From a Powerhouse to Economic Stronghold: A New Chapter for Ukrainian IT

It’s also a new chapter in a story of how remote work and technological progress save economies.

As the pandemic has ramped up a trend for working remotely, IT companies based in Ukraine found it easier to relocate their employees when the war has put local R&D offices at risk. Back at work after a pause of approximately a week, most specialists join their compatriots who are still in Ukraine in keeping the country’s economy up and running.

A phoenix has to burn to be reborn. Ukrainian IT simply paused to resume its work. Below, we explain how the industry stays afloat and what the other countries’ IT sectors can learn from Ukrainian experience.

Ukrainian IT before the war

93% in technology skill—that’s the score of the Ukrainian information technology sector workers among other European countries, according to Coursera’s Global Skills Report 2021. Along with competitive prices for IT services and strong tradition of tech education, this was one of the many reasons why Ukraine has become a leading contributor in the global technological development. So, how did it all begin?

The dawn of Ukrainian IT dates back to the mid-1990s, when the first companies sprung like mushrooms as the country broke free from under the rubble of the USSR.
In 2018, the growth of the Ukrainian IT industry beat the global average, especially in regard to the rise of the country as a major outsourcing haven. While at first the driving force behind the boom was the cost, in time, the focus shifted to a solid expertise of Ukrainian tech talents.

Ukraine ranks high in software engineering databases software development,

Amid the COVID-19 turmoil in 2020, the country’s IT industry saw exports surge by 20.4 percent in a prompt recovery from a slowdown, while local markets across the world were pulled down by the crisis.
In 2021, IT exports soared, bringing more than 5 billion USD. At the same time, the number of IT experts crossed 200,000.
By 2022, Ukrainian startups such as GitLab and Grammarly grew into unicorns, having conquered the world.

Stop, regroup, get back to business

The Russian invasion has stormed into the booming Ukrainian sector in its prime. IT specialists have faced three options: IT, army, and… an IT army.

Many have relocated to other European countries, mainly Poland, Slovakia, and Czech Republic to continue working and supporting their families and Ukrainian economy. Some have been mobilized or joined their colleagues fighting in the cyberspace.

But what is fascinating is how fast the majority of employees returned to normal. Most of them got back to their duties within a week, with many trying to keep up with the schedule while still in bomb shelters or on their way to a safe location.

Contingency planning played a big part in this organized and quite speedy response to the crumbling routine.

Contingency plan: INSART case

The war might have come as a surprise for many in Ukraine, but the possibility has long been there, impossible to ignore. With the Russian army at the border, lots of IT companies operating in Ukraine started getting careful or blunt questions from their clients, which also urged Ukrainian IT and global companies with local R&D offices to act.

As the tension exploded with Russian tanks thundering through the border, INSART was on the ready side. Our R&D office in Poland was equipped to welcome our Ukrainian team when the first alarming signals surfaced. We quickly implemented a coordination plan for evacuating our team and their families. By allocating money for relocation expenses, helping with finding accommodation and guiding our people on the way to a safe location, we managed to resuscitate the operation in a week.

A lesson for the global IT industry

The COVID-19 pandemic hit us unexpectedly, and so did the war that Russia started in Ukraine. While the virus has spread rapidly, the bomb shellings are mostly contained within the borders of Ukraine. However, Russia has already hit Belarus with airstrikes, blaming it on Ukraine, and two drones have crashed in Romania and Croatia. So, one can’t say for sure how safe the rest of Europe is.

If “better safe than sorry” mode should be activated now, it’s high time IT companies globally reviewed their contingency plans, enhanced their cybersecurity, and added more flexibility into their practices.

From a Powerhouse to Economic Stronghold: A New Chapter for Ukrainian IT

Ukrainian IT before the war

Stop, regroup, get back to business

Contingency plan: INSART case

A lesson for the global IT industry

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