St. Petersburg Software and Information Technology Services Industry St. Petersburg Foundation for SME Development member of Enterprise Europe

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2 St. Petersburg Software and Information Technology Services Industry Industry overview, catalogue of export oriented companies & promising start-ups The 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. Petersburg operated by St. Petersburg Foundation for SME Development and financed by the Committee for Entrepreneurship and Consumer Market Development The special program Enterprise Europe Network - Russia, Gate2Rubin Consortium, Regional Center - St. Petersburg operated 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.. Spb.: Politekhnika-servis, p. ISBN Online version is available at: 2

3 Contents St. Petersburg: key figures... 4 Welcome to St. Petersburg Industry overview Overview of development of IT industry in St. Petersburg reasons to select St. Petersburg Key facts Success stories & case studies Human resources Available infrastructure Support for startups Associations Key events Sector SWOT analysis Catalogue of 100 export oriented ICT companies from St. Petersburg Company index by services or products Company index by vertical industries Companies A to Z Promising startups from Business Incubator Ingria Companies A to Z

4 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 ( ): 5,090,600 people Economically active population (2012): 2,895,900 people Unemployment rate ( ): 0.3% of economically active population Currency & exchange rates Currency: Russian Rouble (RUB) Exchange rates ( ): o 1 EUR = RUB o 1 USD = RUB Economy GRP (2013E): 2,603 billion RUB GRP per capita (2013E): 514 thousand RUB Priority clusters: aerospace, automotive, pharmaceutical and medical industry, radioelectronics, 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 USD Foreign 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% 4

5 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 recognized center 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 city s contribution to the development of new hi-tech businesses is probably the most significant in Russia. St. Petersburg s 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. Petersburg s 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 Market Development. 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 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 5

6 1. Industry overview 1.1 Overview of development of IT industry in St. Petersburg Due 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 world s leading software development centers. Thus, St. Petersburg is ranked 33d in the Top 100 Outsourcing Cities rating published by Tholons in 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 large cities 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 6

7 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 University s 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 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 city s contribution to the development of a new wave of hi-tech businesses is probably the most significant 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 city s 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. 7

8 reasons to select St. Petersburg 1. 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. Petersburg s Universities have been ranked high in the ACM International Programming Collegiate Contests, the most prestigious world championship in software development among Universities. Within the last 13 years St. Petersburg s Universities earned 7 Absolute Champion titles and numerous medals. 3. Every year over 4,500 IT specialists graduate Universities and enter IT market, thus creating an important 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 software community 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 global successes 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 for using 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 a role 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 large variety 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 with hospitality by foreign-language speaking and open-minded population. 10. St. Petersburg was designed and constructed in accordance with a centralized architectural plan. Today, the city s historical center is a part of the World Heritage protected by UNESCO. You will enjoy living, working and being here! 8

9 1.3 Key facts There are at least 350 companies and organizations in St. Petersburg which specialize in software development 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 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 country s GDP constitutes only 3.4%. 1 The total value of St. Petersburg s IT market equaled approximately 4.6 billion USD in 2012 or approximately 14% of the total Russian IT-market. The share of St. Petersburg s 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 Appr. number of companies Total number of profile employees Development of software products and replicated solutions Software development services Centers for research and development of international corporations and Russian companies thousand 7.2 thousand 3.4 thousand Total turnover, million USD 400 million USD 320 million USD Total turnover growth, 2012 Total turnover forecast, 2013 Total export income, 2012 Key facts: Number of IT companies: appr 350 companies Number of export oriented IT and software companies: companies Turnover of IT companies: 1.4 billion USD Volume of IT export: 800 million USD Talent pool: over 18,000 software developers 20% 16% 12% 810 million USD 460 million USD 360 million USD 300 million USD 220 million 280 million USD 1 This approximately corresponds to the share of the city s population in the total number of the country s population. 9

10 Total export income growth, 2012 Total export income forecast, % 8% 9% 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 development centers 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 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 Headcount and turnover The 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 of large 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. Petersburg s IT exporters Less than $500 thousand; 36% From $500 thousand up to $4 mln; 31% More than $20 mln; 4% From $4 mln up to $20 mln; 19% 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. 2 35% of all export 10

11 Graph 2. Headcount of St. Petersburg s IT exporters From 100 up to 500 employees; 38% More than 500 employees; 4% Up to 30 employees; 35% From 30 up to 100 employees; 23% Year of foundation The majority of the largest and most well-known St. Petersburg s IT companies were established in 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 ( ), the amount of established companies decreased. This fact was attributable to the exhaustion of the thenexisting 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 ( ) was characterized by unsatisfactory conditions for establishment of new export-oriented businesses. Shocks and reductions connected with the economic crisis of 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 companies got 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 , 19% - in and 14% - after

12 Graph 4. St. Petersburg s IT exporters by foundation year ; 14% Before 1999; 35% ; 19% ; 32% Vertical markets expertise While 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 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. It s 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 Main export markets According to the results of the research on software export industry in Russia (RUSSOFT, ), 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. 12

13 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) Russia Belarus Other countries of Western Europe USA and Canada Ukraine Germany Other CIS countries Scandinavia Australia, Africa, South America Middle East South East Asia 51% 46% 46% 35% 30% 27% 24% 19% 8% 5% 70% Russia Other countries of Western Europe Belarus Ukraine Other CIS countries USA and Canada Germany South East Asia Australia, Africa, South America Scandinavia Middle East 40% 40% 38% 36% 35% 23% 15% 13% 13% 10% 75% Investment attraction During 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 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. Petersburg but rather a higher level of maturity and of internationalization of local businesses. St. Petersburg s 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) Russian software companies 12% 25% 25% St. Petersburg software companies 3% 32% 30% 13

14 1.4 Success stories & case studies St. Petersburg s software companies and IT service providers Many St. Petersburg s IT 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 Arcadia is 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. ASCON ASCON (CAD/CAM/CAPP/PDM systems developer) has not yet become a global company. The company dominates the post-soviet area only, but its development 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 The office is engaged in development of a partner network in Germanspeaking 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. 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. Bercut Bercut and Peter-Service, located in St. Petersburg, are the leading Russian solutions providers for telecom operators. Though both companies are more oriented 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. 14

15 DataArt DataArt is a custom software development company that provides advanced solutions for financial services, healthcare, hospitality and other industries. The company s 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 companies were listed in various versions of the top-100 world leading outsourcing companies, including IAOP Global Outsourcing 100 and the Global Services 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. 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 business processes 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. First Line Software Along with Reksoft and DataArt First Line Software 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 companies, including IAOP Global Outsourcing 100 and the Global Services 100. Both Lanit-Tercom and First Line Software were listed in the ratings of the top 100 world s leading outsourcing technological companies during the last two years. 15

16 i-free i-free content provider is another St. Petersburg s company with the turnover estimated at hundreds of millions of US dollars in recent years. The company s sales volume exceeded 200 million US dollars in Though it was created in 2001 and is a relatively young company, i-fee has been present at the world's largest markets since The company s 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. 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. 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. 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 in Turkey. PROMT The turnover of such St. Petersburg s 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. PROMT is 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 16

17 for 20 years and, today, provides its services to more than 10 thousand client companies all over the world. Reksoft Reksoft specializes in supplying software development services, products and solutions to enterprises, ISVs, and system integrators operating in a variety of industries. 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 companies, including IAOP Global Outsourcing 100 and the Global Services SPB Software SPB Software is another example of successful development. The company which specializes in mobile application development was acquired by Yandex in 2011 and became the center of mobile TV and 3D solutions development for the leading Russian internet search company. 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 complex solution based on recognition of two physical characteristics of a person. Transas group Transas group of companies is the largest St. Petersburg s 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 company s 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 company dominates such large markets as China and the US. 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 17

18 the CIS, such as AND Project, BCC, Lank Systems, Polikom Pro, Korus Consulting, are also located in St. Petersburg. St. Petersburg s 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. Petersburg s companies receive any external investment, software developers and service companies could considerably increase sales turnover both in Russia and abroad R&D centers of multinational companies located in St. Petersburg Large 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 , some of them have been already operating in the city for 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. Petersburg s R&D divisions of foreign corporations. Due to the company s 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 laboratory s 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. Petersburg s 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). 18

19 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 company s main development center. Thus, in many respects St. Petersburg s experts determine design and quality of the linguistic base and wide functionality of ECTACO translators. 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 company s centers in other countries. At the moment of the center s 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. Petersburg s center is engaged in activities associated with Symmetrix, a flagman family of EMC storage systems. 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 world s 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. 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. 19

