The Ukrainian IT: Forged in the Fire of Adversity

By: Valerii Haidarzhy, 12 Sep 2024
11   min read
Reading Time: 11 minutes

The IT industry is everywhere – in the news, conversations, and even our daily routines. When we think about it, different associations come to mind: independence, intelligence, resilience, financial freedom, or the ability to work from anywhere. No matter what comes to mind, one thing is clear: IT has become an integral part of our world. It’s the backbone of modern civilization, making everything we rely on possible.

Today, we’ll explore how IT became not only a vital part of Ukraine’s economy but also a source of national pride – a story of how this industry grew into a driving force that showcases the strength, adaptability, and innovation of our people, even in the most challenging times.

Origins

Let’s try to understand why this industry in Ukraine began to develop rapidly almost immediately after the country gained independence. But in order to do that, let’s start with the basic initial conditions that are necessary to aid the rapid development of IT.

Access to talent and human capital

A key driver for the development of the IT industry is the availability of skilled professionals. Countries with a high level of technical education and a developed training system are building a strong base for IT. Programs to support STEM education (science, technology, engineering, mathematics) are the foundation for sustainable growth.

State support

Government support in the form of a favorable tax environment, simplified regulation, intellectual property protection, and incentives for innovation is decisive. The availability of regulatory frameworks that protect businesses and support entrepreneurship is also important.

Market availability

The existence of domestic and external demand for IT services and products is also a key factor. Countries with a large number of technologically advanced companies and consumers of IT services have the best chances for growth in the IT sector. The development of the digital economy, the demand for innovation, and the availability of affordable platforms to enter the international market contribute to accelerated growth.

It is also worthwhile to understand the contextual factors and obstacles that can affect the speed of development of the IT industry in a country.

Local factors

  • High level of education and qualification of specialists:
    Ukrainian technical universities and IT courses train highly qualified specialists, which has become the foundation for the rapid growth of the industry. Orientation to Western educational standards and cooperation with international educational platforms are also important factors.
  • Government reforms and integration with global markets:
    The reforms initiated after independence created a favorable environment for business and stimulated the attraction of international investment. Ukraine actively integrated into the global economy, which opened new markets for Ukrainian IT companies.
  • Growing domestic demand for IT services:
    Domestic demand for digital solutions from businesses and the public sector stimulated the development of the IT sector. This led to the growth in the number of startups and IT companies, which in turn gave impetus to the creation of an ecosystem to support innovation.

Obstacles That Spurred Growth

Political instability creates risks for investors and hamper the development of the IT industry. Insufficient protection of property rights and a weak judicial system are also serious obstacles. However, these challenges have become an incentive for Ukrainian IT companies to look for ways to increase transparency and optimize their processes. They started to actively implement corporate governance standards and strengthen internal controls, which led to increased trust from international partners. In conditions of instability, the Ukrainian IT sector proved its flexibility and ability to adapt, which became its competitive advantage.

Limited access to modern technologies and infrastructure, including the Internet and data centers, can slow down the growth of the IT sector. However, these limitations were present only at the initial stage of the country’s information infrastructure development and have encouraged Ukrainian companies to innovate and optimize the use of available resources. Even as the country’s information infrastructure has become quite developed, these traditions have been preserved. As a result, Ukraine became a leader in distributed teams and remote work, which allowed it to attract the best specialists regardless of their geographical location. The creation of technology parks and the development of the national telecommunications network played an important role, but the key was the ability to work efficiently with limited resources, which strengthened Ukraine’s position in the global market.

Main catalysts of growth

After gaining independence, Ukraine faced a number of challenges: economic recession, political instability, and the need to restructure all sectors of the economy. However, in these difficult conditions, Ukraine received two important legacies – a developed communications infrastructure and a quality educational base. This became the basis for the formation of highly qualified specialists, including engineers, programmers, electronic engineers, and mathematicians, capable of adapting to new economic realities and working at the global level.

Ukraine has always had strong educational traditions inherited from the Soviet system, with an emphasis on exact sciences and engineering disciplines. These traditions allowed us to produce highly qualified specialists ready to work in the digital revolution. This was a vital factor in the subsequent transition to the digital economy.

The role of geographic independence in the IT industry

One of the unique features of this industry is its minimal dependence on the geographical location of the specialist. Unlike manufacturing or agricultural industries, where physical proximity to resources or markets is important, the key tools for IT professionals are a computer and access to the Internet. This opens up a wide range of opportunities to work globally, regardless of location. 

