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Software sales in Russia to surge by year-end — Association

It is noted that losses of exporters remaining in the Russian jurisdiction in markets of unfriendly countries can also have a greater impact on results of this year, compared to the previous one

MOSCOW, October 3. /TASS/. Software sales growth rate may slow down in Russia but will remain at a high level and their volume will grow by 36% in the domestic market by the year-end, Russoft Association said in its analytical materials.

"Growth rates of [software] sales inside Russia may slow down a bit but will remain very strong. Sales in the domestic market will surge by 36%, making possible to boost the overall turnover of industry companies by 24%," the research indicates.

Termination of operations of certain development centers in Russia that provided services to parent entities overseas will affect software industry indicators to a greater degree in 2023 than already manifested in 2022 results.

Losses of exporters remaining in the Russian jurisdiction in markets of unfriendly countries can also have a greater impact on results of this year, compared to the previous one. "Refocusing to markets of non-CIS friendly countries underway gradually all over the last decade will highly likely accelerate in 2023 but not much because the entry to new markets is a lengthy and complicated process," Russoft said.

According to presented data, markets of unfriendly states will account for about 7% of overall revenues of Russian software companies as of the end of 2023. "Therefore, the share of friendly countries making up to about 8% can be for the first time above the share of unfriendly countries," the Association said.

Military operation in Ukraine

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