RUSSOFT: Overall Results 2004 - RUSSOFT
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RUSSOFT: Overall Results 2004

Source: RUSSOFT
Dec 15, 2004
Undoubtedly, the major result of 2004 for us is the useful increase of cooperation between industry and government, which was shown by joint preparation and approval of the government the conception for the IT market development in Russia. By itself, the fact of the market development concept acceptance on the governmental level is the major forward step towards the creation of the favorable conditions for business as well as good characteristics of the dialog level between industry and government. And in the strategic plan - that is a starting point for Russian IT industry on the way of appearance to the leading world positions.

The key factor of industry consolidation, which in many respects promoted the dialog development with government, is the merger of 2 major software development associations: "Fort-Ross" Consortium, that celebrated this year the 5th anniversary, and the software development association "RUSSOFT", that celebrated this year the 3rd anniversary. Nowadays, "Nonprofit Partnership RUSSOFT" includes 75 leading software development and export companies. The merger was taken by Russian as well as foreign analysts as one of the most important steps towards the development of domestic IT industry.

The Partnership organized around 20 events in Russia and abroad. Among those are:
  • "Russian Pavilion" at CeBIT exhibition, Hanover, March
  • 4th Russian Outsourcing & Software Summit 2004, the largest software development conference and exhibition in CIS and East Europe, St-Petersburg, June
  • European Software Quality Assurance Days - Moscow, September
  • 2nd Russian CIO Summit - the only conference for IT directors, dedicated to the outsourcing within Russia, Moscow, October
  • Baltic IT Cruise - first conference for Scandinavian and Russian companies onboard of Viking Line ferry in between Sweden and Finland, November
Last year, by reviewing results of 2003, we suggested that in 2004 we will see the growth of the Russian market, consolidation of the companies, niche development of the Russian software on the global market. By our forecast, the continuation of the practical dialog establishment between the industry and government should lead to the successful results.

As we can see, year 2004 to a great extent justified our hopes. Marketing and PR of the Russian offshore software development industry on the world's market, which seemed to be one of the main problems and weakest sides in 2003, in year 2004 became much stronger. Russian IT companies called the attention of the foreign customers and analysts. Perhaps, even more important result is that the government started to pay attention to the needs of Russian software developers.

Other tendencies of 2004, which were highlighted by RUSSOFT members, are:
  • Growth of the internal as well as external outsourcing market
  • Growth of the companies
  • Growth of the interest to Russia as the place for major development centers placement, appearance of the key foreign players on the Russian market
  • Development and diversification of the market
Among the main problems were highlighted the lack of qualified professionals, caused by increased cost price of the production, as well as management problems, that appear by the sharp growth of the company.

Among the main achievements are:
  • Merger of the "RUSSOFT" and "Fort-Ross"
  • Government Interest Attraction
  • Attention of the foreign analysts to Russia; awarding higher rating for Russia at the Gartner report
  • Creation of the technology centers both Russian and foreign
For year 2005 the members of the RUSSOFT suggest the further market growth and development; consolidation of the companies, including mergers; competition consolidation on the global market, especially from the side of India and China; lack of qualified professionals consolidation as well as development of technology parks.

But the most important issue will be the cooperation between Association and Government, on order to achieve the conception conditions for Russian IT market development, creation of the favorable business climate, support for the qualified professional training, creation of the present day structure of IT parks chain across the major centers of Russia.

Main Events of RUSSOFT in 2005:
  • April 27-29
    Open Source Forum Russia (together with Linux Inc.)
    Moscow, Radisson SAS
    Informational and exhibition event, entirely dedicated to the technologies of open source software development.
    www.russoft.org/opensource

  • June 15-17
    5th Russian Outsourcing & Software Summit, ROSS 2005
    St-Petersburg, Pulkovskaya Hotel
    One of the largest events in the area IT outsourcing and offshore software development of East Europe.
    http://www.soft-outsourcing.com

  • September 22-24
    RUSSEC (Russian Software Engineering Congress)
    Moscow, MSU Library
    Conference dedicated to the processes and technologies of software development in Russia and abroad.
    www.russoft.org/russec

  • October 9-11
    3rd Russian CIO Summit
    Moscow, Atlas Park Hotel
    Conference for IT-directors, dedicated to the issues of outsourcing.
    www.cio-summit.ru