Competitive advantages of IT sector enterprises

Vardanyan Aida
master`s student, Odessa National Economic University. E-mail:vardanyanaida97@gmail.com

Markitan Aleksandr
candidate of economic sciences, assistant professor, Odessa National Economic University. E-mail:markitanas@ukr.net

Cite this article:

Vardanyan A., Markitan A., (2018) Competitive advantages of IT sector enterprises. Ed.: М.D. Baldzhy (ed.-in-ch.) and others [Systema pensiinoho zabezpechennia Ukrainy ta yevrointehratsiini protsesy; za red.: М. D. Baldzhy (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 8(260), pp. 32-44.

Abstract

In the modern world, competition at all levels is a prerequisite for the market mechanism to operate. It provides variety of assortment, high quality of goods and services, stable economic growth, as well as promotes the development of innovative industries, including the field of information technology. It is the orientation of the IT sector that provides economic growth for almost all developed countries and some developing countries. Taking into account the global nature of the products of the IT sector, in the presence of stable competitive advantages, it can also become one of the leading sectors of the Ukrainian economy. Despite the rapid growth, the Ukrainian IT market remains globally small and stands at around 1% of the global rate. At the same time, its growth is not primarily due to an increase in the share of Ukraine, but due to the growth of the total volume of the world market. In Ukraine, the IT sector attempt to involve many developers and inter mediators. This can be explained by the very high level of profitability in the industry, as well as the constant presence of “blue oceans”. The great dynamism of market processes in the IT sector forces market operators to constantly invest in new research and development, systematically carry out market analysis and focus on competitors. However, there are a number of factors that negatively affect the competitive position of the domestic IT sector. In particular, only over the past 5 years, more than 10,000 IT specialists left to work abroad, some of them moved their own businesses. The main reason for this legal insecurity of IT business is the pressure from the state authorities. This situation also frustrates foreign investors, who are increasingly investing in domestic development only if the project team moves abroad. Another problem is the lack of a strategy for the development of the industry and an education program that would meet current market demands.

Keywords

competition, competitiveness, competitor and advantages, information technologies, IT, supply and demand, innovations.

JEL classification: D410

UD classification: 334.716:005.57

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