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The current state of IT outsourcing in Ukraine [AS OF 14.03.22]
Victor Purolnik
Founder, Author, Investor, Product Advisory, specializing in SaaS and Remote Software Engineering Management, Podcast host
On February, 24, Russia launched a war against Ukraine.
The shockingly aggressive and totalitarian country with more than 140 million population, almost twice as big as entire Europe, attacked a peaceful country right on the border with NATO and the European Union.
Why is it happening?
According to the Russian president and government, independent Ukraine was a potential threat to Russian safety. Russian officials have forbidden the word of war and call it the military operation; the military operation against the peaceful country, on the territories of this peaceful country, killing civilians and destroying hospitals and schools, damaging nuclear plants, and threatening the world with nuclear weapons.
This is terrifying, impermissible, and unbelievable. But it is happening.
And while every media channel speaks about it loudly, I would like to pay particular attention to your direct request:
What is happening with the IT industry in Ukraine? Is it safe to outsource to Ukraine?
Let’s make it clear.
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How big tech companies respond to the Russian war against Ukraine?
How our team faces a new reality
Half of the Trustshoring team is currently located in Ukraine. They live in the western cities of Lviv and Uzhhorod which are currently the safest in the country.
Each team member can take time off if needed; still, we keep on working on our projects and tasks full time. It is critical to support the Ukrainian economy right now, and our team invests all possible resources in it.
Lviv and Uzhhorod regions have already welcomed over 260,000 refugees. In our free time, we volunteer for refugees’ centers and help Ukrainians in need. Besides, we raise funds to support our army and organize humanitarian help from Germany, Poland, Slovakia, and Hungary.
The Russian aggression doesn’t seem to slow down. So in this situation, we do everything we can to protect our families and friends, to help people arrive in safer cities, to support the Ukrainian army and economy.
How Ukrainian outsourcing companies operate now
I’ve been keeping a hand on the pulse of the Ukrainian IT industry for more than 7 years. And today, I can confidently say that the quality of provided services didn’t change.
Projects that have been built in Ukraine, by Ukrainian IT talents, keep thriving. IT entrepreneurs and companies pay taxes and donate to the army and non-profit organizations.
The minister of digital transformation of Ukraine suggests canceling the required mobilization for IT specialists as they fight in cyberspace. At the same time, IT specialists become volunteers and join defenсe forces, start training to protect Ukraine in the war.
When you outsource your project to Ukraine, you can be sure about an impeccable product’s quality and at the same time, you support Ukraine and its economy.
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“Ok, but what about payments?”
Most of the Ukrainian IT companies build contract-based cooperation with their employees. The specialists operate as individual entrepreneurs and get SWIFT payments to their bank accounts.
Since the beginning of the war, nothing has changed.
All banks continue all their operations. *
On February 24-26, there was a temporary shortage of cash in some of the remote regions. But as of now, this problem is eliminated.
PayPal, Payoneer, Western Union, and TransferWise enable money transfers to Ukrainian accounts, too.
*Note that problems may emerge in hot spots like Mariupol, Kharkiv, Chernihiv, and nearby regions. As for the rest of Ukraine, the bank system is working.
How top tech companies react to the Russian-Ukrainian war
Multiple tech giants all over the world join sanctions against Russia and do everything possible to stop the war. For instance, on February 28, Starlink terminals arrived in Ukraine which is incredible and appreciated support for the country. Ukrainian and international tech companies provide huge humanitarian and financial support for Ukraine. So first of all, I’d like to express the Trustshoring team's gratitude for this.
Here, you can check the list of some of the top tech companies that pulled out of Russia:
And here’s more info you should be aware of to date:
→ MongoDB Atlas is going to delete Russian and Belarus users' data.
→ GitLab suspends new businesses in Russia and Belarus.
→ JetBrains suspends sales and R&D in Russia and Belarus.
→ Atlassian Jira cancels Russian and Belarus subscriptions.
→ Fiverr and Upwork freelance marketplaces suspend businesses in Russia.
Payment companies are cutting off Russia, too. Visa, Mastercard, American Express, and PayPal — announced bans in Russia, while SWIFT payments are not possible due to sanctions.
In the meantime, all of the aforementioned companies, products, and services actively help Ukrainians and continue their operations in Ukraine.
One of the best ways to support Ukraine right now is to cooperate with Ukrainian companies. And while Russian developers are no longer reliable players on the global IT market, Ukrainian engineers prove to be dependable employees and partners even in crisis.
Stand with Ukraine and help to stop Russian aggression.
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Gesheftführer – Softocean GmbH
1 年Thank you for the information. I myself was born in Ukraine. And I follow everything that happens very closely.? We have a German IT company.?Founded in 2018.? Ready to cooperate. We understand the importance of the moment.?
Head of Digital Solutions - because Chief Firefighter wasn’t official enough ??????
2 年I can agree with you, Victor. The majority of our IT talent comes from Ukraine; we actually have an office in Kiev. Some of my colleagues are still in the Kiev region, some moved to the West of the country and some made it to Germany. In the first week, we all went into emergency mode trying to figure out logistics as well as humanitarian and financial support. Now, most of the IT staff is back to work, ready to crush it. All of our squads are aware that we need to work together as a team to ensure the economic stability of Ukraine. The bravery and determination of my Ukrainian colleagues is something I've never experienced before and from my experience I can say that now is the time to invest in Ukrainian talent and support this country and their people.
Enhancing SME and Entrepreneur Success with Tailored AI-Enhanced Software Training | Specialise in Microsoft 365 and Copilot 365 , Sage Accounting, and Canva and Online Support
2 年I support: Stand with Ukraine and help to stop Russian aggression.
Award-Winning Writer and Podcast Consultant & Producer
2 年This war is a travesty and a crime. We need to stand as one to condemn it and all the other wars raging around the world, especially those in Africa.
I used to match food with wine—now I match talent with opportunity.
2 年Roché Pretorius take note