Software Development in Ukraine

How to Make the Most of Software Development in Ukraine

Ukraine is on the verge of a tremendous power in its going ahead in economic development.

The Ukrainian software market has grown over 10 years more than in 20 times.

In the light of the recent crisis in the IT industry, “appetites” fell. Some experts forecast growth of up to $15 billion in 2030, but the problem still looks more than difficult.

We are proud that people originated from Ukraine developed WhatsApp and PayPal. But try to remember at least a remotely similar finished product, developed in Ukraine and sold by a Ukrainian company.

Our IT sector is represented mainly by the outsourcing industry. The income from such activities is generated linearly, i.e. it grows in direct proportion to the invested funds or, even more primitively, in proportion to the number of working heads.

Today our “technological raw materials” are brought to the mind and “packaged” in the US or the UK. Ukraine needs to work on surplus value in the sector and to discourage brain drain.

In Ukraine, there are advances in both metallurgy and IT. Why not combine these, at first glance, different sectors? For example, programming plants with specified properties is a topic of advanced scientific work. This is a good challenge for our IT staff. It’s only necessary that such products are created in Ukraine, and not imported.

Product companies in the field of programming will appear at a time when the domestic economy of Ukraine will start consuming software products. This is the law of business – the closer you are to the customer, the more likely to do something innovative that will blow up the technology.

Tactically, the IT industry is going through hard times. Obviously, the software industry has entered the same band of requirements to overcome the “shelf” on the slowdown curve, as any business. Now, to jump to the next shelf of quality growth, IT, as well as the industrial and agrarian sectors in Ukraine, will face a tough and hard, but creative and interesting struggle for this new qualification.

And it will be held in close conjunction with the state. Why the state together with local authorities and business can’t create closed zones with a higher level of education and quality of business in the educational and scientific institutions? It happens like this in many countries.

This doesn’t mean that we need to completely abandon the IT outsourcing market, as long as it is a “tasty morsel” for many countries. The state will become a player in the development of the promising IT industry even more and deeper than it was for traditional industrialists. It will start by abandoning old programs and applying new ones, purchasing them from local producers for proper management, becoming transparent and more efficient. There’s money to support IT, and it will appear in bigger quantities, the more transparent the government will be.


Igor Grigorenko

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