The RUSSOFT Association and Internet portal Outsourcing-Russia.com present the second annual survey of the Russian export software development market.
The results of the RUSSOFT and Outsourcing-Russia.com joint survey provide reliable information from market players involved in software exports (of both services and products). In 2003, the first accurate data on software exports gave a figure of $546 million, slightly higher than Ministry of Communications estimates.
So what comes next? Market monitoring this year makes it possible to estimate growth in 2004 to $750mln. For the next year, respondents forecast an even higher growth rate (50%). The research results show continued growth in export turnover.
The product export market, which underwent serious changes in the last few years – when large numbers of developers sold products over the Internet – is examined separately. One crucial factor in export turnover growth is the continuous expansion of the offshore development centers of international vendors while the share of government scientific research centers has declined.
Wages for developers have risen; the picture of company distribution throughout the region strengthens the role of St. Petersburg, while Moscow keeps the leading position. The role of both capitals has been enhanced last in 2004, reaching together 60% of the total export.
Most company directors evaluate the future of the development market optimistically, predicting strength in consolidation and continuing the processes that can already be clearly seen in the results of this year’s research.