20 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 leading Russian 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, complex events, facts for deep text analysis; integration of information from heterogeneous sources; contextual compression, automatic summarization; scalable graph algorithms; service-oriented architectures and cloud services. 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 implementation of 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 of Science, 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. 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. Luxoft s software development services consist of core and mission critical custom software development and support, product engineering and testing, and technology consulting. Luxoft s solutions are based on its proprietary products and platforms that directly impact its 20

21 clients business outcomes and efficiently deliver continuous innovation. The company s 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 to strengthen 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. 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. 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, conduct research in the fields that partially overlap, though Nokia Siemens Networks division in St. Petersburg is more oriented to the field of telecommunication infrastructure. 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. 21

22 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. Petersburg s 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 can be dealt with by very few experts in the world. Siemens Communications Siemens Communications opened a joint center on the basis of two St. Petersburg s software development divisions. Siemens opened its first Russian software development center in 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 company s management decided to consolidate developers under the same roof. 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 center s 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. 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. 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 Russia s 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. 22

23 1.5 Human resources Universities The 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 33 thousand 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 graduates start 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 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-time students. SPNRU ITMO is known not only in Russia but also internationally due its students' success at the ACM International Programming Collegiate Contests. The University s top world s 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. 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 St. Petersburg State Polytechnic University (SPBSTU) St. Petersburg State Polytechnic University was founded in 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. 23

24 Today, the University has 20 departments and Institutes as well as 120 R&D labs and offers more than 150 specializations. 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 Nobel Prize Winner in physics Zhores Alferov. Electrotechnic University is alma mater for over 70 thousand students and over 3 thousand international students. 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. IT specialists are also educated at the following St. Petersburg s 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 University s history 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). 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, information and control systems, mechatronics and control, applied mechanics and automation, international industrial management. 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 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. 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. Annually St. Petersburg s 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. 24

25 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. Petersburg s Universities participate in R&D activities as well as international projects. The Universities structure includes not only science divisions but also R&D institutions Research institutions Due 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. Petersburg s scientific 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 Spektr The company is engaged in development of software, hardware, microelectronics solutions for aviation equipment and production of onboard equipment. Federal State Unitary Enterprise Emergency Center of the Ministry of Atomic Energy of Russia One of the areas of the Center s activities lies in development of automated systems for radiation monitoring. Institute of High-Performance Computing and Databases of the Ministry of Science and Technology The 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. 25

26 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. 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. Vektor Scientific Research Institute The Institute is engaged in research, development and production of radio engineering and radio electronics equipment. JSC Concern Central Scientific and Research Institute Elektropribor The Institute is engaged in high-precision navigation, gyroscopy, gravimetry, and marine radio communication. 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 information security, information and computer systems and networks, theoretical basics of development of softand hardware complexes for information real-time processing, IT for intelligent systems of research automation, control, manufacturing and other fields. JSC Russian Scientific and Research Institute Elektronstandart Elektronstandart 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. 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. JSC Scientific Research Institute Neptun Scientific Research Institute Neptun is engaged in development, production and repair of communication equipment, design and construction of coastal objects. 26

27 1.6 Available infrastructure St. 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 Mobile communication and Internet access in the city is comparable to Western European capitals. A large number of business centers were constructed in the city during the last years. St. Petersburg s startups are financed from both state and private funds created to support hi-tech entrepreneurship Business сenters St. 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 city s 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. Petersburg s market of quality office centers 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 Business incubators Innovation 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 about technology 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 their projects and improve their presentation skills. Municipal Pre-Seed Investment Fund began its operation in 2011 in collaboration with Business Incubator Ingria. Many residents of the Business Incubator have already become companies engaged in developing various promising fields, from IT and energy industry to construction and medical equipment production. The Incubator's residents attracted more than 459 million roubles in investments in Yandex, Headhunter and RBC Holding are examples of investors

28 1.6.3 Science and technology parks The First St. Petersburg business incubator The First St. Petersburg business incubator supports and facilitates the development of small innovation companies. It is a unique business, information and creative environment for successful development of innovative business. The First St. Petersburg business incubator was founded in 2006 by the Administration of St. Petersburg with co-operation of the Ministry for Economic Development of the Russian Federation. It is managed by Managing Company «REO «Service». The First St. Petersburg business incubator is located in «Crystal» Business Center. Business incubator provides the following services: renting comfortable offices equipped with furniture, computers and conditioning system at a reduced rental rate; consulting on legal issues, economics, taxation, marketing, business planning, promotion, PR, accounting, financing, loan services, HR, internationalization; external accounting services; promotion of the companies: advertising, exhibitions, media, PR-support, events; education programs: seminars, trainings, master classes; internationalization: business trips, seminars, joint projects, internships, consulting; access to business incubator s partnership network. info@start-business.ru Science and technology parks and innovation centers have been created in several St. Petersburg s Universities and are mainly located in old reconditioned buildings built according to outdated requirements. The reconstruction of such facilities has proved economically inefficient, while the construction of new premises is cheaper. Ingria Technopark Ingria Technopark will be created on the principles of state-private partnership with the support of the Government of the Russian Federation and the Government of St. Petersburg. The project is a part of the federal program aimed at creating techno parks in the sphere of high technologies. The Technopark is located in the Nevsky district of St. Petersburg, on the territory of Blocks 6-6А to the north of Novosyolov Street, bounded by Bolshevikov Prospekt, Dybenko Street, Krylenko Street and «Zanevsky post» railway station. It has a convenient location. Bonch-Bruevich Saint-Petersburg State University of Telecommunications, «Ulitsa Dybenko» metro station, public transport stops, city center and the ring motor road leading to Pulkovo-2 international airport are located in its vicinity. The area of 320 thousand sq. m; that will allow to accommodate 14 thousand employees. The Ingria science and technology park is expected to be opened in The Management company, OJSC Technopark of St. Petersburg, was founded in July The total volume of investment in the creation of Ingria Technopark equals to 30 billion roubles, including 66% of private investment and 34% of state investment. Three companies, Microsoft, DataArt and STC North-West Laboratory, have announced their plans to locate their R&D centers in Technopark. The largest object of external engineering infrastructure, substation Technopark, was 28

29 1.6.4 Special Economic Zone (SEZ) opened in November In December 2008 Business Incubator Ingria began operating as a pilot project of Technopark. Technopolis The science and technology park of the Finnish company Technopolis has been functioning in St. Petersburg since It meets all current requirements for similar objects. The park s area is 23 thousand sq. m. The Technopolis science and technology park accommodates a large software development center of the Exigen Service international company which specializes in customized software development, as well as offices of large foreign companies. In February 2012, Technopolis announced the beginning of construction of the second stage of the Pulkovo Technopolis science and technology park in St. Petersburg. The construction of the new building will take place in the framework of realization of the company's development strategy for Infrastructure of the technology and development Special Economic Zone has been constructed in St. Petersburg with the state financial support. These facilities occupy two sites to the north and the south of the city. In Primorsky district, Novo-Orlovsky site occupies an area of hectares. Thus, the zone s infrastructure occupies hectares, and residents' sections occupy hectares. In Petrodvortsovy district, Noidorf site occupies an area of hectares with the zone s infrastructure occupying 5.49 hectares and residents accommodation hectares. As of the beginning of summer 2012, St. Petersburg s SEZ has over 30 residents. Following the completion of construction, the residents will gain complete engineering infrastructure, beneficial tax and customs treatment, lower land lease rates, and an option to purchase land plots. Priority activities of the residents St. Petersburg s SEZ include information technologies and telecommunications, pharmaceutics and medical technologies, energy efficiency, and precision instruments industry. 29

30 1.7 Support for startups Last few years have seen a considerable increase in financing of new Russian hi-tech companies from both state and private funds (venture, seed, pre-seed). Some funds are becoming 2-3 times greater every year. New funds have been established, state programs for small business support have been launched. Increase in financing is primarily associated with the local and federal authorities decision to support high-tech businesses. Both Russian and foreign private companies and venture funds have supported this decision. St. Petersburg s startups receive financial support from both regional and federal sources. For example, the Speech Technology Center's subsidiary enterprise was among the first recipients of grants for advanced research from Skolkovo Foundation which was established in spring SPEEREO offered Skolkovo its subsidiary company's project, which was awarded the first grant from the joint fund created by RVC and Microsoft. Besides, several business incubators with focus on hi-tech businesses operate in St. Petersburg. The most active business incubators are the QD Inter-University student business incubator (in the technology park of the National Research University of Information Technologies, Mechanics and Optics (ITMO)), Ingria (a division of the similarly-named technology park under construction), and the First St. Petersburg business incubator. If not yet solved, the problem of startups support in St. Petersburg is being actively solved in the city. It is possible to assume that this support will further lead to the growth of new hi-tech companies' export. 30

