SECTORAL PECULIARITIES OF THE FUNCTIONING OF IT SERVICES MARKETS IN UKRAINE

Introduction. Information technology (IT) has permeated all spheres of life, driving development and innovation. The IT services market is growing dynamically, opening up new business opportunities. However, its functioning has certain peculiarities related to the rapid pace of technological progress, fierce competition, and specific customer needs. Objective. The article aims to study the industry-specific features of the IT services markets in Ukraine and the world, analyze their development trends, and offer recommendations for companies seeking to succeed. The rapid development of technologies such as artificial intelligence, machine learning, the Internet of Things, cloud computing, and blockchain is transforming the IT services market. Due to the proliferation of cyber threats, the demand for cybersecurity and data protection is growing. Materials and Methods. The focus is on personalization and convenient user experience. Flexible work models, such as freelancing and remote work, are becoming increasingly important. There is excellent potential for development due to the availability of qualified personnel and a favorable investment climate — rapid growth in data management, telecommunications, cloud computing, and fintech segments. Need to stimulate innovation and implement European standards. Results. The positive impact of the unification of Ukraine's digital market on competition, prices, and availability of services. Challenges related to the war in Ukraine, such as infrastructure destruction, loss of staff, and instability. Government support for innovative startups and incubators. Improving education and training of IT professionals. Stimulating the development of digital infrastructure. Attracting investment in the IT sector. Harmonization of Ukrainian legislation with the European one. Creating a favorable business climate for IT companies. The IT services market offers many opportunities for development and growth. Companies that can adapt to changing conditions, innovate, and provide quality services will succeed in this dynamic sector. Impact of the war in Ukraine on the IT services market: The war has created new challenges and opportunities for Ukrainian IT companies. Discussion. On the one hand, it has led to the loss of some human capital and the destruction of infrastructure. On the other hand, it has stimulated the development of online services and the export of IT products. The role of the state in developing the IT services market: Creating a favorable investment climate, supporting innovation, and developing IT education.