Do IT Like Ukraine Research: tech industry is growing despite the war

The Association, together with IT clusters and partners, conducted a national “Do IT like Ukraine” research to jointly analyze the role of the IT industry in Ukraine, its contribution to the national economy during the War, and the potential of the industry in the future recovery of the country. The goal of our research is also to pay tribute to the selfless work of Ukrainian IT professionals who deliver, volunteer, and protect us in cyberspace and on the front lines.

The only fully functioning export industry 

• The industry remains the only export branch of Ukraine that is fully operational during wartime and was able to increase export volumes compared to last year, while others suffered from significant losses. For example, the metallurgy fell by 59%, the export of mineral products by 46.1%, the chemical industry products by 42.6%. By contrast, the share of IT services exports in GDP increased by 51% and is currently 5.4%. Similarly, the share of IT in the export of services increased by 24% and makes up almost half (47.0%) of the total of service export.
• As of November 1, according to the State Tax Service of Ukraine, the amount of taxes and fees paid by the IT industry amounted to UAH 26.6 billion.
• Companies continue to work continuously and implement projects even in blackouts, pay taxes on time, attract new clients, and actively enter the global market. According to the research, 43.1% of IT companies expect business growth for the year. 93.4% of IT companies plan to continue investing in Ukraine.

IT market 

Despite the War, the IT market is growing. Today, the industry has almost 309,000 IT professionals. Korn Ferry’s 2022 IT industry compensation study reveals several key trends:

• the specificity of the work of the industry determines the involvement of sole traders by IT companies. 76% of companies work with this model;
• despite the War, most IT companies plan to increase the compensation budget; in particular, 82% of IT companies plan to increase compensation by the end of 2022.
• there is a significant difference in wages depending on the position of an IT professional or employee;
• it is inaccurate to consider the regional distribution of rewards due to migration of IT professionals and relocation of IT companies.

IT professionals and governmental support 

• From the first days of the War, the IT industry has been actively helping the Armed Forces and the government. In 70% of companies, professionals serve in the Armed Forces of Ukraine; in 43% of the companies, the number of professionals in the Armed Forces is up to 5%. In 25% of companies, this figure is from 5% to 15% of professionals. A separate track is the industry’s support of the strong volunteer movement, which today is represented by the 200,000 IT army. In fact, 95% of companies have at least one IT professional who has joined the cyber army.
• Fundraising and volunteering have also become an integral part of the day-to-day activities of the companies. 95% of IT companies and more than 90% of IT professionals regularly transfer funds to help the government, purchase regimentals, enginery, drones, necessary equipment and weapons to bring the victory over the enemy closer. It is curious that almost 18% of companies do not advertise the help they provide.

Among the biggest challenges for companies are:

• migration of employees and their families, relocation of companies
• prohibition of IT professionals traveling abroad
• military recruitment of IT professionals
• retention of clients and minimization of risks in working with clients
• currency regulation and restrictions introduced by the NBU

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