The World Trade Organization (WTO) has warned that Russia’s war in Ukraine has caused “immense human suffering” as well as harmed international trade. The IT sector is one of the few that is still active and supports the regional economy despite the catastrophe of the ongoing war in Ukraine. Since many people have lost their jobs, tech professionals are considered the key drivers of economic stability.
Following Russia’s invasion of Ukraine, all export industries suffered losses and were compelled to operate under adverse conditions. The IT sector, on the other hand, is very resilient to corporate moves, and there are promising signs for a quick post-war rebound and expansion.
The IT profession is less dependent on geographical or resource conditions due to remote work opportunities and an emphasis on human potential. The?Ukrainian IT sector generated?a record $2 billion in export revenues in the first quarter of 2022, a 28% increase over the same period last year ($1.44 billion), despite the ongoing conflict, mobilization, and forced evacuation of companies and teams.
At the same time, the IT industry attained the greatest monthly export figure in the history of the Ukrainian IT market ? $839 million ? in early February 2022, which is 43% more than the same period in 2021 ($480 million).
Despite the threats of the war, most businesses retained clients and contracts. According to the IT Ukraine Association, 52%?of companies preserved all of their contracts, while 32%?kept 90-99%?of their contracts. Only 16%?of businesses lost 10% or more of their contracts.
Customer retention factors included:?
- high levels of customer loyalty;?
- long-term partnerships;?
- delivery stability;?
- constant communication with clients;?
- quick stabilization of business processes;?
- prompt relocation of teams and restoration of operational work;?
- demonstrated high social responsibility of companies, which is based on human safety principles;?
- high quality of service provision even in wartime conditions.
Furthermore, the business cites internal customer policies, unwillingness to cooperate with Russian and Belarusian clients, changes in the client’s development plan, and relocation as reasons for client loss, soldiers or mobilization, supply chain interruption, and so forth.
Active conflicts in Ukraine did not stop the rise in software developer salaries. Salary indices grew by $100 in six months, from December 2021 to June 2021. The current median wage (the salary of a “typical” employee) in this field is $3,400. (about UAH 100,000). Only 4% of specialists lost their jobs, and half have already found new ones.
Only newbies who have worked for less than six months have decreased their pay. Developers with more than six years of experience in IT have seen the biggest pay raises. The findings of a survey conducted by the?DOU?profile site demonstrate this.
The incomes of Architect level developers increased the most substantially – by $400 per month, from $6,200 to $6,600. Simultaneously, Team/Tech Lead and Senior rates rose by $200 (to $5,200 and $4,700, respectively). Salaries of less experienced professionals increased as well. Middle specialists began to receive an additional $200 ($2,600), and Junior and Intern – an additional $50 ($950 and $450, respectively).
Only 4% of those who attempted lost their jobs as a result of the war’s start. Some of them have already found a new job; nevertheless, only 2% of developers are now looking. The highest developer wages were in Kyiv, Lviv, and the Transcarpathian area ($3.6 thousand). Since December, the median wage in Kyiv has declined by $200, whereas it has remained unchanged in Lviv.
The questionnaire-based poll was performed in June among IT professionals. 15,136 questions were collected, with 7,558 coming from developers of all levels.
It is estimated that 285 thousand IT specialists will be employed in the business by the beginning of 2022. In the first quarter, the IT sector earned a record $2 billion in wartime export revenues (compared to $1.44 billion in 2021) ? the volume of IT exports surged by 28%.
At the same time, the Ukrainian IT industry kept 96 percent of software services export volume ($522 million) in March 2022, compared to the same period last year ($546 million), indicating its resilience in the face of insecurity and heightened risks.
In the face of Russian aggression, citizens in Ukraine are not only striving to avoid conflict but also looking for ways to assist the national economy.
To support the economy of Ukraine, those firms outside the area of active hostilities must reopen. We must pay our taxes and support local companies wherever feasible. Today, everyone works together to ensure our success. Both small enterprises and significant organizations do their part to help during these difficult times.
Many startup companies have joined together to give as much assistance as possible to the Ukrainian Armed Forces, which protect our country from Russian aggression. So, please go about your business, grab what you need, have a cup of coffee or eat out, and remember to donate to our Army.
