2014.St.Petersburg.Software.and.Information.Technology.Services.Industry_updated.pdf

5/25/2018 2014.St.Petersburg.Software.and.Information.Technology.Services.Industry_updated.pdf

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St. Petersburg Software and Information Technology Services Industry

St. Petersburg Foundation for SME Developmentmember of Enterprise Europe Network | www.doingbusiness.ru 1


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2 St. Petersburg Software and Information Technology Services Industry

St. Petersburg Foundation for SME Developmentmember of Enterprise Europe Network | www.doingbusiness.ru

St. Petersburg

Software and Information Technology

Services IndustryIndustry overview, catalogue of export oriented

companies & promising start-upsThe current publication was developed in cooperation with RUSSOFT Association, Ingria Technopark &

Business Incubator and the First St. Petersburg business incubator in the framework of a special program

Enterprise Europe Network - Russia, Gate2Rubin Consortium, Regional Center - St. Petersburgoperated

by St. Petersburg Foundation for SME Development and financed by the Committee for Entrepreneurship

and Consumer Market Development.

2013 The special program Enterprise Europe Network - Russia, Gate2Rubin Consortium, RegionalCenter - St. Petersburgoperated by St. Petersburg Foundation for SME Development and financed by

the Committee for Entrepreneurship and Consumer Market Development. All rights reserved.

International copyright.

Any use of materials of this publication is possible only after written agreement of St. Petersburg

Foundation for SME Development and RUSSOFT Association.

St. Petersburg Software and Information Technology Services Industry.Spb.: Politekhnika-servis, 2013.

110 p.

ISBN 978-5-906555-21-2

Online version is available at:www.doingbusiness.ru
http://www.doingbusiness.ru/http://www.doingbusiness.ru/


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St. Petersburg Foundation for SME Developmentmember of Enterprise Europe Network | www.doingbusiness.ru3

ContentsSt. Petersburg: key figures ....................................................................................................... 4Welcome to St. Petersburg ...................................................................................................... 5

1. Industry overview ............................................................................................................. 6

1.1 Overview of development of IT industry in St. Petersburg ........................................................... 61.2 10 reasons to select St. Petersburg ............................................................................................... 81.3 Key facts ........................................................................................................................................ 91.4 Success stories & case studies ..................................................................................................... 141.5 Human resources ........................................................................................................................ 231.6 Available infrastructure ............................................................................................................... 271.7 Support for startups .................................................................................................................... 301.8 Associations ................................................................................................................................. 311.9

Key events ................................................................................................................................... 32

1.10 Sector SWOT analysis .................................................................................................................. 35

2. Catalogue of 100 export oriented ICT companies from St. Petersburg .............................. 362.1 Company index by services or products ...................................................................................... 362.2 Company index by vertical industries ......................................................................................... 392.3 Companies A to Z ......................................................................................................................... 45

3. Promising startups from Business Incubator Ingria ........................................................ 1003.1 Companies A to Z ....................................................................................................................... 100


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St. Petersburg: key figures

Geography & time zone:

Area: 1,439 sq.km Time zone: MSK ( UTC+4)Dialing codes:

International country code: + 7 (Russia) Area code: 812 (St. Petersburg)Population:

Population (10.2013): 5,090,600 people Economically active population (2012):

2,895,900 people

Unemployment rate (10.2013):0.3% of economically active population

Currency & exchange rates

Currency: Russian Rouble (RUB) Exchange rates (14.12.2013):

o 1 EUR = 45.19 RUBo 1 USD = 32.87 RUB

Economy

GRP (2013E): 2,603 billion RUB GRP per capita (2013E): 514 thousand RUB Priority clusters: aerospace, automotive,

pharmaceutical and medical industry, radio-

electronics, shipbuilding, software and

information technology services

Foreign trade

Turnover (2012): 56.5 billion USD Export volume (2012): 20.6 billion USD Import volume (2012): 35.9 billion USDForeign investments

Volume (2012): 10,767 million USD Largest investors (2012): UK - 17%,

Luxemburg - 14%, British Virgin Islands - 11%,

South Korea - 7%, Cyprus - 5%,

Kazakhstan - 5%, Sweden - 5%


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Welcome to St. Petersburg

I would like to welcome you to St. Petersburg, the city which in addition to its

world famous architectural and cultural heritage has become a recognizedcenter for information technologies. St. Petersburg historically accommodates a

number of leading technical Universities and has strong R&D traditions as well as

a developed community of commercial software development companies.

The citys contribution to the development of new hi -tech businesses is probably

the most significant in Russia. St. Petersburgs leading software development

companies, including PROMT, Speech Technology Center, Transas Technologies,

occupy leading positions on the world ICT market. Such service companies as

Reksoft, DataArt, Lanit-Terkom, First Line Software are constantly rated among

the World Top 100. The headquarters of the National Association of Software

Developers RUSSOFT, which unites more than 70 companies from different

regions of Russia, is located in St. Petersburg.

Elgiz Kachaev

Chairman - Committee for Entrepreneurship and Consumer Market

Development - Government of St. Petersburg

I am very proud to present you an overview of the St. Petersburg Software and

Information Technology Services Industry which includes a catalogue of ICT

exporting companies from St. Petersburg. The catalogue provides up-to-date

information on St. Petersburgs companies which offer software development

outsourcing services in Russia as well as develop products and services for the

global ICT market. Considered together as a cluster, software companies from St.

Petersburg represent a strong and solid ICT cluster which meets the

requirements of the global market by offering competing products and services

in many of the most advanced and strategic ICT application areas.

Besides the concrete data on export companies, the present report contains

general information about the ICT cluster as a whole, as well as education, R&D

and other infrastructural background of the ICT industry in St. Petersburg.

Valentin Makarov

President - Russian Software Developers Association (RUSSOFT)

This publication was developed in cooperation with RUSSOFT Association, Ingria

Technopark & Business Incubator and the First St. Petersburg business incubator

in the framework of a special program Enterprise Europe Network - St.

Petersburg operated by St. Petersburg Foundation for SME Development and

financed by the Committee for Entrepreneurship and Consumer MarketDevelopment. It contains information about St. Petersburg ICT cluster which will

help you create partnerships with the local companies.

In addition to this publication, we encourage you to use an online catalogue of

St. Petersburg ICT & Software exporters (available at www.doingbusiness.ru)

which contains information on advantages and key issues of pursuing business in

St. Petersburg as well as a regularly updated database of cooperation profiles

and export products from St. Petersburg.

Maxim Balanev

Executive director - St. Petersburg Foundation for SME Development

Regional coordinator - Enterprise Europe Network - Russia, Gate2Rubin

Consortium, Regional Center - St. Petersburg
http://www.doingbusiness.ru/http://www.doingbusiness.ru/http://www.doingbusiness.ru/


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1. Industry overview1.1 Overview of development of IT industry in St. PetersburgDue to availability of strong technical Universities and high educational level of city residents, St.

Petersburg has all important preconditions for becoming a global leader in IT sector. Taking into account

R&D experience gained in the defense industry, a strong IT industry with software development as its key

element has already emerged in St. Petersburg.

St. Petersburg software vendors occupy leading positions in different segments of the world IT market:

PROMT (automated translation), Speech Technology Center (voice recognition, analysis and synthesis of

speech), Transas Technologies (sea navigation, virtual reality), Development Experts (instruments for

financial brokers), SOLVO (systems for port and warehouse management).

