2024/07/01 11:35:59

Russian Software Market Map

Analytical center TAdviser has released a new infographic "Map of the Russian software market," on which it noted Russian software vendors.

The map includes over 300 domestic software developers. All of them were divided into 27 categories in three main sections: infrastructure software, application software and information security.

The Russian software market is impressive for its diversity. In almost all segments, customer companies have a choice of several suppliers - developers. And these, as a rule, are not newly emerged, but mature products tested by numerous implementations, the demand for which is growing year after year, - said Alexander Levashov, editor-in-chief of TAdviser. We hope that the prepared map will allow those who choose a supplier to navigate the abundance of offers and find a reliable partner for many years, "said Alexander Levashov, editor-in-chief of TAdviser.

The project partners were SL Soft, T1 and GreenData.

SL Soft is a developer of import-independent high-load business applications.
SL Soft consolidates mature intelligent automation solutions. The company's portfolio includes products for Citros digital content management, SOICA text and image recognition, ROBIN intelligent business process automation, BOSS human resources management, Preferentum intelligent text information processing and analysis, Polymatica management decision support and Robovoice voice bots.

T1 is a multidisciplinary holding, one of the leaders of the Russian IT market.
T1 provides a full range of IT services for the implementation of high-tech projects taking into account the industry specifics of customers. The holding companies have expertise in the field of system integration, consulting, software development, service support and outsourcing, Big Data and machine learning, information security, Process Mining, the Internet of Things.

GreenData is a developer of a low-code platform for creating enterprise-level IT solutions.
The company has a high level of expertise and more than 10 years of experience in the implementation of unique business projects using low-code for large companies. The GreenData platform allows you to create projects for various sectors of business and the economy. Among them are credit pipelines for the financial sector, ITSM and ESM systems for automating the processes of IT departments, CRM systems for managing expert B2B sales, corporate portals, HRM systems and other solutions.

Map of the Russian software market. Click to enlarge

When preparing the map, analysts relied on:

TAdviser Knowledge Base
TAdviser ratings and reviews
Software Company Sites

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At the request of TAdviser, experts from SL Soft and GreenData shared their views on how successfully Russian vendors replace foreign software, what are the prospects for import substitution and what domestic developers need to develop markets outside our country.

About the successes and difficulties of replacing foreign software

Georgy Podbutsky, Commercial Director of SL Soft:

In 2022, enterprises and organizations from various industries had not the same starting positions for the transition to import-substituting technologies. In the public sector, the share of Russian technologies was noticeably higher than, for example, in industry. The depth of penetration of Russian software for solving applied problems also differed: according to the IIDF, in the field of office software, project management, virtualization, foreign products accounted for 80-90% of the market. At the same time, in the segments of EDMS, information security, voice applications, their level did not exceed 20-30%.

If a year ago the main problem was the lack of Russian solutions in some functional areas, now manufacturers are gradually bringing them to the market, and the main difficulties are the quality and complexity of integration into the existing customer information stack. According to the estimates of the same IIDF, 64% of corporate clients are dissatisfied with the quality of the proposed solutions, 43% experience difficulties with their integration into the company's contour.

Industrial software is most difficult to replace. More than 30 industrial competence centers created in July 2022 should play an important role in the development of Russian industrial software. The active participation of the largest customers in the development of industrial software is a global practice. Almost all of the world's widely distributed software products for automating production tasks grew out of projects for large customers and were created with their direct participation. Industrial competence centers are built on the principle of consortia and unite several developers of digital products and large customers. The role of the latter in the creation of industrial solutions is very important: it is to set the task and determine the requirements for software development, participate in the development process and provide feedback at each stage of product creation and, of course, directly participate in testing, implementation and support.

Vladimir Kislyakov, co-founder of GreenData:

The market for domestic import-substituting software continues to develop actively. Developers quickly adapt and offer solutions that meet local trends and user needs. The proximity of domestic vendors to end users plays an important role: they are well acquainted with typical product use cases and can complement functionality in accordance with customer requests. In particular, a wide range of domestic solutions in the field of system software, database management, business applications, cloud services and information security have recently appeared.

Large companies and companies with narrow specifics experience the greatest difficulties with import substitution. There are no suitable boxed solutions for them, and creating such solutions from scratch with classical development takes a long time. The answer to this call may be to use low-code technologies. The low-code approach allows you to easily adapt applications to the tasks and features of the company, as well as use only the necessary functionality and services.

GreenData's main advantage lies in its comprehensive approach. We and our partners have developed many turnkey systems that do not require the integration of third-party tools to solve various problems. Starting with large companies, we are able to create high-load backup systems, provide high availability and follow mature development and support processes. Our projects include credit pipelines, loan pre-approval solutions for small and medium-sized businesses, digital transformations of internal systems and processes, simplification of the process of hiring new employees, automation of contracts and much more.

