Ukrainian Tech Segment Q2 2023: What’s Going On?

The Ukrainian tech segment had been peculiar going into Q2 2023—the expectations of an impending and highly publicized counteroffensive held back any substantial business proceedings until further resolution. Yet, numerous rumblings were shaping into short-term trends that eventually came and went with no meaningful impact.

During Q2 2023 Talando Market Research team was busy gathering all the valuable insights into one extensive document – The Q2 2023 Market Research. This article is a glimpse into what we have to offer.  

• If you want to purchase the complete Q2 2023 Salary Survey – drop us a line.

Q2 2023 Most Prominent Ukrainian Tech Segment Trends Explained

Q2 2023 had no big story coming in and out, but things weren’t at a standstill, and if you think about it – a lot of stuff happened. 

• The salary levels for tech talents more or less continued the dynamics of Q1 2023. The minimum salaries for different experience levels decrease while the maximum levels remain within their usual ranges with insignificant permutations.
• A massive amount of junior talent is currently on the market.
• The difference between new hire salaries and long-term employee salaries remains significant (especially for in-demand positions for fintech and AI niches).
• There is a significant decrease in recruitment activity across the board. 
• The Ukrainian tech market got no real new players coming in Q2 2023 (except for companies starting from scratch with no client base).
• Most companies continue to brace for impact and minimize spending to get through the rough patch.

Things seem to be pretty dire in the Ukrainian Tech Segment, but there is more than meets the eye.

• The salary ranges showcase relative stability with gradual transformation. If we look at the stats quarter to quarter – there are no shock and awe spikes, peaks, and valley situations when salaries for different positions go up and down. The economy is working, and salary figures show that.
• The current influx of junior talent is a long-term solution for the talent shortage problem, and it can partially alleviate the effects of brain drain.
• While no new big companies currently enter the Ukrainian market, many big tech players express interest in investing in Ukrainian startups and look forward to entering the Ukrainian market soon after the war ends.

What happened with the Ukrainian Tech Hot Niches during Q2?

Interestingly, unlike Q4 2022 and Q1 2023, there were no real interest spikes for specific niches. 

• The Crypto / Blockchain niche is keeping a low profile after a tumultuous late 2022. The NFT and Metaverse hype is long gone, and there is a lull before introducing the next big thing to hype about.
• The cybersecurity niche is always in the background, getting its fair share of reminders about why its services are in-demand.
• The gambling niche took a big hit in the Ukrainian market after the Parimatch debacle, but the other companies continue working in Ukraine, often engaging in a hybrid shadow economy.
• Artificial intelligence-related businesses continue working on the project. However, for the most part, it is still a research & development stage for many startups before anyone can claim a market share. 
• eCommerce is staying afloat. Current players are doing their things. No new competition is in sight.
• GovTech and MilTech niches are officially a thing in Ukrainian Tech Segment. Still, due to government involvement, they exist in separate realities apart from the rest of the segment.

What will happen with the Ukrainian Tech Segment Q3 Onwards?

You know how the saying goes: “The only thing for sure is that’s nothing for sure.”

The thing with the Ukrainian Tech Segment is that factors beyond its control affect everything. 

In one way or another, war leaves its mark. Whether it is physical damage to infrastructure or people dying, or investors hesitant to invest. The destruction of the Kakhovka Dam is one of the many examples of this uncontrollable external factor throwing a wrench.

At the same time, there are clear indicators that investors are ready to invest in Ukrainian companies and projects. The main requirement is to settle the situation into a more predictable and controllable situation. Will talk about it more in our future blogs.

• Next time – what happened with the Ukrainian Tech Segment Salaries during Q2 2023? Stay tuned.