What challenges will the IT industry face in the new year?
27 December 2024 16:03
Military operations will determine the development of Ukrainian IT in 2025. However, a positive impact is expected from macroeconomic improvement and growing demand for technology, said Stepan Mitish, head of the Ukrainian EPAM office, in an interview with dev.ua.
According to him, if the war continues, business conditions will remain difficult and the outflow of talent abroad will continue. Attracting new customers will also be difficult due to military risks and competition with global hubs such as India.
However, in addition to these challenges, the Ukrainian IT industry has ambitious goals for 2025, such as stopping the decline in billable positions, sustainable revenues, and attracting 800 junior professionals. There is hope for an improvement in the global macroeconomic situation, as the US election results were received positively and central banks continue to cut interest rates. This may have a positive impact on the IT industry in general and the Ukrainian IT industry in particular.
“It is also worth noting the growing demand in the global market for certain technologies and areas, such as GenerativeAI, Data Analytics, cybersecurity, and cloud solutions. Ukrainian companies have good chances to find their niche in these areas,” Mitish said.
In turn, Vlad Shymov, Managing Director of Capgemini Engineering, says that the Ukrainian IT industry will remain an important part of the economy in 2025, but there are threats that may hinder its development.
For example, the industry may experience a loss of talented professionals due to migration, as well as difficulties in attracting young personnel due to the crisis in the education system. Increased automation and the introduction of artificial intelligence may also lead to job losses for novice professionals. However, strong companies that successfully cope with the challenges can provide jobs and conditions for the return of specialists after the war.
An important trend to pay attention to is the reintegration of veterans.
“At Capgemini Engineering, we finalized our internal reintegration program this year, which provides for the gradual return of veterans to work. It includes vacation, training programs, and guaranteed remuneration for the period of reintegration. This will allow our colleagues to recover and return to work in a calm atmosphere,” says Shimov.
Vitaliy Nuzhnyi, Head of Ciklum’s retail centers in Ukraine, Poland, and Bulgaria, also made a forecast for 2025 for the IT industry.
“We have to look at the situation soberly and operate with facts and figures. This year, the export of IT services from Ukraine decreased by almost 5%. Obviously, a full-scale war for almost three years, constant security risks, regular damage to the energy infrastructure and mobilization affect the attitude of foreign companies to cooperation with IT in Ukraine and make them be quite balanced in their decision-making,” emphasized Nuzhnyi.
Although, according to him, there are some positive signals, such as possible peace talks and a decrease in the level of danger for travelers in some regions of Ukraine. But this is not enough for a quick return of customers and orders.
Vitaliy Nuzhnyi predicts that exports will continue to decline next year. Maintaining the current performance requires additional efforts from both the government and the industry, which is a difficult task in the current environment. In addition, it is necessary to ensure reservations for critical personnel and stable business conditions.
Vitaliy Shatalov, CEO of Futurra Group, believes that 2025 will be an important year for the development and use of AI technologies. Businesses will actively invest in training their teams and developing their own AI solutions to reduce dependence on external suppliers.
The competitiveness of companies will be determined by their ability to quickly adapt to new technologies and offer solutions with high added value. The demand for data science, machine learning, and DevOps specialists is expected to continue to grow.
In 2025, we will see trends in product teams:
- aI implementation in every product with a new level of personalization and automation;
- increased competition in the global market, where Ukrainian companies will seek to consolidate their positions;
- development of remote work and decentralized teams, which will require new approaches to management and communication;
- increased attention to cybersecurity with the growth of digitalization and the use of cloud technologies.
Vitaliy Shatalov emphasized that in order to succeed, companies must be flexible and adaptive, as well as introduce new technologies and achieve real results in the market.
Meanwhile, Railsware Managing Partner Sergiy Korolev noted the following:
“I remain cautiously optimistic, as I see how much energy and ideas there are in Ukrainian IT, and how companies are investing in training a new generation of specialists.”
According to him, despite the uncertainty, the Ukrainian IT industry continues to adapt and remain resilient. Next year, further development of MilTech/DefenseTech and product IT is expected. The process of revision of tasks and roles in companies under the influence of artificial intelligence will continue and may negatively affect the labor market for programmers who do not develop related expertise.
The further development of the Ukrainian IT industry in 2025 can take place under three scenarios: optimistic (with a rapid end to hostilities and economic recovery), realistic (continuation of the current situation), and pessimistic (not likely).
