Robust (Pre-War) Ecosystem
Considering what Ukraine’s going through at the moment, it would be nearly impossible for an industry to grow from scratch. Ukraine’s tech sector’s pre-war ecosystem and growth trends were strong and on the rise. Therefore, their challenge was more to adapt to a post-war world. They continued on the path that brought them previous success, riding on existing momentum.
During the time of the war, there were already approximately 5000 IT companies in Ukraine, housing more than 300,000 highly skilled tech workers. Amongst a long list of surprising statistics about the Ukrainian tech industry, perhaps the most startling is that only 2% of those companies ceased operations after the war. The rest of the existing ecosystem is thriving.
The Ukrainian government has shown tremendous faith and trust in its tech sector. And this isn’t merely in the form of rhetorical support. A series of government initiatives have created a healthy symbiosis between its politicians and its tech ecosystem. One of the most well-known initiatives by the government is Diia City, an entirely digital city infrastructure for IT companies.
President Volodymyr Zelenskyy has stated that Diia City will be an immense startup ecosystem for not just Ukrainian IT companies but also those from around the world. The goal is firmly and uncompromisingly to make Ukraine the largest IT hotspot in Europe. The allure of Diia City comes in the form of low taxes and comfortable and uncomplicated regulation.
IT Generation – Free IT Skills Education
IT Generation is a project that has sprouted from the minds of The Ministry of Digital Transformation of Ukraine as well as the Binance Blockchain Ecosystem and the Lviv IT Cluster. The project provides completely free IT learning and training opportunities for Ukrainians between 21 and 60, making them digitally empowered and highly employable.
According to a United Nations Development Programme press release in 2022, the IT Generation project will provide classes that run between 2 and 6 months. This means that in less than half a year, thousands of Ukrainians can potentially join the country’s robust tech sector. Initial estimates suggested that 60,000 Ukrainians could benefit from IT Generation.
We live in a world where charitable decisions become geopolitical talking points. Certain companies have taken an explicitly pro-Ukraine stance and have walked the talk by providing injections of support into Ukraine’s economy and infrastructure. A lot of this support is funneled in via Digital4Freedom, a donation portal by the Ukrainian Ministry of Digital Transformation.
Binance and Meta are some of the major companies that have aided Ukraine and its tech space. So is Amazon. Amazon’s contribution came in the form of Amazon Web Services technology. Amazon helped the Ukrainian government migrate to cloud-based environments. This digital transformation protects the country at a time when its physical infrastructure is being battered.
IT Employee Relocation
While relocation isn’t a permanent solution for the problems that Ukrainian IT employees face, it has certainly helped to keep the country’s IT sector running strong. Some companies, both indigenous as well as foreign, helped their employees relocate from big cities (which were prime targets for attacks) to more remote locations where they could live and work safely.
Many IT companies with operations in Ukraine, including Rinf.tech, moved their workforce to safer parts of Ukraine or abroad, helping save the tech sector and its talents.