As Ukraine is the second month into the war, we at nCube thought it’d be a good idea to shed light on the current situation on the IT market in Ukraine. As a software development company that sources Eastern European developers, we get many inquiries from our ongoing and potential clients as to what the IT industry in Ukraine looks like now and what are its prospects in the near future. We’ve reviewed several trustworthy resources on this matter and compiled a brief review. Let’s dive in.
Ukrainian tech market before the war: Key numbers
To get a better understanding of today’s Ukrainian tech market, let’s circle back to the pre-war times. Most notably, Ukraine nearly reached a milestone of 300,000 IT specialists as of the beginning of 2022. This further solidifies Ukraine as the second-largest pool of software developers in Eastern Europe, second only to Poland.
Before 2022, the IT industry in Ukraine was growing steadily by 27% annually, and thus was rightfully considered to be one of the fastest-growing sectors in the country. The export of software development services was estimated at $6.8 billion (January 2022), constituting a significant share of Ukraine’s exports.
The number of software development companies operating on the IT market in Ukraine was recently estimated at 3,500. Their clients typically stem from the USA, the UK, Germany, Norway, and Denmark.
Fast-growing and thriving – that’s the state, in which the Ukrainian tech market met the war.
The IT industry in Ukraine 2022 during wartime
According to IT Association Ukraine, the IT industry in Ukraine remains solvent and financially stable – despite some recession incurred by the war.
During the first month of the war, up to 80% of software development companies were able to minimize the effects of the war, recover successfully, and continue to support their ongoing relationships with their clients.
IT Association Ukraine also reported that 77% of companies have managed to retain their relationships with their clients, without decreasing the volumes of IT services they provided during the pre-war times. The rest underwent downsizing to some extent, however, no significant layoffs have been observed. That is thanks to the fact that the IT sector has grown strong for many years and developed close ties with businesses on a global scale.
Thus, the IT industry in Ukraine in 2022 is able to support the country in several crucial aspects:
- The influx of foreign currency: The IT industry in Ukraine in 2022 is up and running and remains one of the pillars of Ukraine’s exports.
- Donation: $25 million has been donated for humanitarian aid and the army of Ukraine by IT companies during the first month of the war.
- Curing the suffering economy: The Ukrainian tech market is helping Ukraine win the battle on the economic front, which is impossible without continuous investment and steadily working businesses.
READ ALSO: Why is it Worth Outsourcing to Eastern Europe?
The work of software developers during the war
Software developers remain the driving force of the IT market in Ukraine who keep supporting their clients’ projects globally.
According to the research of Developers Association Ukraine, a reputable magazine dedicated to the Ukrainian tech market, 84% of software developers continued to support the projects full-time. Diving into more detail, 7% of developers continued working part-time and 6% were laid off, as their employers had to adjust to new circumstances. Additionally, up to 3% of IT specialists joined the Armed Forces of Ukraine and had to leave their workplaces temporarily.
Many clients are interested in how software developers are coping during these difficult times. Following the contingency plans created in advance by their companies, a lion’s share of software developers moved towards the safer regions, both inside and outside Ukraine. Overall, most IT specialists who had to leave their homes, plan to return home after the war ends.
It would be remiss to say that the Ukrainian IT community hasn’t been shaken by the war. At the same time, we can see that most developers were able to continue their work from safer locations.
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Ukraine IT 2022: The prospects of new partnerships
The key finding from Djinni, a prominent IT job portal in Ukraine, is that there was a 50% decrease in terms of newly posted vacancies during March 2022. In February, the month before the war, Ukrainian software development companies opened 28,000 positions. To compare, there are 12,000 vacancies as of the time of writing, which means companies aren’t hiring as actively as they used to before the war. However, as companies and employees settle in new locations, the number of vacancies is expected to increase.
Despite the significant drop, some opportunities have opened as well, especially for those who are looking for opportunities to source developers from Eastern Europe. Given that many local software development companies (particularly, ones from Kyiv, Kharkiv, Dnipro, and Odesa) had to downsize their operation volume, many developers from these regions started looking for new opportunities, often in locations outside Ukraine. It’s especially beneficial for those companies that won't take the risk of hiring in Ukraine, but still want to work with Ukrainian developers.
We at nCube can help you build your team across Eastern Europe, with team members located in Poland, Bulgaria, Romania, the Czech Republic, Slovakia, as well as source developers from such pools of tech talent in Latin America as Argentina and Brazil.
READ ALSO: How to Find Software Developers in Latin America
Consisting of developers based in safe regions, your team will keep close ties with Ukraine but work without the risk of disruption.
Continue to support the Ukrainian tech market
If you wonder how you can support Ukrainians during these difficult times, the answer is simple: Launch your remote software development center in Ukraine as a means of supporting Ukraine on the economic front. Thanks to the partnerships with companies globally, the Ukrainian tech market is able to pay salaries, which supports developers (and their families) and lets them donate for the needs of the Armed Forces of Ukraine and people who continue to suffer due to the war.
Contact us for more information on the IT labor market in Ukraine and let’s see how our solution can benefit your company.