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The total turnover of software development companies in the two capitals amounted to 260 billion rubles.


MarketTrends and forecasts

| 12/07/2020

RUSSOFT presented the second annual “Rating of Russian regions by the level of development of the software development industry”.

When collecting information, the following were used: export statistics for “Telecommunication, computer, information services” with a breakdown by constituent entities of the Federation (Central Bank of Russia); data on the number of companies,
having vacancies, and data on the number of vacancies in the field of “Software Development” (portal hh.ru); Register of accredited organizations operating in the field of information technology
(Ministry of Digital Development, Communications and Mass Media); results of an annual survey and a database of about 2 thousand software companies (RUSSOFT).

In the main rating, which is based on the total turnover of companies, it was decided to leave only 30 subjects of the federation instead of 40 a year earlier. Of these, only about 15 regions have
formed software industry, and the rest can still be looked at, assessing their potential. In total, data from 50 federal subjects were analyzed for selection in the top 30. In addition, formed
an additional division of 11 regions, which are the main contenders for getting into the main ranking. No regions have been ranked in this division.

In order for the “Rating of Regions” to be of the greatest relevance, data were collected for the last 12 months, for which the Central Bank of Russia has relevant information (II half of 2019 – I half of
2020).

The ranking is made according to several parameters – according to the total income of software companies (main rating), the volume of exports of computer services, the growth rate of exports of computer services,
the total revenue of software companies and the export of computer services per capita.

Size of the software industry

All 30 regions in the main ranking are divided into 4 divisions – A, B, C, D. Another additional division (E) is made up of those 11 regions that are very close to falling into
the top thirty in terms of software development revenues (perhaps they were not included in the main rating due to the lack of sufficiently complete information about the software companies operating in them).

Division A. “Two capitals”

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* – in brackets the place in the previous version of the rating

Moscow and St. Petersburg are beyond competition. For objective reasons, no other subjects of the federation can compete with them yet. By population, by the number of strong universities, by
the size of the economy they have a huge advantage over all other regions. It took shape not only over decades, but even over centuries.

A year ago, RUSSOFT concluded that the differences between the two capitals are so great that they can be considered to be in different categories. Indeed, almost all indicators for Moscow are 2-2.5
times more than in St. Petersburg. However, as a result of the 2020 survey conducted as part of the annual RUSSOFT survey, new data on the number of employees of remote development centers appeared.
companies from these two leading centers, which forces us to reconsider the previous findings.

If we take into account the fact that the surveyed Moscow companies have less than 40% of the staff working in Moscow (the rest in other cities or abroad), and St. Petersburg leads by a wide margin from all the rest
regions by the number of employees in offices of nonresident companies (primarily in Moscow), then the indicators of the aggregate turnover of companies in the two capitals will be very close. It is about 260
RUB bln ($ 4 billion).

However, there are still more reasons to put Moscow in first place. It can be assumed that St. Petersburg has a cumulative turnover of software companies for 12 months. (Q2 2019 and Q1 2020) amounted to
about 260 billion rubles, and in Moscow – 5-10% more. Since the total turnover of all software companies in Russia is estimated at about 1.25 trillion rubles over this period, the share of each of the two capitals
is 23-25%. Accordingly, together the software development companies from Moscow and St. Petersburg provide almost half of all industry enterprises’ income.

Division B. “Leaders”

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There are three regions in the Leaders division – Novosibirsk and Nizhny Novgorod regions, as well as Tatarstan. They have a large lag behind Moscow and St. Petersburg and a significant advantage over subsequent
subjects of the federation. Tatarstan lags behind the other two regions of this Division in almost all respects (only in terms of the number of vacancies, it is in third place after Moscow and St. Petersburg).
Therefore, it takes 5th place in the Rating.

The Nizhny Novgorod Region has an advantage over Novosibirsk in terms of the volume of export of computer services ($ 230 million versus $ 170 million), as well as the number of specialists working in the region in offices
nonresident companies (this data was obtained thanks to the RUSSOFT survey as part of the annual survey). However, in other parameters it is significantly inferior. Since Novosibirsk companies are much
more focused on the Russian market than on export, the third place is taken by the Novosibirsk region.

One of the decisive factors for such a decision was the fact that one of the largest software companies in Russia, the Center for Financial Technologies (CFT), is located in Novosibirsk. Its turnover is about
$ 400 million with a small share of export revenues (it does not exceed 10-15%). There is no similar large company in Nizhny Novgorod (perhaps, with the exception of the MERA development center, which
only in 2018-2019 left the Russian jurisdiction and lost the status of a “Russian” company according to the RUSSOFT classification.

Nevertheless, the aggregate turnover of Novosibirsk companies is not much higher than that of Nizhny Novgorod. It is estimated at about 60 billion rubles. Therefore, the contribution of each of these regions to the creation
the gross product of the entire industry is about 5%. Tatarstan has 4% and has a good chance of reaching third place in the future if it has outstripping growth rates.

Division C. “Challengers”

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There are 11 regions in which the total turnover of software enterprises is 13-32 billion rubles. ($ 200-500 million). They all claim to be in the Leadership Division.

In almost all of these regions, the software industry has emerged with no less than 100 stable operating companies representing it. These companies are focused not only on Russian
market, but they work actively in foreign countries, and also have various specializations, covering all or almost all of the main areas of activity in the field of software development.

Voronezh and Saratov regions stand apart. They got into this division due to the presence of development centers for nonresident companies. That is, these regions have a sufficient number of
well-trained specialists, but there are problems with the creation of successful companies. Omsk region can also be referred to such regions.

The disadvantage of the Sverdlovsk region is a very large orientation towards the domestic market with a small export for such a large region. Consequently, in Voronezh, Saratov, Omsk and
The Sverdlovsk Oblast has a particularly large and understandable potential for growth.

