Western IT services vendors yet to make an impact in Russia.

Position:IT News and Products
 
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Spending on IT services in Russia topped the 3bn [euro] mark for the first time in 2007, as demand for project services, outsourcing and hardware maintenance grew by 18%.

Russia is home to a large and diversified number of IT services suppliers and the market has become increasingly competitive in recent years. Local IT services companies thee a new challenge from foreign vendors who have ambitious expansion plans in the country.

However, only five of the top 20 IT services suppliers are non Russian-owned companies, including HP, Accenture and IBM. There are no foreign companies in the top five positions, and PAC estimates that non-Russian-owned companies hold a combined market share of just 9%, which confirms the clear domination of local suppliers.

Foreign providers, such as HP and IBM, actually slipped in the rankings as M&A activity between large Russian IT suppliers made them strong enough to fight against the big foreigners present on the market. The hardware maintenance segment is dominated by local suppliers even if HP recorded better performance results than in 2006 and won the top position in the rankings against local supplier National Computer Corporation (NCC), which has ranked first in previous years. A large number of players, as well as aggressive competition, led to gradual price decline...

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