Within the past two months, when russia started its full-scale invasion of Ukraine, organizations across the country started arranging their operations to ensure proper
The development of the Ukrainian IT industry has been crucial for the national economy. Since it is export-oriented and the majority of its clients are foreign, which means that the industry supports the country by bringing more foreign currency to the state budget.
IT industry before February 24, 2022
According to the annual industry research carried out by IT Ukraine, the local IT sector grew by 36% compared to 2021 and its export share amounts to $6.8 billion. The number of specialists also increased to 285 thousand as opposed to 244 thousand in 2021.
The main export markets that cooperate with the Ukrainian R&D centers are the US with $2.007 billion and the UK – with $503 million. In addition, Malta, Israel, Cyprus, and Germany are huge clients and are growing their presence and partnering with Ukraine’s tech companies.
Fiscal revenue in Ukraine from the IT industry grew to UAH23.5 billion in 2021. This is a significant increase compared to 2017 when the fiscal revenue amounted to UAH8.3 billion. The flexibility of the taxation system and the opportunity for signing contracts between legal persons and individual entrepreneurs are among the key factor for such significant growth.
Another significant feature of the industry expansion is the high demand for tech specialists. Currently, Ukrainian universities graduate around 16000 students, whereas the industry requires up to 25000 new specialists. The industry also gets fueled by the so-called switchers who come to the tech industry from other spheres.
In the next 4 years, the IT sector was expected to grow to around $44 billion in export. Yet, the prognosis will be revised due to the current russian aggression in the territory of Ukraine.
How software development industry support Ukraine’s economy
Similar to 2019, when the Covid pandemic hit the planet, today the IT industry managed to return to work in a comparatively short time. Some specialists managed to relocate to safer regions and work remotely, some of them attend offices where it is possible. Many companies organized residential areas inside their offices to provide temporary shelters for their employees and family members. Ensuring secure staying and full support is a crucial element for continuing business operations during the war.
The Ministry of Digital Transformation of Ukraine promotes the idea of postponing mobilization for IT specialists as it is for the agriculture business and other vital industries. Today, the tech sector is among the few that brings foreign currency to the country. This doesn’t mean that IT specialists avoid joining the Ukrainian Armed Forces. As of now, they are expected to fulfill their work obligations and support the economy. Besides that, the so-called cyberwar is where their skills are much needed. There is a huge demand for human resources to refute all those multiple lies and accusations by russia as well as spread awareness to the world about the current situation in Ukraine. Of course, many IT specialists joined the army to fight on the battlefields across the country. Many companies support such a decision and give their full support to both their employees and families.
And it is vital that on average along with a software engineer there are 3 workplaces created inside and outside the industry. Therefore, letting the IT sector continue its development during the war will contribute to the further growth of the Ukrainian economy. Like other businesses, IT companies donate money and purchase life-saving items for the Ukrainian Army and provide humanitarian aid to the people in need. Industry today is one of the key components of supporting the country and reviving it in the future.
This is also a great time for our international partners to hire Ukrainian engineers and contract with the local companies. Especially now, when everyone here is working for the victory. A great example of encouraging doing business with Ukraine is shown by Elon Musk, who first provided the country with access to Starlink service and donated 5000 terminals. The next step made was registering the Starlink Ukraine subsidiary and further opening an office here, therefore showing how serious Musk is about Ukraine’s future. Moreover, we received Tesla Powerwall solar panels that were allocated to Bucha and Irpin to equip local outpatient clinics.
Summary
Amidst russian aggression, people in Ukraine not only trying to escape war but also exploring options for supporting the national economy.
Those businesses outside the active war zone must return to work to help Ukraine’s economy. We need to pay taxes and support local businesses where possible. There is not a single person today who does not contribute to our victory: small businesses and large corporations do their best to aid during these tough times.
Many tech companies unite their efforts to provide as much help as needed for the Ukrainian Armed Forces who defend our nation from russian aggression. So, please, work, buy whatever you need, have a coffee at a coffee shop, or eat out, and don’t forget to donate to our Army.