31 1.8 Associations Key associations operating in St. Petersburg: Russoft RUSSOFT is a nationwide association of Russian software companies, which also includes a number of leading software companies from Belarus and Ukraine. The association was founded in 1999 as a Consortium Fort-Ross which consisted of 10 local companies. It changed its name to RUSSOFT Association in 2004 following a merger with a Moscow based Association (NSDA) and is since then headquartered in St. Petersburg. Today, RUSSOFT unites more than 70 companies which employ more than 24 thousand highlyqualified programmers and software engineers. The association was created to represent Russian software development companies at the global market, enhance marketing and PR activities of its members, and lobby their interests in the Russian government. RUSSOFT is a part of the Russian Information and Computer Industry Association (APKIT) where it plays a role of Software Development and Export Committee. SPb CIO Club St. Petersburg CIO Club is a professional community uniting IT directors of leading companies of the Northwestern region of the Russian Federation. The organization's major objectives lie in providing support and strengthening the development of professional community of IT directors. Established in 2004, the Club is at present the largest professional IT community in Russia. 31

32 1.9 Key events St. Petersburg hosts a number of key events in the IT sector: Web Ready Web Ready is an open contest of innovative Internet & Mobile projects. Its final is held as an investment forum projects from 100 cities and 21 countries took part in the contest during the last 4 years. In 2013 the contest took place on June 1 October 19 with the final held on November 29 in Moscow. The mission of Web Ready lies in assisting the best Internet & Mobile startups in promotion, finding investment and partners. Participation in Web Ready provides entrepreneurs with the possibility to attract investors and clients, receive professional expert project evaluation as well as promote projects. Investors and business angels get an access to the pool of over 700 projects as well as an opportunity to hold negotiations with investment-attractive projects. Business partners receive a large-scale advertising campaign aimed at businessmen, students, business and investment professionals as well as an opportunity to search for partners and technological innovations. Finally, infrastructural partners receive organizational, informational and methodological support for holding regional stages of Web Ready. Project success stories include: Yam Labs - investment of 500 thousand US dollars SaeX - investment of 500 thousand US dollars, grant from Skolkovo Cloudmach - investment of 500 thousand US dollars Copiny - investment of 500 thousand US dollars from Softline Ventures and angel investment Timebooker investment from Yandex Apt a me 1.2 million roubles from Gurnard Perch Sophisticated Technologies ITmozg investment from Headhunter (Mail.ru Group) InSales - earnings increased tenfold, number of clients increased sixfold Alloka - turnover and number of clients increased threefold Other important IT events held in St. Petersburg in 2014 are presented in Table 1. 32

33 Table 1. Key IT events in St. Petersburg (2014) Dates Name Description Web February 7-8, 2014 May 13-16, 2014 May 22-24, 2014 June 24-26, 2014 White Nights: Mobile Games Conference From Science to Business St. Petersburg International Economic Forum (SPIEF) DISTREE Russia & CIS 2014 St. Petersburg Internet Conference (SPIC) The international conference devoted to development and promotion of games for mobile platforms. The event is devoted to commercialization of scientific development and formation of ecosystems aimed at supporting hi-tech business at the University and regional level. St. Petersburg State University of Information Technologies, Mechanics and Optics is the main organizer of the 3-day event. Annual major business Russian event in the economic sphere held in St. Petersburg since Since 2005 the event is organized with the support of the President of Russia. The number of participants exceeds 4 thousand people representing more than 60 countries. In particular, heads of the largest Russian and foreign companies, heads of states and political leaders, chairs of the governments, deputy prime ministers, ministers, governors participate in forum. Since 2006, the Ministry of Economic Development of the Russian Federation is a body responsible for holding the forum. In recent years, SPIEF featured an active discussion of innovative sphere which involved top managers and owners of the largest IT companies of the world. This event has evolved into one the largest and most influential independent event for Russian consumer and business to business channels. Covering a broad spectrum of ICT solutions, technology products and consumer electronics, DISTREE Russia & CIS is the "must attend" event for retailers, resellers, distributors and vendors operating in Russia and CIS. The annual event dedicated to development of the Runet in the Northwest region of Russia. In 2013, more than 4 thousand people attended the event. wnconf.com sp-ic.ru 33

34 2014 Scientific and practical conference "AINL: artificial intelligence and natural language" 2014 CIO Congress "White Nights" 2014 GIS for Health Russia: Data, Analysis, Products 2014 Mobile VAS & Apps Conference Participants of the conference introduce latest developments in the field of applied artificial intelligence, exchange experience in their application for development of intellectual dialogue systems and agents, find possible ways for cooperation. Young specialists learn about opportunities available for introduction of their products at the market. i-free, specializing on development and sale of applications for mobile devices, is the initiator and main organizer of conference. The annual congress involves participation of chief information officers and leading experts in IT field of the largest organizations and enterprises from Russia and other countries. The congress has a special debate format devoted to discussion of acute IT development problems. The Conference will be dedicated to modernization of health care service in Russia using GIS technologies. The conference is held annually since 2003 and is considered a premier mobile industry forum in Eastern Europe. The main purpose of the conference lies in providing an informal, inspiring environment for meaningful person-to-person communication. Organizers strive to make this event an ideal place for business networking promotion. Every year more than 500 participants from all over the world, including Austria, Azerbaijan, Bangladesh, Belarus, UK, Hungary, Germany, Netherlands, Egypt, Israel, India, Iran, Ireland, Spain, Italy, Kazakhstan, Canada, China, Latvia, Lebanon, Moldova, Mongolia, Norway, Poland, US, Turkey, Ukraine, Finland, France, Czech Republic, Switzerland, Estonia, South Korea and Japan, participate in the conference Science Slam Competition of young scientists which provides young scientists an opportunity to present and discuss their research in informal setting. (organizer) /science-slam/ 34

35 1.10 Sector SWOT analysis Strengths St. Petersburg s education system has indisputable world recognition, especially in terms of preparation of highly qualified students winning International Programming Contests. During the last years, IT industry acquired the skills necessary for pursuing international business. The industry leaders have geographically distributed development centers which allows them to provide project management across different regions of the world 24 hours a day, 7 days a week. The city's enterprises possess competence which covers the needs of a wide range of sectors of the world economy. They master various programming technologies and have experience working with different platforms. Coupled with broad basic education, it allows St. Petersburg s companies to quickly adapt to the global market changes and be competitive in new market segments. Not surprisingly, both Russian social network projects Vkontakte and Odnoklassniki, which captured Russian market following Facebook, were developed in St. Petersburg. Likewise, St. Petersburg s companies Spb Software and Zed Russia achieved leading positions at the Russian market of mobile device software development. Development Opportunities The perspectives of IT industry development are, first of all, associated with cooperation (partnership) with the city administration to increase the number of qualified IT staff. This partnership should be aimed at improving the performance of higher education institutions. It should also be aimed at co-financing staff retraining from the economy sectors with a surplus of qualified specialists as well as systematic staff increases in existing companies. Weaknesses Due to its insufficient development, the domestic IT market in Russia does not allow Russian companies to increase their turnover and profit as well as competences necessary for aggressive foreign market entry. Coupled with the lack of government support aimed at global market entry, this fact deprives Russian IT developers of competitive position at the world market. Staff shortage, which became evident with the growth of turnover in , leads to an increase in development costs in St. Petersburg and reduces development opportunities which require considerable staff resources for prompt product market placement. Risks The risks that could hinder further development of IT industry are mainly associated with possible deterioration of the general economic and social situation in the country which could be caused by the second wave of crisis (decrease in budget receipts from natural reserves and subsequent decrease in financing of science, education and innovation development). Such changes would further lead to IT businesses withdrawal from the country and emigration of engineers and entrepreneurs. 35

36 Catalogue page 2. Catalogue of 100 export oriented ICT companies from St. Petersburg 2.1 Company index by services or products Company Products and services Software outsourcing Other IT Services Software Products 48 ABISoft 48 Agnitum 49 ALEE Software 49 Alteс 50 Alt-invest 50 Arcadia 51 Ascon 51 Astrosoft Development 52 AvantLab 52 BCC Softlab 53 Bercut 53 BiSoft 54 BIT 54 BMicro 55 Buhta 55 Compas 56 Crystal Development 56 Crystal Reality 57 CSI International Software 57 DataArt 58 Devexperts 58 Digital Design 59 Digital Security 59 Digiton 60 DocsVision 60 Dom Programm 61 Driver-Inter 61 East Concept 62 e-legion 62 EMC St. Petersburg Development 36

