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HOME REGIONS Russia & CIS › Ukrainian IT market value climbs in 2012

Ukrainian IT market value climbs in 2012

by Stuart Wilson, Monday 10 June 2013

The value of the Ukrainian IT market grew 2.9% in 2012 to hit US$1.88 billion, according to research house PMR. The market was buoyant in the first half of 2012, but stagnated in the second half of the year due to macroeconomic factors. Expectations of a devaluation of the Ukrainian currency also resulted in some companies postponing planned IT investments.

PMR also noted that the private sector purchased fewer PCs and the usual seasonal peaks experienced in August and December were weaker than in 2011. Overall market growth in 20111 and 2012 was driven in part by the recovery of public sector IT investments.

PMR stated: “These investments were partially connected to an upgrade in transport infrastructure and facilities for the UEFA European Football Championship 2012, as well as the financing of the creation of national databases and information systems. Ukrainian system integrators mentioned that IT projects in the public sector in 2012 had broader scope and higher complexity in comparison to government projects in the past.”

PC penetration is estimated at between 19% and 21%, according to PMR. The research house reckons that there were between 8.5 million and 9 million PCs in use in the country in 2012. The growing popularity of tablet PCs became an additional development driver for hardware sales last year.

PMR’s market analysis continued: “The IT services market is steadily developing, but growth is limited. The market depends on new investments in IT by local companies and the government. At the same time, in 2011 and 2012 the demand for external outsourcing, support and maintenance of information systems was quickly growing and this growth pulled the value of the entire IT services market up.”

Pawel Olszynka, an ICT market analyst at PMR, commented: “General prospects for the IT industry in Ukraine in 2013 and in the next few years remain uncertain. Ukrainian IT businesses build their plans for the year based on optimistic and pessimistic scenarios, and even those companies that expect the market to grow in 2013 mention that a decline is equally possible.”

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