The IT sector began to lose momentum
In the second quarter, the number of new FOPs in IT decreased by 8.7% — up to 8.8 thousand. At the same time, the number of entrepreneurs who ceased operations increased by 6.5%.
Due to this, the net growth of IT-FOPs has more than halved - from approximately 2.1 thousand to 800 entrepreneurs per quarter
At the same time, the IT sector itself remains in the positive. According to the results of the second quarter, it received a net increase of approx 790 FOPs. However, the positive result was formed by related areas, which compensated for the losses in programming.
Programming turned out to be in the red for the first time
The sphere turned out to be the most problematic computer programming, which is traditionally the largest area of Ukrainian IT business.
In the second quarter, about 4 thousand new FOPs, while they ceased operations for approx 4.5 thousand
Thus, the number of closures exceeded the number of new registrations by 506 entrepreneurs.
The negative trend was manifested not only in the second quarter. In the first half of the year, the balance in the field of computer programming was already minus 267 FOPs.
Why classical development is losing ground
The changes are taking place against the background of the transformation of the IT market itself. The demand of employers is gradually shifting from traditional web and software development to areas related to DefTech, Hardware, Embedded, artificial intelligence and working with data.
At the same time, competition among classic software developers is intensifying. This creates additional pressure on specialists who used to work as independent non-profit organizations.
Another factor is the change in cooperation models. Part of the IT specialists transitions from traditional work through FOP to gig contracts and other forms of employment, which also affects the statistics of entrepreneurs' registrations.
Small businesses generally show the opposite trend
The situation in IT is significantly different from the general picture of Ukrainian small business.
In the first half of the year, the number of new FOPs exceeded the number of closures by 40.2 thousand At the same time, 22% more entrepreneurs were registered in the second quarter than in the first quarter.
The indicator became the highest for the second quarter in the last five years.
That is, the problem at the moment is not a general decline in entrepreneurial activity. On the contrary, Ukrainians continue to actively open businesses, but the structure of new enterprises is gradually changing.
What does this mean for Ukrainian IT
Statistics show the gradual reformatting of the Ukrainian IT market. The classic model, when a significant number of specialists work as FOP for export IT companies, is losing its former dynamics.
At the same time, the growth of artificial intelligence, defense technologies, hardware and Embedded can create new opportunities for specialists.
Therefore, the reduction in the number of IT FOPs does not necessarily mean the collapse of the Ukrainian IT industry. Rather, it is about changing the structure of employment, demand for specialists and models of cooperation with business.
In recent years, the number of IT-FOPs in Ukraine has already decreased by more than 56 thousand, or about 21%, while the share of professionals working through gig contracts and other formats grew.