Such software development service providers as Reksoft, DataArt, Lanit-Tercom, First Line Software are

regularly rated among the world top-100 IT-outsourcing service providers.

St. Petersburg engineers make significant contribution to research and development of new solutions for

world leading software, computer and telecommunication equipment vendors. They work in St.

Petersburg R&D centers and laboratories of such global corporations as Siemens, HP, EMC, Motorola,

Oracle, Intel, Google, T-Systems, Alcatel-Lucent, Quest and Nokia, as well as R&D centers of leading

Russian IT-companies such as Yandex, Epam Systems, Luxoft, Kaspersky Labs, etc.

St. Petersburg is recognized as one of the worlds leading software development centers. Thus, St.

Petersburg is ranked 33d in the Top 100 Outsourcing Cities rating published by Tholons in 2013. St.

Petersburg has the highest rating among Russian cities in the top 100 (Moscow is ranked 56th followed by

Nizhny Novgorod and Novosibirsk). The position in this rating to a great extent depends on the number of

developers in the city, cost of development and proximity to main custom development service markets

rather than on quality and complexity of developed software. Therefore, St. Petersburg lags behind largecities of Southeast Asia where the cost of developer's work is much lower than in Russia while the number

of developers is larger. Some cities of Eastern Europe are ranked higher than St. Petersburg due to

geographical location adjacent to Western Europe. At the same time, St. Petersburg companies are

experts in development of complex and knowledge-intensive solutions. Thus, St. Petersburg does not

directly compete with the majority of higher-ranking cities in the Top-100 Outsourcing Cities rating. St.

Petersburg competes in high-tech.

According to other ratings which estimate specialization of cities in innovative areas, St. Petersburg

maintains the highest rating. Thus, according to the Top-50 Emerging Global Outsourcing Cities identified

by Global Services in 2009, St. Petersburg tops the list of top-5 emerging cities suitable for R&D (followed

by Bangalore, Shanghai, Moscow and Dublin). St. Petersburg is also featured in two other categories -leading cities for development of healthcare services and engineering services. St. Petersburg has also

been named among the 10 emerging world centers in the field of product development. The Global

Services analysts also note that St. Petersburg tops the list of Russian cities in investment attraction.

5 years after publication of this rating, the city has strengthened its positions as a center of high-tech

development due to achievements of companies operating in the Internet segment. Both Vkontakte and

Odnoklassniki, the largest Russian social networks, were created and gained world recognition in St.

Petersburg. SPb Software House also emerged in St. Petersburg and became one of the most important

acquisitions of Yandex as a technological leader in the field of mobile television.

St. Petersburg historically accommodates a number of leading technical Universities. The city has strong

R&D traditions as well as a developed community of commercial software development companies. The


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headquarters of the National Association of Software Developers RUSSOFT, which unites more than 70

companies from different regions of Russia, is located in St. Petersburg.

Achievements in IT field are to a great extent attributed to high concentration of technical Universities

which educate world-class engineers. During the last 13 years St. Petersburg students became absolute

Champions at the ACM International Programming Contest, the most prestigious competition for

software developers among Universities, seven times. In summer 2013 for the first time in history this

championship was held in Russia. The strongest student teams from all over the world competed in St.Petersburg. By winning this completion St. Petersburg State University of Information Technologies,

Mechanics and Optics became fivefold world champion. St. Petersburg State Universitys team was also

among the prize winners and took fifth place and a silver medal.

The traditions of technological leadership and a special attitude to technology have been reflected in a

large number of hi-tech startups created by the city residents. The startup boom was caused by the

economic crisis of 2008. But it was also enhanced by implementation of government support measures

for startups, such as establishment of venture funds, business incubators, allocation of R&D grants as well

as development of so-called "accelerators" aimed at speeding up startups development and entry in the

venture capital market.

The citys contribution to the development of a new wave of hi-tech businesses is probably the mostsignificant in Russia. This fact is revealed in the organization of Internet Projects Contest Web Ready

which is supported by the City Government as well as a number of Russian and foreign companies. Today,

this event is the largest contest of internet projects in Russia.

A number of significant IT events are being regularly held in the city, including international conferences.

This fact is attributed not only to the citys attractiveness as tourism and business center but also

availability of large hi-tech companies and professional associations. Thus, the annual Mobile VAS & Apps

conference has become the main event in Russia dedicated to mobile communication network

supplementary services (including smart-phone applications) to a great extent thanks to i-Free, St.

Petersburg company which is a conference co-organizer. The annual all-Russian "Geoinformation Systems

in Healthcare" conference is also held in St. Petersburg. SPb CIO Club considered the most powerful

regional union of CIOs organizes a unique CIO Congress White Nights event in St. Petersburg.


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1.2 10 reasons to select St. Petersburg1. St. Petersburg is an absolute Russian leader in attracting international investments into IT-related

R&D. Dozens of global vendors have already established R&D centers in the city.

2. St. Petersburgs Universities have been ranked high in the ACM International Programming CollegiateContests, the most prestigious world championship in software development among Universities.

Within the last 13 years St. Petersburgs Universities earned 7 Absolute Champion titles andnumerous medals.

3. Every year over 4,500 IT specialists graduate Universities and enter IT market, thus creating animportant pool of talents available for IT-related R&D and commercial software development.

4. Availability of engineers in other high-tech R&D and application areas alongside with softwarecommunity provides an exclusive opportunity for finding breakthrough solutions on the edge of

different sciences and technologies.

5. Creativity and managerial skills of local engineers have been successfully transferred into globalsuccesses of local IT businesses in both software development services and software products.

6. St. Petersburg is one of the biggest R&D and industrial centers which offers diversified options forusing cooperation with local IT businesses to enter a fast-growing IT market in Russia.

7. With its Pulkovo Airport, Sea Port and extensive railway network, St. Petersburg continues to play arole of the Gate to Europe for Russia, thus easily connecting the city with all continents and

destinations both in Russia and worldwide.

8. Known as the cultural capital of Russia, St. Petersburg provides its residents and guests with a largevariety of cultural destinations, including the Hermitage, Mariinsky Opera and Ballet Theater, Russian

Museum and many others.

9. St. Petersburg is also known as the most European city in Russia where everybody is treated withhospitality by foreign-language speaking and open-minded population.

10.St. Petersburg was designed and constructed in accordance with a centralized architectural plan.Today, the citys historical center is a part of the World Heritage protected by UNESCO.

You will enjoy living, working and being here!


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1.3 Key factsThere are at least 350 companies and organizations in St. Petersburg

which specialize in software development. 250-300 out of them have

stable or at least periodic income from export. St. Petersburg industry of

software development is a leader in Russia by the number and share of

companies carrying out export activities.The total turnover of St. Petersburg companies and organizations

generated by sales of software and software development services

reached 1.4 billion USD by the end of 2012 which represents a 14%

increase in comparison with 2011. Export increased to a lesser extent

(appr. by 10%-12%) and has exceeded 800 million USD.

The value of software development in the city economy is gradually

increasing as GRP of St. Petersburg grows more slowly. In 2012 it

increased by 4.5% while export income decreased by 3.2%. Software

development generates 2.1% of GRP and 3.8% of the total export from

St. Petersburg.St. Petersburg provides about 16% of the total turnover of Russian software enterprises and about 18% of

the total Russian software export. This fact testifies that St. Petersburg software companies are more

oriented to foreign buyers and customers compared to similar companies from other Russian cities. Thus,

the share of St. Petersburg in the countrys GDP constitutes only 3.4%.1

The total value of St. Petersburgs IT market equaled approximately 4 .6 billion USD in 2012 or

approximately 14% of the total Russian IT-market. The share of St. Petersburgs IT market in Russia is

much higher than the share of GRP or population. This fact is associated with better penetration of

information technologies in the city but also with the fact that software vendors and software

development service providers from St. Petersburg actively sell their products and services in other cities

of the country (especially, Northwest Russia) and abroad.

Table 1. Key characteristics of St. Petersburg software industry

Development of

software products and

replicated solutions

Software development

services

Centers for research and

development of international

corporations and Russian

companies

Appr. number of

companies

160 150 40

Total number of profile

employees

7.4 thousand 7.2 thousand 3.4 thousand

Total turnover, 2012 680 million USD 400 million USD 320 million USD

Total turnover growth,

2012

20% 16% 12%

Total turnover forecast,

2013

810 million USD 460 million USD 360 million USD

Total export income,

2012

300 million USD 220 million 280 million USD

1 This approximately corresponds to the share of the citys population in the total number of the countryspopulation.

Key facts:

Number of IT companies:

appr 350 companies

Number of export oriented ITand software companies:

250-300companies

Turnover of IT companies:

1.4 billion USD

Volume of IT export:

800 million USD

Talent pool:

over 18,000 software

developers


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Total export income

growth, 2012

14% 8% 9%

Total export income

forecast, 2013

420 million USD 240 million USD 305 million USD

St. Petersburg software companies employ about 18 thousand software engineers, including

approximately 15 thousand working in head offices in the city and 3 thousand - in remote developmentcenters of St. Petersburg companies in other cities of Russia and abroad.

The productivity per one profile employee in software development industry in St. Petersburg ranges

from 45 thousand to 120-130 thousand USD of the turnover (this value depends on the company

specialization and size). The productivity of software vendors and R&D centers of international

corporations is higher than productivity of the companies which provide software development services.

As a rule, this number is also larger with bigger companies.

1.3.1 Headcount and turnoverThe pyramid of the software development export industry in St. Petersburg does not have such a distinct

structure compared to Moscow and Russia as a whole. R&D centers and software development centers oflarge international companies account for a considerable share of export production.2

Traditionally, in accordance with the corporate policy these centers do not provide any official data for

surveys. Taking into consideration only the companies included in the catalogue, only 4% of the

companies operating in the city are large exporters with a turnover of more than 20 million USD. The

majority of the companies are medium-sized and small enterprises. 19% of respondents have a turnover

from 4 up to 20 million USD, 31% of the companies have a turnover from 500 thousand up to 4 million

USD, and 36% of the companies have a turnover not exceeding 500 thousand USD.

Graph 1. Turnover of St. Petersburgs IT exporters

Correspondingly, the majority of respondents (59%) have less than 100 people in the staff. Only 7

respondents have staff which comprises more than 500 people. 37% of respondents have in the staff less

than 30 people.

235% of all export

Less than

$500 thou

sand;

36% From

$500 thousand

up to $4 mln;

31%

From $4 mln

up to $20 mln;

19%

More than $20

mln; 4%


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Graph 2. Headcount of St. Petersburgs IT exporters

1.3.2 Year of foundationThe majority of the largest and most well-known St. Petersburgs IT companies were established in 1990-

1994. During this period, the country had a considerable scientific and technical backlog, which allowed to

gain a market advantage over foreign competitors. However, during the subsequent period (1995-1999),

the amount of established companies decreased. This fact was attributable to the exhaustion of the then-

existing R&D backlog, lack of investments into R&D sector as well as artificially high exchange rate for RUB

to USD.Following the period of post-crisis economic recovery and strong RUB devaluation against USD, further

establishment of a considerable number of new companies in Russia, including St. Petersburg, was noted.

Unfortunately, the subsequent period (2006-2009) was characterized by unsatisfactory conditions for

establishment of new export-oriented businesses.

Shocks and reductions connected with the economic crisis of 2008-2009 stimulated the emergence of a

large number of new hi-tech companies both in the whole country and in St. Petersburg. Besides, in

recent years the government provided real support for startups which resulted in a sharp increase in the

volume of allocated and venture investments.

A year or two ago, the statistics of venture funds gave evidence of significant increase in the number of

startups.Surveys conducted by RUSSOFT did not reveal similar growth but only because new companiesgot included into data-bases on which they were carried out, with some delay.

In 2013 the situation has changed. The survey has shown sharp increase in the number of new companies

among all respondents.If a year ago companies of 4 or fewer years on the market represented only 1% of

all respondents, this year this figure is already 14%. Due to the increase of the number of startups formed

in recent years, the share of companies of 5 and more years old has been considerably reduced.

According to the conducted survey, 35% of St. Petersburg companies were created before 1999, 32% - in

1999-2003, 19% - in 2003-2008 and 14% - after 2008.

Up to 30 employees;

35%

From 30 up to

100

employees;23%

From 100 up to 500

employees;

38%

More than 500

employees;

4%


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Graph 4. St. Petersburgs IT exporters by foundation year

1.3.3 Vertical markets expertiseWhile participating in the survey, IT exporting companies mentioned "Information technologies" as the

most common vertical market. It is explained by the high skill level of engineers in St. Petersburg

companies, whose products and services compete at the most complex markets of software vendors and

service providers. At least 80-90% of the companies are oriented to fulfill requests of IT-vendors for all

vertical markets in 2013. The percentage of companies that use mobile operating systems (iOS, Windows

Mobile, Windows Phone, Symbian) is much higher in St. Petersburg than in other Russian cities. Similar

specialization on development of mobile solutions was revealed already a few years ago.

Main vertical markets for St. Petersburg companies include also "Industrial production", "Services",

"Education", "Telecommunications", "Health care and pharmaceutics", "Transport and logistics" and

"Retail & Distribution", "Banking" and "Finance". All of them have been noted as priorities by 30% to 35%

of respondents.

The numbers referring to each vertical market traditionally show considerable fluctuations from year to

year. This fact is attributable not only to changes in companies priorities and situation in different sectors

of the world economy but also to numerous random factors. Its worth mentioning that during the last 2

years many companies are seeking for a narrower specialization which is revealed in a smaller number of

main vertical markets they are represented at.

Compared to Russian software industry as a whole, St. Petersburg companies more often have

competences allowing them to work at such vertical markets, as "Health care and pharmaceutics",

"Transport and logistics", "Banking" and "Finance.

1.3.4 Main export marketsAccording to the results of the research on software export industry in Russia (RUSSOFT, 2002-2013), all

recent years software companies from St. Petersburg were more represented (compared to Russian

companies as a whole) in Germany, Scandinavia and other countries of Western Europe. This fact is

attributable to geographical and cultural proximity of St. Petersburg to the European countries that are

the world's primary consumers of IT industry products.

Before 1999;

35%

1999-2003;

32%

2003-2008;

19%

2008-2012;

14%


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The survey conducted in 2012 revealed that software companies from St. Petersburg are also more active

than companies from other cities of Russia in USA and Canada, Australia, Africa and South America.

Table 2. Presence of St. Petersburg and Russian companies in the world markets

St. Petersburg companies Russian companies (including St. Petersburg)

1.3.5 Investment attractionDuring the last two years software companies from St. Petersburg were less actively engaged in attracting

investors than companies from other Russian cities. According to the RUSSOFT survey, only 3% of St.

Petersburg companies attracted investments in 2012. In the majority of Russian regions which attracted

investors interest in recent years 12% of companies attracted investments in 2012 (19% - in Moscow). At

the same time, St. Petersburg companies are planning to attract investments in 2013 and 2014 more

often than companies from other regions.

This fact reflects not so much the reduction of investment activity of software business in St. Petersburgbut rather a higher level of maturity and of internationalization of local businesses. St. Petersburgs

startups are often created in the main foreign markets which provide the best protection of intellectual

property and conditions for business growth. It is clear that the growth of St. Petersburg startups cannot

be achieved without the corresponding growth of investments.

According to the Russian Venture Company (RVC), the number of investment funds in Russia increases

every year, thus increasing the volume of available investment resources. During the last two years the

volume of bond funds doubled annually and reached about 6.8 billion US dollars by 2013 it. The number

of funds has exceeded 150. According to RVC, 70% of all transactions account for the IT industry. The total

amount of transactions in 2012 constituted approximately 1 billion US dollars.

Table 3. Share of companies which attracted investments (or plan to attract)

2012 2013 2014

Russian software companies 12% 25% 25%

St. Petersburg software companies 3% 32% 30%

5%

8%

19%

24%

27%

30%

35%

46%

46%

51%

70%

South East Asia

Middle East

Australia, Africa, South America

Scandinavia

Other CIS countries

Germany

Ukraine

USA and Canada

Other countries of Western Europe

Belarus

Russia

10%

13%

13%

15%

23%

35%

36%

38%

40%

40%75%

Middle East

Scandinavia

Australia, Africa, South America

South East Asia

Germany

USA and Canada

Other CIS countries

Ukraine

Belarus

Other countries of Western Europe

Russia


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1.4 Success stories & case studies1.4.1 St. Petersburgssoftware companies and IT service providersMany St. PetersburgsIT companies successfully promote their solutions and services on the Russian and

international markets. Some of them can be considered as international companies. 4 companies from St.

Petersburg are included in the top-100 best outsourcing software development service providers.

Arcadia

Arcadiais an innovative offshore software development company based in St.

Petersburg. The company provides a wide range of software development

outsourcing services to customers worldwide. Today, Arcadia unites team of

more than 170 software professionals with over 18 years of experience in

custom development of business applications.

www.arcadia.spb.ru

ASCON

ASCON (CAD/CAM/CAPP/PDM systems developer) has not yet become a global

company. The company dominates the post-Soviet area only, but itsdevelopment strategy envisages active promotion of its software products in

new markets within the next 10 years. According to the approved strategy, the

company is planning to start operating on all continents at the beginning of the

next decade. ASCON opened its first foreign office in Munich at the beginning

of 2012. The office is engaged in development of a partner network in German-

speaking European countries, including Germany, Austria, and Switzerland.

Entry into foreign markets was delayed due to the global financial crisis which

led to essential reduction of the Russian CAD/CAM/CAPP/PDM systems IT

market, thus causing decrease in ASCON sales.

www.ascon-spb.ru

Astrosoft

Arcadia, Astrosoft and Digital Design are the companies engaged in custom

software development for foreign companies. While Astrosoft and Digital

Design are more oriented to the fast-growing Russian market, Astrosoft has

strong positions at the Finnish market. It is a premium level IT services supplier

with more than 10-year expertise in implementing projects all over Europe.

http://astrosoft.ru

Bercut

Bercut and Peter-Service, located in St. Petersburg, are the leading Russian

solutions providers for telecom operators. Though both companies are moreoriented to the Russian and the CIS markets, they also have installations in

other foreign countries.

Bercut is a supplier of end-to-end solutions in the field of telecom services (for

example, to Tele2 in Russia) which offers a unique integrated approach to VAS

development and management based on cooperation between operator and

subscriber. Outside Russia and the CIS, systems installed by the company can

be found in Africa and in the Middle East.

www.bercut.com
http://www.arcadia.spb.ru/http://www.arcadia.spb.ru/http://www.ascon-spb.ru/http://www.ascon-spb.ru/http://astrosoft.ru/http://astrosoft.ru/http://www.bercut.com/http://www.bercut.com/http://www.bercut.com/http://astrosoft.ru/http://www.ascon-spb.ru/http://www.arcadia.spb.ru/


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DataArt

DataArt is a custom software development company that provides advanced

solutions for financial services, healthcare, hospitality and other industries. The

companys services include application development, quality assurance, team

completion, reengineering and R&D.

Along with Reksoft and First Line Software, DataArt should be especially noted

among outsourcing software developers. For several years these companieswere listed in various versions of the top-100 world leading outsourcing

companies, including IAOP Global Outsourcing 100 and the Global Services

100.

www.dataart.com

DevExperts

DevExperts is one of the global leaders in developing software for financial

markets. The company provides professional software systems for on-line

brokerage, exchange, and financial activities mostly on stock, options, and

Forex markets. DevExperts is specialized in development, implementation, and

support of financial systems intended to handle complex business activities,including a full set of advanced tools to meet both trader and broker

requirements.

www.devexperts.com

Digital Design

Headquartered in St. Petersburg, Digital Design is an IT consultancy which

offers a full range of IT services to clients in Russia and all over the world.

Based on its own research, the company creates new companies which

promote their solutions not only in Russia but also abroad (DocsVision and

AvroRAID).

DocsVision is a developer of the self-named document and corporate businessprocesses management system. It dominates the markets of Russia and

neighboring countries.

AvroRAID is engaged in data storage software development. Its main solution,

AVRORA 2.0 platform, enables to create a high performance and fault tolerant

data storage system based on inexpensive widespread standard hardware

components. Customers of this platform include not only in Russia and the CIS

countries, but also India and USA.

www.digdes.com

First Line Software

Along with Reksoft and DataArt First Line Software should be especially notedamong outsourcing software developers. For several years these companies

were listed in various versions of the top-100 world leading outsourcing


100.

Both Lanit-Tercom and First Line Software were listed in the ratings of the top

100 worlds leading outsourcing technological companies during the last two

years.

www.firstlinesoftware.com
http://www.dataart.com/http://www.dataart.com/http://www.devexperts.com/http://www.devexperts.com/http://www.digdes.com/http://www.digdes.com/http://www.firstlinesoftware.com/http://www.firstlinesoftware.com/http://www.firstlinesoftware.com/http://www.digdes.com/http://www.devexperts.com/http://www.dataart.com/


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i-Free

i-Free content provider is another St. Petersburgs company with the turnover

estimated at hundreds of millions of US dollars in recent years. The companys

sales volume exceeded 200 million US dollars in 2011. Though it was created in

2001 and is a relatively young company, i-Fee has been present at the world's

largest markets since 2006. The companys offices are located in Kiev

(Ukraine), Minsk (Belarus), Almaty (Kazakhstan), Mumbai (India), Beijing(China), and San Paulo (Brazil). The company's products and services are

delivered to more than 100 countries across the world. i-Free specializes in

implementation of innovative projects in the field of mobile and NFC

technologies, electronic finance, digital content distribution, electronic

payment systems and micropayments, application development for

smartphones and new network devices, as well as promotion of digital

products in the B2C market and implementation of B2B projects in the mobile

marketing sphere. The company uses its foreign divisions to promote other

Russian developers' solutions in the foreign markets. i-Free has good

development prospects, and its turnover is expected to increase several times.

www.i-free.com

JetBrains

JetBrains is an excellent example of success reached by a relatively new

Russian company at the global market. The company develops tools for

software developers which strongly accelerate the development process and

increases productivity.

www.jetbrains.com

Lanit-Tercom

Lanit-Tercom is based in St. Petersburg State University. The company also has

a number of spin-offs which develop new technologies for the global market.Lanit-Tercom was listed in various versions of the top-100 world leading

outsourcing companies, including IAOP Global Outsourcing 100 and the Global

Services 100, during the last 3 years.

www.lanit-tercom.ru

Peter-Service

Peter-Service is engaged in development of billing solutions for large telecom

operators and renders services for products implementation, integration and

technical maintenance. The company has about 100 successful projects

implemented for 50 telecom operators in 10 countries across the world

(mainly, in the CIS). One of the company's projects has been implemented inTurkey.

www.billing.ru

PROMT

The turnover of such St. Petersburgs companies as PROMT (machine

translation system developer) and Speech Technology Center (speech

recognition and synthesis system developer) will most likely not exceed 100

million US dollars, though considering their partners and customers across the

world, these companies are already global.

