Index Insider: Ukraine’s Role in the Global IT and Product Engineering Ecosystem

UKRAINE

While the safety of the Ukrainian people is the number one priority, we’re watching developments in the region closely and monitoring the potential impact on the IT outsourcing sector. Ukraine has a well-developed IT services infrastructure and is home to some of the world’s most respected software engineers. Many Silicon Valley companies and fast-growing FinTechs tap into the engineering talent in Ukraine, as well as in Poland, Romania and Belarus.
 
There are several established IT services and product engineering firms with a significant presence in Ukraine. Nationwide, around 50,000 technology professionals are servicing over 5,000 clients, generating over $5 billion of export revenues from the country (see Data Watch). So, for companies that depend on service providers that have development centers in Ukraine, the current situation requires some planning to ensure continuity.
 
Enterprises with provider relationships in the region should immediately engage provider executives and establish an open line of regular communication over the coming days – and of course have BCP plans at the ready.
 
Provider teams in the region need to be proactive as well. Help clients understand how different scenarios may impact aspects of their specific BCP plans. Providers with delivery capabilities outside of Ukraine should be preparing to move work to those locations if needed.
 
All that said, it’s important to remember the transformation the IT services sector has managed over the past two years. The pandemic forced nearly every provider to shift to a virtual delivery model – almost overnight – and providers delivered. We believe they’ll do the same here.

DATA WATCH