The report covers the IT sector of Belarus, Ukraine, Poland and Romania. According to experts who conducted the study, these countries have formed a cluster, which is one of the top 5 global software development centers and competes with such giants as development centers in India and China.
Authors refer to data from the World Bank, the Ministry of Economy of the Republic of Belarus, the National Statistical Committee of the Republic of Belarus, HTP, Ernst & Young, dev.by, jobs.tut.by.
Highlights of the report:
• The software development market in Belarus, Ukraine, Poland and Romania grows 4-5 times faster than globally.
• US and EU are the main customers.
• Total IT Exports generated by Belarus, Poland, Ukraine, Romania is $ 13 billion. It’s share is 5% of world supplies.
Each country is presented in the report separately.
IT Belarus in numbers:
• The average annual growth rate of IT sector revenue (2011–2015) was about 16 percent.
• The share of the working population employed in ICT is 2.2 percent.
• The share of the sector in GDP is 7.7 percent.
• 105 thousand IT professionals.
• The annual number of graduates in technical sciences (STEM) is 16 thousand.
• The annual revenue of 77 IT companies with a staff of more than 50 people considered in the report is $ 750 million.
• More than 50 international R&D centers of IT companies.
• The volume of exports of IT services per capita — $ 108. For comparison, in the USA this indicator is $ 58, in India — $ 40, in China — $ 20.
• Most IT professionals work in outsourcing (60.5 percent of IT professionals)
Belarus ranked 1st among CIS countries in the ICT development rating for 2017.
In the World Bank’s Doing Business ranking, Belarus rose to 38th place, in 2010 it was 58th only.
According to the World Bank, Belarus is among the top 10 countries in the world in conducting business-friendly reforms.
The portrait of IT ecosystem with the largest players.
Most IT professionals work in outsourcing
Most IT professionals work in outsourcing — 60.5 percent. Of these, 40.3 percent — in companies with more than 500 employees, 22.3 percent — with 51-200 employees and 17.4 percent — 201-500 employees.
Product companies employ 39.5 percent of Belarusian IT specialists, with the majority (37 percent) in companies with 51 to 200 employees, 23 percent in companies with 11–50 employees, and 20 percent in more than 500 person.
85% of software development is located in Minsk. Other development centers are Grodno, Brest and Gomel.
• HTP is the largest cluster of IT companies in Belarus. About 85 percent of the companies registered in the HTP are located in Minsk.
• EPAM Systems has opened a scientific and educational laboratory on the basis of Brest State University in Brest.
• MSQRD was established in Grodno.
HTP in numbers
The HTP provides its residents with special business conditions. At the end of 2018, the High Technologies Park had 494 residents with more than 35 thousand employees.
41 percent of companies are supported by Belarusian investors, 24 percent are joint ventures, and 35 percent are funded entirely from abroad.
91.9 percent of software produced in the Park is exported: of this, 49.1 percent comes to European countries, 44 percent comes from the US and Canada, and 4.1 percent goes to Russia and the CIS.
• Among the trend technologies and tools are blockchain projects, AR and VR, Swift (among iOS developers), BitBucket and GitLab.
Labor market of the IT industry in Belarus
• In the 3rd quarter of 2018, the IT industry ranked third in the number of vacancies: it accounted for 11 percent of open positions. On average, 2.5 applications were submitted for one vacancy — this trend has remained unchanged over the past year.
• Most of the job offers were received by software developers — almost 70 percent, 7.6 percent of vacancies accounted for QA-engineers, 6.4 percent — for project managers and 2.9 percent — for business analysts.
• Most often, the required work experience is from 1 to 3 years (51 percent of vacancies) and from 3 to 6 years (34 percent). In 13 percent of cases, companies were willing to accept employees with no work experience.
• In terms of qualifications, mid-level specialists (56.2 percent) were in the highest demand.
• The growth of average annual wages has slowed somewhat, and over the past 4 years, considered in the report, was 5 percent.
• Salaries increase mainly due to the high demand for qualified specialists, which in turn is caused by an increase in the number of IT companies and their size.
In 2018 the median senior developer’s salary was $ 2.7 thousand, the youngest was $500, the same salary got the younger QA engineer. Senior QA engineers received $ 1.75 thousand. Team Leads had the highest median wage: $ 3,375.
The researchers also made a brief overview of the ten best outsourcing companies in Belarus, together with the sectors they work with, the technologies and services they use. Top-10 includes: EPAM, IBA Group, Itransition, iTechArt, BELHARD, ISSoft, Godel Technologies, Exadel, A1QA, ScienceSoft.
The report is open to the public and is available for free download on the website: https://software-development-cee-report.com/