PROMTis a leading Russian developer of linguistic IT solutions for business and

private users which has good positions in Western Europe. The company has

been successfully operating at the market of innovative linguistic technologies
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for 20 years and, today, provides its services to more than 10 thousand client

companies all over the world.

www.promt.com

Reksoft

Reksoft specializes in supplying software development services, products and

solutions to enterprises, ISVs, and system integrators operating in a variety ofindustries.

Along with First Line Software and DataArt Reksoft should be especially noted

among outsourcing software developers. For several years these companies

were listed in various versions of the top-100 world leading outsourcing


100.

www.reksoft.com

SPB Software

SPB Software is another example of successful development. The company

which specializes in mobile application development was acquired by Yandexin 2011 and became the center of mobile TV and 3D solutions development for

the leading Russian internet search company.

http://spb.com

Speech Technology Center

Speech Technology Center is one of the world market leaders which delivers its

integrated hardware and software complexes to more than 40 different

countries. Speech Technology Center is famous by implementation of a

nationwide personal voice-based identification system set up in Mexico. This

success has good prospects to be extended to other Latin America markets as

voice recognition is now enhanced by image recognition, providing complexsolution based on recognition of two physical characteristics of a person.

http://speechpro.com

Transas group

Transas group of companies is the largest St. Petersburgs IT solution

developer. It occupies leading positions in the world market in the field of

software for synthesis of 3-D images, vessel navigation and traffic control

systems, as well as sea and air transport simulators. The companys annual

turnover has exceeded 300 million US dollars with export accounting for about

a half of the turnover. Transas aims to increase these numbers to 1 billion US

dollars during the next years. With some of its products, the companydominates such large markets as China and the US.

www.transas.com

Small software enterprises, informal groups and individuals that develop applications and companies that

mainly produce various equipment and develop software also have achievements at the foreign markets.

For example, a traffic speed monitoring system developer SIMICON has agreed with a Canadian company

Peak Gain Systems to sell vehicle speed meters produced by Peak Gain Systems as a representative in

North America. Two applications for the Windows Phone mobile OS created by Yury Skvortsov, a student

from St. Petersburg, are listed in the national marketplace store tops in several countries.

The head offices of OCS and Marvel, two large Russian computer and telecom equipment distributors, are

located in St. Petersburg. The offices of several powerful system integrators operating across Russia and
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the CIS, such as AND Project, BCC, Lank Systems, Polikom Pro, Korus Consulting, are also located in St.

Petersburg.

St. Petersburgs IT companies have achieved success at the Russian and world markets mainly due to high

concentration of scientific institutions in the city as well as experts skilled in various fields. The

development of IT companies is financed mainly by their own funds. Success of large Moscow IT

companies is mostly attributed to high concentration of financial resources in the capital. Should St.

Petersburgs companies receive any external investment, software developers and service companiescould considerably increase sales turnover both in Russia and abroad.

1.4.2 R&D centers of multinational companies located in St. PetersburgLarge number of scientists and skilled experts in St. Petersburg contributed to the establishment of R&D

centers and research laboratories of many foreign corporations. While these centers were mainly created

during the period of 2002-2008, some of them have been already operating in the city for 12-15 years.

Thus, Motorola's center opened in 1995 was the first R&D center in St. Petersburg. During the last years

such global problems as, for example, sharp reductions in world market sales led to cutbacks in the

number of St. Petersburgs R&D divisions of foreign corporations. Due to the companys liquidation,

Borland development center was closed several years ago. Nevertheless, quality of employees' work has

never been a reason that caused significant staff reductions or any center s or research laboratorys

closure. On the contrary, despite the crisis and increase in labor costs, new software development centers

are launched in the city every year.

As a rule, foreign corporations do not share any information on operation of their Russian divisions which

are engaged in advanced development and research. Sometimes, the activities of such divisions are so

classified that it is difficult to get any official data neither about the field of their work nor the number of

employees. Nevertheless, the existing data is enough to consider specialization of international R&D

centers located in St. Petersburg.

Alcatel-Lucent

The Alcatel-Lucent experts working in St. Petersburg are engaged not only in

development of solutions for the Russian market, but also participate in the

company's global projects. They develop software solutions for corporate

telecommunications, IPTV and contact centers. In the field of IPTV, a priority

task lies in developing a fully functional service platform for large operators.

Particularly, St. Petersburgs center develops over-the-top solutions for

delivery of multimedia applications via public. As for corporate communication

field of activity, the center created a group working on MyTeamwork, a

product for on-line conferences.

The R&D center launched from-the-scratch development of analytical solutions

for the Genesys Interactive Insight contact centers. This project is interesting

since extreme programming approaches were first applied in St. Petersburg

on demand of Alcatel-Lucent.

In cooperation with the Russian Technologies State Corporation Alcatel-Lucent

established a joint venture engaged in development, production and

promotion of IP protocol-based hi-tech equipment in the Russian and the CIS

markets. Subsequently, the partners decided to organize production of

equipment for Russian LTE networks as well as launch another research and

development center in St. Petersburg (which is now integrated into the Alcatel-

Lucent wireless solutions group).

www.alcatel-lucent.com
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ECTACO

An American company ECTACO is one of the leaders in the world market of

pocket electronic translators. In 1998 the company opened the Center for

advanced development on the basis of its Russian office in St. Petersburg. The

center eventually became the companys main development center. Thus, in

many respects St. Petersburgs experts determine design and quality of the

linguistic base and wide functionality of ECTACO translators.www.ectaco.com

EMC

EMC R&D center in St. Petersburg is oriented towards implementation of

projects that require high qualification, although it is not as large as the

companys centers in other countries.

At the moment of the centers opening, the Captiva engineering division

acquired by EMC, which was engaged in development of software for transfer

of information from paper to electronic media, was located in the city. 50

employees of the division joined the center.

