IT OUTSOURCING IN UKRAINE: STATUS, CHALLENGES, AND PROSPECTS

Abstract

The paper examines the state of IT outsourcing in Ukraine, focusing on the sector's resilience amid global economic challenges and the ongoing geopolitical instability caused by the war. The topic is highly relevant due to the rapid global digital transformation, which highlights the growing importance of IT outsourcing. The study aims to analyze how Ukrainian IT companies are adapting to these difficulties, identifying strategies that ensure survival and growth during such turbulent times. The research employs a mixed-methods approach, combining qualitative market analysis, expert interviews, and case studies of Ukrainian IT companies. This methodology offers a thorough understanding of how businesses have managed to continue operations despite significant geopolitical challenges. The study's results indicate that Ukrainian IT firms have demonstrated impressive adaptability and resilience. Despite the war and related disruptions, these companies have maintained service delivery, sustained client relationships, and even expanded their international presence. The research reveals that Ukrainian IT companies have successfully adopted flexible business models, such as remote work and distributed teams, which have been crucial for their survival. This flexibility has allowed them to continue providing competitive services on the global market. Ukrainian IT professionals are highly regarded for their expertise, which makes the sector attractive to international clients. However, the study also identifies several risks, including infrastructure instability, workforce migration, and ongoing geopolitical tensions, which could hinder long-term growth. Despite these challenges, the IT outsourcing sector remains a vital part of Ukraine’s economy, continuing to deliver high-quality services to clients worldwide. The practical value of this research lies in providing valuable insights for stakeholders such as IT companies, government officials, and international clients. The findings emphasize the need for continued government support, particularly in infrastructure development, workforce training, and creating a favorable business environment. By focusing on these areas, Ukraine can strengthen its IT outsourcing sector, ensuring its growth and global competitiveness in the future.