Aftershock in Europe’s Tech Talent Market: Agmis on the Developer Crunch Caused by War
The war in Ukraine has sent shockwaves through Europe’s technology industry, disrupting one of the continent’s most vital sources of developer talent
With more than 300,000 IT professionals, Ukraine has one of the largest and most active software engineering communities in Europe, a crucial hub for nearshore outsourcing, custom development, and dedicated team services for global clients. Before the Russian invasion, Ukraine and Belarus played pivotal roles in Europe’s software outsourcing ecosystem. Now, the sudden disruption of these markets has left a visible gap in the talent landscape, with far-reaching consequences for digital transformation and business continuity efforts across the continent.
“Imagine if 10–15% of the European developer workforce disappeared overnight,” says Saulius Kaukėnas, CEO of Agmis, one of the leading software development companies in the Baltic region. “That’s exactly what’s happened. We’re seeing an industry-wide developer crunch, with clients urgently looking to fill gaps and stabilize ongoing projects.”
Saulius Kaukėnas, CEO of Agmis.
Nearshore Development Market Faces Geopolitical Shock
The Ukrainian tech sector had been proactively bracing for instability, moving key personnel to the western regions, opening satellite offices abroad, and setting up emergency relocation plans. But nothing could have prepared the industry for the systematic targeting of civilian infrastructure, nor the humanitarian catastrophe that followed.
“We hear stories of developers writing code between air raid sirens, or IT specialists leaving their desks to join the armed forces,” Kaukėnas shares. “It’s a testament to the courage and resilience of Ukrainian professionals and it reminds us of how deeply the global tech ecosystem depends on this region.”
In response, neighboring countries, especially Lithuania, have taken swift action. The Lithuanian government introduced fast-track procedures to employ Ukrainian refugees, while the tech community opened up remote and on-site opportunities to displaced developers and their families.
Agmis Steps In to Bridge the Talent Gap
With years of experience in custom software development, AI solutions, and dedicated team sourcing, Agmis is well positioned to support European clients in the face of disruption. By quickly onboarding talent, redistributing projects, and offering developer-as-a-service models, Agmis is helping clients maintain momentum while simultaneously supporting displaced professionals.
“Ukraine was punching above its weight in the global software development market,” says Kaukėnas. “Many companies are now realizing just how heavily they relied on Ukrainian engineers. But I have no doubt that once the war is over, Ukraine’s tech sector will be one of the pillars of its economic recovery.”
Belarus: A Diverging Path
While Ukraine’s challenges are widely seen as temporary and external, Belarus faces longer-term structural issues. Once a player in the lower-cost segment of the outsourcing market, Belarus has seen widespread Western client exits due to sanctions, legal instability, and growing concerns about data protection and rule of law.
“We’re witnessing the emergence of a new digital iron curtain,” Kaukėnas remarks. “Sanctions are one piece of the puzzle. There’s also a cultural backlash, clients simply don’t want to invest in regions perceived as unsafe or ethically compromised.”
From a talent perspective, this means even more strain on alternative nearshore markets such as the Baltics, Poland, Romania, and other EU-aligned countries.