In the latest of a series of articles drawing on the original analysis and data collected by Emerging Europe as part of our Future of IT report, we look at Belarus, a once promising IT sector decimated by an exodus of talent amid political repression.
Not so long-ago Belarus was being hailed as a burgeoning tech hub in Eastern Europe, with its IT sector positioning itself as a regional success story.
The industry thrived on a mix of government incentives, a well-educated workforce, and the country’s strategic location, which allowed it to act as a bridge between East and West.
However, the political upheaval following the rigged 2020 presidential election has driven many firms and professionals to seek opportunities abroad, eroding the sector’s promise and raising questions about its future.
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This has been reflected in the country’s performance in Emerging Europe’s IT Competitiveness Index, part of the Future of IT report published earlier this year: Belarus fell from 18th place in 2023 to 22nd in 2024.
Before 2020, Belarus’ IT industry was on an upward trajectory with the High-Tech Park (HTP) in Minsk, established in 2005, the hub of the sector. Modeled on Silicon Valley, the HTP offered tax incentives, streamlined regulations, and an ecosystem that encouraged startups and innovation.
By 2020, it was home to over 1,000 companies, with global players such as Wargaming and EPAM Systems leading the charge.
Belarusian engineers were in high demand internationally, celebrated for their expertise in software development, artificial intelligence, and fintech. The IT sector grew to account for 6.4 per cent of GDP, employing over 60,000 specialists and generating billions in export revenue.
Turning point
The controversial 2020 presidential election and the ensuing crackdown on dissent marked a turning point, however.
The widespread protests against Alexander Lukashenko’s regime saw the IT community, traditionally apolitical, taking an unprecedented stand. Many tech professionals supported opposition efforts, and companies openly called for a peaceful resolution to the crisis.
The government’s response was swift and severe. Internet shutdowns, arrests, and threats against outspoken tech leaders created an environment of fear.
The very infrastructure and policies that had fueled the sector’s growth became tools for surveillance and repression. For a sector reliant on openness, connectivity, and innovation, these measures were devastating.
Exodus
Faced with increasing pressure, many IT professionals and companies began relocating. Poland, Lithuania, and – before Russia’s invasion – Ukraine emerged as the top destinations, offering attractive incentives for relocating businesses.
Poland launched the Poland.Business.Harbour programme, granting streamlined visas and support for Belarusian firms. As of 2023, over 150 companies and thousands of tech workers have moved to Poland.
Lithuania, a close neighbor, also opened its doors, with Vilnius becoming a hub for Belarusian start-ups seeking stability and EU market access.
This migration has drained Belarus of its top talent. Estimates place the number of IT professionals who have left the country at upwards of 20,000. This brain drain has weakened the sector domestically, with many companies unable to maintain operations or expand.
Some talent remains
Not all IT professionals have left, however. Belarus ranks 18th in the Talent subcategory of the IT Competitiveness Index, with a score of 12.90.
Despite the exodus, Belarus still boasts a decent IT talent pool, supported by its long-standing focus on technical education. Many IT professionals in Belarus are highly skilled in software development, data analysis, and emerging technologies, making the country an attractive destination for outsourcing IT services.
The government continues to invest in STEM education, and while the number of graduates entering the IT field remains consistent, the brain drain poses a significant challenge to the country’s future growth in this sector.
IT infrastructure
Belarus also ranks 18th in IT infrastructure, with a score of 7.91. The country has made progress in expanding internet access and improving its digital infrastructure, but it still faces significant challenges compared to other nations in emerging Europe.
Belarus has invested in broadband expansion and digital services, but further improvements are needed to strengthen its IT ecosystem.
One of Belarus’s strengths is its high internet penetration rate, with 89.5 per cent of the population online. The cost of internet services remains relatively low, making digital access affordable.
Despite this, the country’s connectivity speeds lag behind more developed markets, limiting the effectiveness of its digital transformation efforts.
Economic impact, business environment
In the Economic Impact category, Belarus ranks 17th, with a score of 8.58. The country’s IT sector has consistently contributed to its economic growth, with IT services exports remaining strong despite the political climate and subsequent challenges.
The value of IT services exports peaked at 2.74 billion US dollars in 2021, although it declined slightly to 2.57 billion US dollars in 2022.
Unsurprisingly, Belarus ranks at the very bottom in the Business Environment category (23rd), with a score of just 3.51.
The country’s political instability and economic sanctions have created a challenging environment for IT businesses.
While Belarus has a strong regulatory framework for IT and a growing start-up ecosystem, the broader economic and political landscape has made it difficult for companies to operate freely.
Uncertainty prevails
Belarus’s drop in the IT Competitiveness Index highlights the challenges the country faces in retaining talent, improving infrastructure, and navigating a difficult business environment.
Nevertheless, its IT sector remains a vital contributor to the economy, particularly through its strong export performance and skilled workforce.
Belarus’s IT sector has the potential to grow if it can overcome its political and economic challenges. By continuing to invest in digital infrastructure and fostering a more stable business environment, Belarus could maintain its position as a key player in the regional IT market.
However, much will depend on the country’s ability to stabilise its economy and retain the skilled professionals who drive its IT industry.
Indeed, the Belarusian IT story is no longer one of promise but of potential unfulfilled. The question remains: can the sector ever recover, or will it remain a footnote in the region’s broader tech narrative?
By addressing and engaging with legitimate concerns and focusing on education, we can counter disinformation much more effectively while promoting democratic values.
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