37 Catalogue page Company Products and services Software outsourcing Other IT Services Software Products Centre 63 Enterprise Information Systems 63 EPAM Systems 64 Etersoft 64 ETNA Software 65 evelopers Corp 65 Exigen Services 66 First Implementational Company 66 First Line Software 67 Hydrotechnologies 67 HyperMethod 68 I-Free 68 Intel Software 69 Intelligence-Soft 69 IPI-Tech 70 Jensen Technologies 70 JetBrains 71 KAMIS 71 Kodeks 72 Korus Consulting 72 Lanit-Terkom 73 Leaves 73 Linux-ink 74 LinuxWizard 74 Luxoft 75 Mir Design 76 Mobitech 76 Murano Software 77 Nevosoft 77 OKTET Labs 78 OpenWayGroup 78 Oracle 79 Paladin Invent 79 Peter-Service 80 Petrosoft 80 Piter-Soft 81 Prolog Development Center Spb 37

38 Catalogue page Company Products and services Software outsourcing Other IT Services Software Products 81 Promt 82 Qbix 82 Quest Software Spb 83 Reksoft 83 Reshenie 84 Rosbi Inform Co 84 RuNetSoft 85 SalD 85 Sfera 86 SMTsoft 86 SoftBusinessConsulting 87 Soft-Consult 87 Soft-Impact 88 SoftJoys Labs 88 Softland 89 Solvo 89 Sotis 90 SP.ARM 90 Spb Software 91 Speech Technology Center 91 SpetsTek 92 SWD Software 92 TASC-Media 93 Telda 93 Tillypad 94 TopPlan 94 Transas Technologies 95 Trinet 95 T-Systems 96 Tune-it 96 VIAcode 97 Videotest 97 WaveAcces 98 WebCom 98 Westconcept 99 Yumasoft 99 Zed Russia 38

39 Catalogue page Information Technologies Science & Research Telecommunications Government Industries Oil & Gas Banking Healthcare & Pharmaceuticals Retail & Distribution Logistics & Transportation Entertainment & Gambling Education Media Sport & Travel Insurance Building & Real estate Services Finance Energy Other 2.2 Company index by vertical industries Company 48 ABISoft 48 Agnitum 49 ALEE Software 49 Alteс 50 Alt-invest 50 Arcadia 51 Ascon 51 Astrosoft Development 52 AvantLab 52 BCC Softlab 53 Bercut 53 BiSoft 54 BIT 54 BMicro 55 Buhta 55 Compas 56 Crystal Development 56 Crystal Reality 39

40 Catalogue page Information Technologies Science & Research Telecommunications Government Industries Oil & Gas Banking Healthcare & Pharmaceuticals Retail & Distribution Logistics & Transportation Entertainment & Gambling Education Media Sport & Travel Insurance Building & Real estate Services Finance Energy Other Company 57 CSI International Software 57 DataArt 58 Devexperts 58 Digital Design 59 Digital Security 59 Digiton 60 DocsVision 60 Dom Programm 61 Driver-Inter 61 East Concept 62 e-legion 62 EMC St. Petersburg Development Centre 63 Enterprise Information Systems 63 EPAM Systems 64 Etersoft 64 ETNA Software 65 evelopers Corp 65 Exigen Services 66 First Implementational Company 66 First Line Software 40

41 Catalogue page Information Technologies Science & Research Telecommunications Government Industries Oil & Gas Banking Healthcare & Pharmaceuticals Retail & Distribution Logistics & Transportation Entertainment & Gambling Education Media Sport & Travel Insurance Building & Real estate Services Finance Energy Other Company 67 Hydrotechnologies 67 HyperMethod 68 I-Free 68 Intel Software 69 Intelligence-Soft 69 IPI-Tech 70 Jensen Technologies 70 JetBrains 71 KAMIS 71 Kodeks 72 Korus Consulting 72 Lanit-Terkom 73 Leaves 73 Linux-ink 74 LinuxWizard 74 Luxoft 75 Mir Design 76 Mobitech 76 Murano Software 77 Nevosoft 41

42 Catalogue page Information Technologies Science & Research Telecommunications Government Industries Oil & Gas Banking Healthcare & Pharmaceuticals Retail & Distribution Logistics & Transportation Entertainment & Gambling Education Media Sport & Travel Insurance Building & Real estate Services Finance Energy Other Company 77 OKTET Labs 78 OpenWayGroup 78 Oracle 79 Paladin Invent 79 Peter-Service 80 Petrosoft 80 Piter-Soft 81 Prolog Development Center Spb 81 Promt 82 Qbix 82 Quest Software Spb 83 Reksoft 83 Reshenie 84 Rosbi Inform Co 84 RuNetSoft 85 SalD 85 Sfera 86 SMTsoft 86 SoftBusinessConsulting 87 Soft-Consult 42

43 Catalogue page Information Technologies Science & Research Telecommunications Government Industries Oil & Gas Banking Healthcare & Pharmaceuticals Retail & Distribution Logistics & Transportation Entertainment & Gambling Education Media Sport & Travel Insurance Building & Real estate Services Finance Energy Other Company 87 Soft-Impact 88 SoftJoys Labs 88 Softland 89 Solvo 89 Sotis 90 SP.ARM 90 Spb Software 91 Speech Technology Center 91 SpetsTek 92 SWD Software 92 TASC-Media 93 Telda 93 Tillypad 94 TopPlan 94 Transas Technologies 95 Trinet 95 T-Systems 96 Tune-it 96 VIAcode 97 Videotest 43

44 Catalogue page Information Technologies Science & Research Telecommunications Government Industries Oil & Gas Banking Healthcare & Pharmaceuticals Retail & Distribution Logistics & Transportation Entertainment & Gambling Education Media Sport & Travel Insurance Building & Real estate Services Finance Energy Other Company 97 WaveAcces 98 WebCom 98 Westconcept 99 Yumasoft 99 Zed Russia 44

45 2.3 Companies A to Z ABISoft Agnitum ALEE Software Alteс Alt-invest Arcadia Ascon Astrosoft Development AvantLab BCC Softlab Bercut BiSoft BIT BMicro Buhta Compas Crystal Development Crystal Reality CSI International Software DataArt Devexperts Digital Design Digital Security Digiton DocsVision Dom Programm Driver-Inter East Concept e-legion EMC Spb Enterprise Information Systems EPAM Systems Etersoft ETNA Software evelopers Corp Exigen Services First Implementational Company First Line Software Hydrotechnologies HyperMethod I-Free Intel Software Intelligence-Soft IPI-Tech Jensen Technologies JetBrains KAMIS Kodeks

46 Korus Consulting Lanit-Terkom Leaves Linux-ink LinuxWizard Luxoft Mir Design Mobitech Murano Software Nevosoft OKTET Labs OpenWayGroup Oracle Spb Paladin Invent Peter-Service Petrosoft Piter-Soft Prolog Development Center Spb Promt Qbix Quest Software Spb Reksoft Reshenie Rosbi Inform Co RuNetSoft SalD Sfera SMTsoft SoftBusinessConsulting Soft-Consult Soft-Impact SoftJoys Labs Softland Solvo Sotis SP.ARM Spb Software Speech Technology Center SpetsTek SWD Software TASC-Media Telda Tillypad TopPlan Transas Technologies Trinet T-Systems Tune-it VIAcode Videotest WaveAcces WebCom

47 Westconcept Yumasoft Zed Russia

48 2.3.1 ABISoft ABISoft Engelsa prospekt 23, Saint Petersburg, Russia Telephone: +7(812) , +7 (812) Contact person: Yury Novitsky Marketing Director Year of foundation: 1999 Headcount: 100 Share of export, %: 80 Sphere of activity: Software development services Application area: Applications for mobile devices, multimedia, games Customers: ABISoft PocketScale PaintWM Byela Tech Inc Agnitum Agnitum Pirogovskaya embankment 21, Saint Petersburg, Russia Telephone: +7 (812) n/a Contact person: n/a n/a Year of foundation: 1999 Headcount: n/a Share of export, %: n/a Sphere of activity: Anti-viruses, firewalls, security suites Application area: OutpostPro Customers: Various industries 48

