Russia-Ukraine War: Indian IT Firms Can Get New Projects As Eastern Europe In Turnmoil
With the ongoing worsening war conditions between Russia and Ukraine, a major impact will be witnessed in the services sector.
The Covid-19 pandemic has boomed the IT sector in more ways than one. Companies across the globe can now hire people irrespective of their geographical location, with talent being more fluid compared to the pre-Covid era, provided the candidate is skilled.
However, due to the ongoing tensions in Eastern Europe, experts believe that the conflict could impact the IT companies in these areas and their investments and benefits could in turn shift to IT service providing jewels like India.
Why Does East Europe Have a High Concentration of IT Companies?
US, Europe and the UK are among the largest service providers for the IT industry across the globe.
A lot many Indian IT companies have of late been expanding to eastern European regions and nations to underline their presence and cater to a larger pool of clients in these regions.
Affordable tech talent available in these areas have always been a celebrated bonus, amid the unprecedented demand for technology services.
Besides, with the Covid-19 pandemic, companies have broken geographical barriers and are practicing geographical diversity of talent on a wider scale.
Peter Bendor-Samuel, the CEO of Everest Group stated that the talent availability in the region, in addition to the proximity to the client time zones, made them even more attractive.
On top of that, senior and experienced digital engineering talent that was especially hard to find during the global talent shortage was exactly the type of resources that were prominent in Ukraine, he added.
Consequently, Indian IT companies expanded to countries including Poland, Romania, Lithuania, Bulgaria, Hungary, and Croatia, among others.
How Will the Ukraine Crisis Affect the IT Sector?
The CEO of HFS Research, Phil Fersht believes that the global enterprises that have support resources in Central and Eastern Europe are expressing concern regarding their business continuity and security of data.
About 70,000-1 lakh highly qualified workers in digital engineering and IT skills work in the region.
He added that there is a high likelihood that many IT and business process support services could be shifted to India as the ongoing crisis plays out.
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