The IT Sector in the Third Year of War – Resilience, Adaptation, and New Opportunities
The IT Sector in the Third Year of War – Resilience, Adaptation, and New Opportunities
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IT Ukraine
The Ukrainian IT industry continues to grapple with the challenges of war, declining orders, and the impact of the global market. Mariia Shevchuk, IT Ukraine Association CEO, participated in the podcast “Chronicles of the Economy” to discuss the current state of the sector, its key challenges, and prospects for recovery.
Ukraine’s IT industry has a unique opportunity to grow stronger thanks to its expertise in cybersecurity and defence technology development. Introducing innovations across various economic sectors and combating Russian software will create additional growth opportunities,– Mariia Shevchuk underscored.
Key points from the podcast discussion:
2024 was the year of resilience. Despite challenges triggered by the full-scale invasion, companies are focusing on maintaining their positions and adapting to changes in the global market. The primary markets remain the United States, the United Kingdom, Germany and Israel.
Export of IT services decreased by approximately 5% compared to the previous year, continuing the downward trend that began in 2023. The main reasons include reduced demand for tech services globally and risks associated with the war in Ukraine.
Global trends are also influencing Ukraine’s IT sector. After the COVID-19 boom, many companies began downsizing and optimising expenses. Ukrainian firms, as part of the global market, are experiencing these changes, compounded by the impact of war.
Demand for junior and middle-level specialists is declining, while niche experts remain in demand. Service companies are experiencing the most significant cuts due to project completions and difficulties finding new clients.
Key elements for the sector’s recovery include the end of the war, business stability, and restoring trust among international clients. The industry is poised for new growth, especially in areas such as cybersecurity and defence technologies.
The conflict has accelerated the trend of opening overseas offices for Ukrainian companies, where many IT professionals are now based. However, Ukraine remains a comfortable country for living and working. A return of specialists is anticipated once the situation stabilises.
The IT Ukraine Association continues active partnerships with higher education institutions. In 2024, over 130 representatives from 90 universities participated in the IT for Uni: Bootcamp 2.0 program on modern management and technology. This collaboration helps tailor educational programs to meet market needs.
What export results did the industry achieve in 2024? How are global changes affecting the Ukrainian IT market? What’s happening with salaries, staffing and downsizing, and what does the future hold for the sector? Find answers to these and other questions in the Ukrainska Pravda podcast on YouTube:
