A study by IDC Israel on the development of IT markets in Eastern Europe says that Israeli high-tech companies should show more interest in the Russian market. "Israel has several competitive advantages in this regard, such as geographical proximity, an extensive range of technologies, and access to a skilled Russian speaking workforce," says IDC Israel. "In the technological market of today, the ones who succeed are those who can respond quickly to opportunities. The Russian technology market is without doubt, one such opportunity."
As regards the development of the IT markets in Eastern Europe, IDC says, "Both established manufacturers and start-ups work on the assumption that the term export refers to trade with the West and, more recently, also East Asia." IDC Israel notes that the Russian IT market grew 22% to $14.5 billion in 2006, compared with 24% in 2005, and it believes that Russia will continue to show the highest rate of growth in Eastern Europe through 2010. Investment in the Russian IT sector is likely to come from revenue from sales of energy resources and natural gas resources, as well private sector demand.
"The domestic sector, which numbers more than 45 million households, accounted for 18% of total IT expenditure in Russia in 2006," says IDC Israel. "The government sector is the second largest buyer, accounting for 17% of IT expenditure, followed in third place by the telecommunications sector, which accounted for 12%."
Published by Globes [online], Israel business news - www.globes.co.il - on March 4, 2007
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