graduates of its Faculty of Applied Mathematics that are most
praised for their level of training. There is a prominent “two diploma program” available for
all master program students of this department. This program implemented together with the
Faculty of Science and Technology of the University of Le Maine in Le Mans (France) has been
in operation for more than ten years. Its main advantage is the possibility to obtain both
Ukrainian and French diploma, which is recognized in all countries of the European Union.
All departments of the Faculty of Applied Mathematics and some other faculties (Physics,
Electronics and Computer Systems; Physics and Technology; Mechanics and Mathematics)
teach subjects related to the IT sphere – ranging from working with hardware to software
development. There is a memorandum signed between the Dnipro National University
and IT Dnipro Community, in accordance with which, training programs are adapted
to the market requirements of IT companies. In particular, representatives of both parties
discuss current trends in the IT industry, what languages, technologies and software
development platforms are relevant and then a curriculum for students is formed on the basis
of these discussions. In addition, university teachers also attend courses in order to meet the
relevant requirements.
Among the most successful cases of IT companies' cooperation with universities, there are:
collaboration with Noosphere corporation, which let students design and launch their own
rocket;
a 3D modeling training seminar conducted by AMC Bridge company, upon the completion of
which students received certiﬁcates of participation;
development of a software module for dentists by students in collaboration with IT companies
(the module could show when a dentist was working, what percentage of the affected tissue
he / she had removed and whether he / she had touched the unaffected part).
Alfred Nobel University that train students majoring in “Computer Science” and “Economic
Cybernetics” is also in the process of signing a memorandum with IT Dnipro Community. From
the point of view of international contacts, the University cooperates with the German Marburg
University of Applied Sciences – teachers conduct seminars and practical workshops relevant
to the IT sphere.
The engineering and mathematical education in Dnipro is very different from what I saw
in Vinnytsia and even Kyiv, even though the latter have quite good specialists.
But the level of training in the sphere of mathematics is way higher in Dnipro.
The secondary education is also very good in Dnipro – we have the Lyceum of
Information Technology and the Physics and Mathematics Lyceum, schools with
advance learning of physics; these educational institutions ensure an influx of students
who later start working in the IT industry. Due to this, we have no gap in education. So
in the end we have a profound, continuous mathematical and engineering education“
---
The Faculty of Applied Mathematics at Oles Honchar Dnipro National University is the
3rd or 4th by the number of graduates of IT specialists in Ukraine. The university is open
to cooperation with the IT community and we have even signed a relevant
memorandum that lets us influence the curriculum development”
---
Presently there are many different courses which in a way prepare not bad specialists.
Still it seems to me that better quality employees come from higher education institutions”
---

to do with software engineering.
We grew bit by bit, but one couldn't really call it a
professional business. We had only few customers
and no professional sales department – orders were
received through our personal contacts. It all
changed in 2002, when SOLIDWORKS, a company
developing the CAD software of the same name,
became our main client. The customer developed
and strengthened its position in the market, so
AMC Bridge started growing at the same time.
At another point, a spin-off client from MIT
appeared, for whom we developed mathematical
libraries. Then that company was bought by
Microsoft, so we started working with them too.
Due to such a customer base, we had grown up to
100 employees by 2011, but we still only had one
Vadym Synakh,
COO AMC Bridge
Due to the existing competition,
all companies in Dnipro
are working without letup
AMC Bridge is an international company that
develops systems for computer-aided engineering,
design and production. The company has been
operating since 2000. It has the key vendors of
the industry among its clients. There are over
600 employees working in five development
centres in Ukrainian cities. Vadym Synakh, a
co-founder and COO of AMC Bridge, spoke about
how it was possible to scale the business and about
the competitive advantages of Dnipro for IT
companies.
How did the company start and what were its
first years like?
It all started quite by accident. One of my current
partners, Igor Tsinman, had long ago moved to the
United States. He had worked for various
companies until one of them got interested in
outsourcing. It was the beginning of 2000.
We knew each other at that time and had even
worked together on mathematical modelling for a
while. I headed a groundwater mathematical
modelling lab at the science institute and had a
small business of my own. Igor addressed me with
an offer to start an outsourcing business. Initially,
the scale of work was very small and had nothing
office in Dnipro. In 2011, we lost our largest
customer. A French company Dassault, which
owned SOLIDWORKS at the time, decided to
consolidate and move the contract development
to India.
We had time before the contract ended. But the
contract stipulated that we could not cooperate
with competitors in the market – that is, other
manufacturers of engineering software. Our
clients other than SOLIDWORKS did not develop –
there were low rates and low prospects. This
forced us to take on sales with zeal and so we
found a number of clients in the engineering field.
It was a challenge that did us good. In fact, this
helped us decide on our specialization and enter
the market of engineering software development
services.

