Russia's IT Boom
Exports of Russian programming products increased by 80 percent this, from $1-billion worth last year to $1.8 billion in 2006.
Dec 23, 2006
Exports of Russian programming products increased by 80 percent this, from $1-billion worth last year to $1.8 billion in 2006, Information Technology and Communications Minister Leonid Reiman announced. He expects that indicator to rise by ten times by 2010. The world market is expected to rise from the current $60 billion to $90 billion. Analysts predict that Russia will be one of the top three countries for IT outsourcing by.
At least 70 percent of Russian IT export is software written for foreign countries, with the balance being a mixture of so-called boxed software, that is, production of finished product, and the outsourcing of business processing. This is according to the estimate of Viktor Vainshtein, head of the Aplana company. "Russia now controls 3 percent of the market for offshore programming," Vainshtein said. "By 2010, our country might confidently claim 10 percent and, if things go right, 15 percent. That will be possible in large part thanks to active state support."
The state has paid more attention than usual to IT this year. A program was instituted by the government for the development of IT-oriented technology parks, on which 2 billion rubles will be spent next year. A law was passed this year to provide tax breaks on the single social tax for companies specializing in IT, which will partially compensate for the rising salaries in the field and help maintain Russia's competitiveness. The Ministry of IT and Communications is panning to set up a Federal IT Export Development Agency.
Russia is winning a place for itself in the market for scientific programming products. "We don't have as many human resources [as India and China]," Vainshtein said, "but they are better trained and they can solve more complex problems. General director of the ISG company Alexey Kudryavtsev agreed, saying, "Russia is not a competitor of India or China. We have a separate niche – that of quality product."
At least 70 percent of Russian IT export is software written for foreign countries, with the balance being a mixture of so-called boxed software, that is, production of finished product, and the outsourcing of business processing. This is according to the estimate of Viktor Vainshtein, head of the Aplana company. "Russia now controls 3 percent of the market for offshore programming," Vainshtein said. "By 2010, our country might confidently claim 10 percent and, if things go right, 15 percent. That will be possible in large part thanks to active state support."
The state has paid more attention than usual to IT this year. A program was instituted by the government for the development of IT-oriented technology parks, on which 2 billion rubles will be spent next year. A law was passed this year to provide tax breaks on the single social tax for companies specializing in IT, which will partially compensate for the rising salaries in the field and help maintain Russia's competitiveness. The Ministry of IT and Communications is panning to set up a Federal IT Export Development Agency.
Russia is winning a place for itself in the market for scientific programming products. "We don't have as many human resources [as India and China]," Vainshtein said, "but they are better trained and they can solve more complex problems. General director of the ISG company Alexey Kudryavtsev agreed, saying, "Russia is not a competitor of India or China. We have a separate niche – that of quality product."