IT sector's GDP contribution doubled over the past five years, asserts Michael Mishustin.
💻 Booming Russian IT Industry 🎯
The IT game in Russia is taking off at an astonishing pace! Over the last five years, our IT industry's growth rate has been skyrocketing at approximately 28% annually and its share in GDP has almost doubled during this period, as per our Prime Minister.
During this dynamic period, domestic corporate solutions demand saw a staggering surge of two to three times. Remarkably, sales in certain categories, like database management systems and cloud infrastructure solutions, skyrocketed over tenfold!
Mikhail Mishustin, our Prime Minister, highlighted that before the sanctions, foreign tech providers were the preferred choice for enterprises. Yet, after the restrictions, our domestic software solutions and technologies found widespread acceptance. Now, the Russian software transition is observed across all market segments. President Vladimir Putin has set an ambitious goal to increase by 2030 the proportion of organizations in vital industries that have adopted domestic software to a staggering 80%, to which our Prime Minister referred.
On March 19, Maksut Shadaev, head of the Ministry of Digital Development, disclosed that the sales volume of domestic IT solutions jumped by a whopping 46% in 2024, reaching 4.6 trillion rubles. Excited by the momentum, Shadaev declared, "The demand for domestic software, software and hardware complexes, and IT equipment is actively growing!"
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👥 Notable Figures:- Mikhail Mishustin- Maksut Shadaev
💻 Industry Insights:While specific declarations from Mishustin and Shadaev regarding the future trajectory of Russia's domestic IT industry are scarce, broader trends and goals can be inferred:
- Import Substitution: Russia is focusing on local solutions in the IT sector, aiming to reduce reliance on foreign technology, particularly due to sanctions.
- Technological Sovereignty: Ensuring Russian IT systems are secure and independent from foreign influence is a top priority to protect national security and counter cyber threats.
- Economic Challenges: The Russian economy faces a slowdown with high-tech sectors battling challenges due to geopolitical factors and sanctions.
- Domestic Hardware Production: Russia aims to start mass-producing Elbrus-based CPUs by 2030 using domestic technology.
- Software Ecosystem Development: Investments are required for education and training to address the skills gap for software development and adaptation to new architectures.
- Export Potential: Russia is focusing on boosting the international competitiveness of its IT companies by offering tech solutions suitable for countries aiming to reduce their dependency on Western technology.
- In response to the increasing demand, local software solutions and technologies have witnessed a significant surge in acceptance, as reflected by Mikhail Mishustin, the Prime Minister, who stated the aim to increase the proportion of organizations in vital industries using domestic software to 80% by 2030.
- The Russian IT industry's growth is not confined to the domestic market, but also extends to foreign trade, as the country focuses on boosting the international competitiveness of IT companies, offering tech solutions that cater to countries aiming to reduce their dependency on Western technology.
