Six outsourcing companies in CEE countries have over $200M in revenue. IT Industry Report 2020

Investment company AVentures Capital has published its annual report on the state of the IT industry and transactions in Central and Eastern Europe, CEE Software Development M&A Report 2020. AIN.UA journalist selected the highlights from the study.

  • Annual revenue growth in Ukraine, Poland, Romania, and Belarus slowed from 20-25% to 10-15% amid the pandemic but began to grow rapidly in the fourth quarter.
  • The revenue of 5 CEE players out of the 50 largest IТ service companies exceeded $100 million, 6 others exceeded the mark of $200 million. Among the companies with offices in Ukraine are Epam, Luxoft, GlobalLogic, and SoftServe.
  • The total volume of IT exports generated by Ukraine, Poland, Romania, and Belarus is over $18 billion.
  • The total number of IT professionals in the region is over 660,000.
  • The annual number of tech graduates is more than 60,000 people.
  • Number of mergers and acquisitions in 2015-2020 – 137; in 2020 – 29.

Among the major deals for 2020-2021 in Ukraine are:

  • Sigma Software acquired the Kharkiv-based outsourcing company IdeaSoft. According to AIN.UA, the transaction amounted to $1.5 million.
  • The US company Cprime acquired the Ukrainian Archer Software. According to experts, 100% of the company could be valued at $5-8 million.
  • SARS Capital invested in the outsourcing company S-PRO.
  • Grid Dynamics acquired the technology company Daxx.
  • IT company Ciklum raised strategic investments from the technology investment platform Recognize Partners.