The key direction of the company's activities is storage devices. St.Petersburgs center is engaged in activities associated with Symmetrix, a

flagman family of EMC storage systems.

www.emc.com

Epam Systems

Epam Systems has been operating in St. Petersburg for over 7 years. The

company is one of the leading software services and solutions providers from

Central and Eastern Europe. From software products to core business

applications, EPAM has provided expert consulting, development, testing,

support and infrastructure services to many of the worlds leading

organizations.ww.epam.com

Exigen Services

Exigen Services is an example of a foreign IT-service corporation which has

successfully created a dedicated development center in St. Petersburg. This

center has developed into an important software development outsourcing

service provider, which let Exigen Services become rated among the Best 100

Global Outsourcing service providers for some years. After a certain turbulent

process, the company was divided in two parts and now both of them are

looking to proper business models for recovery.

www.exigenservices.com

Google

Google's software development centers in Russia are located in Moscow and

St. Petersburg. There is not much information available regarding their

operation. Most likely, the centers develop solutions used by the company in

Russia. However, it is known that the Russian software development centers

carry out projects for the entire company. Thus, the centers possess the

authorship for Google Code, a search service for programmers, as well as

perform a large share of work on the Google toolbar development.

www.google.com
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HP Labs

HP opened a unique research laboratory in St. Petersburg. Unlike other

international R&D centers located in Russia, it is not engaged in localization

and development of short-term technologies, but focuses on pursuing

fundamental science research with the expected return in at least 5 years. Its

staff mostly includes scientists employed on a permanent basis. At the same

time, the HP laboratory in St. Petersburg actively cooperates with the leadingRussian Universities and academic institutions.

Particularly, the laboratory in St. Petersburg implements a unique project for

corporation's research division aimed at developing the Contextualized

Information Delivery Platform (CIDP). The platform is intended for so-called

knowledge workers (financial or political analysts, sales or marketing experts,

researchers and other users) who constantly work with large data sets to make

decisions and provide recommendations.

In close collaboration with HP Labs scientists, Russian professors, teachers,

postgraduate students and students conduct research in the laboratory

focusing on such fields as natural language processing; extraction of semantic

information from multimedia data; extraction of objects, events, complexevents, facts for deep text analysis; integration of information from

heterogeneous sources; contextual compression, automatic summarization;

scalable graph algorithms; service-oriented architectures and cloud services.

www.hpl.hp.com

Intel

Among all corporations in Russia, Intel has the largest contingent of developers

and researchers which includes about 2 thousand people. They work in 5 cities,

including Moscow, Nizhny Novgorod, Saratov, Novosibirsk, and St. Petersburg.

Intel R&D centers in Russia are mainly oriented to computer technologies

development. Nevertheless, some employees are involved in implementationof specific projects, such as development of the Intel Wireless Display

technology (Wi-Di) used to connect big screens to a laptop or a desktop

computer via wireless channel.

In July 2004, the R&D center was opened in St. Petersburg. 8 years ago, its

employees started to work on the development of the Managed Run Time

Environment (MRTE) software which is a new field for the company. Intel's

R&D center in St. Petersburg was created on the basis of the Elbrus MCST

company, which was one of the Russian leading scientific centers in the field of

computer technologies. Together with the regional offices, the company

employed over 500 highly-qualified experts, including three laureates of the

Lenin Prize and five laureates of the State Prize, six professors, eight Doctors ofScience, and more than fifty Candidates of Science. They developed a new

generation of microprocessors, E2K and Elbrus, and the Elbrus-3M universal

multiprocessor computer complex.

www.intel.com

Luxoft

Luxoft Holding, Inc (NYSE: LXFT) is a leading provider of software development

services and innovative IT solutions to a global client base consisting primarily

of large multinational corporations. Luxofts software development services

consist of core and mission critical custom software development and support,

product engineering and testing, and technology consulting. Luxofts solutions

are based on its proprietary products and platforms that directly impact its
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clients business outcomes and efficiently deliver continuous innovation. The

companys core resources are located in Central and Eastern Europe. Luxoft

has 15 delivery centers worldwide, 20 offices and presence in 13 countries,

employing over 7,500 people. Luxoft is domiciled in Tortola, British Virgin

Islands, has its principal executive office in Zug, Switzerland and is listed on the

New York Stock Exchange (LXFT US).

Luxoft has recently invested in new R&D centers in St. Petersburg tostrengthen its market position on automotive, embedded and mobile markets.

Video Technology R&D focuses on real-time computer vision, computational

photography and video compression algorithms. Several computational

photography algorithms were already successfully demonstrated at Embedded

World conference in Nuremberg, Germany. Another R&D area is system

solutions for Automotive industry.

Products and solutions developed in those R&D centers address critical client

challenges and deepen Luxoft business understanding in vertical markets

becoming a key differentiator in highly competitive technology driven

business.

www.luxoft.com

Motorola

Motorola is one of the first foreign corporations which opened a development

center in Russia. The division has four basic lines of activity, including

optimization and solutions for wireless platforms, automobile electronics and

telematics, cellular network infrastructure, and remote access systems and

solutions for them. In cooperation with a Russian holding InformInvestGroup

Motorola corporation started to localize production of equipment for 4G

broadband mobile communication networks. Russian experts conduct

preliminary research and development for the project.

www.motorola.com

Nokia

Nokia created a network of research laboratories in Russia at Universities and

the Russian Academy of Sciences. Due to proximity to Finland, this network

started to form in St. Petersburg. The Finnish company acknowledged Russian

specialists expertise in certain areas where they are capable of solving

assigned tasks with the same level of quality as their Western European peers.

India and China are also considered as an option, however, for a more distant

perspective (10 years and more). Despite the fact that the science develops

rapidly in these countries, the required "historical basis" has not been acquired

yet. Two related companies, Nokia and Nokia Siemens Networks, conductresearch in the fields that partially overlap, though Nokia Siemens Networks

division in St. Petersburg is more oriented to the field of telecommunication

infrastructure.

www.nokia.com

Oracle Development

Following the Sun Microsystems acquisition by Oracle in 2009, the Sun

Microsystems center of high technologies in St. Petersburg has been

functioning as Oracle Development LLC. This division's basic sphere of activity

included Java technologies and development tools, in particular, applied

aspects of Java, Jini, N1, J2ME, and compilers development. After the Sun

Microsystems absorption, some experts suggested that specialization of its St.
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Petersburg center will not comply with the Oracle development strategy.

However, the corporation continued to finance development in St. Petersburg.

Today, the Center of High Technologies, in addition to Java, develops Fusion

Middleware products, including, for example, application server and server

virtualization solutions. St. Petersburgs experts are engaged in the full cycle of

software development which is developed for the global market. The Oracle

developers in St. Petersburg are engaged in solving complex problems that canbe dealt with by very few experts in the world.

www.oracle.com

Siemens Communications

Siemens Communications opened a joint center on the basis of two St.

Petersburgs software development divisions. Siemens opened its first Russian

software development center in 1997. The center was engaged in fixed

telephony segment. Then, in 2001, the second center, which developed

solutions for mobile communication switching subsystems, was established. In

2005, taking into account the global technology convergence tendencies, the

companys management decided to consolidate developers under the sameroof.

Generally, the software development center receives orders directly from the

Siemens AG head office. Other orders are received from the regional Siemens

offices in Russia, Belarus, Ukraine, and other CIS countries.

