Russian IT Spending to Exceed T13bn by 2008
Nov 24, 2004
By John Tilak
The IT market in Russia reached T5.4bn in 2003 and is expected to grow by 26 per cent in 2004, according to a study by market advisory firm IDC.
Over the next few years, growth is to be driven by investment from both traditional Russian IT spenders, like resource extraction, government and financial vertical markets, and younger, fast-growing industries such as retail and telecoms. By 2008, total spending on IT is expected to exceed T13bn.
In 2003, Russia enjoyed a period of unprecedented economic growth that fueled spending in both the business and consumer segments of the IT market.
The government sector accounted for the largest share of IT spending in Russia. Process manufacturing and agriculture, construction and mining tied for second, with the home vertical a close fourth. Altogether, these verticals represented almost 48 per cent of IT spending in Russia in 2003. While all four of these are expected to show solid growth over the next few years, education and wholesale will be the two fastest-expanding verticals in the Russian ICT market, though these two sectors are starting from relatively small bases. Banking and financial services are to also expand apace, with banking becoming one of the top 3 verticals by 2008.
Though hardware remains by far the largest segment of the Russian IT market, its share fell from 68.6 per cent in 2002 to 66.6 per cent in 2003.
The IT market in Russia reached T5.4bn in 2003 and is expected to grow by 26 per cent in 2004, according to a study by market advisory firm IDC.
Over the next few years, growth is to be driven by investment from both traditional Russian IT spenders, like resource extraction, government and financial vertical markets, and younger, fast-growing industries such as retail and telecoms. By 2008, total spending on IT is expected to exceed T13bn.
In 2003, Russia enjoyed a period of unprecedented economic growth that fueled spending in both the business and consumer segments of the IT market.
The government sector accounted for the largest share of IT spending in Russia. Process manufacturing and agriculture, construction and mining tied for second, with the home vertical a close fourth. Altogether, these verticals represented almost 48 per cent of IT spending in Russia in 2003. While all four of these are expected to show solid growth over the next few years, education and wholesale will be the two fastest-expanding verticals in the Russian ICT market, though these two sectors are starting from relatively small bases. Banking and financial services are to also expand apace, with banking becoming one of the top 3 verticals by 2008.
Though hardware remains by far the largest segment of the Russian IT market, its share fell from 68.6 per cent in 2002 to 66.6 per cent in 2003.