IT Industry Role in Ukrainian GDP

technology

In the modern era of 2022, information technology is a must when it comes to business. It is always said that business is driven by technology or vice versa. It’s hard to imagine a company not benefiting from the digital revolution and focusing on information technology. Even farming uses computers for updates and new research to develop the needs of a business.  Technology has significantly shaped every aspect of modern business. The information technology sector has facilitated communication with customers, making people’s work easier and securing business information.   

After the collapse of the Soviet Union, the IT sector flourished in countries like Ukraine, attracting many young people to the industry. The war in Ukraine changed everything.  This war will be closer to many people working in technology, especially in Europe and the United States. The Ukrainian diaspora – Ukrainians and their descendants – enjoys an exceptionally high reputation worldwide. Companies like PayPal, WhatsApp, Affirm, GitLab, Grammarly were founded or co-founded by Ukrainian software engineers and are known/used by many.   

Ukraine has become a popular destination for many companies to hire full-time employees. Ukraine is so popular because it has good, highly qualified engineering staff. And highly skilled technical talent can be employed quickly for a reasonable price.   

Before the war, the technology sector was on the basis of Ukraine’s economy, generating about 4% of gross domestic product (GDP). But war is, of course, forcing more and more companies into crisis. Large software companies have started relocating some or all of their operations and employees to the western regions of Ukraine. Many tech companies have invested time and money to support their employees with everything they need: transfers to safer places, shelter, food, and so on.   

Software development outsourcing and consulting company Agiliway, with offices in Lviv and Chernivtsi, Ukraine, and Austin, Texas, is no exception. It was an easy decision for the company to keep running a business and donate money from the income to the army. Back in 2015, they decided not to support the aggressors’ economy, not to hire developers, and not to work with customers from Russia. When the full-on invasion of Ukraine began, they acted decisively and quickly opened an office in Kraków, Poland.  “The current situation in Ukraine became a trigger to boost the process under BCP. Today, we already have over a dozen Agiliway team members relocated to Poland,” said Sergiy Kornienko, CEO and Co-Founder of Agiliway.   

Ukrainian software specialists are doing their best to stay in business. About 70% of them work as freelancers in western companies, so they have to work if they want to make a profit. Clients aren’t staying aside and providing much support. For example, they made advance payments or even paid for days on which they could not work due to the war. Not to mention that new orders from new customers are not slowing down either.   

“Our partners can be sure to receive the same high-quality service along with mitigated risks while cooperating with the EU-based company,” commented Sergiy Korniyenko.  

Several international software firms are switching from Russian IT service providers to Ukrainian alternatives. Moreover, once the war is over, Ukraine is anticipated to become a tech paradise that’ll become a genuine engine of growth for the whole country. 

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