The differences between those in this division are insignificant, but, as a rule, all the main indicators in the higher region are slightly higher than those of the lower ones.

Difficulties arose in determining the location of the Moscow region. In terms of the volume of export of computer services, it is confidently in 4th place, and in terms of the number of accredited companies – even in 3. At the same time,
in terms of the number of vacancies, it consistently occupies a low position – 23rd, and this is one of the key parameters for assessing the rating of regions.

It should be borne in mind that the border between Moscow and the Moscow region is largely formal. With the attribution of certain incomes to the capital or regional companies, the Moscow region can be moved to
the main rating for a large number of positions – from 15-16 places to 6-7.

Division D. Genesis

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Here are the regions with the total income of companies less than 10 billion rubles. ($ 150 million). The threshold for getting into it in fact is a total turnover of about $ 50 million. To say that they have
the established software industry is not yet confident. Nevertheless, there are prerequisites for such a full-fledged industry to appear.

The exceptions are the Vologda Oblast and Yakutia, which are regions actually represented by one large company – Playrix and MyTona, respectively. It can also be noted that
The Volgograd region has a very small volume of exports, although there are many companies in the region working for the domestic market.

Division E. Genesis II

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* – regions are listed in alphabetical order (in brackets is the place in the previous version of the rating, in which there were 40 subjects of the federation)

In this division, Bashkiria stands out, in which there are 163 companies registered on hh.ru. According to this indicator, it is in the lead and claims to be raised in the rating. However, companies with public
there are only 29 vacancies there, and the vacancies themselves are not enough to get the region into the main ranking. In addition, in terms of the export volume of computer services, Bashkiria is only in 38th place.

Kemerovo and Tver regions in terms of the number of vacancies occupy rather high places – 18 and 25, respectively. However, they have a very low export rate; moreover, no information was found on
large companies that operate there for the domestic market. At the same time, in the Kemerovo Region, the largest employers in the field of software development are telecom operators and online service providers,
which is more correct to refer to Internet companies rather than software developers.

Per capita income

The calculation of the income of software companies per capita is based on Central Bank statistics on the export of telecommunications, information and computer services with appropriate adjustments (as in
the previous rating), taking into account the average share of exports and the number of remote development centers of nonresident companies located in the region.

The ranking was carried out only for those regions that were included in the main rating, since only for them the total income of software companies was calculated.

The average per capita income in Russia is 8.5 thousand rubles. ($ 125) per year. In this rating, 11 regions at once have rather high indicators. Leadership with significant
Petersburg has a gap, but in Moscow, Novosibirsk region. and Tomsk region. almost the same results. Taking into account that the corresponding calculations are based on expert assessments and not entirely
accurate data, then each of these three regions can be put in second place.

The difference between the place occupied by the region in this rating and the place in the main rating shows that it has development potential. Judging by this difference, it is best used
available human resources Ivanovo region, and worst of all – Rostov region, Sverdlovsk region, Chelyabinsk region, Perm region, Krasnodar region and Moscow region.

However, it should be borne in mind that it is difficult to separate the Moscow region from Moscow, the Rostov region has an agricultural specialization (including the production of agricultural machinery), and in
In the Krasnodar Territory, agriculture also has a significant share in the GRP (at least 10%), but tourism is also developed. Consequently, a significant proportion of human resources are involved in other growing
industries. It can be assumed that there is a huge potential for increasing the personnel of software companies in the Sverdlovsk region, Chelyabinsk region. and the Perm region. Moreover, in these regions there is
many technical universities. It is worth noting the low share of export revenues of companies in the Sverdlovsk region. It is desirable for large companies in the region to more actively enter foreign markets.

Rating of regions by total income of software companies per capita for the period “II half of 2019 – I half of 2020”

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Rates of growth

Over the past 12 months. (II half of 2019 – I half of 2020) Russian exports of computer services increased by 8%. Growth rates were higher than the national average in 32 regions. U 12
Federation subjects from the top 50 recorded a reduction

If we start analyzing from the bottom, then the Stavropol Territory and Lipetsk Region have the best chances of being in the main ranking among those regions that did not make it to any of the divisions.
Naturally, while maintaining high growth rates.

In the last 12 months. The Khabarovsk Territory has increased the export of computer services almost 10 times. However, this growth cannot yet be called outstanding, since it has been achieved from a value that is close to zero.
Conclusions about the dynamic development of the region’s software companies can be drawn if similar growth rates continue for another 2-3 years. A full-fledged software industry in this region is not yet
formed. Nevertheless, according to this parameter, the Khabarovsk Territory can be noted among the regions that fell into the lowest Division E. In it, the Kemerovo Region also has good growth indicators. and
Ryazan region

In Division D, the Kaliningrad region and Yaroslavl region have approximately the same growth rates. and Yakutia. However, Yakutia does not yet have the prerequisites for the formation of a full-fledged software industry, since
most of the region’s exports are provided by only one company.

Saratov and Samara regions are the main contenders for the transition from Division C to Division B. In Division C, the Sverdlovsk region is also worth noting. However, in Division B, all three
regions have very good growth rates. In Tatarstan and the Novosibirsk region, exports increased by about 30%, in the Nizhny Novgorod region – by 20%, and there are no signs of a possible slowdown.
Division C promotion applicants will have a hard time pushing them back in the next 2-3 years.

Software developers from Moscow and St. Petersburg increased the export of computer services more than all Russian software companies, as a result, their share did not decrease, but even increased slightly. At the same
time, 27 and 30 regions are growing faster than Moscow and St. Petersburg, respectively.

Rating of regions by growth in exports of computer services over the past 12 months. (II half of 2019 – I half of 2020)

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Software, Software Development

Russoft | Russoft



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