The software development industry is global by definition. However, the service segments are more sensitive to geopolitical risk than other consumer goods, like food. In the first quarter of this year alone we lost a potential client after winning a tender when a Western company decided to abandon plans to use an Eastern European technology partner in light of recent events.
Nevertheless, the European and American markets are important to us, and we do not plan to change our priorities. More than 60 percent of our customers come from Western Europe and the U.S.
An October 2013 article titled “Consulting on the Cusp of Disruption” in the Harvard Business Review advanced the argument that the consulting market is entering a state of disruption and flux. In response to inquiries about disruption in the Russian offshore outsourcing market, executives from six firms that represent a mix of business sizes and technology directions expressed a range of views and responses to the pressures of market disruption.
In January, the Russian Communications Ministry published a road map outlining its plans for the IT sector from 2014-2018. RusBase asked Valentin Makarov, the President of the Russian Software Developers Association (RUSSOFT), for his thoughts on the government’s plans.
Before I go on to explain what I think about the road map, it’s worth giving some background information.
The importance of this bill for the entire industry is that it restores balance to the software ecosystem, equalizing the rights of small businesses with larger players, which compete fiercely for the industry’s most important resource – staff. It is clearly an absurd situation when the state invests billions in small business through development institutions while at the same time denying innovative business its main resource because of the inequalities in taxation.