Ukraine has never been a leader in terms of wages, leaving the country at a disadvantage for many traditional industries. However, in the IT sector, this factor has played to its advantage. Highly qualified Ukrainian specialists, without demanding the same high salaries as their colleagues in Europe or North America, could offer their services on the global market, remaining competitive. Moreover, their qualifications were often at the same level or higher than those of Western specialists, which attracted the attention of international companies interested in the quality and cost of services.


The explosive growth of Internet access

The rapid spread of the Internet has had a huge impact on the development of the IT industry in Ukraine. In the 1990s and 2000s, the Internet entered homes and offices across the country. This was the catalyst for the integration of Ukrainian professionals into the global IT community. Imagine thousands of professionals who gained access to the Internet almost simultaneously. This was the moment when talent and knowledge began to be converted into real projects performed for clients around the world. These professionals quickly adopted new technologies and tools, making them even more competitive.

Ukrainian specialists in the global market

Ukrainian IT specialists became in demand in the international market due to their high level of training and flexibility in remote working conditions. 

At a time when Western companies sought to optimize their costs, Ukrainian developers and engineers offered not only attractive prices but also a quality that meets international standards. This symbiosis of qualification and affordability allowed Ukraine to become one of the key countries in IT services outsourcing.

War: Test of Strength and New Opportunities

As the threat of a full-scale invasion by Russia loomed in Ukraine in early 2022, IT companies were on the front lines of preparing for the possible consequences. As early as the beginning of the year, employees began discussing the likelihood of aggression, and the topic was regularly raised at rallies, dailies, and town halls. Companies had to balance the need to remain calm and ensure that they were prepared for the worst-case scenario. However, it wasn’t until February 15, when tensions began to be felt literally in the air, that many realized the situation was becoming critical.

IT companies began taking steps to evacuate employees and their families. Already on February 24, it became obvious who was really ready for a quick response and who was relying on the hope that “everything will be fine. Companies prepared for such a development acted swiftly and coherently, organizing the evacuation not only of employees but also of their relatives and sometimes even their pets. At the critical moment, bureaucratic procedures that usually slowed down the processes were completely forgotten – lists of people to evacuate were collected literally in work chats. This rapid response allowed companies to minimize losses and preserve their workforces.

Reduced hiring and re-evaluation of human resources

The outbreak of the war led to a significant reduction in hiring in Ukraine’s IT sector. In the first weeks of the war, the number of vacancies dropped dramatically, and those who remained unemployed had to compete for limited job opportunities. In March-April 2022, the number of vacancies in many areas was cut in half, and for some positions – even 6-7 times. However, despite this decline, by the end of March, the market had begun to recover.

 

It was especially hard for young specialists and those who just started their careers in IT. Vacancies for interns and juniors practically disappeared while the responses to the remaining positions increased manifold. This caused strong competition for each vacancy, which became a challenge for newcomers. However, it was this fierce competition that became the catalyst for the rapid growth of Ukrainian IT staff qualifications. Realizing that every job opportunity may be the only one, specialists began to actively improve their skills, master new technologies, and deepen their knowledge. This constant process of self-education and adaptation allowed Ukrainian IT specialists not only to stay in the market but also to reach a new level of professionalism.

Today, the Ukrainian IT market continues to demonstrate high stability. The trend of digitalization of business worldwide, which started back at the beginning of the pandemic, has not stopped, and this supports the demand for specialists. And although competition within the country has become tougher, it is this competition that has pushed the workforce to accelerate its development, which has ultimately raised the overall level of professionalism in the industry.

A paradoxical opportunity for growth

The war and the global sanctions against Russia that followed opened new opportunities for Ukrainian IT companies. Almost instantly, Western countries, companies, and corporations stopped cooperating with Russian IT companies and specialists. This decision, based on ethical, political, and reputational considerations, led to a sudden shortage of highly qualified personnel on a global scale. There was an impressive niche in the market that needed to be filled urgently.

Ukrainian IT companies were in a favorable position to take advantage of this situation. For many years, Ukrainian specialists competed with Russian specialists in international tenders and projects, often winning only due to higher qualifications, experience, and quality of work. With the disappearance of Russian competitors, Ukrainian companies have a unique opportunity to take their place in the global market.

In conditions when many Western clients were actively looking for an alternative to transfer their projects from Russia, Ukrainian IT companies were able to offer their services as reliable and proven partners. Despite all the difficulties associated with the war, Ukrainian developers and engineers managed not only to maintain their positions but also to strengthen them. This unexpectedly opened market allowed not only to compensate for the losses from the termination of cooperation with Russia but also to significantly expand the client base in Europe and North America.

