July 01, 2008

Selling RussiaWare


Valentin Makarov, president of RUSSOFT, an association that represents the interests of Russia’s software development sector, recently presented some impressive statistics to the Association of European Businesses: in 2007, information technology (IT) in Russia experienced 46% growth, to top $2.3 billion; revenues in 2008 will likely exceed three billion dollars; Russian programmers are among the world’s most highly educated and qualified.

Makarov gave his presentation at Moscow’s glistening President Hotel, owned and operated by the Presidential Administration. Yet the government-supplied meeting room, which boasted a state-of-the-art sound system, had awful acoustics. The grand, marble and polished-wood lobby, which can be spacious and welcoming (in a Brezhnevian, “Welcome to Vegas” sort of way), was only accessible through a crowded and disorganized security checkpoint.

In short, the event was a microcosmic reflection of the reality that is Russian IT outsourcing. American and European firms are providing the bulk of contracts generating growth in Russia’s fast-growing IT sphere. Yet clumsy governmental actions prevent Russian IT from reaching its full potential. 


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