We no longer sign non-compete agreements,
therefore we are working with all the major players
in the engineering software market – Autodesk,
Dassault Systems, PTC, Siemens PLM. They cover
about 80% of the industry. It should be understood
that these companies create platforms that are the
basis for other solutions connected with engineering
software development. And we are involved at this
stage as well.
We also work with systems that manage the
lifecycle of products. For example, it is not enough
to simply build a car or a house – they need to be
put into operation and serviced. There is appropriate
software for all of this.
When did the necessity to go beyond one city
appear?
The first half of 2012 was a struggle to be in the
black. After all, we lost a third of our revenues. We
managed to survive and stay on radar, so in the
second half of 2012 we started thinking about
opening new offices. In 2013, we went beyond
the city of Dnipro and opened an office in
Khmelnytskyi.
What is the role of the Dnipro office for the
company now?
This is the headquarters in terms of operating
activities. This is also the largest office – about
half of the company staff (350-380 employees)
work there.
Both the main expertise and the back-office –
financing, marketing, and so on – are concentrated
in Dnipro. The thing is that, in total, the company
has about 15% of non-technical employees, but in
Dnipro this ratio is slightly higher.
The region's IT market is growing ahead of expectations, and this is great.
However, Dnipro is not the strongest hub for internal migration.
The main influx of specialists goes to Kyiv, then Lviv, Kharkiv. It is true that there
are people moving to Dnipro. Yet, many people are leaving the city
then to an internship.
Internship in the company lasts for about a month
with 20 to 40 working hours a week. This is
important because students combine work and
studies. In our Research Department, novice
developers work on real projects, using modern
technologies such as 3D Scanning, AR/VR, IoT.
One of the successful examples of such work is
the CADtoEarth mobile application, a
technological demonstration of combining popular
CAD modelling software packages with a geospatial
3D platform to create virtual globes. It has over
70,000 downloads. In addition, the interns have an
opportunity to discover the models of
communication in the team, engage in team
interactions and learn how to effectively collaborate
with different work groups. On average, it takes up
to six months for a beginner to develop the
experience necessary to work on client projects.
Acquisition of new up-to-date knowledge that is
immediately tested in practical cases is our most
effective training tool for beginners.
How would you compare the cost of maintaining
an office in Dnipro and conditions offered by
the city?
We do not divide projects between offices unless
the customer insists. Our approach is that we try
to access talents where it is possible and
convenient for our employees. The AMC Bridge
expertise is quite unique. It requires obtaining
necessary experience and takes some time to
acquire.
What is the situation with specialists in the city?
Is there potential for growth?
The region's IT market is growing ahead of
expectations, and this is great. However, Dnipro is
not the strongest hub for internal migration. The
main influx of specialists goes to Kyiv, then Lviv,
Kharkiv. It is true that there are people moving to
Dnipro. Yet, many people are leaving the city.
Therefore, the main source of new specialists in the
market is students of technical specialities.
Everything is quite simple here – the best
specialists are trained at the Department of Applied
Mathematics of Oles Honchar Dnipro National
University. In addition, some specialists are trained
in Dnipro Polytechnic National Technical University
and in Dnipro National University of Rail Transport.
But in terms of quantity-quality ratio, the
Department of Applied Mathematics is on the
first place.
At the same time, the lack of qualified programmers
with experience is a common problem in the market.
Moreover, our work is a bit specific. Since we
produce engineering software, we need engineers –
people with the relevant training and understanding
of concepts – to test it.
Do you train specialists yourself?
We have a very high-quality student training
program – AMC Bridge Campus. These are our own
3D programming and computer graphics courses
for second and third year students. We arrange
everything through negotiating with university
teachers and administration. In Dnipro, the first
such course took place in the autumn of 2018,
hosted by the Department of Physics, Electronics
and Computer Systems of Dnipro National
University. This autumn we will launch the course
anew.
But the courses are only the first stage. Based on
the results of the courses, we select the best
graduates and invite them to complete assignments
from our internal portal. If the students solve them
successfully, they are invited to an interview and

