Rating of the largest IT companies in Ukraine
The revenue of the largest IT companies is five times less than the volume of IT services exports from Ukraine. Probably, most of the foreign exchange earnings bypassing legal entities of IT companies are immediately distributed among individual entrepreneurs. Thus, companies avoid taxation through legal entities.
The top 20 largest IT companies in Ukraine employed more than 52 thousand people at the beginning of the year. The official total revenue of their legal entities exceeded UAH 33 billion in 2020.
At the same time, the export of IT services from Ukraine last year amounted to $5 billion. The revenue of the largest IT companies is five times less than the volume of IT services exports from Ukraine. Probably, most of the foreign exchange earnings bypassing legal entities of IT companies are immediately distributed among individual entrepreneurs. Thus, companies avoid taxation through legal entities. In addition, none of the 20 largest IT companies are among the 200 largest taxpayers compiled by the State Tax Service. After the State Tax Service made the financial performance of all legal entities public, we decided to compile the TOP 20 largest IT companies. To rank the companies in the ranking, we used data from the specialized portal DOU on the number of employees. Only one product company made it to the top ten. All the others are outsourcing companies, which, in simple terms, sell the work of development teams to the end customer.
Epam
The largest IT company in Ukraine, part of the international Epam group. It has offices in five cities of Ukraine: Kyiv, Lviv, Kharkiv, Dnipro, and Vinnytsia. They employ more than 10 thousand specialists. Revenue in 2020 amounted to UAH 10.44 billion, profit – UAH 942 million. Epam is represented in Ukraine by two LLCs: «Epam Systems and Epam Solutions. However, the main cash flow is concentrated on the first company.
SoftServe
Lviv-based SoftServe was founded by two graduate students of Lviv Polytechnic National University, Taras Kitsmey and Yaroslav Lyubinets. Today, the company has offices in Kyiv, Kharkiv, Lviv, Dnipro, Rivne, Chernivtsi, and Ivano-Frankivsk. The company employs almost 8 thousand people. The company has business offices in the United States, the United Kingdom, Germany, and the Netherlands. SoftServe has more than ten legal entities in Ukraine. It is an IT corporation. The company’s official revenue does not exceed several billion hryvnias, which is five times less than Epam’s.
GlobalLogic
In Ukraine, the structure of the international corporation GlobalLogic is represented by the legal entity GlobalLogic Ukraine LLC. Its revenue last year amounted to UAH 5.5 billion, more than twice the revenue of SoftServe, the second largest IT company in Ukraine. The net profit of GlobalLogic Ukraine LLC amounted to UAH 278 million. GlobalLogic’s development centers are located in Europe, India, the US, and Argentina. But Ukraine is one of the largest locations. At the beginning of 2021, 5,700 people worked in the company’s offices in Kyiv, Kharkiv, Lviv, and Mykolaiv. GlobalLogic is owned by the Canadian Pension Fund and the Swiss investment fund Partners Group. On March 31, 2021, Japanese Hitachi announced the purchase of the American IT company GlobalLogic for $9.6 billion. The deal is not yet closed.
Luxoft
The company was founded in 2000 by Russian Dmitry Loschinin in Moscow as a subsidiary of the Russian IT company IBS. In 2019, Luxoft was bought by the American IT giant DXC Technology Co for $2 billion. In Ukraine, Luxoft has offices in Kyiv, Odesa, and Dnipro. The company employs 3,500 specialists. However, given the size of the Ukrainian company, we managed to find only one Luxoft legal entity, Luxoft-Ukraine LLC. Its revenue was only UAH 180 million, and its profit was UAH 3.8 million.
Ciklum
This international company was founded in Kyiv in 2002 by Dane Torben Maigaard, who sold it in 2015 to American billionaire George Soros. The company is headquartered in London. It has branches in the UK, Switzerland, Denmark, Belarus, Pakistan and Ukraine. The Ukrainian offices employ more than 2700 people. In 2020, Siklum LLC generated UAH 3.2 billion in revenue and UAH 49.6 million in profit.
NIX
At the beginning of the year, the Kharkiv-based NIX company employed 2,400 specialists. At the same time, NIX Solutions Ltd. had a revenue of UAH 525 million. We were unable to find any other legal entities of the company in Ukraine. The company is owned by Viktor Shalnev. The software developer operates in North and South America, the EU, and Asia.
