How Ukrainian Outsourcing Market is Doing?
A newsletter is for news, right? ?? So, I’ll give a quick update on all the crisis, war, and recession talks. I won’t deny that the software development industry is affected because even tech giants have had multiple rounds of layoffs. Excessive hiring after Covid19 has affected the industry.
For Ukraine, IT was a long-profitable and prospective industry. Even in 2022, the export of IT was growing and bringing most investments to Ukraine. 45% of the whole export is software, then goes transport and everything else.?
Now, the experts say the export decreased by 16% . But IT Ukraine Association says there are 2 explanations for that:
? excessive growth in the last few years
? seasonal decrease compared to the first quarter of last year??
How the Tech industry has Adjusted?
Many foreign customers and investors are worried. And who wouldn’t be when the European country is fighting off the aggressor right?
The thing about the Ukrainian tech industry is that it’s highly adaptive. According to the report Do IT like Ukraine at least 34,3% of companies have supplied offices and employees with generators, Starlinks, new providers, shelters, and coworking spaces, or fulfilled demands like “move to the cloud”.?
Incora | Software Development Company has actively communicated that we have light at the office (generators), Starlinks, and several shelter spaces. So, apart from a safe western location in L’viv we also have everything for unplanned crises.?
Is IT entering a Crisis?
It’s hard to say for now. If we look at fewer budgets for projects and less investing in the world now, then yes. At the same time, there is a demand for digitalization in many countries. AI, machine learning, and IoT are on the rise and probably will be implemented in more apps soon.
On the good side, even during a war, Ukrainian apps and startups are growing. Diia, the governmental app, gets huge interest in USA, Emirates, and Estonia. Today, Ukrainian AI start-up Osavul, which is designed to fight misinformation, secured funding.???
What factors are influencing the market now?
The war isn’t the only factor that influences the Ukrainian market. For most companies that work with Ukrainians, nothing major changed. If the world didn’t know about the war, would it change the economic climate?
What are the challenges coming our way in a few months:
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? the state of the global market, especially in the US
? excess of junior-level developers on the market
? employees without involvement in the projects
? achieving manageable tax on IT services
? clearly communicating the project's progress and current state to interested people?
Common trends in the Ukrainian Tech Industry
Because of cautious policies toward working with Ukrainian developers, quite obvious trends have been set.
For B2C companies the most attention will be at new users attraction and retention. While most B2B companies, especially outsourcing ones will be optimizing, restructuring, and leveraging risks with existing clients.?
After all, any downturn is a possibility for growth. But where effort goes is the choice of the company.?
?? What are your predictions for the year in the software industry?
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