As for the difficulties of switching to domestic software, our clients most often address the problems of import substitution of such corporate systems as BPMS, HRM, EDMS, CRM, Service Desk, MR, ESM, ITSM. In particular, last year, together with our partner, Cleverics, we released a joint product - ITSM and the ESM system Altevics, which is a universal software solution that can automate IT processes, requests from AHO, AHD, HR services in accordance with ITIL 4 recommendations and other best practices. An enterprise-level CRM system based on our low-code platform is also being prepared for release, which provides unlimited opportunities for flexible configuration, process adaptation and scaling, and is designed to manage sales and customer relationships in large enterprises.

On the prospects for import substitution of foreign IT solutions in Russia

Georgy Podbutsky, Commercial Director of SL Soft:

For some organizations - companies operating critical information infrastructure, bodies state power , etc. - import substitution of IT is determined by law, benchmarks and finishing points of this process are known. At the beginning of 2023, an order was issued Ministry of Digital Development "On the approval of methodological recommendations for the transition to the use of Russian software, including at significant facilities of the Russian Federation critical information infrastructure , and on the implementation of measures aimed at the accelerated transition of state authorities and organizations to the use of Russian software in the Russian Federation." In accordance with it, a significant part of companies should switch to domestic software by early 2025. According to the recommendations of the department issued this year, state corporations and companies with state participation need to use Russian operating systems, office packages, antivirus programs and virtualization systems from January 1, 2025. The transition to domestic () database management systems DBMS is scheduled for January 1, 2026.

As for import substitution of IT in the not so tightly regulated commercial industry, there are a number of reasons for active processes. Firstly, global vendors themselves prevent the use of their software in Russia - they deprive support, disconnect from cloud services, as SAP did, etc. Secondly, as the quality and functional completeness of Russian solutions grow, it will be easier and more convenient to use them than not supported by Western ones. Thirdly, as the authorities and major corporations switch to domestic software, commercial companies will have to "comply" for further interaction with them (reporting to regulators, connecting to large sites, etc.) and gradually migrate to Russian software. And fourthly, the development of technologies: the hyperautomatization of enterprises and holdings requires the introduction of fundamentally new information systems using AI, robotization, digital twins, etc. These solutions can be obtained only from Russian suppliers or developed independently by any part of them (which is possible only for large businesses).

Commercial companies are very pragmatic about the import substitution process itself, highlighting the most critical zones and so far not touching sections of information systems with normally functioning Western solutions. Therefore, the import substitution process here will drag on for a longer time while maintaining the current situation.

About the most relevant foreign markets for Russian vendors

Georgy Podbutsky, Commercial Director of SL Soft:

In the current realities for Russian IT, several potentially promising foreign markets can be distinguished:

Markets of CIS/CSTO member states traditional for Russian business
Wider understanding of friendly countries within the BRICS/SCO framework
Markets of rapidly developing countries, where there are no strong biases against Russian high-tech products and there is, if not an urgent need for an alternative to Western solutions, then an understanding of the risks of technological binding to only one bloc - the UAE, Saudi Arabia, Vietnam, Indonesia, etc.
The markets of the least developed countries, primarily Africa, where you can go at the initial stage of formation and take promising positions.
Finally, very advanced friendly markets in China and India, where it is difficult to withdraw their products, but where there is a prospect of cooperation with local IT giants in terms of developing complementary solutions or licensing Russian developments for local manufacturers.

About success factors and prospects for development abroad

Georgy Podbutsky, Commercial Director of SL Soft:

For success in foreign markets, it is necessary to ensure the implementation of several components. There should be products and technologies that are competitive in functionality and price with support for national languages and, if necessary, with local certification. Availability of a business ecosystem: local partners implementing and supporting, training specialists, integration with other information systems common to local customers, etc. Understanding the characteristics of the local market, investing in creating a strong brand, marketing and sales in local markets.

Each of the components requires significant investment, so support states at the first stage is very important for manufacturers of any scale. Today, the state helps IT companies in terms of consulting on business conditions and copyright registration, compensates for part of the costs of participating in business missions and exhibitions. This is a meaningful help, but the main investment to enter foreign markets always remains with the company. Obviously, in the conditions of the still weak capitalization of the Russian IT market and the dominance of small and medium-sized business players in it, the task of large-scale exit of Russian manufacturers abroad is difficult to solve. At the same time, we are witnessing the beginning of the process of consolidation in the Russian market, the formation of large IT holdings, which, as they strengthen their local positions, will be able to move beyond the borders of the country.

You can download the map in high resolution using the link.

Applications for the printed version of the card can be sent to the editor@tadviser.ru address. Free delivery is carried out in Moscow by IT managers of companies and government organizations. It is also possible to purchase a card.

The new infographic "Map of the Russian Software Market" is already the 13th TAdviser product from this series. Previously prepared:

Russian Software Market Map

See also