IT Industry keeps growing even after eight months of War

IT Industry keeps growing even after eight months of War

By the results of nine months of the current year, the national IT industry has maintained positive growth dynamics and remains the only export industry that stably generates foreign currency income for the economy of Ukraine in war conditions. Ukrainian companies keep working continuously, implement projects, pay taxes on time, attract investments and new customers, and actively enter the global market.

According to the National Bank of Ukraine, during the nine months of 2022, the volume of computer services increased by 13% and amounted to almost USD 5.5 billion. At the same time, the amount of taxes and fees paid by the IT industry during this period amounted to UAH 48 billion. Such indicators were possible to reach due to the large-scale and rapid reformation of the industry during the War; most companies managed to implement anti-crisis plans for business continuity support (BCP) effectively, switch to flexible work models, relocate teams and diversify offices both in Ukraine and abroad. Companies constantly adapt their own infrastructure to the realities of wartime, in particular, key systems are installed in the "cloud", a network of Internet providers is diversified, including through the "Starlink" global satellite system, office premises are equipped with generators to ensure backup power supply. The Ukrainian IT business does everything possible to ensure maximum readiness for any course of events.

In addition, companies actively support the government and the army. A powerful volunteer movement is widespread among Ukrainian IT professionals, from which the IT Army of Ukraine was formed. Currently, up to 15% of IT professionals are employed in the Cyber Forces. 3% of IT professionals are defending the country with weapons in their hands in the Armed Forces of Ukraine. The other 82% continue to work in companies that support the economic front of the state, actively contribute and volunteer. In general, the amount of donations from the Ukrainian technological sector has already exceeded USD 500 million.

The challenges are unprecedented. But the results of the nine months of work of the IT industry prove how stable and mature it is and what great potential it retains for the development and recovery of the country. However, compared to previous years, the growth rate of the industry has slowed down and does not correspond to the pre-war forecasts for 2022. In addition to the objective reasons for this trend related to the War, it is critically important to resolve the issue of reservation of IT professionals, allow them to temporarily travel abroad to support business activity and work with clients, and preserve the Ukrainian tax residency of companies and professionals. Governmental support in solving these issues is of key importance for the preservation and further development of the industry in the country. It is necessary to act quickly and decisively now, - Konstantin Vasyuk, Executive Director of the Association, emphasized.