Georgia's IT sector is increasingly being driven by international companies taking advantage of the country's preferential tax regime, according to Davit Kiziria, coordinator of the Digital Transformation Consortium. Speaking to BMG, he said the migration-driven boom that fueled the industry's rapid expansion after 2022 has largely stabilized.
Kiziria said the sector's recent growth initially stemmed from two major factors: the global post-pandemic surge in demand for digital services and the influx of IT professionals following Russia's invasion of Ukraine. However, he believes current revenue growth is now largely linked to foreign companies operating through Georgia's favorable tax jurisdiction.
He noted that Georgia is no longer unique in offering attractive conditions for technology firms, with countries across the region, including Armenia, also competing aggressively for IT investment. This raises questions about whether Georgia can maintain its competitive position in the coming years.
According to Kiziria, Georgia still occupies a relatively low-value segment of the global IT value chain, focusing primarily on supplying human resources rather than developing high-value technology products. He added that the rapid adoption of artificial intelligence is shifting demand toward highly skilled software engineers, making workforce quality increasingly important for the sector's long-term competitiveness.
