Feeds

Perestroika by PowerPoint

Go easy with the tax breaks

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Promoting Russia's technical expertise - rather then tax breaks - is needed to develop the country's IT sector.

Natalya Kaspersky, chief exec at AV firm Kaspersky Labs, said the high level of technical education in Russia made for good software developers, but not necessarily expertise in marketing. Russia's government could help by promoting the ability of its IT sector in handling more complex development projects, she says, rather than more simple outsourcing projects which are increasingly handed over by Western companies to firms in India or China.

This - rather than financial incentives - will be of greater help in helping Russian IT companies. Over-generous tax breaks could have the negative effect of encouraging organised criminals to enter the IT business, Kaspersky spokesman Denis Zenkin warns.

Russia is heavily dependent on the export of commodities (particularly oil, natural gas, metals and timber) which make up 80 per cent of its overseas trade. According to Mrs. Kaspersky, promoting the IT segment can help to redress this balance.

Kaspersky Labs was established in 1997 and currently employs 270 people including 100 developers. Two-thirds of the company's revenue (which it doesn't publicly disclose) originates outside Russia, mainly in the SMB sector.

The company's headquarters is based in the same building where Soviet-era scientists developed nuclear weapon's guidance systems, and visitors to the building must still hand over passports to enter its austere environs. Kaspersky's office, in contrast to the building it inhabits, is impeccably modern.

During a European press trip to Moscow last week The Register met a variety of other Russian IT companies including Abbyy, the forms document and language recognition vendor, and a number of software outsourcing firms.

The long-term fortunes of such companies depend not only on their own efforts but the overall business climate in Russia, which continues to be impeded the slow progress of structural reforms. Problems such as a weak banking system and lack of confidence in the Russian economy overseas pose a continued problem for Russian IT companies. ®

External Links

CIA world fact-book entry for Russia

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.