The impact of the war in Ukraine on the IT industry – Team Connect report


Delays in the implementation of projects, rising prices and the crisis in the market of technological talent. What else awaits the global IT industry in the aftermath of the war in Ukraine? How will the technology sector change and how will the conflict affect the region?

The war in Ukraine is another crisis after the pandemic, which caused huge repercussions in almost every sector of the economy. The situation also negatively affects the global IT industry. What does this mean for the market, customers and ordinary users of technology?

Analysis of the current situation and assessment of opportunities and challenges for the IT market is the subject of a new report prepared by Team Connect, a company dealing with outsourcing of IT services.

A key region of IT outsourcing in crisis

Ukraine  has been recognized for years as one of the largest technology talent centers in the world and the best IT outsourcing market for such technology giants as Apple, Google or Microsoft.

Therefore, the conflict caused by Russia has a significant impact not only on the Ukrainian IT outsourcing industry, which according to the IT Ukraine association exports services worth $ 6.8 billion per year (which is about 4% of GDP), but in the broader perspective on the global IT market.

The Ukrainian IT sector has shown great resilience to the crisis, because services are constantly delivered to customers, mainly from centers located in the west of the country – says Adam Dziedzic, CEO Team Connect. – However, there is no doubt that the development and continued operation of this industry in Ukraine will depend on how long the conflict will last. According to the analysis among buyers of IT services there is growing uncertainty about the long-term region stability, which are Ukraine, Belarus and Russia, as providers of IT services. To avoid downtime in the implementation of projects, foreign clients are likely to look for opportunities to develop their business elsewhere, e.g. in Poland, Romania or Hungary – he adds.

Opportunities for the development of the Polish IT industry

A prolonged crisis could bring new problems to an already troubled industry, such as increased demand for skilled professionals (excluded from the market as a result of the war) or the increase in the cost of outsourcing caused by the conflict. On the other hand, it can be an opportunity for countries in the region. Growing uncertainty among customers of IT services and the strategy of geographical decentralization of supply creates opportunities for relocation of projects.

– We notice the increased interest of foreign clients in our services – admits Oliwia Ostrowska, IT delivery manager at Team Connect. – The Polish market is still a region where foreign companies can count on a favorable business environment, moderate implementation costs projects and a pool of qualified professionals. This, of course, creates an even greater demand for IT workers in the market, which can help attract talent from Ukraine – she adds.

More on the current situation in the report: “The impact of the war in Ukraine on the IT industry”, which includes  analysis of the structure of the Ukrainian IT industry and its importance for the global market, as well as prospects and challenges related to relocation of talents and IT projects to the countries of the region.

About Team Connect

Team connect is a leading provider of nearshore and offshore IT solutions in Poland. For 14 years we have been successfully creating and developing software for our customers. We specialize in construction applications based on Agile and DevOps technology. From the analysis stage to implementation. We write backend, frontend and mobile applications. Our mission is to fulfill the expectations of even the most demanding customers and allow talented people to work on interesting projects.