IT sector's GDP contribution has doubled in a span of five years, according to Michael Mishustin.
Tackling Tech Head-on 🚀
Prime Minister Mikhail Mishustin is putting Russia's tech industry in the fast lane, boasting an impressive growth of nearly 28% over the last five years. This staggering success has almost doubled the tech sector's contribution to the country’s GDP!
Mishustin highlighted a two-to-threefold surge in demand for domestic corporate solutions, with certain categories - like database management systems and cloud infrastructure - shooting up more than 10 times. These minds-blowing numbers stem from Russian technologies gaining ground post-sanctions. Today, the transition to homegrown software is happening across every sector, echoing Putin's vision of a 2030 goal where 80% of key organizations will rely on domestic software.
On March 19, Minister of Digital Development Maksut Shadaev dropped a bombshell: the sales of domestic IT solutions exploded by 46%, reaching an astonishing 4.6 trillion rubles in 2024! "This shows our homegrown tech momentum is alive and kickin'," declared Shadaev.
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Hungry for more? Let's dive deeper into what's cooking with the Prime Minister and Minister Shadaev. Here's a sneak peek into their secret sauce:
Current Trends
- Rules and Regs: The Russian government has thumbed up a list of mandatory apps for smart devices, including state telly channels, the Mir payment system, and domestic social networks, aiming to boost domestic digital solutions[2].
- Cash Injections: The government is pouring funds into grants to help IT projects, specifically those focusing on import substitution. The endgame? Supporting 1,000 startups by 2030, spawning 2,000 new solutions and products[3].
- Domestic Demand: There's been a sizzling increase in demand for homegrown corporate solutions, hinting at self-sufficiency in tech[5].
For the Future
- Going Local: The government aims to nix foreign products in favor of domestic ones, propelling homegrown solutions across various sectors[3].
- Innovation Fund: The government plans to brew up an irresistible environment for foreign investments and domestic innovation. Think mechanisms for IPOs by state-owned companies and subsidiaries[5].
- Homemade Hardware: Efforts are underway to whip up domestic hardware, like the Elbrus CPU, to break the cycle of dependence on foreign tech[1].
- Legal Leg-Up: Plans are brewing to allow contracts under 10 million rubles with grant-supported startups, aiming to speed up the inclusion of domestic solutions in government contracts[3].
To reach these lofty goals, tech titans may have to stir up solutions to challenges like software compatibility and shore up a skilled workforce. Bring it on! 💪😉
[1] Source: Russia's Homegrown Hardware - in Russia[2] Source: Russia's Mandatory Apps - CNET[3] Source: Russia's Tech Boom - Financial Times[4] Source: Russia's IT Sector Revenue - Tass[5] Source: Russia's Tech Goals - The bell
The rise in domestic tech solutions is a significant contributor to Russia's business sector, driven by policies favoring homegrown digital solutions and increased funding for IT projects. In line with this, the Prime Minister and Minister of Digital Development envision a future where technology finance plays a crucial role in making Russia self-sufficient and less reliant on foreign technology.
