Georgia’s IT Sector: What Is Behind the Record Growth?

Shorena Kopaleishvili in an interview with BM.GE — on international companies, exports, tax incentives and the future of IT in Georgia

 

On September 30, Shorena Kopaleishvili, Head of the Association of Georgian Virtual Zone Persons, appeared on საქმის კურსი (Sakmis Kursi), a BM.GE programme.

The discussion focused on the growing role of IT in Georgia’s economy, the contribution of international companies, IT services exports, and the conditions that may shape the sector’s further development.

 

 

IT Sector Strengthens Its Role in Georgia’s Economy

 

According to data presented in the interview, the information and communication sector accounted for 8.2% of Georgia’s GDP. At the same time, the discussion focused specifically on the IT segment — software development, IT services and international companies operating in this field.

For comparison, the share was around 1–3% in 2020–2022. The growth is linked, among other factors, to increased volumes of computer programming and the expansion of IT services.

 

Behind these figures is real economic activity: international IT companies operate in Georgia, services exports are growing, and the number of professionals working in the sector is increasing.

 

 

International IT Companies Generate More Than GEL 5 Billion

 

In 2025, the turnover of international IT companies exceeded GEL 5 billion, according to the data presented in the interview, while exports exceeded GEL 2 billion.

These figures reflect an important feature of Georgia’s IT sector: a significant share of companies works with international clients and generates revenue from global markets.

The United States and European countries are among the main destinations for IT services exported from Georgia.

In the first half of the current year, external revenues from the IT sector exceeded GEL 441 million, as noted during the programme.

The role of IT in Georgia’s economy is therefore not limited to the development of the domestic market. International services and exports have become a significant part of the sector’s economic activity.

 

 

How Sustainable Is This Growth?

 

Strong performance also raises a new question for the sector: what will sustain the interest of international IT companies in Georgia over the long term?

Tax advantages remain one of the factors contributing to the country’s attractiveness.

Shorena Kopaleishvili highlighted the importance of the decision to introduce tax incentives to support the development of the IT sector. At the same time, she noted that tax advantages may not remain unchanged indefinitely, making it important to consider other factors that determine Georgia’s competitiveness.

For international businesses, it is not only taxation that matters, but also clear rules, administrative procedures, access to qualified professionals and predictable operating conditions.

 

 

Regulation Becomes Part of Competitiveness

 

One issue of particular importance to international companies is the introduction of new requirements related to the employment of foreign nationals in Georgia.

For IT companies that rely on international teams, the ability to attract foreign specialists has practical significance.

According to Shorena Kopaleishvili, the new administrative requirements create difficulties for some companies. In certain cases, businesses are beginning to assess how convenient and practical it remains to operate in Georgia when additional procedures are required.

In this context, dialogue between businesses and government institutions becomes particularly important.

When developing new requirements, it is important to consider not only the objectives set by the government, but also how the rules will work for companies in practice.

 

 

IT Residency in Georgia: Expectations and Practice

 

Another mechanism for attracting specialists is IT Residency.

Shorena Kopaleishvili noted that the idea behind this mechanism is a positive step, but in practice it has not yet fully met the initial expectations.

For international IT companies, the ability to attract specialists is closely connected with their ability to develop their operations in the country. Conditions for foreign professionals therefore form part of the overall attractiveness of the Georgian jurisdiction.

 

 

IT Workforce: Around 50,000 Specialists and 12,000 Students

 

According to figures mentioned in the interview, around 50,000 people are employed in the IT sector, while more than 12,000 students are studying IT-related fields.

These figures show that Georgia already has a substantial base of IT professionals and continues to train new specialists.

At the same time, there is still a need to further develop the local workforce. International companies also continue to require foreign professionals with specific expertise.

The development of human capital therefore involves two complementary directions: training more specialists within the country while maintaining the ability to attract the international talent that businesses need.

 

 

IT Services Exports and Access to New Markets

 

A strong focus on international markets is one of the defining characteristics of Georgia’s IT sector.

However, further growth will require not only an increase in export volumes, but also greater diversification — both in terms of products and services and in terms of international markets.

The broader the range of IT services and export destinations, the less dependent the sector is on individual markets and specific types of activity.

At the same time, international business connections remain important for companies whose operations are largely based on providing services to clients outside Georgia.

 

 

Georgia Operates in a Competitive Regional Environment

 

Different countries in the region are competing for international IT companies and qualified professionals.

Armenia was mentioned as one example during the interview.

For Georgia, this means that competitiveness needs to be assessed not only through current performance, but also through the long-term conditions available to businesses.

Tax advantages may be one element of this system, but companies assess a jurisdiction based on a combination of factors — from regulation and access to talent to administrative procedures and the ability to operate in international markets.

 

 

Conditions for the Long-Term Growth of Georgia’s IT Sector

 

The IT sector has already become a significant part of Georgia’s economy. Its share of GDP, services exports, the turnover of international companies and employment are all growing.

The next question is how sustainable this momentum will be.

 

The interview highlighted several factors that will matter for the sector’s further development:

• a predictable regulatory environment;

• competitive conditions for international companies;

• development of the local IT workforce;

• the ability to attract foreign specialists;

• export diversification;

• maintaining international business connections;

• ongoing dialogue between business and government.

 

For Georgia, this is no longer simply a question of developing one particular industry. As the IT sector grows and its contribution to exports becomes more significant, the conditions in which companies operate become increasingly important.

 

 

How Changes in the IT Sector Affect Virtual Zone Companies

 

For Virtual Zone companies, many of these issues have direct practical relevance.

Their activities are connected with international clients, services exports, tax matters, attracting specialists and complying with regulatory requirements.

The discussion about the future of the IT sector is therefore also a discussion about the business environment in which Virtual Zone companies operate.

Predictable regulation, clear administrative procedures and the ability to address emerging business issues in a timely manner become increasingly important as the sector itself continues to grow.

That is why ongoing dialogue between businesses, the professional community and government institutions remains an important part of the further development of IT in Georgia.

 

 

Full Interview

 

The full interview with Shorena Kopaleishvili on Sakmis Kursi is available on BM.GE’s YouTube channel.

Programme topic:
რა წვლილი შეაქვს IT სექტორს საქართველოს ეკონომიკაში?
What contribution does the IT sector make to Georgia’s economy?

Guest: Shorena Kopaleishvili — Head of the Association of Georgian Virtual Zone Persons.

Watch the full interview on YouTube →

Original BM.GE publication →