russian software developing industry and software exports

Chapter 5.
Geographical Distribution and Key Vertical Markets
MAIN MARKETS
As expected, the importance of the Russian
market for companies exporting software and
development services continued to grow in 2008. The
share of respondents confirming the implementation
of projects in Russia increased even more than in
previous years – from 55% to 87%.
The number of records for Ukraine as on of the
key markets has also soared – from 17% to 35%.
This growth conforms to the plans stated by our
respondents last year. The Ukrainian market has
become the fourth most important market for
Russian software developers after Russian, American
and total European markets. The USA (with Canada)
retains the second place. In 2008, the number of
Presence on the Global market including key
and one-off random projects
Russia
Ukraine
0% 20% 40% 60% 80% 100%
17%
35%
32%
23%
55%
65%
87%
82%
companies working on projects in this market has
only insignificantly decreased – by 3%. At the same
time, it is seen as a key market by a smaller share of
respondents against year-on-year (28% against 43%).
Companies already operating in the US market are
not going to leave it despite the serious recession
caused by the world economic crisis. Nevertheless,
the major part of companies is trying to diversify their
marketing policy expanding their operations in other
markets, especially European markets.
The European market remains a priority for Russian
companies, generally surpassing the USA and Canadian
markets, but this indicator is gradually dropping.
Much rarer this year were mentioned such markets
as Belarus, Scandinavia, «Other countries of the
former USSR», «Australia, Africa and South America».
The decrease followed the boosting growth. Such
fluctuations were detected during the processing of
the survey results in previous years, too. However, this
year a decreased interest in practically all markets is
likely to be caused by the consequences of the crisis
when producers are losing optimism and confidence
to find a niche in any market.
As for Scandinavia, its indicators are regularly
changing. There is an impression that around 15%
Key markets
Belarus
Former USSR
32%
23%
21%
18%
39%
26%
21%
19%
0% 10% 20% 30% 40% 50% 60% 70% 80%
42%
Russia
71%
6%
Ukraine
13%
USA & Canada
55%
52%
51%
Belarus
9%
24%
Germany
38%
25%
24%
25%
19%
28%
Former USSR
USA & Canada
12%
7%
28%
43%
Scandinavia
18%
18%
15%
Germany
11%
10%
Other Western
European countries
19%
South-East Asia 14%
13%
11%
Australia, Africa
7%
and South America
8%
7%
35%
30%
33%
26%
25%
Scandinavia
Other Western
European countries
South-East Asia
Australia, Africa
and South America
8%
6%
6%
13%
12%
9%
3%
15%
2007 2008 2009* 2010*
* – forecast
2007 year-end 2008 year-end
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