IT Export Boom in Georgia and Global Trends

IT services exports from Georgia have significantly increased in recent years, reaching 1.77 billion GEL in 2023. According to a report by Galt & Taggart, the total revenue of the IT sector in Georgia was 1.94 billion GEL, nearly all of which came from IT services exports. This figure represents a fourfold increase compared to 2021, highlighting the rapid growth and potential of Georgia’s IT sector.

Approximately 26.3% of IT services exports are directed to the United States, 15.3% to the United Kingdom, and 10.6% to Malta. These three countries represent the main markets for Georgia’s IT services, reflecting the country’s growing role in the global technology market. The United States and the United Kingdom are major markets for IT services, and establishing a foothold in these markets is a significant achievement for Georgia.

In 2023, 60% of IT companies operating in Georgia were established with foreign capital, showing that the majority of market leaders are foreign companies. This growth is driven by the relocation of foreign companies to Georgia and favorable tax incentives that foster the development of the country’s technology sector. Additionally, local companies are actively adapting to global demands, which is a positive signal for international investors.

The number of people employed in Georgia’s IT sector quadrupled in 2023, reaching 14,164. This growth is partly due to the establishment of many IT companies in Georgia since 2022, which has positively impacted employment rates. Furthermore, compared to 2021, the average salary in the IT sector doubled to 7,192 GEL, indicating the profitability and high demand in the technology sector. According to the study, labor costs account for 60% of revenues in the IT sector, meaning that most of the income generated is distributed among employees, supporting the creation of high-quality jobs. These indicators demonstrate that the technology sector is developing rapidly, with increases in both employment and salaries, which positively impact Georgia’s economy.

The growth of the IT sector also has a significant impact on regional development. New employment opportunities allow regions to benefit economically and develop new infrastructure projects. The quadrupling of the number of employees is particularly important in the regions, where job creation is the foundation of economic growth. The increase in high-paying jobs reflects the rising standard of living for the Georgian population and strengthens and stabilizes the economy.

Globally, the IT services sector is one of the fastest-growing and strategically important sectors. In 2024, global IT services revenues exceeded $5 trillion, representing a 7% increase from the previous year (source: Statista). Key areas of growth include software services, data analytics, cybersecurity, and cloud technologies. Particularly noteworthy are artificial intelligence and cloud services, whose usage and demand are growing rapidly in both the business and public sectors. These trends have a significant impact on the development of Georgia’s IT sector, providing an opportunity for the country to adapt to global demands and offer corresponding services.

The growing demand for IT services in global markets presents opportunities for Georgia to collaborate more actively with international partners and strengthen its position. Introducing various innovative services and technologies, such as machine learning and artificial intelligence, will help Georgia’s IT sector become more competitive in the global market. There is also high demand in global markets for automation and process optimization services, further increasing Georgia’s potential to align with technological trends and participate in global projects.

In the face of global IT services growth, it is particularly important for Georgia to develop innovative services, including the adoption of new technologies such as blockchain, IoT (Internet of Things), and machine learning. These technologies will enable Georgian IT companies to deliver new and unique services that meet global demands and provide a competitive edge. Furthermore, integrating innovative technologies will help increase the competitiveness of local companies and establish their presence in the global market.

There is also significant growth globally in the field of cybersecurity, linked to the tightening of data security requirements. Georgia’s IT sector can play an important role in this direction as well, offering reliable and high-quality cybersecurity services, which are important for both local and international markets. The growth of cybersecurity is particularly relevant as businesses and government agencies become increasingly reliant on digital infrastructure.

The rapid growth of Georgia’s IT services sector and reaching the export benchmark of 1.77 billion GEL indicates the country’s growing economic potential in the technology field. Additionally, the country’s geographical location, tax incentives, and supportive policies help Georgian IT companies solidify their positions in the global market. If these trends continue, IT services exports could exceed 3 billion GEL by 2028, contributing to economic growth and the creation of highly skilled jobs.

To support the development of the sector, it is important to promote relevant education and training programs, which will help prepare IT specialists and provide the necessary workforce for the sector. In the coming years, an additional 10,000 to 15,000 specialists could be employed in the IT sector, significantly increasing employment rates in the country. To achieve this, it is essential for the government to invest more in education, improve the quality of IT training programs, and strengthen international cooperation. Government policies and private sector involvement will support the introduction of technological innovations in the country and strengthen the IT ecosystem, ultimately enhancing the sector’s potential.

It is also important that more attention is given to practical training and collaboration with IT companies within the education system, so that students gain practical experience and are better prepared for the real job market. In the future, employment opportunities in the IT sector will continue to grow, which will also contribute to the development of other sectors of the economy. Collaboration with new technology companies and the development of innovative products will allow Georgia’s IT sector to compete with global leaders and further enhance its technological potential.

The rapid growth of IT services exports from Georgia brings significant benefits to the country’s economy. The 1.77 billion GEL in exports achieved in 2023 and the quadrupling of the number of people employed in the sector demonstrate that the technology sector is becoming a major driver of growth for Georgia’s economy. In the coming years, with appropriate education and investments, the country’s IT sector will continue to grow, not only increasing export volumes but also ensuring economic diversification and the creation of high-paying jobs. All of this will contribute to Georgia’s increased competitiveness in the global technology market and the stable and sustainable growth of the national economy.

Moreover, strengthening the IT sector will contribute to the diversification of the country’s economy, reducing reliance on other sectors such as agriculture or tourism. Strengthening its position in international markets will also allow Georgia to be more integrated into the global economy, creating additional investment opportunities. It is critical for the country to create an environment where innovation and technology are prioritized, and investors are interested in conducting business in Georgia. The growth of the IT sector will not only create new jobs but also contribute to overall economic progress and an improved standard of living for the population.

The stable growth of the IT sector is also important for young people seeking professional development and career advancement. Promoting technological education and increasing employment opportunities will encourage young people to stay in the country and develop their skills in the local market. This will support the economic engagement of the youth and create favorable conditions for the development of innovative startups, which will create additional jobs and further strengthen the country’s technological potential.