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Russian IT market grows by a quarter year-on-year
The overall Russian IT market grows by a quarter year-on-year, but things are not that optimistic in the software segment. President of Parus Corp., a leading player in the Russian software industry, Alexander Karpachyov told the newspaper Vremya Novostei what the market looked like from the perspective of an expert. According to Karpachyov, the software market will grow as long as the oil prices are high. However, this applies to the domestic market only. "Many Russian officials and businessmen dream of exporting our [software]. Prospects for this are far less optimistic," he said. Russian producers are strong in Belarus, Kazakhstan, and Ukraine, but "exports to the CIS means growth by several percent, while it would be several times - scores of times, actually, - if we were able to develop our business in the U.S." However, the U.S. market has long been divided, and customers there are tough. Therefore, Karpachyov said, what the Russians should do is to find a very solid partner "that could be interested in promoting our products and technology in the West." The other option is so-called offshore programming, which means working for a go-between, rather than end user. The state, Karpachyov says, could well have supported software businesses: "For example, [the state could] rule that foreign companies who gained state orders should invest here." The Parus president recalled that the Indian software industry had not grown on the Indian money - the "technology parks" opened there enjoyed tax relieves and were investment havens. More, "the investor should come here not to sell but first produce something in Russia and then sell it worldwide." On the whole, the Russian software industry has yet to settle and get wiser, he said. When this happens, software will be selected in an easier and more logical manner, like cars are selected nowadays. "However, IT is still underemployed in manysectors of economy. For example, in agriculture or local government, they do not have computers, to say nothing of software selection. This is where the market should expand."
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