Outsourcing Journal

Independent ICT service business insights since 2010

Home Business Ukrainian IT is loosing trust from markets – but UA IT companies took a lot of efforts to avert increased risks for clients

The national Bank Ukraine published numbers on the performance of the ICT sector, specifically the export numbers.

After the report the export of IT services from Ukrainian IT companies in February 2024, fell with 321 million USD, compared to February 2022. The biggest decline was between February 2022 and February 2023. Compared to February 2023, this years decline was only 29 million. The numbers are dramatic taking into account that IT services export account for 37% of all exports in February 2024.

So it seems the Ukrainian ICT sector was able to convince markets about their measures to avert risks for clients, that included:

  • power generators are standard
  • starlink for offices and employees at home
  • moving part of the staff outside of Ukraine
  • opening development offices in European countries and/or Africa

The statistic also shows the decline in exports to the most important export markets (see table).

UA_decline_table

See the report here

During 2023 and 2024 the German Outsourcing Association interviewed more than hundred Ukrainian IT companies of different sizes and from different regions, regarding their strategies to expand their services delivery to other locations.

All companies have hade implemented effective measures to avert risk for clients and ensure services delivery. Most companies were well prepared due to the previously needed measures during Covid 19 pandemic. Almost all companies extended their measures and switched to a distributed team model, where developers are located outside the country. A high number of companies have had established collaborations or own delivery centres outside of Ukraine.

 

Photo by Glib Albovsky on Unsplash

89 views