Is the IT-industry a flagship of the Ukrainian economy?

The development of high-tech industry is able to ensure future economic stability and competitiveness of Ukraine on the world market. This opinion was voiced by the former Deputy Prime Minister, now the Minister for Social Policy of Ukraine Serhii Tihipko during the meeting of the working group for the Ukrainian IT-sector’s development, which is affiliated with leading Ukrainian schools and the European Business Association. “Despite all our economic problems Ukraine is ranked fifth in the world in software exports. “Tomorrow, advanced technologies will ensure the competitiveness of Ukraine on the world market,” says the official. “Even now software exports from Ukraine make almost a billion dollars in profits, and output doubles every year. It is clear that if stimulated by the government, the IT-sphere may soon become the basis for the economic development of our country.”

The development of the IT sector should begin with the reorganization of the system of specialist training, say the experts from the abovementioned working group. That is why they are currently working on a complex IT-sphere development concept, based on which a plan of specific actions will be created. Scientists and experts suggest the organization of specialized classes in secondary schools, teacher training programs, and paying more attention to the introduction of scientific developments into production processes.

Serhii SHOSTAK, B-Mobile, IT-department specialist:

“The fact that today Ukraine is ranked fifth in the world in software exports is, in my opinion, ‘despite’ and not ‘due to,’ as the IT-specialists training system is almost inexsistant. And our state is the first to be blamed, as until today it’s been practically ignoring the development of IT-education, starting with secondary schools. Almost all our programmers are autodidacts. People invest in their education themselves: they find new programs, buy books and study. I did the same, as at the university we didn’t have any access to new programs. Our university just couldn’t afford to buy them. And the teachers who could teach the students to use them were in short supply and expensive. The current numbers in the Ukrainian IT-sector are, in my opinion, far from the limit of our possibilities. If our country could reach this level with the government being oblivious to this industry’s development, than Ukraine has all the chances for rapid economic growth due to this sector only, if all the plans presented by Tihipko are realized. And one more thing: software generates profits not only for the state purse as a product sold on foreign markets (which now produce billions in profits), but also significantly optimizes the production costs of all economic agents and hence improves productivity and reduces product prices.”

Ildar Gazizullin, senior economist at the International Center for Policy Studies:

“Interesting statistics, but its calculation methods are even more interesting. In what concerns the IT-market, when speaking to its direct participants at various conferences, I heard several times that this sector is very poorly monitored. Thus it’s difficult to understand how big it really is. The Ukrainian IT-sector is mostly developed by private companies. Certainly, they are investing and not poorly, but the government is doing nothing. And none of the IT-company representatives ask for governmental support. They’re more preoccupied with working, in fact, in the black market, and Ukrainian legislation regulates their area very badly. But they have yet to see the government show that it understands the importance of dealing with this issue.

“In my opinion, our government is rather trying to copy the Russian plans. An example of this is the last statement of the Ukrainian Prime Minister Mykola Azarov about the creation of a “silicon valley.” I do not presume to evaluate how successful this idea will be. However, there is a clear risk of failure. Firstly because of the low level of venture investments in Ukraine.”