Article

    How Ukraine’s IT Industry continues delivering through wartime challenges

    Ukraine’s tech industry has continued delivering AI, cybersecurity, fintech, and software engineering expertise despite the war. Here’s a firsthand perspective on how Ukrainian IT teams adapted, maintained business continuity, and remain a trusted nearshoring destination for global companies.

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    Key takeaways

    • Ukraine remains one of the largest and most experienced tech talent markets in Central and Eastern Europe.
    • Ukrainian IT companies maintained operational continuity during wartime through distributed infrastructure, remote-first operations, backup connectivity, and crisis management systems.
    • The country continues to deliver strong expertise in AI, cybersecurity, fintech, big data, and software engineering.
    • Global companies continue investing in Ukrainian teams because of their adaptability, technical depth, and delivery resilience.
    • Government-backed initiatives like Diia City and digital education programs helped stabilize and future-proof the tech ecosystem.
    • Ukrainian tech specialists remain highly motivated, with many viewing their work as both a source of economic stability and a contribution to national resilience.

    Who is this article for

    • CTOs and engineering leaders evaluating nearshore development partners

    • Companies exploring resilient distributed delivery models

    • Businesses hiring AI, cybersecurity, DevOps, or software engineering talent

    • Technology leaders assessing operational continuity risks

    • Decision-makers comparing Eastern European outsourcing and nearshoring markets

    • Organizations looking for experienced remote-first engineering teams

    On February 24, 2022, everything changed for me and my country. The war simmering in Eastern Ukraine expanded overnight, challenging every aspect of our lives. The new reality demanded that businesses and individuals reassess their operations fast. Those first chaotic days were overwhelming.

    But if there’s one thing to know about Ukrainians, it is that we’re incredibly resilient.

    As sirens blared and cities became targets for missiles, businesses, institutions, and the government were pooling their efforts to keep life going as best as we could. The IT sector, already a crucial part of our economy, became a symbol of endurance.

    Engineers, developers, and cybersecurity specialists quickly found ways to keep working and support Ukraine’s economy and defenses while providing for their families scattered across the world. Today, despite everything we’ve been through, Ukraine still stands as a solid and innovative place for tech talent. I’m proud to share why that’s the case.

    Ukraine’s IT sector holds its ground during the war

    Before the war, Ukraine’s IT industry was thriving. It comprised 4.4% of GDP and 38% of total service exports. With over 5,000 companies serving global clients across fintech, AI, and cybersecurity, the country was recognized as a leading global tech hub. Our developers were in demand and recognized for their technical expertise, strong tech problem-solving skills, and adaptability.

    Then, as the war escalated, our economy suffered a massive blow, declining by one-third – the worst recession in our history.  IT companies faced contract terminations and increased cybersecurity threats. On top of that, 43% of IT specialists were ready to relocate abroad. Naturally, many questions began to surface: Will our productivity suffer? Can our teams maintain the high standards we’re so celebrated for? What will happen with the IT job market?

    Despite this devastating shot, our tech sector managed to keep on its feet. With pride.

    Key findings

    • Ukraine’s IT sector historically generated 4.4% of GDP and 38% of service exports.

    • The industry maintained operations despite economic contraction and displacement.

    • Ukrainian developers remain recognized for adaptability and technical expertise.

    • Business continuity became a defining strength of the market.

    Government initiatives helping Ukraine’s IT sector adapt

    In an immediate response, companies began relocating employees to safer locations, and we embraced alternative power sources to keep operations running. We also strengthened cyber defenses; after all, Ukraine has some of the most adept cybersecurity experts.

    “Within weeks, the tech industry showed what we had always known: Ukrainians never give up. We rally forces, adapt, and keep pushing.”

    To keep companies in our IT sector, we had to double up on transparency, business continuity, resilience, and build trust despite the devastating reality around us. The government also provided support.

    One way I’ve seen real change is through the Diia City initiative. The special legal regime introduced a preferential tax system for tech businesses and professionals, reducing tax burdens and lowering social contributions.

    Another great project was the Diia.Digital Education platform, born to help people in Ukraine improve their skills so they can get better jobs in IT and tech. It offers free, hands-on courses on blockchain, cybersecurity, and career tips. Over 2 million students have benefited from it so far!

    Our Ministry of Digital Transformation also launched the IT Generation Project. It provided free training programs in emerging IT and tech skills to nearly 2,000 Ukrainians, enabling them to find online work during the war.

    Key findings

    • Diia City introduced tax incentives for tech companies and specialists.

    • Digital education initiatives trained millions in technology skills.

    • Ukraine expanded access to cybersecurity and blockchain education during wartime.

    • Government support helped preserve confidence in the tech ecosystem.

    How Ukrainian tech companies lead and succeed through the chaos

    And how did companies protect their teams based in Ukraine? Let me share my experience firsthand.

    Before the pandemic, Ukraine was already a strong player in nearshoring, and remote work was already a big part of our IT sector. When the whole world shifted to working from home, we were ready. At Nortal, in particular, we had remote work systems in place long before lockdowns and the war started. Our entire business was founded on the principle of expanding your capabilities and competitiveness by leveraging distributed teams.

    That approach gave us an advantage during tough times. However, working remotely during a war is different. We had to take extra steps to keep things running smoothly for our global clients.

    • Our management quickly supported employees in relocating from frontline cities to safer western regions of Ukraine.
    • We set up our workspaces with backup power to handle blackouts and meet SLA agreements.
    • We also got satellite internet through Starlink for a strong connection (42,000 Starlink terminals have been used collectively across our countries by authorities, hospitals, and businesses, and the satellite connectivity technology continues to be a major advantage).
    • And if there’s an air raid alert, we have designated shelters where we can work safely.
    • Beyond that, we’ve adapted our home offices, too, investing in portable power stations and UPS systems to stay online during outages. 

