Russia invasion risks Ukraine’s IT outsourcing sector
Ukraine’s Information Technology (IT) outsourcing industry could be at risk as Russia continues its attack in the country.
Kerry Hallard, chief executive of UK-based trade group Global Sourcing Association, said the war could have “massive repercussions” in Ukraine’s huge IT industry.
Ukraine’s IT sector has been steadily growing in the past years. According to the IT Ukraine Association, the country’s IT export volume increased by 36% to $6.8 billion last year, up from $5 billion in 2020.
Technology workers in the country support fields such as banking, insurance and other financial services operations in Europe and the United States.
While several companies have closed their Ukraine facilities, Gartner analyst Katie Gove said that the security of tech resources such as code, designs and documentation may still be vulnerable.
Hallard added that their member companies are more concerned in longer-term impacts than short-term mission-critical projects as Russia continues its attack in Ukraine.
IT Ukraine Association President Vitaly Sedler said that the war’s impact on the industry will depend on “where the situation goes.”
He explained that if it will be “resolved and doesn’t lead to long-term military activities, the impact will be limited…”
