MANAGEMENT CHALLENGES IN THE IT SECTOR IN CENTRAL EASTERN EUROPE (CEE) IN 2024

This article aims to demonstrate the research outcomes and concrete recommendations for managers on what can be done to deal with challenges that the IT sector faces in the CEE region in 2024 due to the global IT industry crisis. Obtained scientific results are based on general scientific and special methods that include logical and theoretical generalization, analysis, and deduction. The situation in the IT sector is viewed from different angles: global trends, economic situation, financial regulation by government institutions, declining demand, and intensified competition from cheaper labor in Asian countries, particularly India. The Ukrainian IT industry, in particular, is undergoing severe trials due to the full-scale russian invasion, and decreasing demand for services. One of the most visible indicators of this decline is the reduction in workforce within the largest Ukrainian companies, such as EPAM Ukraine, SoftServe, GlobalLogic, Luxoft, and Ciklum. Key contributing factors include rising capital costs driven by increased interest rates in the US and other leading economies, which have restricted IT companies’ access to affordable external financing, making it difficult to invest in innovation and growth. Additionally, the full-scale war in Ukraine has brought unprecedented challenges, particularly for IT management, requiring swift and effective decision-making to address issues such as power outages, staff mobilization, and increased managerial burdens due to workforce reductions. The article focuses on researching the details of CEE IT sector, strategic management choices, and tactical techniques to enhance managerial efficiency. Emphasis is placed on whether note-taking can be recommended as a fundamental tool for improving management effectiveness. The research examines the impact of global economic factors, workforce optimization, and cross-cultural communication, with the goal of identifying resilient and innovative management practices that can support sustainability and growth within the region’s IT industry amidst ongoing challenges.