EVOPLAY
The company was founded in 2003 as an online game developer. Today, EVOPLAY develops software for game mathematics, gaming platforms, payment solutions, user support, analytics and finance, traffic acquisition and management. The owner of the company is Maksym Kryppa, a former candidate for the Kyiv City Council from the Samopomich party. He is associated with the organization of online casinos. In particular, the Volcano, CasinoX, and JoyCasino brands. In an investigation by Rusbase, authored by Timur Vorona, publisher of the Ukrainian website mc.today, Krippa’s partner is an American entrepreneur with Ukrainian roots, Maxim Polyakov, who is developing the Firefly space project in the United States . EVOPLAY employs 2200 people in Ukraine. We have found one legal entity associated with the company’s brand – Loiao Patrenr LLC with a revenue of UAH 4.7 million in 2020.
DataArt
The company was founded in 1997 by American Evgeny Goland. In 1998, a separate structure, Port.ru, was spun off from the company to create the Mail.Ru mail service. The Ukrainian office of DataArt employs more than 2000 people. We found only one company registered to Yevhen Holland – IT Hub Ukraine LLC with UAH 3.4 million in revenue in 2020 and UAH 0.2 million in profit.
Infopulse
Infopulse was founded in 1991 by two Ukrainian entrepreneurs, Alexei Sigov and Andrey Anisimov. Initially, the company focused on Ukraine, but in the mid-90s it began to work in Europe and provide outsourcing services. In 2007, Infopulse was bought by Evry, a large Norwegian IT holding company. In 2019, Evry merged with the Finnish company Tieto. Infopulse is now part of the merged TietoEvry. It is one of the leaders in the Scandinavian IT market. The founders of Infopulse remained in charge of the company after the sale. The company employs more than 2000 specialists, with whom Infopulse works as individual entrepreneurs. The main production offices are located in Ukraine. The head office is in Kyiv. There are also offices in Odesa, Kharkiv, Lviv, Vinnytsia, Zhytomyr, and Chernihiv. Infopulse Ukraine LLC’s revenue amounted to UAH 2.4 billion, and net profit was UAH 420 million.
Ajax Systems
It is a product IT company in Ukraine that develops wireless security systems with smart home functions. The company has developed an ecosystem that includes motion, opening, flood, and fire detectors, street and home sirens, a panic button with device control, smart sockets, and relays. Ajax production is located in Ukraine. The company’s founder is Oleksandr Konotopskyi.
Rating of the largest IT companies in Ukraine
The revenue of the largest IT companies is five times less than the volume of IT services exports from Ukraine. Probably, most of the foreign exchange earnings bypassing legal entities of IT companies are immediately distributed among individual entrepreneurs. Thus, companies avoid taxation through legal entities.
The top 20 largest IT companies in Ukraine employed more than 52 thousand people at the beginning of the year. The official total revenue of their legal entities exceeded UAH 33 billion in 2020.
At the same time, the export of IT services from Ukraine last year amounted to $5 billion. The revenue of the largest IT companies is five times less than the volume of IT services exports from Ukraine. Probably, most of the foreign exchange earnings bypassing legal entities of IT companies are immediately distributed among individual entrepreneurs. Thus, companies avoid taxation through legal entities. In addition, none of the 20 largest IT companies are among the 200 largest taxpayers compiled by the State Tax Service. After the State Tax Service made the financial performance of all legal entities public, we decided to compile the TOP 20 largest IT companies. To rank the companies in the ranking, we used data from the specialized portal DOU on the number of employees. Only one product company made it to the top ten. All the others are outsourcing companies, which, in simple terms, sell the work of development teams to the end customer.
Epam
The largest IT company in Ukraine, part of the international Epam group. It has offices in five cities of Ukraine: Kyiv, Lviv, Kharkiv, Dnipro, and Vinnytsia. They employ more than 10 thousand specialists. Revenue in 2020 amounted to UAH 10.44 billion, profit – UAH 942 million. Epam is represented in Ukraine by two LLCs: «Epam Systems and Epam Solutions. However, the main cash flow is concentrated on the first company.
SoftServe
Lviv-based SoftServe was founded by two graduate students of Lviv Polytechnic National University, Taras Kitsmey and Yaroslav Lyubinets. Today, the company has offices in Kyiv, Kharkiv, Lviv, Dnipro, Rivne, Chernivtsi, and Ivano-Frankivsk. The company employs almost 8 thousand people. The company has business offices in the United States, the United Kingdom, Germany, and the Netherlands. SoftServe has more than ten legal entities in Ukraine. It is an IT corporation. The company’s official revenue does not exceed several billion hryvnias, which is five times less than Epam’s.