First of all, we aim to maintain the current growth
rate – about 25%-30% a year. This is a bit higher
than the general market growth rate in Ukraine, but
we would like to outperform the average.
As for development, the focus will remain on
engineering software. However, we would like to
diversify our work. Presently, the majority of AMC
Bridge customers are vendors, not end enterprise
customers. We would want to work more in this
niche and we are now successfully developing this
direction.
On the other hand, we want to get deeper into the
related areas. These are design, construction and
3D printing. We are actively moving towards robotic
technology, but I can’t name speciﬁc companies. I
can only say that they are from Japan, which covers
80-90% of this market.
How much is the community developed in
Dnipro?
The community is there and it is quite active. We
take part in its life, support initiatives and suggest
our own ones. For example, recently, at the request
of the City Council, surveys have been conducted
among all IT specialists to determine the directions
of the city's strategic development that need to be
pursued.
At the same time, there are regular meetings with
the mayor, where we discuss important issues with
his team. They usually concern infrastructure issues
and the city brand. As for the latter, we need to
develop the city brand more actively in order to
effectively attract specialists from other regions.
Dnipro still has the reputation of an industrial centre,
although this is no longer the case.
The advantage is that the city is big enough –
there is no single-player dominance here. Due to
the existing competition, all companies in Dnipro
are working without letup. And programmers have
more opportunities to ensure comfortable
conditions for themselves and work on really
interesting projects.
In general, costs and conditions are acceptable. But
a real sore subject in Dnipro is the airport. It loses
much in terms of location as compared to Lviv, for
example. Being close to Europe is advantageous.
When our clients arrive in Ukraine, they ask to
arrange meetings in Lviv – it's just faster and
cheaper this way.
Yet, in my opinion, Dnipro is a more comfortable
city. It has changed a lot lately – infrastructure is
developing, many facilities are being built, the
historical part of the city is being renovated, and
new places for interesting and active leisure are
emerging. This summer alone, two major music
festivals took place in the city. So, apart from the
airport, there are no major problems in Dnipro.
However, last year we witnessed the following
situation with offices – there were many available
offices, but no one wanted to invest in them.
Hopefully, now the situation has changed.
Dnipro is the city which is now most closely located
to the ORDLO zone (certain areas of Donetsk and
Luhansk regions). Does this scare customers away?
Today there are no fears. Customers only want to
make sure if we don't have any offices in Crimea –
when a company does, then, of course, nobody will
work with such a company.
In 2014, the situation was more complicated. We
discussed it with our customers and assured them
that it would not affect the business environment.
Therefore, the situation never reached a critical
point.
What is the company's roadmap for the coming
years?
What are the strengths of Dnipro?
Most importantly, we have a powerful engineering
base and quality universities that produce great
specialists. Yet there are some issues here – the
quality of training remains the same, but the scope
of knowledge given to students is decreasing.
What is wrong with education?
Local universities should cooperate with IT
companies. Lviv universities are much more active
in this regard, and cooperation in Kyiv is also more
intensive. The way I see it, the universities in Dnipro
are quite short-sighted – they lack a well-thought-out
cooperation policy.
And if nothing is done, then the universities might
turn into “vocational schools for programmers” –
they will provide students only with some universal
basics and later people will have to get a real
education and learn everything immediately at the
place of work. I have an apprehension that if this
situation doesn’t change, universities may gradually
lose their status as knowledge centres.
You have been working in the city's IT market
since 2000. What has changed throughout the
years?
I'm sure that everything is up to the competition now.
IT sector in the city began to develop after the
entrance of large companies to the market –
SoftServe, EPAM, Luxoft.
Before their launch, there was no real market. Once
these outsourcers appeared, some kind of panic
emerged, since they could poach specialists and
offer higher salaries. However, in the end, the level
of professionalism of all market participants
increased. This turning point was in 2005-2006.

The Economic Effect of the IT Industry
2016 2017 2018 2019 2022 2025
838.1
644.7
1,095.9
755.8
517.7
632.2
545.0
469.8
435
352
274.5
worst case scenario
bestcasescenario
base case scenario
Economic forecast of the IT industry growth
in Dnipro and the region by 2025,
million dollars
The turnover of the IT industry* of Dnipro and the region in 2018:
min $435 million, max $452 million
The general economic effect of the industry - $630 million
The general (cumulative) effect is calculated as a sum of direct, indirect, and induced effects
of the IT industry.
The direct economic effect of the industry - $384 million
The direct effect is calculated on the basis of the gross value added (GVA), total revenue,
incomes or costs of the jobs created by the results of the companies' activities over the period
under research.
The indirect economic effect of the industry - $245 million
The indirect effect is an indicator, which includes additional GVA, receipts, employment, income,
and taxes, created by industries, which ensure functioning of the industry as a part of the
consumer chain. In case of the IT industry, the indirect effect is manifested in additional sales,
incomes and employment that appear as a result of entrepreneurial activities, which supply
goods and services necessary for functioning and creation of IT industry products, such as
network servers, HW SW service and resale companies, centers for organizing and holding
events and conferences etc.
In 2018, the IT-sphere created 13.5-14.5 thousand direct jobs, 29 thousand indirect
and induced jobs. The general number of jobs created by the IT industry in Dnipro and the
region amounts to 42.5-43.5 thousand. In 2018, one IT specialist created 3.1 jobs.
** The turnover of the industry was calculated with the help of the Income Approach and the Production Approach
AN ANALYSIS OF THE EDUCATION MARKET DYNAMICS OF TAXES REVENUES

