How quarantine affected IT in Ukraine: expert opinion and forecast


How has coronacrosis changed the IT industry in Ukraine?


The coronavirus epidemic and quarantine ban have had a significant impact on all industries. IT is no exception. Companies faced many difficulties, forcing them to change their normal way of life and revise forecasts for years to come. What changes is expected in the IT industry due to new realities in Ukraine and the world? And when is the industry recovery anticipated? We asked domestic companies about this.

What has changed in the first place?

1. remote work. This is the first thing that large and small companies have faced right after the introduction of quarantine measures. It was difficult to move employees to remote work, organize workplaces safely, organize work meetings using remote communication channels, and more. However, as we see from the experience of companies, the transition to remote work was not a difficult task, especially for companies in the field of IT. In addition, many enterprises now consider specialized or partially remote work formats, even though quarantine has been eliminated, since the labor efficiency of most teams during quarantine has not decreased.

2. lack of staff. This is a last resort, but some companies have not escaped it. Fortunately, according to a study by IT Rating UA, there was no decrease in more than 80% of IT companies surveyed.

3. Sales decline. Sales fell at most companies. During the quarantine period, the key was to retain existing customers. According to forecasts by representatives of IT companies, the resumption and further development of the industry will depend on the situation with COVID-19 in the fall and winter, but it may take about a year before.

What do companies say?

The editors of Pespace magazine learned how Ukrainian companies assess the current situation in the IT industry and how Ukrainian companies anticipate their further development. In particular, the company leater, Which specializes in consulting, design, implementation and implementation of information and audio-visual technologies, video surveillance systems, integrated security, training and entertainment systems. Company as well Profix, Which works in the information technology market for financial institutions and helps banks create a competitive advantage.

What changes is expected in the IT industry due to new realities in Ukraine and the world? How has quarantine affected your company?

Nikolay Zhandorov, CEO of literature

I think changes in the IT industry will largely reflect globally, but IT accepts them very rapidly.

For example, we already see that the model “number of jobs = number of employees in the state” is clearly meaningless. I caught myself thinking that even before the quarantine of “100% of employees in the workplace”, I used to celebrate once a year – half an hour before the start of the New Year’s corporate party. After removing the “lockdown”, I think we are not alone in thinking about creating a sharing workspace outside the office. We will use the empty area for high-quality meeting rooms, conference calls and demo rooms. For us (and for IT in general), this format is largely familiar.

The second trend would be to take care of health (possibly at the limit of paranoia). I have been following the “sick – stay at home” rule during my career. But if after the quarantine the rule was consistently violated that “I will not stay long”, “I have an important meeting”, “I have drunk a pill and this is normal”, then after removing the ban, I Most offices will also be banned at the level of temperature control. .

Well, it is clear that companies will optimize their costs and employees in terms of remote work. Management is forced to accelerate the processes of digital transformation, automate whatever can be done and will calculate every penny. Competition in the labor market will increase both between employers for effective specialists and among specialists for a place in the sun. Midterm and Junum would obviously have a hard time finding work.

Evgeny Cochin, CEO of PROFIX

Since our company works in IT for the financial sector, I will start with this direction. Fintech expects a slight drop compared to other industries. Some projects have been frozen in banks, but at the same time, digitalization of products and the acceleration of online payment will accelerate the growth of digital services. Market growth is also expected for mobile solutions related to quarantine and controlling social distance.

Quarantine did not significantly affect the work of our company – we were ready and immediately moved most of the employees to a remote format. In addition, for its part, PROFIX did everything possible so that the new conditions would not affect the quality and timing of projects both in Ukraine and abroad. In particular, the company ensured uninterrupted operations of banks with SWIFT, and from January to June 2020, PROFIX completed 14 projects for the implementation of SWIFT solutions in 10 countries.

When does the industry expect to recover and how do you assess the prospects for further growth?

Nikolay Zhandorov, CEO of literature

I don’t think a few hours would be “H”, at which everything would immediately return to normal – we would quarantine slowly over the next few years (unless, of course, they invented a drug / vaccine with 100% efficiency. We do). At the same time, many companies will have marks – called processes, procedures and instructions that make no sense in the current circumstances. No one remembers why they were introduced, but they do so. As an example – distance between people, limiting the number of people in a certain area, early arrival at the airport, etc.

In my opinion, the destruction of supply chains from China has shown that the dependence of the entire world on production is not good in not one but remote part of the world. It is likely that Europe and the United States would like to keep high-tech industries at home or conditionally. If this happens, Ukraine may have a rare opportunity to become a supplier of solutions for Europe – we have relatively low costs with very qualified engineering personnel. We will have the rule of law (rule of law – ed.), There will be no cost.

Evgeny Cochin, CEO of PROFIX

The recovery and further development of the industry will depend on the situation with COVID-19 in autumn and winter. If a repeated global quarantine is not introduced, a positive forecast for the growth of the IT industry is mid-2021.

This, of course, is reflected in all sectors and companies. However, as it turned out, changes can happen for the better – many teams have implemented new tools in their work, expanded their service portfolios or focused on core people, and utilize new communication channels started. At the same time, many companies appreciated the benefits of telecommunications and planning to continue using this format in the future. According to various estimates, it may take about a year to restore the IT industry.

Further investigation: As if not before: how hotel and resort work will change after the epidemic


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