📋 Tender Overview
The total turnover of Russian software development companies increased by 19.4% in 2023, reaching 1.98 trillion rubles. Such data are provided in a study by the Russoft Association, which was presented at a press conference at TASS.
It is noted that a year earlier the increase was less and amounted to 6.7%. Experts note that the reason for this is that in 2023, export revenues began to have less influence on the total turnover indicator than a year earlier, and the influence of sales on the domestic market has increased significantly. In turn, sales of software companies in the domestic market increased by 35.3% to 1.51 trillion rubles.
Analysts note that until the beginning of 2022, custom software development in the domestic market accounted for about 70% of sales of service companies and up to 20% of product companies. At the end of 2022, these figures amounted to 60.2% and 7.7%, respectively, and at the end of 2023, an even greater decrease was revealed - to 28.9% and 7.4%. Russoft explained that this reduction reflects “the desire to create new solutions to replace software products of foreign companies that left the Russian market after the introduction of anti-Russian sanctions.” “It can also be reasonably assumed that thanks to the abolition of VAT on the sale of licensed software, it has become more profitable for companies to sell unique custom systems as replicable software,” experts say.
In turn, the volume of sales of custom software development services on the domestic market amounted to approximately 205 billion rubles at the end of 2023, having significantly decreased compared to the same indicator in 2021 and 2022 - about 265 billion rubles. "Sales of our own software products accounted for 65.8% (a year earlier - 78%) of the income from work on the domestic market of product companies and 35.9% of service companies (a year earlier - 10.6%). The total revenue from these sales amounted to 865 billion rubles. This figure increased by 35% in 2023, and by 1.5-2 times in 2022. In 2021, compared to the previous year, the increase was estimated at 20-28%," the association noted.
Forecast for 2024
According to analysts, sales growth in the domestic market can be expected to continue in 2024. According to calculations, sales will increase by 36%. However, experts note that a gradual decrease in the indicator is expected, since the process of import substitution is somewhat slowing down after the introduction of all those domestic solutions that could and should have urgently replaced foreign analogues. “The process of import substitution will continue in 2024. Plans for the transition to domestic software from a number of Russian corporations are designed for more than one year. In addition, some solutions still need to be developed so that they are not inferior in functionality to foreign analogues. However, the growth rate of sales in the domestic market will still gradually decline every year,” says the Russoft study.
“If sales growth rates within Russia remain high and exports grow at least slightly, the total turnover of Russian software companies will increase by about a third and exceed 2.5 trillion rubles,” the study concludes.