Dynamics of Taxes Revenues
2016
402.3
550.4
417.4
535.4
2017
506.8
783.5
599.3
691.0
2018
631.2
934.1
731.7
833.5
Deductions in the form of taxes of IT companies
on their employees’ salaries (personal income
tax) in the period from 2016 till 2018
increased by 1.7 times; the value-added tax
(VAT) increased by 1.9 times, the profit tax –
by 1.4 times.
Dynamics of tax revenues, paid by the
IT industry in Dnipropetrovsk region*,
million UAH:
Direct taxes [including personal income
tax, Single tax for PEs**, military levy,
profit tax]
Indirect taxes and mediated effect
[including VAT, personal income tax,
military levy]
Tax revenues to the
local budget
Tax revenues to the
state budget
** Based on the information provided by the State Fiscal Service in Dnipropetrovsk region
** The unified Single tax to the State Fiscal Service in Dnipropetrovsk region in the structure of direct taxes is presented in the diagram by the shaded sector
THE ECONOMIC EFFECT OF THE IT INDUSTRY INVESTMENTS IN LOCAL IT COMPANIES

DYNAMICS OF TAXES REVENUES MARKET DYNAMICS
Investments in Local IT Companies
Direct foreign investment in the Dnipropetrovsk region decreased by 62% in the period of 2013-2018, while the share of investment in information and telecommunications, which include
computer programming and related activities, decreased by 90%.
Dynamics of direct foreign investments in Dnipropetrovsk region, million USD [Source: Main Statistics Office in Dnipropetrovsk region]
The dynamics of capital investments in the period of 2013-2018 points out a signiﬁcant share of investment in computer programming and provision of other information services within the
capital investment in the sphere of information and telecommunications, with a signiﬁcant increase in investment volume in 2016 and 2018, as compared to previous periods.
Dynamics of capital investments in the Dnipropetrovsk region, thousand UAH [Source: Main Statistics Office in Dnipropetrovsk region]
Direct foreign investment,
mln USD
Share of investment in information and
telecommunications sphere
9,880.1 8,913.0 5,784.9 4,030.6 3,491.1 3,688.2
2013 2014 2015 2016 2017 2018
73.8 25.4 25.3 15.1 12.3 7.1
Capital investment in Dnipro,
thousand UAH
INCLUDING:
Information and telecommunications
21,290,086 20,356,546 25,919,884 33,169,056 42,908,537 60,288,615
2013 2014 2015 2016 2017 2018
73,278 44,147 109,367 754,686 87,836 247,688
Computer programming
and provision of other information services 32,494 22,868 26,299 668,512 25,741 182,417
Share of capital investment in the sphere
of information and telecommunications 44% 52% 24% 88% 29% 73%

