Over the past year, a clear majority of Russian software companies reported higher revenue compared with the previous year, with about 68 percent indicating growth. This uplift followed a period when several foreign tech firms exited the domestic market under international sanctions, which diminished competition for local players and reshaped the competitive landscape. The latest figures come from the Software Developers Association ARPP and the Domestic Software statistics compiled by Vedomosti, offering a window into how the sector navigated a challenging global environment while pursuing opportunities at home.
ARPP’s findings show that 68 percent of homegrown development companies experienced revenue gains. Yet the picture is not uniform: roughly 19 percent faced declines, while about 12.6 percent remained stable without meaningful change. These divergent outcomes reflect how companies adapted to a shifting market, leveraged local demand, and managed external pressures that varied by segment and product focus. Some firms capitalized on reduced international competition, while others contended with supply chain disruptions, financing constraints, or shifts in client priorities. Taken together, the data illustrate a sector that is resilient in growth pockets but also uneven in performance as it weathered geopolitical headwinds and the evolving needs of customers in both public and private sectors.
Last year saw IT teams expanding their workforces as demand indicators and project backlogs persuaded firms to scale up. Companies increased hiring to align talent with new and ongoing initiatives, invest in specialized skills, and shorten delivery timelines in the face of growing backlogs. This trend toward greater staffing levels occurred alongside broader financial signals that reflected the shock waves of geopolitical events, suggesting that the tech workforce responded to both immediate project demands and longer-term strategic goals. The expansion underscores a broader pattern: demand for IT capabilities rose steadily, and businesses positioned themselves to meet this demand by strengthening teams, boosting training, and preserving agility in execution as market conditions shifted.
At the start of 2023, officials highlighted a notable surge in demand for IT personnel. The Deputy Prime Minister’s office reported a 63 percent increase in demand for IT specialists compared with 2022. As the year commenced, the number of open IT roles in Russia rose to roughly 59 thousand, signaling a robust entry point for domestic tech hiring. This snapshot reveals how global shocks intersect with local opportunities, shaping both hiring activity and project momentum within the Russian tech ecosystem. It also points to a persistent need for skilled professionals across software development, system integration, cybersecurity, data analytics, and related disciplines, underscoring the sector’s strategic importance for national technological capacity and economic resilience.