The war in Ukraine influences the IT industry

For years, Ukraine has been recognized as one of the world's largest centers of technological talent and the best market for outsourcing IT services for such technology giants as Apple, Google, and Microsoft. Therefore, the conflict caused by Russia has a significant impact not only on the Ukrainian IT outsourcing industry, which, according to the IT Ukraine Association, exports $6.8 billion worth of services annually (equivalent to about 4 percent of GDP), but more broadly on the global IT market. 

"The Ukrainian IT sector has shown tremendous resilience to the crisis, as services are continuously delivered to clients, mainly from centers located in the west. However, there is no doubt that the development and continued functioning of this industry in Ukraine will depend on how much longer the conflict lasts. According to analyses, there is growing uncertainty among buyers of IT services as to the long-term stability of the region, i.e., Ukraine, Belarus, and Russia, as providers of IT services," Adam Dziedzic, CEO of Team Connect, said.

Perhaps to avoid downtime in implementing projects, foreign customers will look for opportunities to develop their business elsewhere, e.g., in Poland, Romania, or Hungary. Increasing uncertainty among customers of IT services and the strategy of geographical deconcentration of supply creates opportunities to relocate projects. 

"We are noticing increased interest from foreign customers in our services," Oliwia Ostrowska, IT Delivery Manager at Team Connect, admitted.

(WBJ)