INVESTMENTS IN LOCAL IT COMPANIES INFRASTRUCTURE
Market Dynamics
Over the last 3 years, the dynamics of the Dnipro IT market has not changed significantly –
there has been a steady growth, some companies have been growing faster than the Ukrainian
market on average, some slower. This year there have been some slowdowns – part of
companies had to downsize. This is explained by the greater insistence on high standards on the
part of customers – experienced clients demand a relevant certification, they want employees’
English to be certified by an international exam, they require employees’ having a master’s
degree in computer science. Therefore, some companies started dismissing the employees who
do not meet the requirements of the customer and thus lower the level of standards in the
company.
While the overall growth of the Dnipro IT market does not outstrip the all-Ukrainian growth
rate, the situation with salaries is different – here this market is heating up much faster than
on average in Ukraine. This situation is first of all explained by the fact that in the last few
years a large number of IT courses have appeared in the city, accordingly, a lot of junior
specialists have appeared in the region.
The number of companies has increased significantly. It is estimated that 5 years ago, there
were approximately half as many. Many micro-companies have emerged. This happened both
by means of local founders setting up companies and by small teams (3-5-7 people) “entering”
Dnipro. The city is becoming the center of attracting specialists from Odesa and Zaporizhia, on
a par with Kyiv.
Mature companies have begun to change their business models, add more expertise, make their
own products, focus on holistic solutions, and introduce a product approach to development.
Companies are extending the production chain (market research, product promotion then), they
have begun to experiment more. In general, the number of products and startups has increased,
which is explained by the entrepreneurial spirit of Dnipro and its inclination to taking risks.
However, experts do not single out a particular niche, which is specific to Dnipropetrovsk region,
though they note that 5-6 years ago it was the game sphere that stood out, while today the
specialization is mainly in the domains of banking and insurance, marketplaces and medicine.
For a long time, security issues have been and still remain one of the most important for
companies’ employees – people need more stability and confidence that the team will not be
fired, the client will not leave, the parent company will not have to move the development center.
Therefore, IT companies are beginning to better develop their internal brand, to work on
corporate culture in order to retain their employees and give them a sense of security.
Company representatives note that they have got used to working in close proximity to the
frontline and if possible they try and open offices in other locations just in case.
Local IT community is developing as well – some market players have become mature enough
to start building a local environment in collaboration with local authorities with the aim of
addressing the challenges faced by IT companies.
The market in Dnipro has changed very much, because there are so many companies,
a lot of young, talented, interesting specialists. And the market will change dramatically
again if a large investor comes in, but I don’t know if this will happen. As far as I
understand, all authorities – both city and regional – and ІТ Dnipro Community itself as
well are doing everything to make this real”
---
Konstantin Foksha, WorkRocks

How did a Germany-oriented business happen
to be set in Dnipro?
First of all, it should be noted that Comparus UA is
not just a division, but a separate independent
enterprise with 100% of foreign capital. That is, we
have one and the same owner with the German
business – a German citizen Dmitri Gamarnik.
He was born in Dnipro, graduated here and worked
here for a while. He then emigrated to Germany
and started his career in the banking sector. Being
aware of Ukraine's potential, he had been thinking
for a long time about creating a company engaged
in analytics. But because of the rapid IT industry
development, he decided to start a software
development business.
How did you get into Comparus?
I am the second manager of the company. At the
beginning, there was another manager who created
and initially headed the business. In 2008, I worked
in an audit company. Dmitri Gamarnik, whom I
already knew at that time, asked me to conduct an
informal assessment. It was necessary to make sure
that the company did not violate the law and worked
effectively.
We met, I gave a positive conclusion. I was offered
the position of CEO, because he had not been able to
find common ground with the previous CEO. I had
long thought about such professional development.
Therefore, having both legal and auditing experience,
I accepted the offer. And here І am working in the
company till this day.
What is Comparus like today?
Our speciality is financial technology. We develop
corporate software for German financial institutions.
Irina Schmidt,
CEO Comparus
Comparus UA is a Dnipro-based fintech product
company that operates in the German banking
and related services market. It has been
developing and implementing IT products for
the players in the sector together with the
German Comparus GmbH since 2008. Now
the company is expecting a significant growth,
but is not going to leave the city of Dnipro.
Irina Schmidt, CEO of Comparus UA, spoke about
the advantages and features of the market,
infrastructure and business climate in the city.
One can plan business
in Dnipro for the next 10-20 years

