According to Russia's Information Technologies & Communications Ministery exports worth US $ 12 - 14 billion of software services & products are estimated by 2010.
According to news published in Zee News, exports worth US $ 12 - 14 billion of software services & products are estimated by 2010, said Russia's Information Technologies & Communications Ministers, Leonid Reiman on November 13 2006, addressing students of St. Petersburg State University.
Regarding IT services & software products exports this year, he said that Russia's IT & software exports will be around US $ 2 billion in 2006 and with an annual growth ranging between 80 % & 90 %, the exports will cross the US $ 12 billion mark in four years. IT & software exports of Russia were worth US $ 1 billion in 2005.
Mr. Reiman said that the measures the ministry is taking to support country's exports would help them to maintain their forecasts in near future.
USA & Canada are the leading software export destinations of Russia. Russia also has significant exports in Germany, New Zealand & Australia along with parts of Western Europe, South & East Asia & Scandinavian nations.
He further added, though Russia is competing successfully with China & India, it still faces a shortage in number of IT experts in the country, which is acting as a major hindrance in development of Russian IT sector. In 2005, just around 32,500 IT & telecommunication experts graduated, less than half of what country needs.
Bill Gates, Microsoft's Chief had recently warned Russia against competition with India, as Russia is bound to lose because of high labor costs in the country.
"After China & India, Russia comes as the leading software outsourcing nation. But Russia's IT exports are like a drop of an ocean compared with billions of money it earns through energy exports. Apart from relatively high labor costs & lack of IT experts, shortage of value-added IT exports & consequent reliance on global commodity markets are the major setbacks for the Russian IT sector," said an analyst at RNCOS.
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