While Europe searches for speed in its digital transformation, Ukraine quietly delivers it. Behind the frontline headlines lies a half-billion-dollar-a-month export engine – a tech industry that powers Europe’s digital future, even in wartime.
Kyiv Post spoke with Olga Shapoval, executive director of Kharkiv IT Cluster, about why Ukraine is becoming a key innovation partner for the EU, which niches are ready for immediate collaboration, and how clusters are turning resilience into Europe’s new competitive advantage.
The interviewee did not comment on certain questions related to mobilization and possible shifts in the IT workforce.
Ukraine’s IT sector in numbers
Kyiv Post (KP): What is the current scale of Ukraine’s IT sector, and what does it mean for investors?
Olga Shapoval (OP): Ukraine’s IT sector has grown by over 54% in five years, reaching $6.4 billion in exports in 2024, according to the National Bank of Ukraine. Even amid the full-scale invasion, 4,500 verified IT companies and 310,000 professionals continue to operate, generating about $1 billion in taxes annually. A total of 93% of firms sell their services abroad, making the sector one of the most export-oriented in Europe, according to the Digital Tiger 2024 Report.
Ukraine is no longer just an outsourcing hub but a full innovation ecosystem – from R&D centers and international delivery offices to born-global product companies and dual-use startups. What I see is that Ukraine’s tech now spans every major industry – from Retail and Healthcare to DefenceTech, FinTech, and CyberTech – showing the sector’s capacity to deliver innovation across the economy, education, and security.
Companies such as SoftServe, EPAM, Intellias, Sigma Software, NIX, AltexSoft and Quantum Systems represent tens of thousands of engineers and a significant share of Ukraine’s tech export capacity, forming one of the strongest innovation engines in the region.
Ukrainian teams combine engineering excellence with real-life crisis management – resilience translated into performance. Within months, under real combat pressure, they developed and launched serial-production drone-interception and electronic-warfare systems fully compliant with European standards.
Working under constant constraints, teams rapidly re-engineered hardware and software, replaced scarce components, optimized energy systems, and achieved full autonomy in navigation and targeting. Battle-tested and field-validated, these solutions show how crisis-hardened engineering directly accelerates innovation and creates a strong foundation for long-term, trust-based technological partnerships in Europe.
Reliability tested by fire
KP: How do you convince foreigners that Ukraine’s tech ecosystem is reliable despite the war?
OP: We are not trying to convince – we show our track record. During COVID-19, Kharkiv IT Cluster member companies built oxygen networks and organized mass vaccinations across the Kharkiv region. When the full-scale invasion began, we launched an evacuation system within 24 hours that saved 15,000 people without a single loss.
Later, we created IT Cluster in the Cloud – a virtual platform for 500 relocated companies that continued working with clients without interruption. None of them stopped delivery. That’s not a theory of resilience – that’s resilience in action.
For international partners, this means: if your Ukrainian contractor can ensure business continuity under shelling, they can handle any challenge. For European companies, it’s a way to stay competitive without spending years building in-house teams. And for policymakers, it’s a practical tool for Ukraine’s economic integration into the EU – even before formal membership.
Ukraine’s digital workforce is already aligned with the EU market. According to the Kharkiv IT Cluster, every third Ukrainian IT company already has permanent clients in the EU, while eight out of ten identify the European market as their primary expansion priority for 2026.
For nine out of ten teams, English is the working language of daily communication, ensuring seamless collaboration with European partners. Most companies follow EU-aligned standards, from GDPR compliance and ISO-certified security practices to adherence with procurement, accounting, and ESG reporting norms, demonstrating not only market proximity but full regulatory and operational compatibility of Ukraine’s digital workforce with the EU ecosystem.
KP: Why should investors look at Ukraine now, not after the war?
OP: Because the infrastructure is already working. Teams are delivering results, and the market is open. Waiting means losing momentum, and the data speaks for itself. Ukraine’s tech market is bouncing back fast after the downturn caused by the 2022 invasion. Investments grew from $236 million in 2022 and $209 million in 2023 to $462 million in 2024 – more than half of the pre-war peak of $832 million in 2021.
In addition, Ukraine’s tech sector has developed a unique strength – dual-use technologies. Innovations originally created for defense are quickly turning into commercial products, from autonomous systems to cybersecurity solutions. It’s a market with real demand and proven technologies.
Ukrainian tech companies offer one of the best value-for-money ratios in the European market. Projects that take months of approvals and procurement in the EU can be launched in Ukraine in just weeks.
This includes robotics and logistics automation, AI-based safety systems, and smart energy infrastructure. This speed is made possible by efficient engineering processes, flexible management, and deep knowledge of European technical, cybersecurity, and data protection standards.