We mainly work with banks, but there are also
investment and insurance businesses among our
clients.
We have 52 people in Dnipro, of whom four are not
technical staff. We organically cooperate with the
German partners – they are the owners of the
product, and we are the ones producing it. We
receive a ready-made customer's request, translate
it into technical documentation and start the
development process.
What kind of customers and projects do you have?
Our flagship project is the work with German IT
provider Fiducia & GAD IT AG, which has
approximately one-third of German banks among its
clients. We also work with German insurance
company Signal Iduna. These are currently our two
main customers.
What is the company's roadmap and what time
span does it cover?
We used to create roadmaps for 2-3 years. This was
due to the duration of the projects that we had at
the time. But I hope that we have now reached that
level of stability in the country and in the city where
one can plan business for the next 10-20 years. In
the course of the last 3-4 months, we have been
preparing a global basis for such development.
The volume of work that customers want to receive
is steadily growing. We want to grow as well.
How actively do you plan to develop in the
personnel direction?
Given our narrow specialization, we are not
developing fast. We plan to hire 15-20 new
specialists a year and to reach the mark of 100
employees in the next two years. We will not be
For example, approaches to forming curriculum are
quite outdated. The curriculum is still developed on
the basis of some weird “government order”, not on
the basis of real business and market needs.
Therefore, companies have to facilitate the training
of specialists on their own – we help with various
programs, hold competitions, encourage talents.
We hope that such cooperation will continue
developing. After all, it is the business that can tell
what it needs and requires from the graduates.
It would be beneficial to introduce a more profound
course of English for senior students. In my opinion,
a year of intensive studying can greatly improve
one's level. And English is critically important. We do
not recruit people whose English level is lower than
Intermediate+. They simply will not be able to work
effectively, since 95% of project documentation is
in English.
It would be also great to add something like business
etiquette. For example, the rules of correspondence,
negotiations and the basics of psychology.
Sometimes people are really unable to say about a
problem they clearly see and understand its
consequences. Employees often tend not to raise
some issues instead of discussing and solving them.
The problem is rooted not so much in our education,
as in our mentality generally. But this can be
improved by means of some training.
Dnipro is the city which is now most closely located
to the ORDLO zone (certain areas of Donetsk and
Luhansk regions). What is the attitude of your
customers to this fact?
In 2014-2015, we even developed a relocation plan
for the company because of this – albeit within
Ukraine. We considered Vinnytsia, Kyiv and Lviv.
Fortunately, we didn’t have to implement it. We
talked to the team and the customers, and
everything was settled. However, we did lose two
promising projects.
One company was in the energy sector. They asked
us to redevelop an online platform for energy
trading. So, we developed the technical
documentation, described the effective technologies.
In a nutshell, we prepared everything needed to
evaluate the work on the project and sign the
contract. But because of the events in Ukraine,
these American clients refused to cooperate and
addressed a Polish company instead.
How is your office organized? Are you satisfied
with the cost and conditions provided in Dnipro?
I can’t comprehend the cost of office real estate in
Dnipro – I find it significantly overpriced. Prices are
slightly lower than in Kyiv, but at the same time, we
largely lag behind in quality and volumes.
Large office centres, such as “Menora”, for example,
do have good facilities and offer a maintenance
system along with them. But the prices are too
high – starting from 10 to 20 euros per square
meter. In such circumstances, the cost of an office
of 500-800 square meters will be too expensive
for small companies. In other office centres, the
owners don’t usually invest in the services or
sometimes even in the repairs. So the tenants have
to do everything on their own. This requires hiring a
separate manager for maintenance direction
exclusively.
It is not the quality of the property itself that is an
issue, but its conditions and service related matters.
Once we were even told, “You've got a concrete box,
able to engage more, because the skill level in the
sphere is not getting better, unfortunately. It is very
difficult to find new qualified people.
Where do you get new specialists from? And
which of the universities has become a talent
pool for your company?
We almost always have open vacancies at DOU,
Work.ua job search websites. We do not have a
full-time HR specialist – we cooperate with third-
party specialists. We pay a lot of attention to the
personal recommendations from our employees –
over the last two years, these recommendations
have been the main source of new personnel.
As for the universities, about 80% of the team was
formed by the graduates of the Department of
Applied Mathematics of the Oles Honchar Dnipro
National University and the Software Department of
the State University of Railway Transport. These
universities train very good professionals, but there
is a significant difference between them.
Graduates from the State University of Railway
Transport come with a profound understanding of
applied programming. These are real engineers who
are able not only to code but also to find solutions.
In this case, the programming language doesn’t
matter, because with such a knowledge base the
engineer can master any programming language
in no time. The Department of Applied
Mathematics produces not much of programmers,
but rather good mathematicians with strong
knowledge. But then they can easily acquire
practical skills.
What changes would you like to see in higher
education?

