Exports and Global Standing
Ukraine’s IT sector plays a key role in the economy, as the largest exporter of services, generating substantial foreign currency revenue. In 2024, IT services accounted for 37.4% of total service exports, down from 41% in 2023, yet still highlighting the industry’s significance.
Israel also boasts a strong export-driven IT sector, though its structure differs:
It is primarily focused on products and deep-tech solutions (AI, cybersecurity, fintech), whereas Ukraine is dominated by outsourcing and service-based models.
In 2023, Israel’s technology exports exceeded $50 billion, with a major share coming from cybersecurity and defense technologies.
Israel’s experience demonstrates that crisis periods can become catalysts for innovation-driven companies, provided they can adapt and diversify their business models.
Talent Challenges: Retention and Military Service
Ukraine’s IT sector faces challenges related to military mobilization, restrictions on travel, and increasing migration trends. According to Lviv IT Cluster, around 11,500 IT specialists may leave Ukraine in 2025, with an additional 20,000 expected to leave even after the war ends.
Despite Israel’s partial military mobilization, the country has a flexible recruitment system for IT professionals. Serving in elite military tech units like Unit 8200 not only does not hinder career growth but boosts it significantly, as many veterans become leaders in Israel’s high-tech industry.
"Crises can be not just a challenge but also an opportunity for growth. Israel demonstrates how military technologies can drive IT industry development, creating globally demanded solutions. Ukraine should view IT as a strategic asset rather than merely an outsourcing hub."
— Alyona Novgorodskaya, Founder of Global Israeli Initiative
Financial Performance: Investments and the War’s Impact
In 2024, Ukraine’s IT sector showed mixed performance. The export of IT services grew by 18.7% in December, reaching $617 million, but overall growth lagged behind previous years.
In contrast, Israel’s IT market has continued to attract investments even during crises. Despite military operations in 2023, Israeli tech companies secured $8.5 billion in venture capital funding, only 15% lower than pre-crisis levels. This resilience stems from:
A focus on products and deep-tech, making Israel less dependent on external clients.
Government and defense sector support, ensuring market stability.
Ukraine can leverage this experience by expanding its product-driven companies and fostering a stronger startup ecosystem, ensuring greater resilience against external disruptions