
Challenges and Opportunities for Ukrainian IT Companies: Recommendations from Roman Vinokurov, CEO of JustSoftLab
In discussions with the founders of Ukrainian outsourcing IT agencies: which have a significant authority in the international arena of the IT market, I noticed that they all face the same problems. Here are some key trends affecting our market:
1. Decreasing Order Volumes and Overall Market Decline
The number and volume of orders are decreasing. The market, in general, is experiencing a downturn, and venture capital funds are reluctant to invest in new projects. Additionally, the development of artificial intelligence has lowered the cost of certain tasks, especially lower-level work such as website development. However, data suggests that the market will recover and begin to grow again, which is a positive sign.
2. Client Hesitancy Due to War Risks
Clients are often hesitant to order services from Ukrainian teams due to risks associated with the war, safety concerns, and the potential mobilization of employees. This is a serious issue that cannot be solved with simple solutions. We need to be more competitive and stand out with our marketing approach.
How to Adapt to the New Realities
Positioning is Key
Your company’s positioning needs to be clear and distinct from others. Often, companies limit themselves to vague statements like "the best software development studio," which makes them just "one of many." Let's consider a few positioning approaches that might be effective under current conditions:
- Client Type: For example, specializing in startups, small and medium-sized enterprises, large corporations, or government organizations. However, this may not always be sufficient, as competition can still be high even within these segments.
- Characteristic or Focus on a Specific Process: For example, transparency in processes, speed of development, or a focus on data security. This is an effective approach, but it requires significant resources and time for content creation and promotion.
- Technology: Specialization in specific technologies, such as Node.js or high-load API, can be a good choice for small teams. However, it's important to consider the possibility of technology changes and the corresponding need to adjust your positioning.
- Job to be Done (JTBD): Positioning through specialization in a specific task, such as rewriting software, cloud migration, or optimization. This is a great option for small teams and increases the chances of success in PPC and SEO.
- Industry: Specialization in a specific industry, such as EdTech, FinTech, or MilTech. This allows for the acquisition of niche expertise, process automation, and the creation of relevant content, significantly increasing the chances of success.
Personal Brands
In our time, human faces and personalities are becoming increasingly important. Select a few people from your company who can become brand ambassadors and help them develop their personal LinkedIn profiles. It's better to follow the 80/20 rule—80% professional content, 20% personal, to show your humanity.
Close Involvement of Founders in Sales
In the service business, especially during a crisis, a founder involved in sales is crucial. Clients want to talk to someone who: a) makes final decisions, b) has the authority to discuss financial matters, c) understands what the company can and cannot do, and d) is on their level of understanding and hierarchy.
Reviews and Recommendations
Client reviews on platforms like Clutch and Goodfirms are vital for acquiring new clients. Use these reviews in retargeting and promotional materials to build trust with potential clients.
Modernization Considering AI
Artificial intelligence is a game-changer, automating routine tasks and code analysis. Integrating AI tools can help reduce operational costs and increase competitiveness. It’s also important to develop expertise in AI to stay ahead of the curve.
Strategic Partnerships
Form strategic partnerships with complementary businesses, such as marketing or consulting agencies. This will help increase lead generation channels and create your own service ecosystem.
Creating Your Own Products
After many successful cases, you may have an idea for creating your own product. This not only boosts your company’s prestige but also diversifies your revenue streams.
By combining unique positioning with these marketing approaches, Ukrainian IT companies can gain a competitive advantage even in difficult conditions. I believe that the IT industry holds the future of our economy, and I hope these recommendations will help your company become stronger.
p.s. This article is not the final truth, as every company is unique and requires its own approach. I'm open to dialogue and would love to hear your comments or additional ideas.
Best regards, Roman Vinokurov, CEO of JustSoftLab