    These measures have really worked out well.

    Today, approximately 300,000–307,000 IT specialists make up Ukraine’s tech talent pool, 238,000-257,000 actively working in the country. Clients concerned about continuity now see that we haven’t skipped a beat. Flexible work and good crisis management have reinforced Ukraine’s spot as a top IT outsourcing destination. Even with the challenges, we’re delivering high-quality solutions and proving we can meet deadlines and deliver quality under pressure that nothing can compare. 

    “Today, up to 307,000 IT specialists make up Ukraine’s tech talent pool, with 238,000-257,000 actively working in the country. Clients concerned about continuity now see that we haven’t skipped a beat.”

    Key findings

    • Ukrainian IT companies rapidly adopted backup power and satellite connectivity.

    • Remote-first operational models helped maintain delivery continuity.

    • Approximately 238,000–257,000 IT specialists continue working in Ukraine.

    • Crisis-ready infrastructure became part of everyday operations.

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    How resilient is Ukraine’s IT sector today?

    Ukraine’s technology industry has adapted rapidly to wartime disruption through distributed operations, backup infrastructure, cybersecurity expertise, and remote-first delivery models. For many global companies, resilience is no longer theoretical – it’s operationally proven.

    Explore the full picture of Ukraine’s tech market, talent ecosystem, business continuity strategies, and nearshoring advantages in our detailed guide:
    Ukraine IT market guide

    The human side of resilience in Ukraine’s IT sector

    I've been thinking about a question that comes up often: can Ukrainian IT specialists stay motivated when they face daily threats?

    I asked my colleagues about this. These people write code, solve problems, and manage product launches while sirens wail and missiles roar in the background. Most of them told me that the war has actually made them more dedicated than ever.

    Extreme circumstances often bring out the best in people, and for many, professional life has become a source of stability in an unpredictable world. With a greater sense of purpose, their performance has reached new heights.

    “Extreme circumstances often bring out the best in people. When your work carries a greater purpose, your performance reaches new heights.”

    AI, cybersecurity, and top-tier software engineering:  Why global companies continue hiring Ukrainian tech talent

    Despite the ongoing war, Ukraine’s IT sector continues to attract global clients. The demand for Ukrainian expertise remains strong and for a good reason.

    Take AI, for example. Ukraine ranks second in Central and Eastern Europe in the number of AI companies.

    In cybersecurity, Ukrainian specialists have a strong track record of safeguarding both public and private infrastructure.

    Our specialists also excel in big data, particularly in analytics and machine learning, ranking 27th globally for combining business and data analytics skills (Global Skills Index). Over 82% of Ukrainian IT professionals hold senior roles, and 43% have more than 6 years of experience in high-demand areas such as AI, cybersecurity, and fintech. This makes Ukraine a valuable asset in the tech world.

    Companies with a vision understand that, and we don’t have to look far for examples. At Nortal, we’ve made a visionary move to acquire Skelia (now part of Nortal) soon after the war broke out, a statement of faith in Ukraine’s future.

    As Nortal’s CEO, Priit Alamäe, put it: “Some companies have been downscaling their operations in Ukraine or even pulling out. But quite on the contrary, we believe in Ukraine's unique future and its people's strength.”

    Our clients share this optimism. Companies like TUI, which began working with our Ukrainian teams before the war, stay by us. Since 2007, we’ve hired over 1,000 tech experts. We choose only the best, and businesses appreciate that, even in tough times. When the conflict escalated, The New York Times reported that Ukrainian IT firms managed to maintain 95% of their contracts despite the war. It shows that Ukrainian teams have remained unfazed by the terrors they face.

    “Some companies have been downscaling their operations in Ukraine or even pulling out. But quite on the contrary, we believe in Ukraine's unique future and its people's strength.”

    Priit Alamäe, CEO at Nortal

    Key findings

    • Ukraine ranks among the leading AI talent markets in Central and Eastern Europe.

    • Over 82% of Ukrainian IT professionals hold senior-level positions.

    • Ukrainian teams remain strong in AI, fintech, cybersecurity, and big data.

    • Global companies continue investing in Ukrainian engineering capabilities.

    Resilient teams for challenging times

    That winter night in 2022 marked a turning point, a moment that challenged us to redefine what stability and productivity mean in difficult times.

    But within weeks, the tech scene showed what we always knew: Ukrainians never back down.

    We rally forces, adapt, and keep pushing. The IT sector has proven that we can handle tough times and stay strong.

    Today, Ukrainian engineers continue supporting global companies across AI, cybersecurity, fintech, cloud platforms, and enterprise software development. Businesses that work with Ukrainian teams are not simply accessing technical expertise; they’re partnering with specialists who have learned how to adapt, solve problems, and maintain quality under pressure.

    For companies evaluating nearshoring or distributed delivery models, Ukraine remains one of the most experienced and resilient technology talent markets in Europe.

    If you want to better understand what working with Ukrainian teams looks like today, from business continuity to engineering expertise and delivery models, we’re happy to share our experience and insights.

    FAQs

     

    How did Ukrainian IT companies maintain operations during the war?

    Are Ukrainian software engineers still working with international clients?

    What makes Ukrainian tech teams more resilient than those in other markets?

    Has the war affected motivation and retention in Ukraine’s tech sector?

    How do Ukrainian engineering teams handle business continuity risks?

    Why do global companies continue investing in Ukrainian engineering talent?

    Get in touch

    Nortal is a strategic innovation and technology company with an unparalleled track-record of delivering successful transformation projects over 20 years.