The consequences of the military invasion of Ukraine are felt on the global level: a rapidly escalating refugee crisis, Russia’s energy blackmail, and a shakeup of global democracy. Developed countries had to unite to face the aggressor, threatening not only Ukraine and many other countries. 

While the world order is changing, Ukrainian tech businesses have to maintain their operations to support the Armed Forces of Ukraine. How do they handle enormous risks and contribute to the IT industry growth? Here are some stats and an interview with a CEO of the Ukrainian IT company that will give you an idea of what’s going on.

The Ukrainian IT Industry as of Now

Six months after the war broke out, the IT sector still remains one of the driving forces of Ukrainian exports. According to the recent report “The IT Export Industry continues to support Ukraine’s Economy”, exports of computer services reached 3.74 billion dollars in the first half of 2022. It increased by 23% compared to the previous year

Over 85% of IT professionals are now contributing to the country's economy. The IT field actively supports the Ukrainian Armed Forces and humanitarian projects by paying taxes and making regular donations. 

Some are fighting on the battlefields, while others volunteer and support refugees and victims of war. Some are facing the enemy on the information front spreading the truth about the war, while others are joining the cyber front.

Surviving Strategy of Ukrainian IT Businesses

No one can be fully prepared for the war on their native land. Despite the alarming news at the beginning of the year, Ukrainians refused to believe that a full-scale military invasion may begin soon. But eventually, some people had to leave their homes and flee to the western or central parts of the country, others decided to go abroad. Fear and survival were the only priorities back then.

In the business world, it is not the strongest or the smartest who survives, but the one who best responds to the changes that are taking place. Some Ukrainian businesses have suffered more than others, and a lot of them are located in Kharkiv, a city with a population of 1 421 125 people.

Kharkiv is the biggest IT center in the Eastern part of Ukraine. According to ”Kharkiv IT Research 2021”, the regional industry includes over 510 IT companies, and the number of IT specialists has exceeded 45,000. It is the second biggest IT community in Ukraine (according to Ukraine IT Report 2021). 

At the same time, Kharkiv city is only 30km away from the border with Russia. The dangerous proximity to the aggressor made companies develop business contingency plans eight years ago, when Russia encroached on Ukrainian territory by annexing Crimea. 

February 24 was a day when a nightmare became real: top managers of different companies had to act according to their updated contingency plans. It took 7-14 days to adjust internal processes and assist employees with relocation, including the following:

• creating emergency chats and information hotlines, 
• organising shelters in office buildings, 
• plotting routes to relatively safe Ukrainian regions and abroad,
• providing employees with necessary technical equipment,
• opening new offices in relatively safe Ukrainian regions and abroad, etc.

In two weeks, most companies were able to resume their work in completely unusual conditions.

Crisis Management in the Ukrainian Style Described by a CEO

Сrisis management is an essential tool for solving difficult and non-standard business situations. C-level managers have to take proper actions to help companies adapt to stressful situations with minimal risks and take care of their employees, the main business value and driving force.

We had an interview with Bogdan Steblyanko, CEO at CHI Software. He shared his  leadership experience during the most challenging times of his life and told us about ongoing business transformations. 

Was your business prepared for the war? What was your first reaction when the war started?

Strictly speaking, the war started for Ukrainian business in 2014. The Kharkiv IT sector and other companies have had eight years to prepare for almost any complications. We developed an action plan in case of military escalation and had to keep a close eye on the news. We realized the high probability of the invasion but didn’t expect a massive attack on the state. 

On February 24, I woke up at 5:15 am from the sound of explosions in Kharkiv. The first thought that crossed my mind was, “It has begun.” Some minutes later, I organized an extra meeting with the company’s top management. It was hard, but we had to pull ourselves together, plan our immediate actions, communicate with the team, and start assisting with the evacuation.  

What measures did your company implement to help employees cope with panic and stress?

Most of the employees were forced to flee their homes and in some cases part with their families who refused to evacuate. Hence, we created coordination centers for those who stayed in Ukraine and those who fled the country: CHI Software Ukrainian Relocation Office and CHI Software European Relocation Office. These structures answer the legal and financial questions of our team and help them solve emerging issues.

It was also essential to create a healthy working atmosphere in each of our 20 departments, and we’re doing our best to make it possible. That's why we provide workers with psychological support to help them recover their mental state during difficult times. 

Now our employees remain in secure locations abroad or relatively secure Ukrainian regions (western and central parts of the country). 20% of the team works from Dnipro and Lviv offices, and the rest 80% works remotely. 