hopes on a two-year program for the replacement
of marshrutkas (city minibuses) with comfortable
big buses. Employees will definitely benefit from
this.
Development of the real estate market is also
needed. Housing is a problematic issue –
high-quality neat apartments are too expensive for
a single person. Meanwhile, we have many “singles”
who want a small, but neat apartment. The situation
may be changed due to an IT hub project, which is
discussed by the local authorities. It should provide
for the necessary infrastructure and apartments.
However, the investor does not seem to have been
found yet.
And, of course, the airport. This is a sore subject for
international business. It is very difficult to welcome
partners here or to go anywhere.
What is your opinion of the city's IT community?
Is the team interested in this?
I have a good opinion of it. Managers are the ones
who are most interested in being involved in the life
of the community. This is good networking, where
amidst pleasant atmosphere one can learn about
the state of affairs in the sector.
The IT community is presently focused on changing
the situation in the city and region. For example,
this year we completed the first phase of the IT BIZ
School project for training managers for IT
companies. This is a very topical direction! There are
also different working groups in the community, for
example, the one on the cooperation with local
authorities. Representatives of the group have
already suggested that the traffic light management
program should be optimized. There is not such a
large flow of cars in Dnipro, yet there are many
traffic jams. So the IT community is helping to
change the city for the better, and I’m glad to be
part of the process.
Approaches to forming curriculum are quite outdated. The curriculum is still developed on the basis
of some weird “government order”, not on the basis of real business and market needs.
Therefore, companies have to facilitate the training of specialists on their own – we help with various programs,
hold competitions, encourage talents. We hope that such cooperation will continue developing.
After all, it is the business that can tell what it needs and requires from the graduates
following trend – having satisfied their salary needs,
specialists start choosing work depending on how
interesting a project might be for them.
Education is a strong advantage of Dnipro. There are
many universities and schools that regularly rank
high in national ratings. This stimulates the influx
of personnel into the market.
And what are the disadvantages?
These are purely domestic issues. Dnipro is a large
but compact city. Even the longest car ride takes
less than an hour. And this is good, since research
shows that a long drive to work has a huge impact
on employee productivity.
However, the city is sensitive to infrastructure
changes. For example, the main bridge is closed now.
And this is the key transport route of the city;
therefore, it has a tremendous impact on people’s
mobility. In addition, the state of public transport
doesn’t meet the required standards. Here I put my
you have to figure out yourself what to do with it”.
And in winter the temperature in the office was
around +16°C. This violated even the health and
safety regulations stipulated in the contract.
Unfortunately, office rental is not perceived as a
full-fledged business in Dnipro, but rather as a
renting activity – when one makes no investments
and simply receives money. In my opinion, the
situation is better in Kyiv and Lviv – there you get
a whole set of services along with the office
premises.
However, in general, it is advantageous to have a
company in Dnipro due to the availability of
specialists who are the main resource of any IT
company.
What are the strengths of Dnipro for IT business?
The city’s scale, in the first place. After all, Dnipro
is the fourth largest IT centre in Ukraine in terms
of number of developers. We have a rich and
competitive market, where supply exceeds demand.
Therefore, recently we have been witnessing the

Infrastructure
Dnipro has been recently improving as a city for work and life. According to experts, over
the past 3 years, there has been positive dynamics in this regard – public utilities are
working properly, an application has been introduced to interact with local authorities,
new parks [one the latest – Zelenyi Hai] are being created, new buildings are being actively
constructed in the city. From the point of view of mobility, Dnipro is quite compact and
there are no particular problems when moving around the city (by car), except for the
condition of individual roads, some of which have already been repaired, and the time when
the Central Bridge is closed for repair. One of the disadvantages that hinder mobility is the
lack of parking spaces and underground parking in the city center, including
business centers.
The lack of flights and the current state of the airport remain a weak spot in the region’s
infrastructure. Solving this problem will significantly revitalize the market both by facilitating
business travel and by making it possible to invite world-class speakers to conferences. In
addition to this, improving air travel will diversify the leisure spectrum for IT
professionals in terms of tourism and recreation, which will contribute to retaining
employees in the region. There is also a relative lack of cultural supply in the region. However,
as noted by companies’ CEOs, this aspect has been qualitatively improving lately.
As for business infrastructure, real estate is becoming cheaper for the end user due to
the gradual increase in supply, there are several internet providers available to choose from;
therefore, IT companies‘ management characterize infrastructure costs as relatively small.
Until recently, the city experienced a lack of quality office spaces for fast-growing companies.
However, this year it is planned to put into operation at least 2 large business centers –
“Kudashevskyi’ and ”Fabryka”, whose construction finished this year.
The state can definitely influence the development of IT infrastructure in the region.
Among the examples of such influence (global ones), we can name a stable banking
system, the absence of exchange rate fluctuations, clear rules of workflow management,
absence of the need to translate all the contracts from English. Local-level examples
include the solution to logistical problems at the local level. How can business partners
come to our region when the city with a million-plus population doesn't even have a
proper airport that could accommodate not 3 flights per day, but 30 or 50? Another
problem is the lack of good roads in the direction of Kyiv”
–––
Sergey Gladun, Agilie
Undoubtedly, we can trace some positive dynamics in Dnipro in terms of convenience
of doing business, availability of services, comfortable working conditions. From among
the shortcomings, I can call the lack of convenient affordable flights and the lack of A+
class business spaces. I hope that soon these problematic issues will be taken care of”
–––
Sergey Mechikov, Civenty
There is a project of an IT park in the territory of a former factory on the left bank of
the Dnipro river. Unfortunately, this project still remains purely a design initiative, which is
not moving further. I know that investors are being looked for now. So far no investor has
been found, but we will do it!”
–––
MARKET DYNAMICS FORECAST OF THE IT MARKET'S FUTURE DEVELOPMENT

