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At the event, we reviewed the implications of the war in Ukraine on the offshore tech workforce market (Eastern/Central Europe). Which countries have emerged? Where are the hot opportunities?

At the latest Yozma Tech event, dozens of representatives from high-tech companies and startups attended to hear about the current state of the developer market abroad.

What happened? Trends and changes, what are the problems? What are the opportunities?

מיטאפ מעגל יוזמה בנושא הדרכים ל-SCALE עסקי באמצעות כ“א טכנולוגי גלובלי, יוני 24, משרדי ROOMS רעננה.

Yozma Circle Meetup on ways to SCALE business using global tech workforce, June 24, ROOMS offices, Ra’anana.

What happened?

  • In fact, two large markets, Russia and Belarus, with a workforce of approximately 800K, have closed to Western companies.
  • Ukraine, a market of approximately 400K, closed to companies that could not operate with the uncertainty. We mostly saw international companies and corporations like Samsung, Intel, and others leaving Ukraine.
  • Since February 2022, the high-tech market has cooled down due to a capital market crisis, the end of cheap money, and growth at any cost. Money has become expensive.

What are the problems?

  • Companies that left the markets of Russia, Belarus, and Ukraine sought new markets, and many chose to relocate to Poland, Romania, Bulgaria, Portugal, while some tried their luck in India (mainly American corporations).

This created rising demand along with price increases, longer recruitment times, and India is no longer as cheap as it once was.

  • Inflation in most European countries, especially in Romania and Poland, is causing constant price increases.
  • The effects of COVID-19 and remote work are now a separate part of the new culture, making it difficult for companies that wanted to establish new centers and did not realize in time that the world of centralized development centers is not coming back.

What are the opportunities?

  • About 200,000 Ukrainian tech professionals have left Ukraine, with a large portion settling in areas close to Ukraine. Most still pay Ukrainian taxes, allowing them to be employed more cheaply than their Polish or Romanian counterparts.
  • In Ukraine, senior salaries have decreased for the first time since 2016. Companies that know how to operate in uncertainty are taking advantage of the situation to hire quality personnel that they could not afford in other market conditions.</

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