A good example is Quantum Systems, a German drone manufacturer. The company started supplying drones to Ukraine in April 2022. It officially set up an R&D center in Ukraine, and now tests and produces thousands of drones. In 2025, the company raised €160 million in investment, according to open sources, and became the first European unicorn among dual-use technology companies.
Another important factor is the special legal framework Diia City, which gives Ukrainian companies great flexibility in hiring and managing teams. They can quickly scale or reorganize project teams, set priorities fast, and adapt to changing client needs. As a result, Ukrainian partners deliver European-level quality with higher speed and cost efficiency, turning agility and resilience into a real competitive advantage.
KP: You mentioned 300,000 specialists. Where does this talent pool come from – and is there room to grow?
OP: Kharkiv IT Cluster has built the largest tech education network in Europe – we unite 65 universities across 20 regions and over 240 education partners. Our talent pipeline includes more than 43,000 students studying under industry-aligned programs.
We don’t just train coders – we redesign curriculum together with companies so that graduates enter the market fully industry-ready. For European partners, this means access to teams that know modern frameworks, understand Agile, and work by international standards. Onboarding takes weeks instead of months.
Infrastructure for cooperation
KP: You lead one of the largest tech clusters in Europe. What role does it play?
OP: Clusters are operators of cooperation. We turn scattered contacts into a structured network of collaboration – a one-to-many model. Kharkiv IT Cluster unites nearly 1,000 technology companies, educational institutions, and business partners across Ukraine and beyond.
Most importantly, we serve as a single-entry point for international partners. Instead of spending months searching for reliable companies, checking compliance, and building trust from scratch, they come to us.
We organize B2B matchmaking within a week, handle due diligence, and coordinate pilot projects – a neutral bridge between companies, investors, and public institutions. It’s an infrastructure for trust – the kind of efficiency and reliability investors rarely find elsewhere.
Clusters act as facilitators of collaboration between businesses, turning fragmented contacts into systemic value chains. For example, our IT Bridge project connects Ukrainian and European companies through cluster-to-cluster partnerships and joint initiatives, helping SMEs scale up and enter EU markets.
A recent illustration of how this cooperation works came during ReBuild Ukraine in Warsaw. Once the European Commission designated digital technologies as a priority pillar for Ukraine’s recovery, we quickly mobilized a delegation of Ukrainian tech companies and joined the Commission’s closed-door meetings with EU counterparts.
As a result, our companies were presented within a joint digital space, gaining direct access to European stakeholders and recovery frameworks.
The impact was immediate: participating companies rated the format with a Net Promoter Score of 75%, noting that the meetings led to concrete follow-up negotiations and next steps with potential partners.
Which institutional instruments make this cooperation work?
OP: Two are very important. The first, Enterprise Europe Network (EEN) – our contact point for EU–Ukraine B2B matchmaking and partnership development, covering over 60 countries. The second, Eastern Ukraine European Digital Innovation Hub (EDIH) – an EU-co-funded hub that provides SMEs with access to digital testing, training, and innovation services in AI, cybersecurity, and Industry 4.0 solutions.
Together they form an institutional bridge between European and Ukrainian SMEs – a channel for knowledge transfer, digital skills, and joint projects like Digital Europe, Horizon Europe, and the Single Market Programme.
KP: Which cooperation niches are ready “tomorrow morning”?
OP: According to our observations, four domains stand out:
- Web development, analytics and applied AI for big variety of industries
- Dual-use, unmanned vehicles and robotics technologies with clear compliance and certification pathways
- Industry 4.0/5.0 — digital twins, IIoT, predictive maintenance, and edge systems
- Cybersecurity — especially for critical infrastructure and OT environments
All are directly aligned with EU investment priorities and Ukraine’s existing industrial competencies and needs. And all align with the EU’s investment priorities – Digital Europe, Horizon Europe and the Single Market Programme, as mentioned above.
KP: How can a European company or fund start working with Ukraine’s tech sector tomorrow?
OP: Here are three practical steps:
First, contact Kharkiv IT Cluster. We can organize B2B matchmaking within a week, connect you with verified companies that fit your needs, and ensure a transparent, secure introduction process.
Second, use institutional platforms: Enterprise Europe Network for official partnership frameworks, and Eastern Ukraine EDIH for pilot projects in digital innovation. These are EU-compliant mechanisms that protect both sides and make cooperation easy to start.
Third, consider forming consortium partnerships for EU grants. Ukrainian tech companies have strong R&D capabilities, and joint applications under Horizon Europe or Digital Europe programs have a high chance of success. We’re already helping to build such alliances.