49 2.3.3 ALEE Software ALEE Software Instrunmentalnaya str., 3, litera B, Saint Petersburg, Russia Telephone: +7 (812) Contact person: Stanislav Kim CEO Year of foundation: 1997 Headcount: 50 Share of export, %: 1 Sphere of activity: E-archive, e-library, QUT machine Application area: IT Customers: VTB-24 TMK EMERCOM of St.Petersburg Alteс Alteс Kolomiazhski prospekt 33, bld.2, Saint Petersburg, Russia Telephone: +7(812) market@altec.ru Contact person: Mikhail Vsesvetskiy Marketing Manager Year of foundation: 1998 Headcount: 50 Share of export, %: 10 Sphere of activity: E-commerce Application area: Retail trade Customers: n/a 49

50 2.3.5 Alt-invest Alt-invest Zhukovskogo street 63, office 321, Saint Petersburg, Russia Telephone: +7(812) Contact person: Andrey Senov Business Director Year of foundation: 1992 Headcount: 25 Share of export, %: 20 Sphere of activity: Business intelligence Application area: Financial consulting Customers: Sberbank Russian Railways Gazprom KAMAZ Vnesheconombank Arcadia Arcadia Zanevskiy prospekt 30/2, Saint Petersburg, Russia Telephone: +7(812) Contact person: Sergei Baklan General Director Year of foundation: 1993 Headcount: 200 Share of export, %: 99 Sphere of activity: Custom software development Application area: Various Industries Customers: Johnson & Johnson Aditro F-Secure 50

51 2.3.7 Ascon Ascon Odoevskogo street 5, litera A, Saint Petersburg, Russia Telephone: +7(812) Contact person: Maksim Bogdanov CEO Year of foundation: 1989 Headcount: 600 Share of export, %: 10 Sphere of activity: CAD/CAM, PLM Application area: Industrial manufacturing Customers: Gazprom KuibyshevAzot OJSC OKB Soyuz TATNEFT Astrosoft Development Astrosoft Development Gelsingforsskaya street 2, Saint Petersburg, Russia Telephone: +7(812) Contact person: Pavel Vassiljev CEO Year of foundation: 1991 Headcount: 190 Share of export, %: n/a Sphere of activity: Software development services Application area: Telecom, Industries Customers: n/a 51

52 2.3.9 AvantLab AvantLab 14-Liniya V.O. 39, Saint Petersburg, Russia Telephone: +7(812) Contact person: Yaroslav Bykov CEO Year of foundation: 2003 Headcount: 5 Share of export, %: 80 Sphere of activity: Mobile applications Application area: Telecom Customers: SER BCC Softlab BCC Softlab Kantemirovskaya street 20, Saint Petersburg, Russia Telephone: +7(812) office@bcc.ru Contact person: Ilya Tuder n/a Year of foundation: 1991 Headcount: n/a Share of export, %: n/a Sphere of activity: System integration Application area: Telecom Customers: Rostelecom Gazprom Neft American Express Gillette DHL 52

53 Bercut Bercut Moiseyenko street 22-3, Saint Petersburg, Russia Telephone: +7(812) Contact person: Denis Kozlov PR Director Year of foundation: 1995 Headcount: 250 Share of export, %: 25 Sphere of activity: Complex solutions for mobile operators Application area: Telecom Customers: Vodafone Beeline Megafon MTS Tele BiSoft BiSoft Optikov street 4, Saint Petersburg, Russia Telephone: +7(812) Contact person: Aleksey Donov CEO Year of foundation: 2000 Headcount: 15 Share of export, %: 10 Sphere of activity: Industrial automation Application area: Industries, retail Customers: Ford Baltika Unilever 53

54 BIT BIT Prosvescheniya prospekt 85, office 506, Saint Petersburg, Russia Telephone: +7 (812) Contact person: Inga Gusseva Manager Year of foundation: 1991 Headcount: n/a Share of export, %: n/a Sphere of activity: Franchising of 1C Software Application area: ERP for various sectors Customers: Various industries BMicro BMicro Vsevoloda Vishnevskogo street 4, Saint Petersburg, Russia Telephone: +7(812) Contact person: Igor Rykov CEO Year of foundation: 1999 Headcount: 30 Share of export, %: 80 Sphere of activity: Client-Communicator Application area: CRM for various industries Customers: Pharmacor LenExport St.Petersburg Realty 54

55 Buhta Buhta Bolshoy Sampsonievskiy prospekt 32, office 2C344, Saint Petersburg, Russia Telephone: +7(812) Contact person: Konstantin Savchenkov CEO Year of foundation: 1991 Headcount: 50 Share of export, %: 40 Sphere of activity: Stock management Application area: Transport, warehousing Customers: Pharmacor Quehenberger Tikkurila Megafon TeaSpoon Compas Compas Sredniy prospekt V.O. 65, office 24, Saint Petersburg, Russia Telephone: +7(812) Contact person: Anna Eroshina Marketing Director Year of foundation: 1991 Headcount: 80 Share of export, %: 1 Sphere of activity: CRM, ERP Application area: Various industries Customers: Izhorskiye Zavody Tulamashzavod NEFAZ "Volgogradneftemash"JSC PLC "BMK" 55

56 Crystal Development Crystal Development Furazhniy pereulok 3, office 416, Saint Petersburg, Russia Telephone: +7(812) Contact person: Ilya Zimin Executive Director Year of foundation: 2003 Headcount: 15 Share of export, %: 10 Sphere of activity: Custom software development Application area: Entertainment, games, media Customers: British American Tabaco Baltika Pall Mall Crystal Reality Crystal Reality Bolshaya Monetnaya street 16, BC 1, office 7, Saint Petersburg, Russia Telephone: +7(812) Contact person: Michael Phillipovich CEO Year of foundation: 2003 Headcount: 30 Share of export, %: n/a Sphere of activity: Crystall Reality (media engine) Application area: MultiMedia Solutions Customers: Yota Spb Software Elecard 56

57 CSI International Software CSI International Software Smolenskaya street 14, office 206, Saint Petersburg, Russia Telephone: +7(812) Contact person: Vladimir Fedotov Director Year of foundation: 1997 Headcount: 10 Share of export, %: 30 Sphere of activity: Internet Map server, GPS/GPRS Application area: Navigation Customers: Yellow Pages Spb Yellow Pages Ukraine Delta Telecom Euro-Address DataArt DataArt Bolshoy Sampsonievsky prospekt 60A, Saint Petersburg, Russia Telephone: +7(812) Contact person: Mikhail Zavileysky General Manager Year of foundation: 1997 Headcount: 750 Share of export, %: 100 Sphere of activity: Software development services Application area: Banking, finance, industries Customers: Standard & Poor's Harmonic Fund Services Misys HTC Betfair 57

58 Devexperts Devexperts Barochnaya street 10/1, Saint Petersburg, Russia Telephone: +7(812) Contact person: Yan Stolyar Business Development Director Year of foundation: 2002 Headcount: 360 Share of export, %: n/a Sphere of activity: Business intelligence Application area: Fund market Customers: KIT Finance Investment Bank Ameritrade Investment company Vitus MICEX-RTS Digital Design Digital Design Smolenka River embankment 33, Saint Petersburg, Russia Telephone: +7(812) Contact person: Andrey Fedorov CEO Year of foundation: 1992 Headcount: 300 Share of export, %: n/a Sphere of activity: Software development and IT-outsourcing Application area: Transport, industries Customers: Ministry of Economic Development of Russia Russian Railwways Sberbank Johnson & Johnson Ford Motor Company 58

59 Digital Security Digital Security Sabirovskaya street 37, Saint Petersburg, Russia Telephone: +7(812) Contact person: Ilya Medvedovskiy CEO Year of foundation: 2003 Headcount: 30 Share of export, %: 3 Sphere of activity: Digital security life cycle management Application area: Industries Customers: MMC Norilsk Nickel MDM Bank BC "Unibank" Digiton Digiton Moyka River embankment 61, Saint Petersburg, Russia Telephone: +7(812) artur@digiton.ru Contact person: Artur Akhmetov Business Development Director Year of foundation: 1990 Headcount: 30 Share of export, %: 5 Sphere of activity: Hardware and software design for broadcasting Application area: Radio and TV broadcasting Customers: ProfMedia National Television Company of Ukraine Belteleradiocompany 59