DniproVienna
Heraklion
Kyiv
Vilnius
Minsk
Thessaloniki
Burgas
Antalya
Tel Aviv
Sharm El Sheikh
In August 2019, the passenger traffic at
Dnipropetrovsk International Airport made up
36 thousand people.
Over the first six months of 2019 (January
to August), the passenger traffic amounted
to 224 thousand passengers, which is by
23.4 thousand more than during the same
period in 2018.
The airport
offers flights to
10 destinations –
9 international ones and 1 domestic*.
As of mid-2019, no low-cost carriers
(Ryanair, Wizzair) that operate at other
airports of Ukraine offer flights from the
Dnipro airport. In addition to this, so far
Dnipro has no transcontinental or
transatlantic flights, which is a significant
shortcoming of the region's infrastructure.
Given the active cooperation of the Dnipro IT
market with the European and American
markets, the launch of direct flights from/to
Dnipro would significantly improve business
communication between the IT markets.
*** International flights: Vienna (Austria), Tel Aviv (Israel),
Thessaloniki (Greece), Sharm El Sheikh (Egypt), Antalya (Turkey),
Vilnius (Lithuania), Heraklion (Greece), Minsk (Belarus), Burgas
(Bulgaria); Domestic flight: Boryspil (Kyiv)
In terms of infrastructure, the most obvious problem is the airport. It is very difficult
and often just impossible to invite a foreign speaker to a conference or a
potential client to Dnipro, given the fact that it might take them an hour to fly
from Europe to Kyiv, but another 6-12 hours to get from Kyiv to Dnipro.
Infrastructure is a real deterrent here. One cannot easily come to Dnipro, one
cannot easily leave it. This also affects the attractiveness of the city for employees.
There are people who leave for Kyiv, because there you can fly to Europe for
a weekend for 50 euros. You can’t do this in Dnipro. There are no flights”
–––
Our airport in Dnipro accommodates a very small number of flights and if we compare
the prices for these flights, they are disproportionately high. For example, depending
on the purchase date, Kyiv-Dnipro-Kyiv flight tickets might cost about three hundred
dollars. I consider this price very expensive. At the same time, one can fly to Istanbul
and this will be much cheaper. There are also Vienna-Kyiv flights, charter flights to
Turkey, Egypt, Georgia. But there are no low-cost flights in Dnipro. As for me, the airport
is one of the greatest problems that doesn’t let the city develop”
–––
Kostiantin Foksha, WorkRocks
If we finally get an airport that was promised to be built, but whose construction
has not yet started, it will be easier for IT companies to work. For example, when
meeting with foreign clients, we have to do this in Kyiv or Kharkiv. They could fly to
Dnipro, but then this would cost so much more. Therefore, a quality airport will be an
additional factor that will increase the attractiveness of the Dnipro market as a whole”
–––

A lot of things are being constructed now. In general, Dnipro is growing steadily. I see
that real estate is getting cheaper. We have some tendencies in comparison with Lviv,
for example, or with Odesa”
---
Maya Styupan, Lanars
The city infrastructure, including the transport one, is actively improving now. The airport
is being repaired. In October, a 2-year program on public transport reform is going to
be launched. In my opinion, this testifies to the region's development. This is definitely
a huge plus for the IT market, because at the moment the lack of a proper airport
discourages from coming here, unfortunately. And the inability to meet and literally
shake hands with partners at the place where the work is being done does affect
business reputation”
---
The average cost of renting commercial real
estate makes up $8-10/m2
a month.
The average cost of buying residential
property of the “elite” and “business” class is
$1.4 thousand/m2
; “comfort” and “economy”
class residential property costs
$0.7 thousand/m2
.
10.8% of the region’s IT professionals
bought real estate in the last 3 years.
The average area of the purchased premises
is 70 m2
.
98.6% of real estate was purchased in Dnipro,
1.4% - inother localities.
13%
bought an apartment
in a new building
(at the stage when the
building has been put
into operation)
43%
bought an apartment
at the secondary
market
20%
bought a
private house
within the city
1%
bought
a private house
outside the city
23%
bought an apartment
in a new building
(made investment
at the stage of
building)

IT Dnipro Research 2019

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IT Dnipro Research 2019