How fast did you manage to get back to somewhat normal activities?

Since the start of the COVID-19 pandemic, the company has developed remote work processes. It allowed us to return to the regular schedule in all departments in a short time. 

Since February 24, the company’s board has been actively communicating with all departments to help our specialists adapt their operations to the new reality. For this reason, the CHI team got back to the daily working routine in two weeks and focused on their responsibilities as much as it was possible back then. 

We all cope with difficulties in our own ways, so the adaptation process took a little longer for some of us. But daily tasks are a good motivator, sometimes saving us from disturbing thoughts.

How did the company change during the war?

The war in Ukraine made the company management quickly react to the situation and act. Now we must be flexible.

First of all, the company opened an office in Lviv, the biggest western city in Ukraine, right before the invasion. It is safer to work there than in other CHI Software development centers. When the war started, this office became a shelter for our employees from other regions. Our team lived there with their families and even pets. The war made us more cohesive.

In May 2022, the company opened a new office in Kobe, Japan. We will continue expanding the company’s international presence by opening representatives and development centers across the globe. In our case, international presence is a way to offer our team a completely safe environment.

Moreover, several of our developers have voluntarily joined the Armed Forces of Ukraine. I can’t adequately express the respect I feel toward the guys. They are our heroes.

How many of your clients are located abroad? What was their first reaction when the invasion started?

Pretty much all of our clients are located abroad, mostly in the US and Western European countries, and they have supported us in every possible way. Yes, some of them were worried about the current situation and possible risks of cooperation with Ukrainian developers. We are well aware of this and have taken the necessary steps to stabilize the business and our partnerships.

During wartime, our company started working with 30 more clients worldwide. We adhere to the terms of our current agreements and notify our customers immediately of any changes to our workflow.

What about business relations with Russia and Belarus? Do you still have any connections?

We stopped all forms of cooperation with Russian and Belorussian contractors and organizations in 2014. This story ended a long time ago for our company. When people die, including the ones you know and love, it’s not “just business” anymore.

What happened to your Ukrainian offices?

Before February 24, we had offices in Dnipro, Kyiv, Zaporizhzhia, and a big development center in Kharkiv. The Kharkiv office was the largest and most well-equipped workplace. More than 300 employees were working there. So, it’s especially painful that it was cruelly damaged by rocket fire. Nevertheless, we’ve managed to save some business resources: important documents, remaining technical equipment, and furniture from there.

Unfortunately, we had to temporarily close our offices in Kyiv and Zaporizhzhya. They are not damaged at the moment, and we’ll reopen them as soon as our employees get back home.  

What are your thoughts about the future? Is there any room for optimism?

As for the future of the Ukrainian IT sector, the biggest challenges will most likely be developing new labour markets, attracting specialized help for employee support (psychologists, lawyers), working with clients and their doubts, and working with risks.

They say that even after the darkest night comes the dawn. After the war and our victory, the time of great reconstruction will come. I believe that our people, encouraged by the whole world, will finally rebuild beautiful Ukraine. We deserve to live freely like any other nation on the globe.

How British Tech Companies Support Ukrainians 

The UK has been one of the biggest Ukraine supporters since the war started, providing weapons, humanitarian aid, and financial assistance. British tech companies also haven’t remained on the sidelines and provided help in every way they can. Here are just a few examples:

• Zopa Bank, a London-based fintech company, sponsored up to 50 work visas for eligible Ukrainian applicants with a relevant technical background in the sphere. 
• Revolut, a British fintech company that provides banking services, has opened vacancies for displaced people from Ukraine and helped them with relocation. 
• The United Kingdom provides Ukrainian tech companies with new opportunities for cooperation and promotion of the Ukrainian IT sector in the British market. 
• The United Kingdom and Ukraine notified about the intention to agree to digital trade to help to restore the Ukrainian economy. 

Bottom Line 

Ukrainian IT businesses face diverse business challenges every day and do their best to maintain their operations. These companies are “antifragile”: they withstand a hit and become even stronger.

Nowadays, most foreign clients are concerned about the current situation and possible risks of cooperation with Ukrainian developers. But Ukrainians are striving to help and save their motherland, so one can hardly find more motivated and qualified IT experts.

Nothing makes us stronger than the desire to survive and protect what’s ours. Every person in the world has the right to live in their own way without harming others. Let freedom win!

Glory to Ukraine!