Main objectives of the center lie in development, testing and standardization

of software products and applications; adaptation of Siemens technology

considering the specific features of the regional market, as well as certified

support and maintenance of the solutions in the Russian and CIS markets. The

centers area of competence also lies in intellectual network software

adaptation to customers' needs (and consulting services on its application) as

well as database development for advance payment services.www.siemens-enterprise.com

T-Systems

T-Systems is the Deutsche Telekom's subsidiary enterprise and R&D center in

St. Petersburg. It develops software on demand of its parent structure and

other large European telecom operators. Besides, the center works for the

Russian market. It develops customized software and implements complex

information systems. T-Systems basic lines of activity in Russia include

implementation and support of the SAP ERP enterprise management systems,

software development, integration and support, and rendering of

telecommunication services.www.t-systems.com

Yandex

Yandex joined the list of companies with its R&D center in St. Petersburg just

before it held a successful IPO three years ago. Yandex is one of the largest

internet companies in Europe, operating Russias most popular search engine

and its most visited website. According to LiveInternet, as of July 2013, Yandex

generated 62% of all search traffic in Russia. The company also operates in

Ukraine, Kazakhstan, Belarus and Turkey.

www.yandex.com
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1.5 Human resources1.5.1 UniversitiesThe success of St. Petersburg as an R&D center in the IT field is attributed to its leading universities.

According to the official data, working age population of the city equals 2.7 million people. Taking into

account migrants engaged in the IT industry, this number is likely to reach 3 million people. With 33thousand unemployed, 2.67 million people work or study in the city. Thus, more than 200 thousand

people are employed in IT companies and corporate IT services.

43.6% of economically active population has higher education. 832 students account for every 10

thousand citizens of St. Petersburg. Two-thirds of software exporters' personnel have good command of

English.

St. Petersburg has a large number of Universities and Institutes that educate IT and IT-related specialists,

including engineers who have at least basic IT knowledge and can be easily trained to become software

developers. Approximately 4,500 software development engineers and 12,000 IT-related specialists

graduate annually. The last figure indicates a potential rather than a real number of newcomers. Despite

the continuing brain-drain (estimated at fewer than 5% of graduates) and the fact that not all graduatesstart working in the industry, this potential is still immense.

St. Petersburg has a high concentration of technical higher education institutions, including 5 Universities

which are ranked among the 12-15 best Russian educational institutions in the sphere of software

development:

St. Petersburg National Research University of Information Technologies, Mechanics and Optics(SPNRU ITMO)

The National Research University of Information Technologies, Mechanics and Optics is one of the

oldest higher education institutions in Russia. The school has been training specialists in cutting-edge

technologies directed to science and technical development for more than 100 years. Today, the

University, which has 10 departments and offers 49 specializations, enrolls more than 9,000 full-timestudents. SPNRU ITMO is known not only in Russia but also internationally due its students' success at

the ACM International Programming Collegiate Contests. The Universitys top worlds rating reflects

the results of participation in prestigious competitions within several years. SPNRU ITMO is the only

university in the world that has become the winner of the ACM International Programming Collegiate

Contest 5 times in different years.http://en.ifmo.ru

St. Petersburg State University (SPBU)Founded in 1724, St. Petersburg State University is the oldest institution of higher education in Russia.

The University's Department of Mathematics and Mechanics together with its comprising scientific

institutions is one of the largest mathematical centers in the world. The Department offers 23

specializations and also includes the Research Institute of Mathematics and Mechanics, a computer

center and astronomy observatory. In addition to SPNRU ITMO, SPBU also successfully participates in

the International Programming Collegiate Contests. Its students became absolute world champions

twice and with several exceptions constantly become prize-winners. The SPBU team became the first

Russian winner of the ACM International Programming Collegiate Contest in 2000-2001.

http://eng.spbu.ru

St. Petersburg State Polytechnic University (SPBSTU)St. Petersburg State Polytechnic University was founded in 1899. It has recently become the National

Research University, thus recognized as a leading Russian and international center in the field of

higher engineering and economics. The University attracts students form 96 countries of the world

and provides education programs in the field of engineering, physics, economics, humanities and IT.
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Today, the University has 20 departments and Institutes as well as 120 R&D labs and offers more than

150 specializations.

www.spbstu-eng.ru

St. Petersburg State Electrotechnic University (ETU)St. Petersburg State Electrotechnic University is one of the world's largest education and research

centers specializing in radio engineering, electrical engineering, electronics and computer science. The

University has a staff of more than 1,000 highly-qualified specialists and scientists, including the NobelPrize Winner in physics Zhores Alferov. Electrotechnic University is alma mater for over 70 thousand

students and over 3 thousand international students.

http://old.eltech.ru

St. Petersburg State University of Space Instrumentation (SUAI)Historically, the University (formerly known as Aircraft Instrumentation Institute) has been largely

involved into projects related to development of software for embedded devices for aviation and

space. Today, the University accommodates an important R&D center and implements joint training

programs on embedded software development in cooperation with Nokia, Intel and other vendors.

http://suai.ru

IT specialists are also educated at the following St. Petersburgs Universities:

Bonch-Bruevich St. Petersburg State University of Telecommunications (SPbSUT)

Bonch-Bruevich St. Petersburg State University of Telecommunications is one of the oldest higher

education engineering Institutes in Russia. Founded in 1930, the Universityshistory is closely linked

to the development of Russian and world science in communication area and great scientific and

technical base. The University is a founding member of the Association of European Universities and

Companies of Informatics and Computer Electronics (EUNICE).

www.sut.ru

Baltic State Technical University ("Voyenmekh")Founded in 1932, the University educated more than 60,000 thousand specialists in the areas of

aircraft jet production, aerospace, physics and mechanics, arms and armament systems, informationand control systems, mechatronics and control, applied mechanics and automation, international

industrial management.

www.voenmeh.ru

St. Petersburg State Transport University (PSTU)St. Petersburg State Transport University includes 10 faculties, 52 departments, scientific research

institutes and centers, branches and offices in various Russian towns as well as a complex of

specialized secondary educational institutions. According to the Russian Federation Ministry of

Education, the University ranks 10-13 among 175 Russian technical higher schools. The University

educates specialists in various areas, including railways power supply, automatics, telemechanics,

telecommunications, traffic management as well as information systems, standardization and

certification, technological processes safety, management and marketing.

www.pgups.ru/eng

St. Petersburg State Engineering Institute ( LMZ-VTUZ)Founded in 1930, St. Petersburg State Engineering Institute focuses on educational, scientific and

engineering activities in the areas of power engineering, technology and automatization, industrial

processes, triboengineering, corporate IT systems and other.

www.pimash.spb.ru

Annually St. Petersburgs higher education institutions educate about 4.5 thousand IT specialists.

However, demand exceeds supply available at the labor market. Besides, not all graduates are ready to

fulfill difficult tasks (first of all, in export-oriented companies). In this regard, the National Association of

Software Developers (RUSSOFT) in cooperation with the US Chamber of Commerce is establishing the St.
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Petersburg Academy of Postgraduate IT Education (SPb ITAPO). This academy will be engaged in

systematic professional retraining of IT experts to meet the requirements of the developing global

market.

St. Petersburgs Universities participate in R&D activities as well as international projects. The

Universities structure includes not only science divisions but also R&D institutions.

1.5.2 Research institutionsDue to number of scientific divisions of educational institutions, research Institutes and project

organizations, St. Petersburg is considered a scientific center of Russia. 11% of the national scientific

capacity is concentrated in the city. About 14% of all Russian researchers and 15% of Doctors of Science

work in St. Petersburgsscientific and educational institutions. Moreover, over 8% of all Russian students

and 13% of postgraduate students study in the city.

About 600 research institutions are located in St. Petersburg, including:

About 200 federal research institutions, including 12 federal research centers; 73 academic research institutions; Over 70 scientific and educational institutions; About 250 research institutions in the business sector.The total number of employees engaged in scientific sector of the city reaches 184 thousand people. 40

thousand people have Doctor's and Candidate's degree, including doctoral candidates and postgraduate

students.

