Ukrainian IT Sector: Prospering Against the Odds. Intetics Inc. Explained Why

Intetics Inc. investigates the case of the Ukrainian IT industry and portrays factors that allowed the sector to recover after its challenges and flourish.

NAPLES, FLORIDA, UNITED STATES, September 27, 2022 /EINPresswire.com/ -- It is safe to say that many nations were caught off-guard by the events unraveling at the end of February 2022. Many expected Ukraine to decline massively, especially in economic terms. However, to everyone’s surprise, some Ukrainian industries, specifically the IT sector, illustrate remarkable resilience and hope for the best six months into the turmoil.

How the Ukrainian IT industry handles all the challenges shows the importance of digitalization in general. Yet, specifically in Ukraine, the resilience of the IT sector is a direct representation of the strength of Ukrainians.

Bright Future Ahead

The central hypothesis presented by Intetics — despite the war, Ukraine’s IT Sector faced all the challenges with utmost effectiveness and managed to create the conditions allowing the industry to flourish despite all the odds. Each factor is discussed in detail in the article.

Many IT companies managed to preserve their contracts and find new clients. Global investors look forward to using the services of Ukraine’s IT professionals. AmCham indicates that 96% of companies plan to continue operating in Ukraine in 2023. Furthermore, 85-95% of IT sector professionals managed to return to work duties despite the war. Finally, only 1% of all IT companies in Ukraine cannot pay their employees’ salaries.

These numbers prove that the Ukrainian IT market not only managed to survive the events of the past six months but also found a way to flourish despite everyone’s expectations. Several vital factors helped the IT industry take the challenges head-on.

– Strong pre-war foundation
– Global trust
– The Ukrainian IT sector is proving itself
– High proficiency and expertise
– Focus on innovation
– The correct response to Feb 20, 2022 events
– It is all about companies and people
– Direct Response to February 24, 2022 Challenges

The fact that the Ukrainian IT industry is the one prospering despite all the odds is all about the correct and timely decisions made within the sector as soon as the great turmoil started. The first such decision is linked to t companies’ relocation actions in the first month of the war.

Relocation

As of May 2022, about 35,000 ICT professionals moved from the Kharkiv region to Zakarpattia Oblast alone. What is more, Ukraine’s western tech hub Lviv has seen an increase from 30,000 to 90,000 ICT experts due to relocation. In such a case, only 2% of Ukrainian IT companies were forced to cease their operations because of the successful relocation. Considering the scale of the war, such a percentage is minuscule.

One of the keys to relocation’s success is that many IT companies were preparing for the relocation before the war took place. Many businesses established evacuation routes and presented contingency plans. As soon as the war started, the central part of the Ukrainian IT industry managed to move from the Western to the Eastern part entirely intact. It shows that Ukraine’s IT segment is shock-resistant and can handle almost anything on its way.

General Approach

In general, several additional factors helped ease the impact of the war on the Ukrainian IT industry. These are the following:

– Cost-efficiency. Compared to Western Europe, the cost of living in Ukraine is much lower. It helped to make relocation easier, with many ICT professionals able to afford accommodation in safer regions.

– Logistics. Due to its location, Ukraine has common hours with many clients. In such a case, the relocation of IT companies did not thwart the steady provision of services, and many companies managed to save their contracts and get new ones.

As a result, the timely answer to the war in terms of properly planned and executed relocation of IT companies helped the Ukrainian IT industry to remain operable and competitive regardless of the turmoil.

It Is All about Companies and People

However, the very nature of Ukraine’s IT sector resilience stems from its people, both employees and managers. Notably, during the first months of the war, about 80% of IT companies managed to reduce the effects of the war and offer their employees all the means they needed to work in safe environments. In March 2020, up to 96% of IT exports were preserved, higher than the last year’s indicator for the same month. Only 10% of all IT companies lost their contracts. As to the prospects, 77% of Ukrainian IT companies seek to expand their client pool and are already on the way to doing so.

Key Takeaways

All in all, Ukraine’s IT sector is resilient. There is sufficient evidence to verify the initial hypothesis and indicate that Ukrainian ICT professionals have all it takes to deliver high-quality services even during the war. It is a unique situation showing that Ukraine established a firm foundation for its tech segment, gained global trust, presented some widely recognized IT products, and had highly skilled experts standing behind the industry’s resilience and flourishing. One can be sure that the future of Ukraine’s IT segment is bright, and if it manages to overcome the challenges triggered on February 24, 2022, it can deal almost with anything on its way.

The full article is available by the link.

About Intetics Inc.
Intetics is a leading global technology company focused on the creation and operation of effective distributed technology teams aimed at turnkey software product development, digital transformation, quality assurance, and data processing. Based on a proprietary business model of Remote In-Sourcing^®, proprietary Predictive Software Engineering framework, advanced Quality Management Platform, measurable SLAs, and unparalleled methodology for talent recruitment and retention, Intetics enables IT rich, innovative organizations to capitalize on available global talent and Intetics’ in-depth engineering expertise. At Intetics, our outcomes do not just meet clients’ expectations, they have been exceeding them for our 27+ years in business.

Irina Dubovik
Intetics Inc.
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¹ http://intetics.com/?utm_source=ein&utm_medium=pr
² http://intetics.com/blog/ukrainian-it-sector-prospering-against-the-odds/?utm_source=ein&utm_medium=pr
³ http://intetics.com/services/custom-software-development/?utm_source=ein&utm_medium=pr