Moreover, Ukrainian IT companies actively demonstrated their ability to work in extreme conditions. This has strengthened customer confidence and allowed them to remain competitive in the long term. For many Western companies, cooperation with Ukraine became a symbol of solidarity and support for the country at war, which also contributed to the growth of the Ukrainian IT sector.

Positive effects and long-term prospects

Although the war created unprecedented difficulties, Ukrainian IT companies were able to learn valuable lessons from this experience. The decisions taken to evacuate, refuse to work on the Russian market, and adapt to the new conditions showed the world that the Ukrainian IT sector is able to respond quickly to challenges and maintain its competitiveness. Moreover, sanctions against Russia and the withdrawal of Russian IT companies from the market opened new horizons for Ukrainian specialists, who were able to occupy empty niches and strengthen their positions in the global market.

Psychology. The aspect of unbreakability

Ukrainian IT specialists found themselves in conditions where supporting each other is not just a corporate slogan but a necessity. In these conditions, colleagues become closer than friends because everyone realizes that the success of the project and the whole company depends on joint efforts. In such an atmosphere, specialists are born who cannot be stopped. 

Why does it make stronger?

From a psychological perspective, extreme conditions build a special type of sustainability – resilience. This is the ability not only to preserve internal resources under stress but also to find strength for growth and self-improvement. Ukrainian IT specialists have become the embodiment of this resilience. They have not just adapted to new conditions, they use them as a catalyst for their development.

When life demands the maximum from you, you learn to manage time and resources with impeccable efficiency. A completely different level of concentration, motivation, and desire for self-improvement emerges. Every new skill and every challenge solved is another step towards making themselves and their company stronger.

Many Ukrainian IT professionals not only continue their professional activities but also actively defend their country. In peacetime, they created innovative solutions, and now they apply their knowledge in the army, supporting the defense of Ukraine and finding new ways to use their skills in military conditions.

Emotional strength and competitiveness

Will someone from another country be able to compete? Ukrainian IT specialists have become stronger, smarter, and more enduring. They have learned to solve tasks that seem impossible to others. They became competitive not because of the soft conditions, but in spite of the circumstances that hardened their spirit and made them leaders.

It is this unyielding will and ability to overcome obstacles that make Ukrainian IT specialists so unique in the global market. They don’t just work – they fight for their future and the future of their country. And when you encounter such a person, you realize that you are facing a person who will not be stopped by anything. These people have become stronger because of their trials, and this strength is expressed in their incredible efficiency, motivation, and striving for perfection. Their experience, tempered by the fiercest competition not only with the world but also with the daily challenges, has made them competitive in the global marketplace in a way that no other country’s professionals can achieve. 

Sirin Software – a family I am proud of

“I couldn’t have done it without such a cool team” (c) Alex Nikitenko, Sirin Software CEO, work chat extract.

We are united by a common purpose, values, and the belief that our work really matters. It’s what we live and strive for every day. Our team is made up of professionals with different skills and experience, but we have one thing in common: a passion for doing our work to the highest level. We are not after quick results or easy solutions. Quality, not quantity, is important to us. This is evident in the way we approach each project and each task. We work honestly, openly, and always strive to ensure that our clients are confident that they made the right choice by contacting us.

Every day, we face new challenges, and every day, we deal with them thanks to well-coordinated work. At Sirin Software, we are always on the lookout for the best solutions for our clients, whether it’s developing new software, refactoring existing systems, or completing projects started by others. We understand that behind every project, there is someone’s idea, someone’s hard work, and therefore, we treat each of them with full responsibility and respect.

This approach pays off. The feedback about our work speaks for itself. For example, our clients remark on our attention to detail, our ability to see projects through to completion, and our willingness to go above and beyond to achieve better results. We are proud that 88% of customers return to us repeatedly. It’s a trust we earn not with words but with deeds, day after day, project after project.

The secret of our success is simple: we work with heart and conscience. We always maintain honest and open relationships, whether within the team or with our clients. We realize that trust is the basis for long-term cooperation, and therefore, we build our relationships on transparency and mutual respect. We don’t just complete projects; we remain partners with our clients, supporting them, advising them, and helping them to grow further.

From the author:

There are Ukrainian companies that work in very different spheres: from healthcare to finance, from automation systems and the Internet of Things to artificial intelligence. But we all have one thing in common – we are part of Ukraine. And as it happened historically, this sounds deservedly prideful.

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