Ukrainian IT industry is strong even in times of war
Even in the current crisis situation, Ukraine has not lost its status as a popular coastal location for companies from the West. As CIO reports, the country is still very attractive, particularly for software development and engineering. According to the Ukrainian Ministry of Foreign Affairs, over 100 of the Fortune 500 companies have outposts in Ukraine. The domestic tech industry experienced a massive boost last year: According to the IT Ukraine Association, the IT export volume rose by a full 34 percent to US$ 6.8 billion. According to other studies, the share of the IT industry in the Ukrainian gross domestic product has increased from 0.06 to 3.3 percent.
So the Ukrainian tech space is undoubtedly still going strong and should not be underestimated. But what about the current crisis situation? As Konstantin Vasyuk, executive director of the IT Ukraine Association, told CIO a month after the start of the war, despite the hardships of the war, his organization and its members would still carry on and persevere. He is generally confident: most companies in the Ukraine will continue to be able to carry out IT projects. Nor would it change if Ukrainian personnel joined the army or volunteered to strengthen the country’s cybersecurity measures.
Studies by the industry association show that around seven out of ten IT professionals still work in “safe” regions of Ukraine, of which around 16 percent, mostly women, are based abroad. Around two percent of IT professionals have joined the armed forces, and around five percent volunteer to help maintain cyber security and critical national infrastructures.
Excellent IT infrastructure
An important reason for the still relatively good situation in which the Ukrainian IT industry finds itself is the country’s advanced communications infrastructure. On the one hand, according to Datacenter Insider, the nation has an extremely well-developed fiber optic network, on the other hand, the strict restrictions imposed by Elon Musk previously operated Starlink satellite network, which is why Ukrainian companies have now received more than 10,000 Starlink terminals. According to Vasyuk, “the terminals are essential because we can use special channels for companies there if the fiber optic network isn’t working.” The tech visionary only reacted to the threats made by Russia against Elon Musk because of his telecommunications help with a metaphorical shrug.
Still, the incessant disruptions have hit the economy in some regions, such as Mariupol, Kharkiv and Kherson, but Vasyuk said essential banking and payment services have not been affected. On the other hand, some smaller companies located in regions under the military control of the invaders were particularly hard hit by the Russian sanctions.
The industry needs orders and investments
What IT companies in Ukraine now desperately need is a steady influx of new business and investments to keep the ball rolling. The head of the IT association, Vasyuk, emphasizes that although the industry is still in good shape, any form of support is warmly welcomed. According to Datacenter Insider, for example, Thomas Krenn has now made an offer to include Ukrainian software providers in his online marketplace. Anyone who is interested in hiring the IT industry of Ukraine or would like to offer assistance in any other way, but does not have the appropriate connections and communication channels, can contact the IT Association of Ukraine directly.
Andrey Dekhtyar, CEO of Rozdoum, sees the situation in a similar way to Vasyuk: “The more money we can get, the more services we can offer.” He, too, is convinced that with the help of foreign investments, the Ukrainian economy will be able to stay afloat. Fearing that the war could drag on and escalate into an economic war and that Ukraine’s industrial sector has been “lost or damaged” by the shelling in the east of the country, he urges a stronger focus on ICT to concentrate on industry, since this still works best.
Thomas Weschle / Editor finanzen.net
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