The IT industry, which has long served as a crucial driver of the Ukrainian economy, currently finds itself in a challenging situation. According to reports, IT service exports in January 2025 dropped to 489 million USD, which is 19 million less compared to the same period last year. This marks the worst start to the year since the onset of the full-scale war, which has had a significant impact on the sector.
This is reported by Business • Media
Analysts report that between 2017 and 2019, the Ukrainian IT market demonstrated stable growth of about 14.7% annually; however, the pace later slowed due to the pandemic, the large-scale military invasion, and economic instability. Specifically, the number of IT companies in the country decreased by 25% in 2022 and has yet to reach the levels of 2021.
Causes of Stagnation and Impact on Companies
Most experts note a stagnation in the industry due to military risks, a reduction in orders, and frozen projects. Even under conditions of uninterrupted communication, relocation, and the establishment of backup offices, Ukrainian companies are losing contracts. According to surveys, 58% of companies have faced contract terminations, while 25% report revenue losses exceeding 40%.
Impact on the Labor Market and Salaries
The Ukrainian IT market is currently experiencing a significant decline in demand for employment. As a result of reduced orders and high risks, salary levels have remained consistently low. According to experts, 68.2% believe that salaries in the industry will not rise, and more than half of respondents predict that this trend will continue for another one to three years even after the war ends.
“The Ukrainian IT market is going through its most challenging times in recent years, and its recovery depends on the stabilization of the situation in the country,” analysts note.