60 DocsVision DocsVision Smolenka River embankment 33, office , Saint Petersburg, Russia Telephone: +7(812) Contact person: Anton Varfolomeev Deputy General Director Year of foundation: 2005 Headcount: 75 Share of export, %: 10 Sphere of activity: Document Flow management Application area: Government, industries Customers: Gazprom Sberbank Bank of Russia Dom Programm Dom Programm Engelsa prospekt 33/1, office 409, Saint Petersburg, Russia Telephone: +7(812) Contact person: Elena Limonova Marketing Director Year of foundation: 2001 Headcount: 15 Share of export, %: 100 Sphere of activity: Software product development Application area: CRM, ERP, HRP Customers: Brightrivers (Switzerland) Emeris Technologies Broderbund (USA) Mindscape (France) Statistics for Education (UK) 60

61 Driver-Inter Driver-Inter Polytekhnicheskaya street 29, Saint Petersburg, Russia Telephone: +7(812) Contact person: Igor Shturts CEO Year of foundation: 1991 Headcount: 25 Share of export, %: 50 Sphere of activity: Virtual reality Application area: Computer games Customers: Samsung Intle Airbus EADS Schlumberger Tallinna Sadam East Concept East Concept Staro-Petergofskiy prospekt 40A, Saint Petersburg, Russia Telephone: +7(812) Contact person: Mikhail Selivanov CEO Year of foundation: 1991 Headcount: 70 Share of export, %: 10 Sphere of activity: IntellectStyle software Application area: Hospitality and restaurants Customers: Restaurants of AmRest The tourist hotel complex Izmailovo Hotel "Saint Petersburg" Hotel "Moskva" 61

62 e-legion e-legion Optikov street 4, e-legion office, Saint Petersburg, Russia Telephone: +7(812) Contact person: Roman Beloded CEO Year of foundation: 2006 Headcount: 62 Share of export, %: 70 Sphere of activity: ERP, web-design, mobile Application area: Industries Customers: Yandex Solaris Mail.ru Ginza Project EMC Spb EMC Spb Sredniy prospekt 36-40, Saint Petersburg, Russia Telephone: +7(812) n/a Contact person: Vyacheslav Nesterov CEO Year of foundation: 2007 Headcount: 350 Share of export, %: 100 Sphere of activity: Data storage Application area: Various industries Customers: EMC 62

63 Enterprise Information Systems Enterprise Information Systems Nevskiy prospekt 20/44, Saint Petersburg, Russia Telephone: +7(812) Contact person: Andrey Petkevich CEO Year of foundation: 2000 Headcount: 60 Share of export, %: 5 Sphere of activity: Doc flow management Application area: Industrial automation Customers: Gazprom Waterprice J.S.C. Talosto EPAM Systems EPAM Systems Voronezhskaya str. 5, Saint Petersburg, Russia Telephone: +7 (812) n/a Contact person: Andrey Kaganovich Director of the SPb branch Year of foundation: 2005 Headcount: 100 Share of export, %: 100 Sphere of activity: Outsourcing of software development services Application area: Various sectors Customers: n/a 63

64 Etersoft Etersoft Nevskiy prospekt 1, office 624, Saint Petersburg, Russia Telephone: +7(812) Contact person: Vitaliy Lipatov CEO Year of foundation: 2003 Headcount: 30 Share of export, %: 20 Sphere of activity: Application area: Transfer to Open Source OS and DB Customers: Manotom MR Fashion Group Computer Center "Key" Labyrinth travel company ETNA Software ETNA Software 6-Liniya V.O. 63, Saint Petersburg, Russia Telephone: +7(812) Contact person: Roman Zhukov CEO Year of foundation: 2002 Headcount: 100 Share of export, %: 95 Sphere of activity: Software development outsourcing Application area: Financial sector Customers: SogoTrade Floodlight Brainware, Inc. Allianz Group InterContinental Hotels Group 64

65 evelopers Corp evelopers Corp 26-Liniya V.O. 15, Saint Petersburg, Russia Telephone: +7(812) Contact person: Andrey Narvsky COO Year of foundation: 1999 Headcount: 50 Share of export, %: 80 Sphere of activity: Software development outsourcing Application area: Various industries Customers: LenEnergo Petmol Philips Motorola Solvo Exigen Services Exigen Services Pulkovskoe shosse 40/4, Saint Petersburg, Russia Telephone: +7(812) Contact person: Artem Zhanabaev Marketing Manager Year of foundation: 2000 Headcount: 1300 Share of export, %: 100 Sphere of activity: Software development outsourcing Application area: Various industries 65

66 First Implementational Company First Implementational Company Obukhovskoy oborony prospekt 120-B, Saint Petersburg, Russia Telephone: +7(812) , +7(812) Contact person: Viktor Vityuk CEO Year of foundation: 2005 Headcount: 15 Share of export, %: 5 Sphere of activity: 1C franchisee Application area: ERP Customers: Pharmacy retail chain "100 roads" Caterpillar First Line Software First Line Software Rentgena street 5a, Saint Petersburg, Russia Telephone: +7(812) sales@firstlinesoftware.com Contact person: Alexander Pozdniakov CEO Year of foundation: 2009 Headcount: 300 Share of export, %: 75 Sphere of activity: Software development services Application area: Various industries Customers: Bonnier Tupperware ClickSquared Soccex.com Change Anything 66

67 Hydrotechnologies Hydrotechnologies Babushkina street 36/1-K, suite 3N, Saint Petersburg, Russia Telephone: +7(812) Contact person: Tatyana Skvorcova CEO Year of foundation: 2006 Headcount: 8 Share of export, %: 1 Sphere of activity: Hydro-power data and modelling services Application area: Hydro-power generation Customers: Gazprom Transneft HyperMethod HyperMethod Obukhovskoy oborony prospekt 271, office 1125, Saint Petersburg, Russia Telephone: +7(812) office@learnware.ru Contact person: Yuriy Perepelicyn CEO Year of foundation: 1992 Headcount: 100 Share of export, %: 15 Sphere of activity: Distant learning services, web-design Application area: Education Customers: Gazprom Philip Morris MSU Adidas 67

68 I-Free I-Free Bolshoy prospekt PS, bld. 29 А, Saint Petersburg, Russia Telephone: +7(812) Contact person: Sophia Dubovskikh Marketing Director Year of foundation: 2001 Headcount: 700 Share of export, %: n/a Sphere of activity: Mobile &NFC technologies, electronic payments Application area: B2C content provider Customers: Tele 2 Samsung GM Money Bank SEB Intel Software Intel Software Leninsky prospekt 160 a, Saint Petersburg, Russia Telephone: +7(495) mikhail.a.rybakov@intel.com Contact person: Mikhail Rybakov PR manager for CIS Year of foundation: 2002 Headcount: 350 Share of export, %: 100 Sphere of activity: Software development tools Application area: Embedded devices Customers: Intel 68

69 Intelligence-Soft Intelligence-Soft Nekrasova street 40, 4th floor, office 21, Saint Petersburg, Russia Telephone: +7(812) Contact person: Aleksandr Butovskiy CEO Year of foundation: 1994 Headcount: 10 Share of export, %: 100 Sphere of activity: PLM Application area: Solid state modelling Customers: MarketAccess Communications, Inc. IMAGETEQ Technologies, Inc. PM Branding Corp. The Thomas Murray Group PRONOE Mechanical Engineering IPI-Tech IPI-Tech Obukhovskoy oborony prospekt 70/2, Business-incubator "Ingria", Saint Petersburg, Russia Telephone: +7(812) Contact person: Mikhail Sosenko Marketing Manager Year of foundation: 2007 Headcount: 5 Share of export, %: 10 Sphere of activity: IPI management Application area: n/a Customers: Raiffeisen Bank Gazprom 69

70 Jensen Technologies Jensen Technologies Vassiljevsky Island, Line 7, 76, office 107, Saint Petersburg, Russia Telephone: +7(812) n/a Contact person: Maxim Popov Business Development Director Year of foundation: 2004 Headcount: 30 Share of export, %: 100 Sphere of activity: DDC of Jensen Application area: Software development outsourcing Customers: Jensen JetBrains JetBrains Universitetskaya emb., /5А, Saint-Petersburg, Russia Telephone: +7(812) Contact person: Alevande Morozov Marketing manager Year of foundation: n/a Headcount: 70 Share of export, %: n/a Sphere of activity: IntelliJ IDEA Application area: Java, Web,.Net development Customers: Quest Software Boeing Intel EMC 70

71 KAMIS KAMIS Alexander Nevsky str. 9, Saint Petersburg, Russia Telephone: +7 (812) Contact person: Yury Loshak CEO Year of foundation: Headcount: Share of export, %: n/a n/a n/a Sphere of activity: Electronic depositories, portal development Application area: Museums Customers: Kremlin Museum Museum of Karelia Kodeks Kodeks Instrumentalnaya street 3, Saint Petersburg, Russia Telephone: +7(812) Contact person: Sergey Tikhomirov CEO Year of foundation: 1991 Headcount: 700 Share of export, %: 10 Sphere of activity: Tech-Expert, Kodeks Application area: Legal data bases, technical regulatory data Customers: Gazprom Russian Railways 71

