Productivity Growth in Georgia’s IT Sector: How Rising Wages and Technological Shifts Are Reshaping the Labor Market

Between 2019 and 2024, Georgia’s IT sector experienced not only rapid expansion but also a notable rise in internal productivity. Over these five years, the turnover of IT companies increased ninefold, while the number of employees grew fivefold. This dynamic clearly points to a significant increase in productivity — companies are now generating substantially more economic value per employee than they did just a few years ago.

Salaries have also risen dramatically. By 2024, the average monthly salary in IT-focused companies reached 6,973 GEL, which is 3.1 times higher than in 2019 and more than 3.4 times the national average. However, the pace of salary growth lags behind the surge in company revenues, further confirming that efficiency and output per employee have improved considerably.

Several key factors are driving this trend. First, market expansion—especially in international service exports—has allowed companies to focus on higher-value services. Second, internal technological advancements, including process automation and platform development, have reduced operational costs per project and enhanced output quality.

Artificial intelligence (AI) integration is now accelerating these changes even further. Industry representatives note that IT is one of the first sectors where AI has significantly penetrated everyday workflows. Robotic Process Automation (RPA), AI-based code generation, support chatbots, and automated data analytics systems are increasingly handling tasks that previously required full human involvement.

In the long term, this transformation carries a double impact. On the one hand, employee productivity rises significantly, as technical routine tasks decrease and more time is allocated to creative and complex work. On the other hand, broader automation may slow down the creation of new jobs, particularly in roles where full automation becomes feasible.

Beyond AI, other factors are also likely to boost productivity: stronger direct access to global markets, the further establishment of remote work culture, upskilling local talent to meet international standards, and the creation of an innovation-driven ecosystem.

Today’s trends suggest that Georgia’s IT sector is gradually transitioning from a model based on quantitative growth to one emphasizing qualitative development. Strengthening productivity will be a key determinant of the sector’s competitiveness in the coming years. However, it remains crucial that companies simultaneously invest in human capital development—ensuring that technological progress enhances, rather than destabilizes, the labor market.

Find the BTU’s research report on IT sector trends here.