The Russian software market will grow by 5-15% this year

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Russian software developers expect a return to pre-crisis market growth of 5-15% in 2021. This information follows from the results of a survey of Russian companies by the Association of Software Developers (ARPP) “Domestic Soft”, presented at the annual meeting of the organization on Friday, April 23rd.

According to the association’s forecasts, the trend towards import substitution and increased regulatory restrictions for foreign monopolists will contribute to the growth of the Russian development market.

At the same time, a decrease in revenue is possible for enterprises working with the state and municipal sectors, due to a decrease in planned regional IT costs in 2021 in many constituent entities of Russia.

“Despite the difficult beginning of 2020, at the end of the year, most of the companies surveyed by ARPP recorded an increase in revenue, and only 23% saw a decrease,” said Renat Lashin, executive director of the association.

According to the ARPP survey, last year 57.8% of Russian developers had an increase in revenue, 22.9% had a decrease, and the rest remained unchanged.

Most of the year-on-year revenue of developers grew in the public sector – by 24.5% and industry – by 18.1%. At the same time, the biggest drop in revenues for companies was in the retail sector – by 10.8% and in the energy sector – by 7.2%.

Earlier, on April 15, the media reported that the president of the Russian Union of Industrialists and Entrepreneurs (RSPP) Alexander Shokhin sent a letter to Prime Minister Mikhail Mishustin, in which he estimated the transition of KII subjects to Russian software at 1 trillion rubles.

Later, on April 20, the head of the Ministry of Digital Science Maksut Shadayev said that in Russia in IT companies, employees who are responsible for the functioning of various systems are accustomed to working on foreign software, so they slow down the transition to Russian software. He believes that the problem is “the habit, the culture of using familiar solutions.”

The Minister stressed that cyber security risks are unacceptable at the facilities of the KII, therefore it is necessary to move away from foreign software solutions. However, the replacement, according to him, is possible only for “competitive Russian counterparts.”