The Belarusian IT sector, once a thriving hub for innovation and growth, has faced significant challenges in recent years due to geopolitical events. Despite these hurdles, there is optimism for the future. This article provides an overview of the developments within the Belarusian IT sector over the past few years and explores how Employer of Record (EOR) services may offer a strategic advantage in the current challenging circumstances.
In Prague, during the 30th-anniversary celebrations of IBA Group, a prominent IT service company, founder and CEO Sergei Levteev shared insights into the current state of the IT sector in Belarus. The company, originally a joint venture between IBM and local IT organizations in Minsk, has expanded its global footprint with offices in 15 countries and development centers in nine. Notably, IBA Group has strategically shifted away from the Russian and Belarusian markets, emphasizing proximity to clients by relocating developers outside Belarus.
While the political situation in Belarus has prompted the exodus of some talent, IBA Group's supportive measures for employee relocation underscore a commitment to maintaining operational resilience. Currently, approximately 60% of their developers are based in locations beyond Belarus, fostering a diverse pool of skilled professionals.
Historically, Belarus enjoyed remarkable growth in its IT sector, with the Hi-Tech Park contributing significantly to the economy. However, recent political events, including the contested 2020 presidential elections and Russia's invasion of Ukraine in 2022, have altered the landscape. Major IT players such as Wargaming, PandaDoc, and Playrix have closed their operations in Belarus, resulting in a 2.2% contraction in the sector in 2022, a stark contrast to the 9.2% growth experienced in 2021.
As the Belarusian IT sector undergoes transformations, companies are seeking solutions to navigate the challenges. EOR services emerge as a strategic tool for IT firms to leverage Belarusian talent without maintaining a corporate entity in the country. These services offer flexibility in managing a distributed workforce, enabling companies to engage skilled professionals seamlessly and with significantly reduced political and administrative risks.
Despite the current challenges, there is hope for the Belarusian IT sector. Levteev emphasizes the importance of developments in Ukraine, expressing optimism that Belarus will strengthen ties with Western neighbors. As borders shift and diplomatic changes unfold, there is anticipation that the Belarusian IT sector may regain its prominence, potentially fostering increased collaboration with international partners. In 2023, approximately 10,000 future IT specialists graduated from universities in Belarus and are looking to start their careers. The numbers of new IT-oriented graduates will not fall significantly during the next years. The great reputation that Belarusians have as IT developers will help kickstart those careers, and many will be employed via PEOs using Employer of Record services.
The Belarusian IT sector has weathered significant disruptions, prompting a reassessment of strategies and operations. Employing an adaptive approach, companies like IBA Group demonstrate resilience by diversifying their global presence. In this dynamic landscape, EOR services emerge as a valuable resource, offering IT firms the flexibility and support needed to navigate uncertainties. As the sector looks toward the future, collaboration and strategic partnerships may pave the way for renewed growth and innovation.
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