Riding the tech migration wave: capitalizing on the IT influx across Eurasia
Our main story from the February 2024 edition of The Steppe
In the tech world's version of musical chairs, the South Caucasus and Central Asia have become some of the hottest seats. The region has experienced a surge of tech talent over the past two years, playing host to a wave of relocating Russian and Belarusian tech workers. Armenia, Georgia, Kazakhstan, Kyrgyzstan, and Uzbekistan have become popular migration destinations for these highly skilled, highly-mobile young people who bring disposable cash and skills with them.
Since Russia’s invasion of Ukraine, more than 50 multinational companies have moved their offices and staff from Russia to Kazakhstan alone. Notable among them is tech company InDrive, an international ride-hailing service. Armenia, too, has emerged as a popular destination, with Miro, the popular collaborative whiteboarding tool, choosing the country for its relocation.
The exodus of tech talent has sparked a competition among the region’s tech hubs. IT Park in Uzbekistan, Astana Tech Hub in Kazakhstan, and Engineering City in Armenia have quickly positioned themselves to leverage the growing tech capacity to attract and retain this valuable pool of professionals.
The impact of this tech migration is already reshaping local economies and societies. While it’s caused soaring property and rental prices, raising concerns among locals, their arrival also injects a substantial amount of cash and expertise into the region, creating new employment and investment opportunities.
The fact that tech workers and their companies can choose to be based more or less anywhere is a crucial aspect that distinguishes them from traditional migrants. The jobs they create are often high-paying, contributing to the formation of a rapidly burgeoning middle class.
The wave of well-paid tech workers means an expanded customer base for a range of businesses. Whether it's in the tech sector or other industries, the presence of a larger middle class can drive consumer spending, fueling economic growth in various sectors, including hospitality, tourism, property and leisure.
But are they here to stay? Well, that’s unlikely, say most experts, but countries can still find ways to make sure they’ve benefitted from the migration shift even after it comes time for tech workers to move on.
Anatoly Motkin, President of Strategeast, an NGO working to develop Eurasia’s digital economy, emphasizes the contribution these arrivals can make to the overall capacity of the local workforce.
“Each senior coder or developer that arrives trains and educates four or five junior developers annually. As mid-level or senior specialists, they develop local talent, thereby contributing to the sustainability and growth of the local IT sector.”
That could be transformative for economies across much of Eurasia. This knowledge transfer can have long-term impacts, retaining valuable skills within the country and reducing reliance on foreign expertise. Even if these tech workers stay for a short duration, Motkin says,
“they leave a lasting digital footprint by educating local talent who continue working for international clients and developing IT experts for their own countries.”
However, to harness the potential of these workers and the jobs they create, countries need forward-thinking policies that foster innovation and support entrepreneurship. Motkin suggests that governments, authorities, and universities should collaborate with the relocated tech companies to explore shared initiatives. Rather than pressuring developers, the collaboration should be natural, focusing on how companies can contribute beyond training and hiring local talent:
“These tech companies should think in terms of legacy, aiming to contribute to institutions in host countries and enriching the entire ecosystem beyond immediate workforce development.”
And, to ensure success in the long term, host nations across Eurasia must focus on creating an environment that fosters growth, innovation, and sustainability. The clock is ticking to transform this potentially one-time injection of cash and skills into a more sustainable force. If these countries fail to catch the tech wave quickly and implement effective policies, their tech bubble could soon burst for good
.