In an interview with Ekonomichna Pravda, Maria Shevchuk, Executive Director of the IT Ukraine Association, spoke about the decline in orders and exports of IT services, the threat of changing the Diia.City regime, and tax increases.
“We are not cut off from the world. We understand the state of the country. We understand the need to fill the state budget. We are asking the authorities for a dialogue on the Diia.City regime and the preservation of guarantees for the special regime,” says Maria Shevchuk.
Key issues and challenges
- Decline in orders and exports: The war and the global economic recession have led to a decline in exports of IT services.
- Tax burden: Proposed changes to tax legislation, including an increase in taxes for Diia.City residents, could negatively affect Ukraine’s investment attractiveness and scare away foreign partners.
- The problem of mobilization: The lack of bookings for IT specialists creates uncertainty and risks for the business.
- Competition in the labor market: The oversaturation of the market with IT specialists, especially at the junior level, makes it difficult to find young professionals.
Positive aspects and prospects
- Industry resilience: Despite the challenges, the Ukrainian IT industry demonstrates resilience and adaptability.
- “Diia.City: The special regime “Diia.City” promotes the development of the IT sector, but requires further improvement and stability of conditions.
- Interest in IT: Despite the difficulties, interest in IT professions remains high.
The Executive Director of the IT Ukraine Association reminded that currently 1300 IT companies are part of the Diia.City program. According to various estimates, there are approximately 2,300 IT companies operating in Ukraine, so 1,300 is a great number.
“Ukraine is currently a high-risk area, Ukrainian companies are working and trying to maintain their positions, but when the unpredictability of the tax regime is superimposed on the decline in the global market… Perhaps the day after tomorrow or in a month there will be other taxes or new interesting regulations,” Shevchuk said.
Forecasts and recommendations
- The need for dialog: It is important to continue the dialogue between the IT industry and the government to find compromise solutions.
- Stability of the tax regime: Ensuring the stability of the tax regime is a key factor for attracting investment and developing the IT sector.
- Export support: Measures should be taken to support the export of IT services, in particular by facilitating the participation of Ukrainian companies in international exhibitions and conferences.
- Human capital development: Investments should be made in the development of education and training of highly skilled IT professionals.
- Booking: The issue of booking IT professionals needs to be addressed to ensure stable operation of companies.
In general, the future of the Ukrainian IT industry depends on the ability of the state and business to jointly address the challenges facing the industry.