Over the past six years, the overall economic impact of the tech influx into the city of Lviv has grown to $1.4 billion from $734 million. During this time the number of tech companies in the city of Lviv has grown to 511, and the number of employees in the tech industry has exceeded 30 thousand. A new survey by Lviv IT Cluster conducted a thorough investigation that highlights how the income of tech people has changed over the last six years, how many jobs have been created by the IT industry in Lviv, and how it’s been affected by the Covid-19 pandemic, and this was published in its analytical report titled “IT Research 6.0”.
For the sixth year in a row, Lviv IT Cluster has conducted a large-scale survey, gathering and analyzing data into the most complete and up-to-date review of the Lviv’s IT market structure in order to gain insights. The survey has also expanded the research network into Ivano-Frankivsk’s IT sphere for the first time.
IT Research 6.0 reveals the most recent information on the dynamics of the tech industry, its economic impact, employee training, and IT professional profiles. The survey polled 1,200 employees working in the tech industry, including representatives of various professions and positions. Also, IT Research has also been studying the impact of the Covid-19 pandemic on Lviv’s IT industry for the last two years.
How the structure of the tech industry has changed over the past 6 years
The results indicate that the number of tech companies in Lviv is constantly growing over the past six years, rising to 511 in 2021 from 192 in 2015. In particular, 96 new businesses opened up in the city of Lviv and 68 have closed in 2021. Companies with 251 or more employees make up almost half of the current IT market.
Further, the number of tech professionals grew to 30 thousand from 13 thousand over the last six years. The average age of Lviv’s developers is around 29. The share of tech specialists (production /delivery) is 76%, non-tech specialists (non-production/non-delivery) – 24%. Among respondents, 92% were from Lviv, and 48% moved from other regions or countries. In the past 6 years, the median monthly salary of tech professionals in Lviv has increased from $1723 to $2102. Nearly 80% of respondents say their income level is higher than in 2020.
The main economic indicators over 6 years
Survey results indicate that the share of the IT industry in Lviv’s gross domestic product (GRP) was 20% over the last 6 years. The turnover of the tech industry is growing every year: from $280 million in 2015 to $895 million in 2020.
Results indicate that the overall economic impact has doubled in the last five years, from $734 million in 2015 to $1.4 billion in 2020.
The tech industry has created/maintained 73-74 thousand jobs, and each tech professional on an average generates almost three more jobs.
The total tax revenues from these tech industry activities was over 2 billion hryvnias from 2015 to 2020 whilst single tax revenues represented 38% of the total Lviv’s tax revenue in 2020.
How Covid-19 affects Lviv’s tech industry
Now in the second year of the pandemic, the market has adapted to the new reality. Businesses appear to be on an upward trend. 63% of surveyed companies are positive about engaging new employees and customers in 2020.
Also, the survey provides insights into tech industry’s attitude towards vaccination. 76% of surveyed people look at vaccination positively, and only 5% strongly oppose it. 67% of respondents have been fully vaccinated against Covid-19, most with CoronaVac vaccine (33%), in second place is Covishield/AstraZeneca (26%), and third is Pfizer (23%). 47% of surveyed people say they’ve been sick with Covid-19. 37% of respondents plan to return to the office in the future.
IT Research is carried out by Lviv IT Cluster, in partnership with Fama research agency. This years report is substantially more extensive than the five previous, for the first time covering both Lviv and Ivano-Frankivsk.
According to IT Research 6.0, there are 70 companies in Ivano-Frankivsk, where 2.6 thousand people work. 50% of Ivano-Frankivsk’s tech professionals work with companies in Lviv. The median salary in Ivano-Frankivsk is $1339. A large share of the market is occupied by young tech professionals who have been working for about a year (28%), a quarter of the respondents are working in the tech industry for 1-3 years, and another quarter for 3-6 years.
Learn more about the most important tech trends of Ivano-Frankivsk and Lviv, migration mood of IT professionals, reasons for dismissal, education and attitudes towards Diia.City in our IT Research 6.0, which can be downloaded from this link.