The number of employed IT specialists in line with the Labor Code of Ukraine is 2-3%, and the rest of IT specialist work as private entrepreneurs or under a contract, Vice President for Strategy and Technologies at GlobalLogic Ukraine Andriy Yavorsky has said in an interview with Interfax-Ukraine.
According to him, this situation has arisen due to high taxes in official employment – more than 40%.
“In the current international market, this kind of tax burden is greater than in Poland, and in fact comparable to Germany. It is clear why Poland sets such prices. It is in the same legislative field with Europe, in the same legal field. There are requirements to General Data Protection Regulation (GDPR), there are no borders, good infrastructure, while Ukraine is perceived in this respect as a country that should be “cheaper.” So what’s the point of paying such money in Ukraine when it can be spent without risks on specialists in America or Europe? And this forces companies to collaborate with specialists working as private entrepreneurs,” he said.
Yavorsky said that in order to accelerate the process of transition from an outsourcing model to a product model in Ukraine, the country needs reforms in economic policy and legislative acts.
“We need engineers, capital and entrepreneurs. At least we have good engineers. In order for capital to appear, we need reforms in economic policy and legislative acts,” the top manager said.
According to Yavorsky, for entrepreneurs to appear, it is necessary to create conditions that will allow them to stop their outflow abroad. “When Ukraine has a stable economic policy and the possibility of raising capital, our entrepreneurs will return and will be able to build a lot, already within and for the benefit of their own country,” he said.