72 Korus Consulting Korus Consulting Maliy prospect V.O. 54, block 4, TRANSAS business center, Saint Petersburg, Russia Telephone: +7 (812) Contact person: Svetlana Vronskaya PR Director Year of foundation: 2000 Headcount: 440 Share of export, %: 15 Sphere of activity: IT-services Application area: IT system integration, outsourcing of IT-services Customers: State ministries and agencies OKEY Post of Russia Lanit-Terkom Lanit-Terkom Universitetsky prospekt 28, Peterhof, Saint Petersburg, Russia Telephone: +7(812) Contact person: Andrey Terekhov CEO Year of foundation: 1991 Headcount: 350 Share of export, %: 50 Sphere of activity: Software development services Application area: Industries Customers: Laerdal Citi Bank Italtel T-Systems Focon 72

73 Leaves Leaves Obvodny canal embankment, P.O. Box 226, Saint Petersburg, Russia Telephone: +7(812) Contact person: Leonid Dzhurinskiy CEO Year of foundation: 1991 Headcount: 25 Share of export, %: 10 Sphere of activity: Billing systems Application area: Consulting Customers: Vodokanal Government of St. Petersburg Gazprom RosAgro Linux-ink Linux-ink 6th line V.O. 61, office 402, Saint Petersburg, Russia Telephone: +7 (812) Contact person: n/a n/a Year of foundation: 1993 Headcount: 30 Share of export, %: n/a Sphere of activity: Development and support of open source software Application area: Various sectors Customers: Ministry of Communications and Mass Media Lenenergo, Sberbank Ministry of Economic Development 73

74 LinuxWizard LinuxWizard Stachek street 47A, 1 floor, Saint Petersburg, Russia Telephone: +7(812) GO@linuxwizard.ru Contact person: Stanislav Makogon Project Director Year of foundation: 2007 Headcount: 50 Share of export, %: 9 Sphere of activity: GET-Work.biz, GET-Combi.biz Application area: PM consulting Customers: Schools of St. Petersburg Luxoft Luxoft Sverdlovskaya nab. 44, liter Я, St. Petersburg, Russia Telephone: +7 (812) ; +7 (812) info@luxoft.com, LuxoftMarketing@luxoft.com Contact person: n/a n/a Year of foundation: 2004 Headcount: 550+ Share of export, %: 0% Sphere of activity: IT Outsourcing Services (Application Development and Maintenance, Product Engineering Services, Quality Assurance, Process Consulting) Application area: IT Outsourcing Customers: Deutsche Bank UBS Harman Boeing Hotwire 74

75 Mir Design Mir Design Konnogvardeysky bd. 7, Saint Petersburg, Russia Telephone: +7(812) Contact person: Maksim Danilyan CEO Year of foundation: 2005 Headcount: 10 Share of export, %: 20 Sphere of activity: Web-design and development Application area: n/a Customers: Ilim Timber 75

76 Mobitech Mobitech Magnitogorskaja street 30, suite 815, Saint-Petersburg, Russia Telephone: +7(812) Contact person: Artem Andreev Chief Marketing Officer Year of foundation: 2003 Headcount: 15 Share of export, %: 10 Sphere of activity: VAS platform and applications Application area: Mobile telecom operators Customers: n/a Murano Software Murano Software Bolshoi Sampsonievsky prospekt 32, Saint-Petersburg, Russia Telephone: +7(812) Contact person: Valeria Sinitskaya Marketing Director Year of foundation: n/a Headcount: 40 Share of export, %: 100 Sphere of activity: Software development services Application area: Outsourcing of DDC Customers: Telligent Microsoft NSite 76

77 Nevosoft Telephone: Contact person: Year of foundation: 2002 Headcount: 30 Share of export, %: n/a Nevosoft Bolshoi Sampsonievsky prospekt 38-40, liter A, Saint-Petersburg, Russia n/a Julia Lebedeva n/a Sphere of activity: Games Application area: «Land Grabbers», «Pioneer Land», «City Cat» Customers: n/a OKTET Labs OKTET Labs Krasnoputilovskaya street 5, Saint Petersburg, Russia Telephone: +7(812) Contact person: Piotr Lavrov Director Year of foundation: 2003 Headcount: 30 Share of export, %: 60 Sphere of activity: Outsourcing of software development Application area: Embedded systems Customers: n/a 77

78 OpenWayGroup OpenWayGroup Petrogradskaya emb., 36, Saint Petersburg, Russia Telephone: +7(812) Contact person: Michael Alexeyev CEO Year of foundation: 1995 Headcount: n/a Share of export, %: n/a Sphere of activity: Payment processing software Application area: Visa Global, MasterCard Global Customers: Equens Comdata (Ceridian Corp.) Banksys (ATOS) Oracle Spb Oracle Spb 10th Krasnoarmeyskaya street 22a, , Saint Petersburg, Russia Telephone: +7(812) Contact person: Marina Savinova PR manager for CIS Year of foundation: 1994 Headcount: 300 Share of export, %: 100 Sphere of activity: Data-bases development and management Application area: Various industries Customers: Oracle 78

79 Paladin Invent Paladin Invent 13-Liniya V.O. 6-8, office 46-N, Saint Petersburg, Russia Telephone: +7(812) Contact person: Dmitriy Barashkin CEO Year of foundation: 2000 Headcount: 90 Share of export, %: 5 Sphere of activity: IT-consulting, system integration Application area: Various industries Customers: Bank of Russia Alfa Bank Volvo Sokos Holet Nokia Peter-Service Peter-Service Shpalernaya street 36, Saint Petersburg, Russia Telephone: +7(812) sales@billing.ru Contact person: Igor Gorkov Managing Director Year of foundation: 1992 Headcount: 900 Share of export, %: 20 Sphere of activity: Billing systems Application area: Telecom Customers: Megafon MTS Vodafone Turkcell Rostelecom 79

80 Petrosoft Petrosoft Obukhovskoy Oborony prospekt 86-K, Saint Petersburg, Russia Telephone: +7(812) Contact person: Aleksey Borisenko CEO Year of foundation: 1999 Headcount: 30 Share of export, %: 7 Sphere of activity: Outsourcing of software development Application area: GIS Customers: n/a Piter-Soft Piter-Soft Vsevoloda Vishnevskogo street 12, Saint Petersburg, Russia Telephone: +7(812) info@piter-soft.ru Contact person: Yuriy Romanov CEO Year of foundation: 2005 Headcount: 15 Share of export, %: 8 Sphere of activity: PeterSoft (process management) Application area: Consulting Customers: Ilim Timber Tauras Fenix Factoria-Trade Sherwood Plaza 80

81 Prolog Development Center Spb Prolog Development Center Spb 5-ya Sovetskaya street 45, office 102, Saint Petersburg, Russia Telephone: +7(812) Contact person: Viktor Yukhtenko Director Year of foundation: 1993 Headcount: 15 Share of export, %: 98 Sphere of activity: Visual prolog development center Application area: Visualisation Customers: n/a Promt Promt Dobrolubova prospekt 16A ( Arena Hall business center, building 2), Saint Petersburg, Russia Telephone: +7(812) pr@promt.ru Contact person: Svetlana Sokolova CEO Year of foundation: 1991 Headcount: 100 Share of export, %: n/a Sphere of activity: Morpho-syntax analyse Application area: On-line auto-translation Customers: MMC Norilsk Nickel Gazprom Lukoil Adobe PayPal 81

82 Qbix Qbix Zastavskaya str. 23, business-center AVIATOR, Saint Petersburg, Russia Telephone: +7(812) Contact person: Oksana Homina Business development Year of foundation: 2002 Headcount: 30 Share of export, %: 30 Sphere of activity: Software development and integration Application area: Various industries Customers: Yota General Motors RosLogistics Quest Software Spb Quest Software Spb Sedova st. 11-A, business centre 'Evrika', office 529, Saint Petersburg, Russia Telephone: 7(812) Contact person: Taissia Avrutova CEO Year of foundation: 2005 Headcount: 300 Share of export, %: 100 Sphere of activity: DDC of Quest Software Application area: Software development outsourcing Customers: Quest Software 82

