Russian IT Quarterly, Issue #17, October, 2008
The past three months - surprisingly, primarily summer ones - have seen a volcano of activities on the Russian IT market.
Oct 14, 2008
New Prospects for EveryoneThe past three months - surprisingly, primarily summer ones - have seen a volcano of activities on the Russian IT market. The subsequent changes affected both Reksoft and other market players.
Let's take Reksoft first. The company joined one of the largest systems integration houses in Russia thus having secured the immediate spur of sales on the Russian IT services scene and financial back up for expanding its international sales and delivery capability. Reksoft has rounded off the summer by opening up the development center in the city of Voronezh and more software engineering teams are selected to join Reksoft.
Major changes in the! Russian governing structures related to the ICT industry - in fact, the whole team of the Ministry of IT and Communications resigned and new people came on board - resulted in the stricter attention to the industry. However, the new officials lack the necessary knowledge of the needs of Russian IT players. This means that the industry should once again start the education process to raise the awareness of the Ministry's administration. The government still has some time to think and act since Russia is still only moderately affected by the global economy crisis.
The predicament in the world's financial markets undoubtedly influenced software development companies, which operate on the international scene. With urgent need to cut operating costs, companies are shrinking their IT budgets and seeking cost effective options to proceed with their core IT activities. The segment to be interested in reducing the prices for IT delivery is made up of multinational ! systems integrators. They are pushed by their customers to find cheape r workforce options and therefore turn their attention to countries with lower labour costs.
On the other side, an interesting trend, which is still in its infancy, is the obvious willingness of strong Russian IT players to acquire European technology firms - both in software engineering and consulting domains. The goal of such initiatives is two-faced. Russian vendors will get an access to the consulting and integration business in Europe, offering professional but cost effective solutions. At the same time, on software development side of business, Russia-based providers will have the capacities in European locations thus profiting from visa-free zones and knowledge of languages. All this will lead to changes in the competitive landscape on the international IT market and all of us have to be prepared for that.
Download the full version of Russian IT Quarterly # 17 here (PDF)
Let's take Reksoft first. The company joined one of the largest systems integration houses in Russia thus having secured the immediate spur of sales on the Russian IT services scene and financial back up for expanding its international sales and delivery capability. Reksoft has rounded off the summer by opening up the development center in the city of Voronezh and more software engineering teams are selected to join Reksoft.
Major changes in the! Russian governing structures related to the ICT industry - in fact, the whole team of the Ministry of IT and Communications resigned and new people came on board - resulted in the stricter attention to the industry. However, the new officials lack the necessary knowledge of the needs of Russian IT players. This means that the industry should once again start the education process to raise the awareness of the Ministry's administration. The government still has some time to think and act since Russia is still only moderately affected by the global economy crisis.
The predicament in the world's financial markets undoubtedly influenced software development companies, which operate on the international scene. With urgent need to cut operating costs, companies are shrinking their IT budgets and seeking cost effective options to proceed with their core IT activities. The segment to be interested in reducing the prices for IT delivery is made up of multinational ! systems integrators. They are pushed by their customers to find cheape r workforce options and therefore turn their attention to countries with lower labour costs.
On the other side, an interesting trend, which is still in its infancy, is the obvious willingness of strong Russian IT players to acquire European technology firms - both in software engineering and consulting domains. The goal of such initiatives is two-faced. Russian vendors will get an access to the consulting and integration business in Europe, offering professional but cost effective solutions. At the same time, on software development side of business, Russia-based providers will have the capacities in European locations thus profiting from visa-free zones and knowledge of languages. All this will lead to changes in the competitive landscape on the international IT market and all of us have to be prepared for that.
Download the full version of Russian IT Quarterly # 17 here (PDF)