Majority of Russian IT Specialists Do Not Plan to Relocate
Despite sanctions pressure and the departure of numerous international companies, Russian IT workers take an optimistic view of the development prospects of the domestic IT industry.
These findings are based on data collected through an online survey of IT specialists conducted by the HSE University Institute for Public Administration and Governance between October and December 2022. The study surveyed 5,156 people with connections to the IT industry based on education, employment, or training.
Overall, IT workers are optimistic about the development prospects of the industry for the near future. A total of 40.6% of those surveyed anticipate a technological breakthrough in the development of the Russian IT industry thanks to newly emerging opportunities and the departure of competitors.
IT workers believe that the most likely positive outcome will be the emergence of new Russian digital products and services, as reported by 60.4% of respondents. A smaller number of those surveyed mentioned the development of competencies in Russian specialists (39.6%) and the development of real import substitution (35.9%). In addition, almost one third of respondents see the potential for an influx of new workers into the industry, the strengthening of competition between domestic companies, and the development of Russian research.
Fewer than 10% of respondents have already relocated or plan to relocate this year—4.7% have already moved abroad to live and work, while 4.9% would like to do so this year. In international companies, the percentage of employees who have relocated or plan to relocate this year is 38%, while the same figure for Russian companies is only 10.6%. The figure is even less (7.5%) among those who currently have no official employment at any company (freelancers, students, temporarily unemployed people).
Ruslan Artamonov, author of the study and Deputy Director of the Office for Expert Analysis
‘One of the main problems faced by IT companies after the implementation of sanctions is the loss of clients and partners (24.5%). 18% have reported financial difficulties, and 15.6% have mentioned problems accessing services and software. But the biggest problems faced by IT companies in 2022 were related to staffing: 18.6% of companies report difficulties hiring highly qualified staff, 15.4% note a reduction in their pool of IT specialists, and 13.9% have had problems hiring even early-career specialists.’
However, industry representatives highlight not only the negative consequences faced in 2022, adds Ruslan Artamonov. A total of 12.5% of survey respondents claim that new opportunities and prospects for development have emerged within their companies. According to 8.5% of IT companies surveyed, the number of specialists at their companies has grown, while a total of 7.5% of respondents mentioned a growth in demand for their companies’ products.
More than 50% of respondents believe that the outflow of IT specialists to other countries is weakening, as those who wanted to leave have already done so (according to 38.4% of respondents). A total of 12.2% even believe that the trend is reversing and that people will start to return.
According to IT industry specialists, in order to more intensively and effectively develop the domestic IT industry, the Russian government must focus its efforts first and foremost on training qualified personnel. A total of 62.8% of respondents agreed with this statement, while 37% believe that state support for startups would have an appreciable effect.