GlobalLogic
In Ukraine, the structure of the international corporation GlobalLogic is represented by the legal entity GlobalLogic Ukraine LLC. Its revenue last year amounted to UAH 5.5 billion, more than twice the revenue of SoftServe, the second largest IT company in Ukraine. The net profit of GlobalLogic Ukraine LLC amounted to UAH 278 million. GlobalLogic’s development centers are located in Europe, India, the US, and Argentina. But Ukraine is one of the largest locations. At the beginning of 2021, 5,700 people worked in the company’s offices in Kyiv, Kharkiv, Lviv, and Mykolaiv. GlobalLogic is owned by the Canadian Pension Fund and the Swiss investment fund Partners Group. On March 31, 2021, Japanese Hitachi announced the purchase of the American IT company GlobalLogic for $9.6 billion. The deal is not yet closed.
Luxoft
The company was founded in 2000 by Russian Dmitry Loschinin in Moscow as a subsidiary of the Russian IT company IBS. In 2019, Luxoft was bought by the American IT giant DXC Technology Co for $2 billion. In Ukraine, Luxoft has offices in Kyiv, Odesa, and Dnipro. The company employs 3,500 specialists. However, given the size of the Ukrainian company, we managed to find only one Luxoft legal entity, Luxoft-Ukraine LLC. Its revenue was only UAH 180 million, and its profit was UAH 3.8 million.
Ciklum
This international company was founded in Kyiv in 2002 by Dane Torben Maigaard, who sold it in 2015 to American billionaire George Soros. The company is headquartered in London. It has branches in the UK, Switzerland, Denmark, Belarus, Pakistan and Ukraine. The Ukrainian offices employ more than 2700 people. In 2020, Siklum LLC generated UAH 3.2 billion in revenue and UAH 49.6 million in profit.
NIX
At the beginning of the year, the Kharkiv-based NIX company employed 2,400 specialists. At the same time, NIX Solutions Ltd. had a revenue of UAH 525 million. We were unable to find any other legal entities of the company in Ukraine. The company is owned by Viktor Shalnev. The software developer operates in North and South America, the EU, and Asia.
EVOPLAY
The company was founded in 2003 as an online game developer. Today, EVOPLAY develops software for game mathematics, gaming platforms, payment solutions, user support, analytics and finance, traffic acquisition and management. The owner of the company is Maksym Kryppa, a former candidate for the Kyiv City Council from the Samopomich party. He is associated with the organization of online casinos. In particular, the Volcano, CasinoX, and JoyCasino brands. In an investigation by Rusbase, authored by Timur Vorona, publisher of the Ukrainian website mc.today, Krippa’s partner is an American entrepreneur with Ukrainian roots, Maxim Polyakov, who is developing the Firefly space project in the United States . EVOPLAY employs 2200 people in Ukraine. We have found one legal entity associated with the company’s brand – Loiao Patrenr LLC with a revenue of UAH 4.7 million in 2020.
DataArt
The company was founded in 1997 by American Evgeny Goland. In 1998, a separate structure, Port.ru, was spun off from the company to create the Mail.Ru mail service. The Ukrainian office of DataArt employs more than 2000 people. We found only one company registered to Yevhen Holland – IT Hub Ukraine LLC with UAH 3.4 million in revenue in 2020 and UAH 0.2 million in profit.
Infopulse
Infopulse was founded in 1991 by two Ukrainian entrepreneurs, Alexei Sigov and Andrey Anisimov. Initially, the company focused on Ukraine, but in the mid-90s it began to work in Europe and provide outsourcing services. In 2007, Infopulse was bought by Evry, a large Norwegian IT holding company. In 2019, Evry merged with the Finnish company Tieto. Infopulse is now part of the merged TietoEvry. It is one of the leaders in the Scandinavian IT market. The founders of Infopulse remained in charge of the company after the sale. The company employs more than 2000 specialists, with whom Infopulse works as individual entrepreneurs. The main production offices are located in Ukraine. The head office is in Kyiv. There are also offices in Odesa, Kharkiv, Lviv, Vinnytsia, Zhytomyr, and Chernihiv. Infopulse Ukraine LLC’s revenue amounted to UAH 2.4 billion, and net profit was UAH 420 million.
Ajax Systems
It is a product IT company in Ukraine that develops wireless security systems with smart home functions. The company has developed an ecosystem that includes motion, opening, flood, and fire detectors, street and home sirens, a panic button with device control, smart sockets, and relays. Ajax production is located in Ukraine. The company’s founder is Oleksandr Konotopskyi.
