Ukraine’s IT outsourcing shows resilience amid war
KYIV, UKRAINE — Ukraine’s IT outsourcing industry demonstrates notable resilience despite the ongoing conflict with Russia.
The IT Ukraine Association reported that local service providers maintain operations, and several tech startups have recently been established.
The Ukrainian government estimates the IT sector accounts for almost 40% of the nation’s services exports. Remarkably, the country’s infrastructure has largely weathered the challenges of the conflict, ensuring the IT sector remains a vital economic contributor.
Alexei Miller, Managing Director at DataArt, highlighted contrasting economic trends. While the conflict undoubtedly poses concerns for potential IT clients, Ukrainian enterprises also grapple with a global economic downturn impacting IT expenditure. The IT Ukraine Association recorded a 9.3% decline in outsourcing exports in the first half of 2023.
However, Miller emphasized a silver lining: a significant customer segment eagerly supports Ukraine. Businesses of various sizes use local firms for project staffing and IT solutions.
Sergiy Fitsak, Managing Director and Technical Director of consulting and software company Softjourn, acknowledged Ukraine’s challenging environment. Despite the drop in IT services exports affecting the economic landscape, he pointed to a sustained demand for specific tech services.
Using alternative sources such as Starlink and generators also contributed to increased resilience. Ukraine’s vibrant startup ecosystem also offers a bright spot for the country’s tech industry.
