RUSSOFT Association has put out the largest research of IT industry in Russia - RUSSOFT
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RUSSOFT Association has put out the largest research of IT industry in Russia

Source: RUSSOFT
Oct 13, 2004
The export software development market has existed in Russia for more than 10 years, and today is a significant sector of the IT market. The market has a total volume of $2.2 billions and is likely to continue growing at its achieved growth rate of 25% a year. Export software is growing even more rapidly, at about 40-50% a year! Today three orders of value separate intellectual services export from gas and fuel export. If growth rate remains stable at this year's rate, then in a few years a new industry may be competing with arms exports.

These are the results of the grand-scale research of Russian export software market that has been completed in October. The research was conducted by RUSSOFT Association and "CNews Analytics". The technical execution was done by "Fort-Ross" company.

This project is the largest one in Russian IT industry study. Data was being collected since April till August 2004. More then 300 big, middle and small software development companies have been examined in the course of the study. The questionnaire for the survey has been developed by researches together with experts of IT leaders. Data on companies' turnover, developers' salary and other has been got under agreements of confidentiality with responding companies.

Main parts of the research are "The software outsourcing market in Russia"; "Practical aspects of export software development in Russia"; "Software used by companies"; "A legal view of software development in Russia"; "Profiles of companies". The report contains not only strict information (including tables, graphics and diagrams), but also evaluations and recommendations on the topics.

As a result of the study an objective volume of software export has been determined. In 2003 it was $546 millions, which is more than the figures that Ministry of Communications has announced. Thus, growth of software export in 2003 as compared with 2002 has run up to more than 50%.

Key questions for the development of export business are the questions of software quality. It is the attention to quality assurance that made it possible for several Russian companies to become leaders on European and international software market.

According to expert estimations, the governmental support of the industry is crucial. The number of export software companies is lately actively growing. Nevertheless without Government support, growth in software exports could drop in 2005 to some 30-35%. This will be a consequence of the market deploying all available resources, such as specialists, technology, financing, etc. In such conditions all developers will pay close attention to the work of the Ministry of Communications and of the Government, which will to a large extent determine further development scenarios for the industry.

The research project was supported by Information & Computer Technologies Industry Association (ICTIA) and International Finance Corporation (IFC). This is the first time that IT community together with independent analytical agency and an institution of World Bank have gathered to get a real information about the market.

The preparation of research has contemporized with the first declaration of Ministry of Communications about software export tendencies and necessity to develop this area of IT business in Russia. The initiators of the study hope that the research will be used by governmental representatives as a good analytical basis that contains recommendations on improvement of situation in IT-industry.

Detailed information on the research see at http://www.fort-ross.ru/surveys/offshore/index-eng.html
RUSSOFT Association
"Fort-Ross" Company
[email protected]
In St-Petersburg: +7 (812) 331 7560
In Moscow: +7 (095) 745 4447

RUSSOFT Association profile

RUSSOFT Association is a union of the largest and most technically competent software developing companies from Russia, Belarus and Ukraine with Head-quarters in Saint-Petersburg, Russia. By joining forces under the leadership and control of RUSSOFT, we are able to offer our customers a synergistic and comprehensive range of technologies and solutions.

RUSSOFT Association unites 70+ companies with more than 5000 highly qualified, professional software engineers. Many have advanced graduate level degrees in Computer Science. RUSSOFT is affiliated with leading Universities - reputable winners of the ACM Collegiate Programming Contests, which gives us access to the superb research, technical capabilities and human resources. We keep close partnership relations with many International and National IT Associations.

Our main goal is to unite all major export oriented software companies and R&D organizations in Russia and Belarus, with the objective of forging partnership relations and developing a unique team-spirit, both directed on stimulating development of the overall cluster. We attract investment and increase the commercial strength of the industry in all major external markets.

We are committed to maintaining the highest level of international standards, professional training, information security and quality control - where our members keep the absolute leadership in implementing CMMI standard in the whole Europe. RUSSOFT members are capable of providing sophisticated solutions and implementing customer software requirements ranging from small projects to those consisting of several hundred person-months. These capabilities are verified by long term customer relationships and by our list of significant international customers such as Italtel, IBM, Boeing, SAP, Procter&Gamble, CSC and many others.