PRLog (Press Release)– Jul 29, 2011– Market Overview
Russian IT spending is forecast to record double-digit growth in 2011, building on a recovery that started in 2010. The IT market is projected to grow to nearly US$34.6bn by 2015, with all major segments reporting improvements.
In 2011, vendors will look to opportunities in the public sector, which in 2010 launched a number of egovernment service pilots in areas ranging from universal identity cards to online fee payments. The broader use of ICT in government and other sectors will ensure an upward market trajectory in the medium term, along with major projects in key sectors such as banking and oil and gas. Russia is showing signs of becoming a market that through its scale can influence global industry developments. Growing computer penetration, government ICT projects and immense potential for IT spending by Russia's traditional industries could drive an increase in IT spending per capita from around US$138 in 2011 to US$250 by 2015.
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Industry Developments
In December 2010, Prime Minister Vladimir Putin signed a decree that approved a plan for the federal government and subordinate agencies' transition to open source software The plan is due to be implemented between 2011 and 2015. In the first stage, a solution covering routine government work is expected to be implemented in 2011 and the implementation of other solutions is expected to be completed by 2014.
In 2010, the government earmarked RUB2bn (US$64mn) for e-government infrastructure projects through the end of the year. The government launched test projects in 2010 for a number of e-government initiatives, with the aim of meeting targets for the introduction of information technology to deliver government services.
The government also proceeded with test projects for a number of e-government initiatives, with the aim of meeting targets for the introductio remote control helicopter n of information technology. One key pilot concerned the introduction of a universal identity card, which would replace various individual forms of identification such as medical and pension insurance cards.
Competitive Landscape
Russian PC market leader Acer led in the Russian PC market in the first three quarters of 2010, ahead of its fellow Taiwanese rival Asus. Acer's overall Russian market lead is based on its strength in the consumer notebooks, while HP is a strong challenger in the desktop segment. Chinese PC leader Lenovo has also made steady advances, working with partners such as IT and consumer electronics distributor MICS.
With the business climate still very cost sensitive, some vendors have spotted a growing opportunity to promote cloud computing solutions such as Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS). In January 2011, I.T. Co announced that it had deployed the first private cloud based on its partner Microsoft's Hyper-V Accelerate program for one of the largest universal banks of Russia. Local IT leader IBS is recognised to be the leader across most segments of the Russian IT services market, with total 2010 revenues from consulting services estimated at around RUB10bn, more than twice as much as its nearest competitor. In Q111, Sberbank, the biggest bank in Russia and the CIS, awarded IBS a tender to implement a SAP HR Management system for its 250,000 employees.
Hardware
BMI forecasts double-digit growth for the the Russian computer hardware market in 2011, consolidating a strong recovery in 2010. According to BMI projections, the computer hardware market is forecast to recover to US$10.9bn in 2011, up from US$9.1bn in 2010, driven by notebooks. In 2010, shipments bounced back robustly, with growth driven mainly by notebook sales, which accounted for about 60% of PC shipments.
Computer hardware sales will find support from a number of fundamental drivers, including low PC penetration, rising incomes, government IT initiatives and industrial reform in many sectors. The PC market compound annual growth rate (CAGR) for the next five years is projected to be in the region of 15%, with PC spending reaching US$15.2bn by 2015.
Software
The addressable domestic software market is forecast to be close to US$3.5bn in 2011. Spending in this sector is forecast to return to positive growth territory after demand was hit in 2009 by the much sharper decline in PC sales. The market is projected to grow at a CAGR of 18% to US$6.6bn by 2015, making Russia potentially one of the most significant global software market opportunities.
Although Russia has the fifth highest software piracy rate in the world (87%), BMI expects government efforts to strengthen intellectual property protection will mean this falls closer to the Eastern European average, boosting the market. Unsurprisingly there are regional disparities, with Moscow some way ahead of its closest rival St Petersburg in terms of enterprise resource planning (ERP) deployments.
Services
BMI projects an IT services mar best rc helicopter buy sell market place ket value of US$4.9bn in 2011, with a continued strong recovery from the 2009 contraction across all main IT spending verticals. The IT services opportunity is forecast to grow steadily to US$9.5bn by 2015, with opportunities in sectors such as telecoms and banking, retail, transport and logistics, and discrete manufacturing.
Systems integration is the largest IT services component, accounting for as much as a third of revenues, and, together with the implementation of hardware and software, it probably accounts for about half of all IT services. However, value-added services such as consulting and applications development are growing fast. Outsourcing is also on the rise, although it is below the levels in some other Central and Eastern European (CEE) countries.
E-Readiness
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