THE COMPETITIVENESS OF THE UKRAINIAN IT SECTOR IN A CLIMATE OF GLOBAL UNCERTAINTY

Abstract

Amid prolonged martial law, the issue of the national economy’s resilience – and the sectors capable of ensuring and sustaining that resilience – has never been more pressing. One such sector is Ukraine’s IT sector, which, under current conditions, generates significant tax revenues, employment, and foreign exchange earnings through the export activities of domestic IT companies; therefore, the need to continuously monitor trends in the sector’s operations and identify threats and opportunities for its development has become significantly more pressing. The article identifies the factors of international competitiveness of domestic IT companies, outlines the threats they face in the context of global uncertainty, and provides recommendations regarding the prospects for the sector’s further growth in both domestic and international markets to enhance the competitiveness of Ukraine’s economy as a whole and support its post-war recovery. It is revealed that the most significant factors threatening the development of Ukraine’s IT sector are: security risks, which are intensifying amid full-scale war; growing competition from both developed and developing countries for international contracts; and the volatility of regulatory and tax conditions for doing business in Ukraine. It is demonstrated that these threats can be mitigated by the extraordinary resilience of Ukrainian IT companies, which employ highly qualified specialists, offer a wide range of IT products and solutions at reasonable prices, continuously produce innovations, and, despite the challenges of war, ensure uninterrupted contract fulfillment through team relocation, the operation of autonomous offices, and adaptability to global demands. This is also reflected in the growing demand from leading developed countries for Ukrainian IT services and the increase in foreign investment, particularly in AI, DefenseTech, and MilTech, cybersecurity and logistics solutions. Recognizing the sector’s growth potential, the government has introduced a special legal and tax regime to stimulate the development of domestic IT companies – Dііa.City. Ukrainian IT companies can leverage these threat and opportunity factors when developing measures to enhance their international competitiveness by managing the risks they face in both domestic and international markets. Taking these factors into account will enable companies to maintain and strengthen their positions in the global market.