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Ukrainian IT Market Overview: Geopolitics Issues
According to the National Bank, in the first three months of 2022, the IT industry managed to increase export revenues to the country. Thus, in the first quarter, the sector exported services worth $2 billion, which is 38% more than in the same period of 2021 ($1.4 billion).
We can see such results even during a full-scale war on Ukraine’s territory. IT can maintain the country’s economic security by generating foreign exchange revenue and paying all taxes. And even in advance to support the country’s economy, which has become a common practice among many companies.
Despite the war, mobilization, forced relocation of businesses and teams, and pandemic, the industry shows high-performance indicators, steadily filling the state budget with large amounts of taxes.
Work stabilization in war conditions
According to the IT Ukraine Association survey, more than half of the companies have kept 100% of their contracts. Another third has ensured the validity of at least 90% of the agreements. Three-quarters of Ukrainian IT companies have already attracted new customers, and even more: industry representatives predict a growth of 5–15% shortly. Only 16% of businesses lost 10% or more of their contracts.
There are many reasons for such customer retention. The most significant included:
- high levels of client loyalty;
- long-term partnerships;
- delivery stability;
- constant communication with customers;
- risks minimization;
- quick stabilization of business processes;
- restoration of work because of prompt relocation of teams to more safe zones;
- high human safety principles that demonstrate high social responsibility of companies;
- high quality of service providers even in wartime conditions.
IT sector in Ukraine: what to expect?
Of course, the war affects the economic characteristics of the IT industry. But, as we can see from the 1st quarter of this year, the IT field is one of the most stable. And currently, the whole industry is working to maintain and improve indicators.
It is still premature to talk about the results of the second quarter. The following factors will influence the annual results of the IT market:
- the terms of the end of the war;
- scenarios for Ukraine’s victory;
- the number of mobilized representatives of the IT industry;
For the IT market in Ukraine is essential to support and contact the state and local governments to create the most favorable conditions for the development of the industry. Many startup companies have joined together to give as much assistance as possible to the Ukrainian Armed Forces, which protect our country from Russian aggression.
READ ALSO: THE ROLE OF IT INDUSTRY IN UKRAINIAN GDP
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