The Russian Offshore Software and Product Development Industry Survey
description
Transcript of The Russian Offshore Software and Product Development Industry Survey
St.Petersburg, 16 June, 2005
The Russian Offshore Software and Product Development Industry
Survey
• Main objectives• Preliminary results:
- Estimations of export revenues 2004- Main exporters- Geographical distribution of companies– Salaries– Branch Offices– Key trends of the market (as seen by CEOs)– Areas of expertise
Contents:
• To get up-to-date information about the industry, to consider its trends and the future
• To promote the Russian software development industry on international markets and to atract potential customers
• To extend the positive image of Russia as one of the major software outsourcing destinations and as a source of high-end solutions
Objectives
• On-line sells - through Internet (Digital River, SoftKey (Russia)).
Estimations of export - $40Mio-$55Mio• Off-line sells – through direct sells and distribution channels. Estimation of export - $70Mio-$100Mio.• Main markets: USA (50%), EU (35%), Eastern Europe (10%),
Asia (5%)Source – Independent Software Developers Forum (Dmitry Kourashov)
Export market of software products
Geography
30%
25%
7%
3%
35%
Moscow
St.Petersburg
Novosibirsk
Nizhniy Novgorod
Others
Average Annual Revenue
25,0020,83
8,3311
45,83
3729
23
0,00
10,00
20,00
30,00
40,00
50,00
under $500000 $500000 - $2mln
$2mln - $4 mln $4 mln andmore
2004
2003
Market Growth Estimation
2004: $700mln
Growth estimation by CEOs:
2005: 50%
2006: 45%
Average Max. and Min. Salaries ($)
850700
500
2000
1600
1200
0
500
1000
1500
2000
2500
Moscow St.Petersburg Regions
Average software development rate: $20 per hour
Branch Offices in Russian and CIS
29
11
2325,00
37
8,33
20,83
45,83
0
10
20
30
40
50
under $500000 $500000 - $2mln
$2mln - $4 mln $4 mln and more
2003
2004
Software Development Process Certification
45%
17%
38%
ISO
SEI CMM/CMMI
Others or None
Key Trends of the Russian Offshore Development Market (as seen by CEOs)
Trends % of companies
Market growth 83.3Industry consolidation (mergers/ acquisitions) 75
Implementing western project management practices, ISO 9001 and CMM/CMMI certification
54.2
Increasing of service providing’s share 37.5
Increasing of product development’s share 25.5
Main Priorities of CEOs
Priorities % of companies
Company growth 91.7Clients acquisition through new markets entry 70.8
Offering new software development services 70.8
ISO and CMM/CMMI certification 20.8
Implementing "product" model 16.7
Areas of Expertise
20,4%
21,4%
25,2%
25,2%
26,2%
35,0%
43,7%
47,6%
47,6%
52,4%
59,2%
0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0%
Software Internationalization and Localization
EAI / Middleware
Knowledge Management / Data Mining
Legacy Migration
Data Warehousing
Low-Level / System-Level Programming
Document Management Applications
Enterprise Resource Management Applications
Software Maintenance and Support
E-Business
Web Development and Content Management Tools
Business Domains
22,8%
23,0%
23,8%
28,0%
28,7%
32,7%
41,0%
41,6%
81,9%
0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% 80,0% 90,0%
Entertainment
Logistics / Warehouse Automation
Retail / Distribution
Healthcare
Science and Research
Education
Government / Public Sector
Telecom
Banking and Financial Services
Thanks!Contacts:Alexey Shonin – Editor-in-Chief, Outsourcing-Russia.com+7 (812) [email protected]
Vakentin Makarov – President, RUSSOFT+7 (812) [email protected]
Maria Simonova– Head of analytical department, Fort Ross+7 (812) [email protected]