52 state higher educational institutions, 20 military Institutes, 47 non-governmental Universities, 78

secondary vocational technical training institutions are located in St. Petersburg. About 100 continuing

professional education institutions function under the auspices of the Committee for Science and Higher

Education. The number of students exceeds 520 thousand people.

The teaching staff of Universities, technical schools and colleges totals about 30 thousand teachers,

including 3.7 thousand Doctors of Science and more than 12 thousand Candidates of Science. During the

last four years the number of young researchers and University s lecturers increased with the average

annual growth of 4%.

Some research institutions of the city, which are not a part of higher educational institutions, are involved

in development of information and communication technologies as well as carrying out of corresponding

research. In particular, these include:

JSC Computing Scientific Research Institute SpektrThe company is engaged in development of software, hardware, microelectronics solutions for

aviation equipment and production of onboard equipment.

www.jsc-spectr.spb.ru

Federal State Unitary Enterprise Emergency Center of the Ministry of Atomic Energy of RussiaOne of the areas of the Centers activities lies in development of automated systems for radiationmonitoring.

www.nwatom.ru

Institute of High-Performance Computing and Databases of the Ministry of Science and TechnologyThe Institute is engaged in development of modern information technologies, parallel computing,

modeling in the field of fundamental sciences, databases and distributed information systems

development, and visualization.

www.csa.ru/ihpcis.php
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St. Petersburg Department of Steklov Institute of Mathematics, Russian Academy of Sciences (RAS)

The Institute was established in 1940 as a department of the Steklov Institute located in Moscow.

Today, it is an independent research institute specializing in fundamental research on theoretical

mathematics and mathematical models of theoretical physics, including mathematical logic and

theory of algorithms, theory of numbers, geometry and topology, mathematical analysis, theory of

probability, mathematical statistics and many other.

www.pdmi.ras.ru Central Research Institute of Robotics and Technical Cybernetics

The Central Research Institute of Robotics and Technical Cybernetics of St. Petersburg State

Polytechnical University is created as a special design office of technical cybernetics. Its major

activities involve robotics and control systems, the photon techniques, special instrument

development, laser technologies, telenetics.

www.spbstu-eng.ru

Vektor Scientific Research InstituteThe Institute is engaged in research, development and production of radio engineering and radio

electronics equipment.

www.nii-vektor.ru JSC Concern Central Scientific and Research Institute Elektropribor

The Institute is engaged in high-precision navigation, gyroscopy, gravimetry, and marine radio

communication.

www.elektropribor.spb.ru

St. Petersburg Institute for Informatics and Automation of the Russian Academy of Sciences(SPIIRAS)

St. Petersburg Institute for Informatics and Automation of the Russian Academy of Sciences was

founded in 1978 and has since then grown into a large scientific research organization which gave rise

to a new Center of Ecological Security of the St. Petersburg Scientific Research Center of RAS. Today,

the Institute is engaged in fundamental research of implementing IT in society and informationsecurity, information and computer systems and networks, theoretical basics of development of soft-

and hardware complexes for information real-time processing, IT for intelligent systems of research

automation, control, manufacturing and other fields.

www.spiiras.nw.ru

JSC Russian Scientific and Research Institute ElektronstandartElektronstandart is the leading research Institute of the radio electronic complex of Russia in the

field of reliability, quality, certification, standardization of electronic component base and radio and

electronic equipment.

www.elstandart.spb.ru

Ioffe Physical Technical Institute

The Ioffe Institute is engaged in nanoheterostructure physics, solid state electronics, solid state

physics, dielectric and semiconductor physics, plasma physics, atomic physics and astrophysics.

www.ioffe.ru/

JSC Scientific Research Institute NeptunScientific Research Institute Neptun is engaged in development, production and repair of

communication equipment, design and construction of coastal objects.

www.niineptun.ru
http://www.pdmi.ras.ru/http://www.pdmi.ras.ru/http://www.spbstu-eng.ru/http://www.spbstu-eng.ru/http://www.nii-vektor.ru/http://www.nii-vektor.ru/http://www.elektropribor.spb.ru/http://www.elektropribor.spb.ru/http://www.spiiras.nw.ru/modules.php?name=Content&pa=showpage&pid=42http://www.spiiras.nw.ru/http://www.spiiras.nw.ru/http://www.elstandart.spb.ru/http://www.elstandart.spb.ru/http://www.ioffe.ru/http://www.ioffe.ru/http://www.niineptun.ru/http://www.niineptun.ru/http://www.niineptun.ru/http://www.ioffe.ru/http://www.elstandart.spb.ru/http://www.spiiras.nw.ru/http://www.spiiras.nw.ru/modules.php?name=Content&pa=showpage&pid=42http://www.elektropribor.spb.ru/http://www.nii-vektor.ru/http://www.spbstu-eng.ru/http://www.pdmi.ras.ru/


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1.6 Available infrastructureSt. Petersburg boasts favorable conditions for hi-tech businesses. The city has developed transport

infrastructure, including a high-speed railway communication with Moscow and Helsinki. The

international airport serves direct flights to many capitals of Western countries. A new international

airport terminal is being under construction; first facilities will be put into operation in 2014.

Mobile communication and Internet access in the city is comparable to Western European capitals. Alarge number of business centers were constructed in the city during the last 10-15 years. St. Petersburgs

startups are financed from both state and private funds created to support hi-tech entrepreneurship.

1.6.1 Business entersSt. Petersburg has many modern business centers and several science and technology parks. However,

the existing business centers do not satisfy the demand of the rapidly developing citys economy. The

number of facilities should be increased to initiate competition and lower rent costs (today, rent costs are

rather high compared to European standards). New business centers were continuously constructed

during the past decade, though some projects were suspended during the crisis.

As of the first quarter of 2012, the average vacancy level in the St. Petersburgs market of quality officecenters grew from 7.5% to 9.3%. The growth is attributable to the large amount of class A office centers

put into operation at the end of the previous year. Until the end of 2012, more than 150 thousand sq. m

of offices will be put into operation which will allow to increase the rentable area of quality offices up to

1,910 thousand sq. m.

1.6.2 Business incubatorsInnovation infrastructure in St. Petersburg is represented by business incubators which are tasked with

rendering assistance in accelerated development of innovative companies.

Business Incubator Ingria

Business Incubator Ingria is a subdivision of OJSC Technopark of St. Petersburg.The key specialization of its residents is information technologies. Since 2009

the Incubator's residents attracted more than 940 million roubles in

investments from international IT companies, private and state funds, business

angels. Dozens of large global-level Russian companies and leading

international innovation centers became customers of the Incubator's

residents. Ingria is actively developing its cooperation with Russian and St.

Petersburg Universities (11 agreements were signed within the special

program I2U), thus sharing its experience with other regions. Nowadays, Ingria

has 86 residents.

Annually, Business Incubator Ingria organizes more than 60 events, such as

Open Days Ingria (famous speakers lectures), Lead The Way (discussions abouttechnology trends), StartupLynch, Train&Develop Program (specialized

trainings), Students Meetings, seminars, round tables, conferences as well as

partners and residents events. During these events startups have an

opportunity to receive expert feedback, investment estimation of

2014.St.Petersburg.Software.and.Information.Technology.Services.Industry_updated.pdf

Documents

petersburg foundation

petersburg software

petersburg business

overview of development

gate2rubin consortium

russoft association

bythe committee

available infrastructure