Ukrainian IT in Wartime: Challenges and Prospects

Explore the resilient Ukrainian tech job market during wartime. Discover how talented engineers are adapting and contributing, and find valuable salary insights.

Ukrainian IT in Wartime: Challenges and Prospects

The war in Ukraine has dramatically reshaped every aspect of life, and the tech job market is no exception.  It's a landscape in constant flux, with challenges and opportunities emerging in equal measure.  Trying to paint a complete picture is like trying to capture a moving target, but let's explore some key trends and where you can find more up-to-date details.

Before the war, Ukraine boasted a thriving tech sector.  But the conflict has introduced significant disruptions.  Many companies have relocated, some operations have been scaled back, and, of course, the safety and displacement of talent has been a major factor.  However, the tech sector has also shown incredible resilience and adaptability.   

So, what's happening now?  It's complicated.  Some areas are struggling, while others are actually seeing growth.  Remote work, already a growing trend, has become even more prevalent, allowing some developers to continue working for international clients even while displaced.  There's also been a surge in demand for certain skills related to cybersecurity and defense tech.

Salaries of Ukrainian developers - winter 2024

Traditionally, at the end of the year, DOU conducted a salary survey among Ukrainian IT professionals.

This time, 5,959 developers of all titles and specializations who live in Ukraine or have temporarily left the country but plan to return completed the questionnaire.  They do not consider the responses of specialists who do not plan to return to Ukraine here, as they are more oriented towards foreign labor markets.

Key points:

  • The median salary of developers decreased for the first time since the beginning of the full-scale invasion: -$135 in six months.
  • The decrease affected specialists of all levels, except Lead+.
  • Median salaries decreased in most languages.
  • The decline less affected Back-end and Mobile specialists.
  • Staffing companies, as before, have the highest salaries, outsourcing companies have the lowest.

By specialization

The specializations with the highest salaries remain Back-end and Mobile. The salary reduction here is so far felt less than among Front-end and Full Stack specialists.

The median salaries of Front-end specialists of all levels, except Lead+, have decreased. Among Full Stack specialists, this primarily concerned juniors (-$80) and seniors (-$450).

Among Back-end specialists, the largest drop in salaries is among middles (-$100). Salaries of Mobile development specialists at the Lead+ level have noticeably decreased (-$300)

By programming languages

The highest median salaries, as six months ago, are among developers whose primary programming language is Scala ($5,600, +$100 in the last six months). These are mostly Senior+ level specialists.

In second place is Go — the median salary is $4,500 (-$500 in six months). The median salaries of specialists of all levels for whom this language is primary decreased in the second half of 2023, but remain higher than other languages.

Next are Kotlin and Rust (median $4,000). Six months ago, Rust was in second place, but now the median has decreased by $1,350 — both due to a decrease in median salaries of specialists of various titles, and due to an increase in the number of newcomers who use this language.

By company type

The median salaries of developers in staffing companies remain among the highest in the market ($4,100, +$100 in six months).

Developers in startups have noticeably started to receive less ($3,338, -$663 in six months). The median salaries of mid-level developers in these companies decreased by $500, to $2,500, and those of seniors — by $350, to $5,650. The salaries of Lead+ level developers — are unchanged and remain among the highest ($6,000).

Salaries in product companies, as before, are at the average market level. In the last six months, mid-level developers and specialists at the lead level and above have started to receive less (-$200). The salaries of beginners in product companies have not yet changed and remain among the highest among companies of various types.

The median salaries of developers in outsourcing companies, as before, are among the lowest. In the last six months, the median salary of seniors has slightly decreased (-$125, to $4,300) and a tendency to decrease salaries of less experienced specialists has appeared (-$70 for juniors and -$20 for middles).

English proficiency among developers

Specialists with better English proficiency, as before, can claim higher salaries — this pattern is observed for all titles. However, the salary reductions in the second half of 2023 affected both those who know English well and those who are just mastering it.

Ukraine's IT Sector: Resilience and Recovery

IT Ukraine Association is the largest national association of IT companies. They represent the interests of more than 100 thousand IT professionals. 

Mariia Shevchuk, IT Ukraine Association CEO, participated in the podcast “Chronicles of the Economy” to discuss the current state of the sector, its key challenges, and prospects for recovery.

Key points from the podcast discussion:

  • 2024 was the year of resilience. Despite challenges triggered by the full-scale invasion, companies are focusing on maintaining their positions and adapting to changes in the global market. The primary markets remain the United States, the United Kingdom, Germany and Israel.
  • Export of IT services decreased by approximately 5% compared to the previous year, continuing the downward trend that began in 2023. The main reasons include reduced demand for tech services globally and risks associated with the war in Ukraine.
  • Global trends are also influencing Ukraine’s IT sector. After the COVID-19 boom, many companies began downsizing and optimising expenses. Ukrainian firms, as part of the global market, are experiencing these changes, compounded by the impact of war.
  • Demand for junior and middle-level specialists is declining, while niche experts remain in demand. Service companies are experiencing the most significant cuts due to project completions and difficulties finding new clients.
  • Key elements for the sector’s recovery include the end of the war, business stability, and restoring trust among international clients. The industry is poised for new growth, especially in areas such as cybersecurity and defence technologies.
  • The conflict has accelerated the trend of opening overseas offices for Ukrainian companies, where many IT professionals are now based. However, Ukraine remains a comfortable country for living and working. A return of specialists is anticipated once the situation stabilises.

How has the war affected the Ukrainian tech sector?

It is known that during the war, technical development is happening at a rapid pace and various inventions are taking place. 

For example, Ukraine has reached one of the highest levels of understanding and use of drones in modern warfare. For example, fiber-optic drones can operate regardless of the enemy's electronic warfare systems.

According to Kyiv School of Economics' report "UKRAINE’S DRONES INDUSTRY: INVESTMENTS AND PRODUCT INNOVATIONS

…As the war in Ukraine continues to drive innovation and urgency, the country has emerged as a formidable player in the global drone market, particularly in the context of defense technology. The establishment of a robust support ecosystem has played a pivotal role in facilitating local production, attracting investments, and fostering strategic partnerships that are essential for the industry's continued growth.

This means that Ukraine has many talented engineers who can quickly adapt to urgent needs and use their knowledge and experience in the best possible way.

In conclusion:

While the war has undoubtedly presented significant challenges, the Ukrainian tech industry remains a vibrant and resilient force. 

Despite the ongoing conflict, Ukraine continues to be home to a deep pool of talented and highly skilled software engineers. These professionals are not only ready to contribute their expertise but are also demonstrating remarkable adaptability in the face of adversity. 

As we've seen, the salary data presented offers valuable insights for companies looking to optimize their budgets while accessing top-tier talent. 

Ukrainian IT professionals have shown an impressive ability to adapt to wartime conditions, embracing remote work and demonstrating a commitment to delivering high-quality results. This adaptability, coupled with their technical prowess, makes Ukrainian engineers a compelling option for businesses seeking skilled partners. 

While the situation remains dynamic, one thing is clear: the Ukrainian tech talent pool is a valuable asset, ready to contribute to innovation and growth, even amidst challenging circumstances. 

By partnering with Ukrainian engineers, companies can gain access to world-class expertise while also supporting the continued development and recovery of a vital industry.

About us: 

MindHunt, a recruitment agency working since 2011, has helped many clients from the US and Europe find IT specialists in Ukraine during various economic climates. We continue to provide our services. If you have any questions or need advice, do not hesitate to reach out to us.

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