West Helps Russian IT-Market to Grow
The year 2004 has shown a significant increase of western companies’ activity in the Russian IT-market.
Aug 31, 2005
The year 2004 has shown a significant increase of western companies’ activity in the Russian IT-market – and that is understandable, for nobody wants to lose his grip on the developing business, as the market growth rate is continuing to lead over both Eastern and Western Europe.
Latest IDC research showed stable sustained growth of the Russian IT market at 26.4% in the last year, reaching the total of $1.9 Bln.
IDC representatives say that it is the first year to show such active participation of western companies in the market games – HP rated 4th in the chart, IBM and Siemens Business Services also recorded significant growth. A new worldwide-present player – Logica CMG – has entered the market, and has won several huge bids within telco segment.
Experts say Russian IT-companies are still looking for bigger projects, preferring them over smaller ones. Traditionally, the vast amount of IT-services was consumed by financial, manufacturing, governmental and telecommunication sectors, which in total covered around 65% of the market. It is significant, says IDC, that the demand for IT-consultancy and business-oriented SW (like analytics, workflow automation, CRM and other systems) has increased dramatically compared to 2003.
The biggest part of IT spendings remains within joint sector of system and network integration, which accounts for 30.7% of the total pie, a bit less then in the year before.
The fastest growth has been recorded in the outsourcing segment, especially outsourced software development (SaaS in IDC terminology – Software as a Service).
Remarkably, the main driving force for the Russian IT market in 2004 was the tempestuous growth of ERP systems penetration, which increased almost 52%, with most of that growth attributable to license sales.
Although competition grew fiercer in 2004, there still are several companies confidently dominating in quite a few segments of the IT market. Namely, those would be CROC, IBS, R-Style Group, HP, Open Technologies, Borlas, Optima, LANIT, Technoserv, and I-Teco.
Consolidation processes are still ongoing at play, with larger companies from Moscow keeping up their expansion by means of acquiring their smaller regional rivals, while system integrators are broadening their range of services through absorption of narrowly specialized firms.
Based on the research, IDC forecasts further growth of the Russian IT market at 25.4% annually for the next 5 years, which would bring the market volume to $5.8 Bln by 2009.
Latest IDC research showed stable sustained growth of the Russian IT market at 26.4% in the last year, reaching the total of $1.9 Bln.
IDC representatives say that it is the first year to show such active participation of western companies in the market games – HP rated 4th in the chart, IBM and Siemens Business Services also recorded significant growth. A new worldwide-present player – Logica CMG – has entered the market, and has won several huge bids within telco segment.
Experts say Russian IT-companies are still looking for bigger projects, preferring them over smaller ones. Traditionally, the vast amount of IT-services was consumed by financial, manufacturing, governmental and telecommunication sectors, which in total covered around 65% of the market. It is significant, says IDC, that the demand for IT-consultancy and business-oriented SW (like analytics, workflow automation, CRM and other systems) has increased dramatically compared to 2003.
The biggest part of IT spendings remains within joint sector of system and network integration, which accounts for 30.7% of the total pie, a bit less then in the year before.
The fastest growth has been recorded in the outsourcing segment, especially outsourced software development (SaaS in IDC terminology – Software as a Service).
Remarkably, the main driving force for the Russian IT market in 2004 was the tempestuous growth of ERP systems penetration, which increased almost 52%, with most of that growth attributable to license sales.
Although competition grew fiercer in 2004, there still are several companies confidently dominating in quite a few segments of the IT market. Namely, those would be CROC, IBS, R-Style Group, HP, Open Technologies, Borlas, Optima, LANIT, Technoserv, and I-Teco.
Consolidation processes are still ongoing at play, with larger companies from Moscow keeping up their expansion by means of acquiring their smaller regional rivals, while system integrators are broadening their range of services through absorption of narrowly specialized firms.
Based on the research, IDC forecasts further growth of the Russian IT market at 25.4% annually for the next 5 years, which would bring the market volume to $5.8 Bln by 2009.