Investments in the IT sector in Ukraine
Investments in the IT sector in Ukraine
When assessing what’s going on in IT Ukraine, it is impossible not to address the elephant in the room, namely the war started by Russia against Ukraine. The recent full-scale invasion of the Russian army on February 24, 2022, has amplified the risks associated with the country in general and the IT sector specifically. However, it is not as bad with Ukrainian IT as one might think.
First and foremost, an absolute majority of the Ukrainian IT sector consolidated around the country’s leadership, army, volunteers, medics, refugees, and society in general. In addition, many IT specialists became a part of the Ukrainian digital resistance by joining the IT army or helping volunteers. Many companies, including TRIARE, launched funds and fundraising campaigns aimed at the support of the Ukrainian Armed Forces and refugees. In these trying times, it became evident that the IT sector of Ukraine will stand its ground and continue developing despite the current challenges and risks.
Flexibility of Developers from Ukraine
Just like many other Central and Eastern European countries, Ukraine experienced rapid growth in the IT sector during the last decade. The government regulatory machine ignored the industry in its early development stages until it became too complex to regulate. The current political leadership, including the Ministry of Digital Transformation of Ukraine, consists of former IT specialists with experience in the field and a future vision. These people are actively promoting the Ukrainian IT brand.
The IT sector of Ukraine is no longer just about outsourcing and outstaffing. Many Ukrainian startups have made a name for themselves, transforming into internationally recognized brands. At the same time, a large number of IT companies in Ukraine offer broad solutions from design and development to implementation and post-development support. The flexibility of developers from Ukraine plays a crucial role in this progress.
When assessing IT tech for Ukraine, it is possible to list several initiatives that contribute to the strength and resilience of civil society. Their importance became particularly vital during the war. In case you are looking for a way to join the initiative with your project, check out the full list here.
Pros and Cons of Ukrainian Developers
Ukrainian developers remain highly competitive in the global jobs market. The war in Ukraine has disrupted the ability of many to work, but the majority continue developing high-quality solutions supporting the country directly and indirectly.
Despite the ongoing crisis in Ukraine, its IT sector continues growing and developing. The following advantages of Ukrainian developers make a big difference:
- Experience and expertise. It is possible to find the developers at various levels of seniority, depending on the project’s needs. In this regard, finding expert-level developers is difficult but possible. Ukrainian developers commonly have experience in various international projects, including the solutions for the leading corporations in various sectors and industries.
- Business environment. Ukraine continues climbing the ladder of economic freedom. Traditionally, the IT industry had little regulatory pressure there. With the EU membership, this will liberate the market even further.
- Values and culture. Being a part of Europe and filing for EU membership, Ukraine shares similar values and culture with the Western world. It is reflected in management agility, high level of cross-cultural communication, and high level of English.
- Attractive investment potential. Investments in the IT sector of Ukraine have a strong potential to deliver value without the risks significantly exceeding the other startup environments.
- Strong team augmentation potential. It is common for companies to augment the development teams from Ukraine. Ukrainian IT developers quickly integrate into the new environments.
The cons of Ukrainian developers stem primarily from their external environment:
- The ongoing war in Ukraine. Some IT specialists joined the army. Such a background creates short-term operational risks that may disrupt business processes, but IT firms in Ukraine started to address this, too.
- Weaker managerial control. Outsourcing a team of developers in Ukraine may entail a weaker control due to the geographic location. Modern technology minimizes the risk by allowing consistent communication capabilities. Redmine and Jira are at the core of task management and Zoom allows frequent synchronous communication.
- Delayed synergy effect. Just as with any new team, augmenting a team of developers or hiring an external company will take time to ensure maximum efficiency and effectiveness. These initial efforts translate into long-term benefits over time.
What is the future of the IT sector in Ukraine?
Ukraine is currently defending itself from the external enemy, as the importance of the IT sector and its specialists is increasing. The IT sector in Ukraine is an integral part of this struggle, which means that its value will only increase over time. This is why investing in the Ukrainian IT sector now means getting a stake in the dynamically growing community with a bright future.