Outsourcing software development has become a popular way for businesses to get their products or services to market quickly and at a lower cost. However, the Russian-Ukrainian war is having a major impact on the once-booming tech outsourcing industry of the region. Here are 5 ways the war is impacting software development outsourcing: 

Businesses are hesitant to outsource to Russia or Ukraine

With the Russia-Ukraine war raging, businesses are understandably hesitant to outsource any work to companies based in these countries. The political instability in the region makes it a risky place to do business, and there is no telling how the situation could escalate in the future. Many countries and business interests are also cutting business ties with Russia. This will unlikely change for the foreseeable future as Russian war atrocities mount and the present regime remains in power.

There is a shortage of workers in both countries as people flee conflict zones 

The conflict in Ukraine has led to a mass exodus of people from the country, with over 5 million people fleeing since the start of the war. This has resulted in a shortage of workers available to do software development work. It has also driven up wages for those who are still in the country and available to work.

Companies are understandably relocating their operations out of the region, which further limits available developer resources.

Quality of work may be impacted as developers are working under more stressful conditions 

The ongoing conflict in the region is no doubt having a negative impact on the mental health of workers in Ukraine and the region. This, in turn, could lead to a lower quality of work as developers are working under more stressful conditions. 

Project deadlines may be impacted as companies struggle to get work done in the midst of the chaos. These risks are pushing clients to look elsewhere for development services while the conflict ensues.

There is an increased demand for IT professionals in other countries, such as Poland 

The Russian-Ukrainian war is having a major impact on neighboring countries, as well as a corresponding increase in wages. Due to the risks associated with outsourcing to the region, businesses are increasingly looking to other countries in Central and Eastern Europe, or to Asia, for resources. This has led to an increase in demand for IT professionals, which is showing no signs of decreasing in the short term.

As Outsourcing Options Tighten, Costs are Rising

Outsourcing software development services to the Ukraine and Russia was once a popular option for Western businesses looking to save on costs. However, with the current conflict between the two nations disrupting business activity in the region, many companies are now moving their operations elsewhere and building resiliency plans. 

The instability in eastern Europe is causing wages to rise and businesses are becoming more risk-averse, both of which are making it difficult for Ukrainian, as well other regional service providers to remain competitive. If you’re looking for a cost-effective alternative to outsourcing software development services, it’s time to consider India or China.