Ukrainian IT industry remains strong

Konstantin Vasyuk, Executive Director of IT Ukraine Association says,

I am sincerely grateful to each of our foreign partners who continue to work with Ukrainian companies. The IT community appreciates the support and willingness to help Ukraine in its civilized struggle for a humane future and the right to choose its path.

We at NUCC are often asked by Norwegian business and industry how they can contribute to helping Ukraine. Our answer is: continue cooperation with Ukrainian customers, suppliers and partners as far as possible. It is crucial that able-bodied Ukrainians can continue to support their families and help Ukraine defend itself against Russia. Export revenues from the IT sector are Ukraine's largest source of foreign exchange, and maintaining these is a priority. For IT workers who can no longer stay in Ukraine, it is important that we continue to use their services or offer them work where they are, in Norway or the rest of Europe.

In 2021 the Ukrainian IT industry recorded a growth of 36%, from $5 billion to $6.8 billion in exports. At the same time, the number of specialists increased from 244,000 to 285,000. Over the past three years, the industry has more than doubled in exports and has grown by more than 50% in the number of specialists.

IT Ukraine furthermore reports that despite the Russian-Ukrainian war, Ukrainian IT companies continue to do their job and drive the country's economy. When the US government revealed the plans of Russia to invade Ukraine in February 2022, 92% of Ukrainian IT companies developed Business Continuation Plans to prepare for the eventuality. All Ukrainian IT companies are doing their best to fulfill their obligations to foreign clients, even in these extreme conditions, because IT is one of the key export industries of Ukraine. More than 80% of employees remain involved in daily work tasks. This is possible partly because of a stable Internet connection, however, in case of critical infrastructure damage, Ukraine has also enabled backup communication channels. Starlink satellite internet stations have already been working to keep vital services running. Even Mykhailo Fedorov, the Minister of Digital Transformation, urges colleagues to allow IT professionals to be useful to the country in what they do best ‒ in their work.

The IT professionals are the public reserve, and while a sufficient number of people are willing and able to join the Armed Forces, IT professionals are now deemed that they should be among the last who are mobilized. Their argument is that the industry is steadily generating foreign exchange inflows to Ukraine. Last year it was about 23 billion UAH ($782 million) of direct tax revenues. This year, this financial figure can be met by 80%.

Moreover, the industry actively supports the Armed Forces. Recently 250 thermal imagers worth $400,000 were purchased by members of the IT Ukraine Association arrived in Ukraine. During the first days of the war, the community raised more than $25 million for the country's needs. $11 million was spent on humanitarian purposes, $8 million taxes paid in advance, and $6 million on military support.

DIGITALEUROPE, a leading trade association representing the interests of the digital transformation industry in Europe, has invited the IT Ukraine Association to join its members. They held several meetings where hundreds of representatives of European companies wanted to know how Ukrainian IT companies work these days and how they could be supported.

Every week IT Ukraine Association would hold the Talk to Ukraine, an online meeting for the LinkedIn audience, where they had a dialogue with people from the USA and Europe. Leading foreign media covered the incredible resilience of Ukraine's IT industry.

Furthermore, on March 17, the IT Ukraine Association signed a memorandum of understanding and comprehensive cooperation with the NGO Techiia Foundation (part of the international holding TECHIIA). Together, tese organizations implemented many important projects before the war. Once again they are working together to help those who have urgent needs.

Since the beginning of the full-scale Russian invasion in Ukraine, the NGO Techiia Foundation has purchased and donated humanitarian aid worth more than $7.9 million (UAH 231 million) for the defenders of Ukraine and the victims of the war.

Among the most necessary deliveries were:

• 10,000 armor plates of the 3rd class of protection;
• 5,000 bulletproof vests of protection class 4;
• 6,000 ballistic helmets of various sizes;
• 13 reconnaissance drones and accessories;
• tactical clothing and equipment for $755,000 and other important items.

👉In addition to military purposes, the funds will be used to help Ukrainian citizens and certain sectors of the economy affected by the war.

To join the initiative, please contact Olha Sytnychenko, IT Ukraine Association at (sytnychenko@itukraine.org.ua).

👉Together with partners from the NGO Techiia Foundation, IT Ukraine Association joined the global initiative #StandWithUkraine. They invite celebrities, leaders of companies, and organizations to express their support for Ukraine at the esports WePlay Arena L.A. in California or remotely. This has already been done by the Ambassador and Consul General of Belgium in Los Angeles (USA) Günther Sleuvagen, IT entrepreneur Andriy Komarovsky and others.

If you also want to join #StandWithUkraine publicly, please fill out a short form found here.

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