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Russian technology industry in danger of “brain drain”

Nhat Linh – Resident correspondent of Vietnam Television Station in RussiaSunday, March 27, 2022 06:01 GMT+7

The Russian information technology market in 2020 will reach nearly 25 billion USD, grow 20% in just 1 year and employ millions of people.

According to the plan of the Ministry of Digital Development of the Russian Federation, the volume of this market will reach 50 billion USD by 2024. However, at this time, the wave of sanctions from the West against Russia related to the conflict The conflict in Ukraine is putting the Russian information technology industry at risk.”brain drain“.

High income, great demand, information technology industry is the dream of young Russians. It is estimated that 1 in 3 Russians find a job opportunity in this field. But now, up to a third of Russian IT professionals are looking to work abroad.

According to the Russian Association for Electronic Communications (RAEC), about 70,000 IT professionals left Russia in February and March 2022. Experts predict a second wave – now held back by expensive tickets, rising house prices, as well as the fact that “no one is waiting for the Russians” and “no financial connections” – will may take place in April and is estimated to reach 100,000 people.

The largest flow is formed in the freelancer segment, said Valentin Makarov, president of the Association of Software Developers Russoft – Valentin Makarov. Meanwhile, the departure of Western companies from the Russian market brings a sizable number of trained professionals to the domestic market.

Western sanctions have significantly affected the information technology industry in Russia. The supply of imported equipment and high-tech products is being halted and a generation of young and freelance programmers is not ready to work in isolation.

Yandex, Russia’s leading technology group, has reallocated its staff and operations by looking for more co-working spaces in the Armenian capital for employees leaving Russia for Yerevan. At the same time, the company claims to be “capable of working remotely, with no relocation of the headquarters”.

Meanwhile, the Russian Government has announced measures to support the information technology industry to prevent the flow of personnel abroad. In the immediate future, all IT companies are exempt from paying income tax for 3 years.

Retaining technology talent, preventing brain drain is considered the most important issue for the Russian economy at the moment because this is decisive to the strategy of developing the digital nation.

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