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Export of Russian Software Development Industry 2015 Export of Russian Software Development Industry 12-th Annual Survey With support from RUSSOFT Association RVC and APKIT Association 2015 Dear colleagues! Dear friends! I have particular honor to introduce to you results of the annual (this time already 12th) survey of the software development export industry in Russia. The research was conducted by RUSSOFT Association from February to April 2015. More than 120 market players were interrogated within the research, additionally a wide range of sources of information were studied, expert judgments were received from dozens of CEOs of software development companies. The last 2014 year passed within the climate of marked aggravation of the world geopolitical situation due to events in Ukraine that eventually resulted in adoption of economic sanctions against Russia by the United States and by the European Union. And the end of the year was marked by fall in oil prices and by a corresponding ruble’s decline against leading world currencies. Negative factors had an impact on growth rate in sales of software and of development services oered by Russian software industry which decreased from 17% in 2013 to 11% in 2014. At the same time, devaluation of national currency added to marketability of Russian industry in the global market. According to forecasts of our respondents, in 2015 the volume of foreign sales of Russian companies will amount to $7 billion with enhancing growth rate to 16%. Unfortunately, prospects for export growth in no small measure will depend not on companies themselves but on political developments. Russian companies are feeling the appearance of political barriers although typical only for clients who lack experience in working with Russia. Taking the opportunity, I would like to thank ConrmIT and Toy Opinion for their eective information collection, and also would like to express gratitude to PROMT for its excellent translation of the report into English. Special thanks to HeadHunter for submission into our report of their internal review of labor market situation in IT area. Also I would like to express profound gratitude to Andrey Terekhov, professor of St. Petersburg State University, for his traditionally outstanding work of editing this report. And certainly, I wish to express kind words to our analyst Dmitry Zhelvitsky for his arduous eorts for collection of complementary information and for his analytical works. We are very grateful to the Russian Venture Company and to the Association of Computer and Information Technology Companies (APKIT), also to other our sponsors for nancial support in conductance of research. Many thanks to all survey participants who provided information on their companies! Best regards, Valentin Makarov Executive Editor RUSSOFT Association, President RUSSOFT Association is the most important nation-wide amalgamation of software development companies (both — software vendors and software development service providers) from Russia, but also comprising a number of companies from Ukraine and Belarus. RUSSOFT Association was created in 1999 in St. Petersburg (Russia) as a noncommercial partnership under the name of “Consortium Fort Ross” composed of 10 local companies. Consortium was primarily intended to coordinate joint marketing eorts of its members for promoting Russian software development services worldwide. After the merger with NSDA, a Moscow based Software Developers Association, in 2004, the united Association took the name of RUSSOFT Association. RUSSOFT unites over 108 companies with the total sta exceeding 30 thousand qualied software engineers. 9 member companies of RUSSOFT enter the List of 100 World leading outsourcing service providers (Global Services, 2014). Names of 8 RUSSOFT members are listed in the ratings of World leading software vendors in particular software segments (including Gartner Magic Quadrants). RUSSOFT is the major lobbyist of the industrial interests in the State bodies at all levels. The Association also works on developing IT-education and professional retraining, on diminishing administrative barriers, on High-Tech export support. RUSSOFT organizes numerous marketing events worldwide, it also conducts marketing campaigns among major Russian customers, including State corporations. Members of RUSSOFT Association form the Pyramid of the Russian software development industry — from startups to worldly known corporations — which represents the major Russian IT-centers — Moscow, St. Petersburg, cities from Siberia, Ural and Volga areas. Beginning from 2004, RUSSOFT Association has been conducting the annual market surveys which studied the entire Russian software development industry. The results whereas form the unique source of information for the State bodies, international analysts and clients, as well as for the whole Russian software industry itself. You are welcome to look through results of our study in Y2015! Contents Chapter 1. Russian positions on the world IT market.... .... .... ..... .... ...................... 9 Introduction ......................... ............................ ............................11 Russian ICT market ......... ................................................................ .11 Russia in the World ratings ...................................................................21 Chapter 2. Volume and structure of Russian export of software and of software development services ... ...39 Estimation of the total sales volume of Russian software development industry outside Russia .41 Results of granting social tax incentives to software companies ............ ...................44 Software export distribution depending on the business model...............................45 Software development services ..............................................................49 Products and ready-to-use solutions .........................................................55 Foreign corporations software development centers .........................................59 RUSSOFT rating of largest Russian software companies .......................................61 Chapter 3. Major Trends in Development of the Software Development Industry ... ..... .... ... .... .63 General analysis .............................................................................65 Quality management system certication ....................................................68 Investment attraction................... .....................................................70 The global software market and the ways to increase sales of Russian suppliers................80 Chapter 4. Geographic reach main vertical markets in the Russian software development industry ....85 Main Geographical Markets ..................................................................87 Geographic distribution of marketing and trade oces of Russian companies .................94 Geographic distribution of software development centers ....................................96 Vertical markets ...... ........................... ...........................................100. Chapter 5. Human resources . .... .... ..... .... .... ..... .... .... .... ... .... .... .........103. Assessment of general situation with human resources in the industry .......................105. Labor force migration............... ........................... .............................107. Rotation and personnel deciency .......... ................................................113. Labor compensation .......................................................................119. Sta training. Universities................... ................................................122. Foreign language skills .....................................................................135. Chapter 6. Technologies ... .... ..... .... ... .... .... ......................139. Operation systems ........................................................................141. Programming tools ..............................143. DBMS .......................................................144. Summary ........... ... ....... ... ... ..........................................................147. Participants of the Survey . ..... ... .... .... ......................... .............153. Chapter 1 Russian positions on the world IT market Views of experts Consortium KODEKS is a group of IT-companies with 25-year history, which surely occupies the unique niche in the market of information products and services. We develop Professional Reference Systems KODEKS and TECHEXPERT, modern Systems of Electronic Document Flow as well as exclusive Software developments and technology solutions for leading enterprises in all industries. We experienced not one nancial crisis in quarter of century and had accumulated good experience in these dicult circumstances. Therefore, despite a dicult foreign policy and economic situation in Russia, I am sure we should not currently expect a serious recession in IT Industry, as that was in 2008. Yes, working conditions have changed: worse for some companies and new opportunities for other ones. But in whole, industry should be able to work and develop in all circumstances, especially such an innovative and professional industry as ours. There is currently being allocated less money for information technology because of the economy diculties. However, there are not only the obvious disadvantages but advantages as well. In my opinion, customers and consumers of information technology, in particular the state ones, now feel more responsibility in expenditure
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