What's happening with Belarusian IT

ayshakhatunasha

The IT sphere in Belarus is undergoing radical changes. Spring and summer 2022 were marked by a powerful wave of relocation in the industry. It is only possible to estimate approximately how many IT specialists actually left the country.

What's happening with Belarusian IT. Photo 1
In 2021, Belstat published data showing that approximately 104 thousand people were employed in the field of information technology. This included not only employees of companies that are residents of the HTP, but also IT specialists of banks, retail chains, and companies that are part of technology parks (there are at least two thousand IT specialists in the same Great Stone). Plus, there are enough IT companies in the republic that, for various reasons, did not join the HTP. Not taken into account were juniors who have not yet found work in IT, university students of relevant specialties and various courses.

There is no complete picture of the virtual phone number service number of IT specialists who left, but there are a number of facts. According to official statistics, more than 5.5 thousand IT specialists left Belarus in the first half of 2022. It is also known that more than three thousand people quit IT companies in January-April, which is 50% more than those who were hired at the same time. The mass relocation of employees was initiated by the Belarusian offices of Wargaming (in connection with the company's departure from Belarus), EPAM, Exadel, iTechArt and Itransition, Playtika and others.

The outflow of programmers was largely facilitated by the reluctance of Western investors to cooperate with Belarusian companies that remained in the republic.

Where IT specialists are moving
The most popular relocation destinations are Poland, Georgia and Lithuania. This year, Uzbekistan and Turkey have joined the list. People move both independently and at the initiative of their employer. Companies almost always help employees with relocation. Traditional forms of support: visa processing, relocation bonuses, logistics, salary indexation, payment for rented accommodation in the new country.

What's happening with Belarusian IT. Photo 2
According to a study conducted by devby.io, Poland alone could accommodate 8-10 thousand Belarusians working in IT.

EPAM, SOFTSWISS, IBA, Exadel managed to open offices in Georgia. Up to 5 thousand people could go there.

Up to 2-3 thousand specialists could be relocated to Lithuania.

And the money? How much do IT specialists earn?
What's happening with Belarusian IT. Photo 3
Four out of 10 specialists report an increase in gross salary after relocation. Among them, approximately 60% are those whose relocation was initiated by the company. If we compare the income of those who left in 2020 and 2022, the former earn more. The longer a person lives in the country, the higher the income they can achieve. However, an increase in gross salary does not necessarily mean an increase in the amount "on hand".



The difference between net and gross salaries varies from country to country and depends on the tax system. The smallest difference between gross and net salaries is in Georgia, the largest in Lithuania and Germany.

What's happening with Belarusian IT. Photo 4
Where do taxes get paid?
As of the end of June, about a third of IT specialists who left Belarus continued to pay taxes here. The rest did so in the countries of their stay. Most likely, at the moment the number of payers to the budget of the Republic of Belarus has decreased, since the companies are busy with re-registration.

Alternative to moving
Not everyone can easily leave the country. Family and property issues stop them. There is an opportunity to continue working from Belarus, although many IT specialists are not given any guarantees in this case. Western customers can close projects with Belarusian companies. Contractors have to open individual entrepreneurship abroad or hide their location by working through a VPN.

What is happening in Belarus now
What's Happening to Belarusian IT. Photo 5
The IT sphere in Belarus continues to operate. According to the results of the first and second quarters, the HTP showed growth. Many experts attribute this to changes in taxation and some movement by inertia. The state of the IT sphere in the Republic of Belarus in the foreseeable future will depend on the desire of foreign customers to cooperate with companies located in Belarus. Unfortunately, many have decided not to develop projects.

At the same time, a fairly large portion of IT company employees in Belarus are not ready to leave the country, and there are those who have agreed to relocation, but are already planning to return home.

IT specialists who refused to move are still finding projects for themselves where the location in the Republic of Belarus is not important to customers and where money transfer channels are established. A certain balance of supply and demand in the internal IT market of the Republic of Belarus currently exists.

It should be noted that IT specialists in Belarus are currently in demand in banks, large retail chains, educational platforms, manufacturing companies, agricultural enterprises, and so on.

A survey conducted among HTP participants showed that many companies plan to remain in the HTP as long as the benefits are in effect. Optimistic forecasts for the development of the IT sphere are all associated with changes in the foreign policy situation.