83 Reksoft Reksoft Parkhomenko prospekt 10A, Saint Petersburg, Russia Telephone: +7(812) Contact person: Alexander Egorov CEO Year of foundation: 1991 Headcount: 350 Share of export, %: 70 Sphere of activity: Software development services Application area: Telecom and various industries Customers: FXDD Mavenir Systems Tieto Infor Mazda Reshenie Reshenie Smolenskaya 9, office 315, Saint Petersburg, Russia Telephone: +7(812) Contact person: Irina Khusainova CEO Year of foundation: 2002 Headcount: 20 Share of export, %: 5 Sphere of activity: Information management systems Application area: Healthcare, retail and finance Customers: First Pavlov State Medical University of St.Petersburg St.Petersburg State Pediatric Academy 83

84 Rosbi Inform Co Rosbi Inform Co P.O.Box 7, Hersonskiy proezd 2, Saint Petersburg, Russia Telephone: +7(812) Contact person: Eugene Fitasov CTO Year of foundation: 1990 Headcount: 50 Share of export, %: 10 Sphere of activity: Applications development and maintenance Application area: Traffic instection Customers: Administration of the Governor's Office of St.Petersburg Drugstores in St.Petersburg (260) Drugstores in Moscow (550) Federal Treasury in St.Petersburg RuNetSoft RuNetSoft Kirochnaya street 19, office 26, Saint Petersburg, Russia Telephone: +7(812) Contact person: Aleksey Kireenko CEO Year of foundation: 2003 Headcount: 30 Share of export, %: 10 Sphere of activity: Web-design and support, RNS Web Application area: CRM Customers: Ministry of Economic Development of Russia Government of St. Petersburg 84

85 SalD SalD Blagodatnaya str. 34, Saint Petersburg, Russia Telephone: +7(812) Contact person: Igor Danilov CEO Year of foundation: 2003 Headcount: n/a Share of export, %: n/a Sphere of activity: Anti-malware protection, information security Application area: Software development for Dr.Web family Customers: Dr.Web Sfera Sfera Obvodny Canal embankment , Saint Petersburg, Russia Telephone: +7(812) Contact person: Aleksandr Vorobyev CEO Year of foundation: 2007 Headcount: 10 Share of export, %: 5 Sphere of activity: 1С franchisee Application area: ERP Customers: TwoChopsticks Ideal cup 85

86 SMTsoft SMTsoft Obukhovskoy Oborony prospekt 70/2, Saint Petersburg, Russia Telephone: +7(812) Contact person: Igor Sugnach General Director Year of foundation: 1999 Headcount: 70 Share of export, %: 30 Sphere of activity: FreshOffice Application area: CRM for Media Customers: Agima Chief Time PROEKTOVGRAD SoftBusinessConsulting SoftBusinessConsulting Kronstadtskaya 3, suite 17, Saint Petersburg, Russia Telephone: +7(812) Contact person: Alexander Starshinin General Director Year of foundation: 2002 Headcount: 15 Share of export, %: 2 Sphere of activity: IT consulting, IT outsourcing Application area: Telecom Customers: Maxx Intermodal Systems Baltorient Group Baltlogistics 86

87 Soft-Consult Soft-Consult Gzhatskaya street 27A, Room 201, Saint Petersburg, Russia Telephone: +7(812) Contact person: Aleksandr Samochadin General Director Year of foundation: 2001 Headcount: 15 Share of export, %: 10 Sphere of activity: Customer applications development Application area: Various industries Customers: Megafon Peterstar DorStroyProject Soft-Impact Soft-Impact P.O. Box 83, Saint Petersburg, Russia Telephone: +7(812) Contact person: Roman Talalaev CEO Year of foundation: 1996 Headcount: 30 Share of export, %: 60 Sphere of activity: CGSM modelling Application area: Semicondustor industry Customers: The University of Texas Fox Group Corp Friedrich-Alexander-Universität Erlangen-Nürnberg 87

88 SoftJoys Labs SoftJoys Labs Birzhevaya liniya 14, Saint Petersburg Russia Telephone: +7(812) , +7 (812) Contact person: Alexander Andreyev CEO Year of foundation: 1989 Headcount: 50 Share of export, %: 100 Sphere of activity: VoIP Application area: n/a Customers: MajicJack Softland Softland Kantemirovskaya street 12, Saint Petersburg, Russia Telephone: +7(812) Contact person: Aleksey Alekseev Deputy General Director Year of foundation: 1999 Headcount: 40 Share of export, %: n/a Sphere of activity: Automation Application area: Telecom Customers: Lukoil AutoVAZ 88

89 Solvo Solvo Kolomiazhski prospekt 33A, Saint Petersburg, Russia Telephone: +7(812) Contact person: Elena Grebenschikova CEO Year of foundation: 1995 Headcount: 100 Share of export, %: n/a Sphere of activity: Stock management systems Application area: Logistics (ports, warehouses) Customers: Baltika Vimm Bill Dann Pepsico Vitek Shatura Mebel Sotis Sotis Fokina street 2, Saint Petersburg, Russia Telephone: +7(812) Contact person: Vladimir Stepanov CEO Year of foundation: 2006 Headcount: 20 Share of export, %: n/a Sphere of activity: Book-keeping automation Application area: ERP Customers: YIT Lentek AgroBalt Trade Monia grondiosa Lanck Telecom Ionto Technology 89

90 SP.ARM SP.ARM 1st line 52, V.O., Saint Petersburg, Russia Telephone: +7 (812) Contact person: n/a n/a Year of foundation: 1988 Headcount: n/a Share of export, %: n/a Sphere of activity: ERP systems for medical departments Application area: Medicine Customers: Clinics Spb Software Spb Software Vasi Alexeyeva str. 6, , Saint Petersburg, Russia Telephone: +7(812) Contact person: Olga Stadle Marketing Director Year of foundation: 1999 Headcount: n/a Share of export, %: n/a Sphere of activity: Software applications for mobile devices Application area: Mobile TV, 3D video Customers: Yandex Microsoft Huawei MTS 90

91 Speech Technology Center Speech Technology Center Krasutskogo street 4, Saint Petersburg, Russia Telephone: +7(812) Contact person: Mikhail Khitrov CEO Year of foundation: 1992 Headcount: 350 Share of export, %: n/a Sphere of activity: Speech recognition and synthesis Application area: Voice integration Customers: Sberbank Trans Telecom Underground railway systems SpetsTek SpetsTek Akademika Pavlova street 7A, Saint Petersburg, Russia Telephone: +7(812) Contact person: Vladimir Iorsh CEO Year of foundation: 1991 Headcount: 60 Share of export, %: 10 Sphere of activity: TRIM corporative information systems Application area: ERP Customers: Columbia Shipmanagement Texas Nafta Industries INOK B. V. Tarn Tank A.S. 91

92 SWD Software SWD Software Vnukovskaya street 2, Saint Petersburg, Russia Telephone: +7(812) Contact person: Sergey Cvetkov Marketing Manager Year of foundation: 1991 Headcount: 20 Share of export, %: 10 Sphere of activity: OS QNX Application area: OS for embedded systems of high fidelity Customers: SURGUTNEFTEGAS MMK Russian Railways AtomEnergoProject TASC-Media TASC-Media Aviatsionnaya street 9-A, office 8-N, Saint Petersburg, Russia Telephone: +7(921) Contact person: Demetrius Korotkov Chief Designer/Partner Year of foundation: 2003 Headcount: 11 Share of export, %: 50 Sphere of activity: Web-design and development Application area: Telecom, e-commerce, advertising Customers: n/a 92

93 Telda Telda Beloostrovskaya street 25 K2, Saint Petersburg, Russia Telephone: +7(812) Contact person: Radiy Podguzov CEO Year of foundation: 1993 Headcount: 100 Share of export, %: 5 Sphere of activity: Emergency communication systems Application area: Telecom Customers: RusHydro Ministry of the interior of Russia EMERCOM Tillypad Tillypad Yakhtennaya str. 22a, block 1, Saint Petersburg, Russia Telephone: +7(812) info@tillypad.ru Contact person: Igor Postnikov Business Development Director Year of foundation: 1991 Headcount: 60 Share of export, %: 10 Sphere of activity: Tillypad- management system Application area: Restaurants Customers: Bubble Mania Strike Zone Warsteiner Forum 93

94 TopPlan TopPlan Tsiolkovskogo street 15, Saint Petersburg, Russia Telephone: +7(812) Contact person: Vasiliy Pavlov Deputy General Director Year of foundation: 1991 Headcount: 20 Share of export, %: 5 Sphere of activity: E-maps, GIS Application area: Traffic monitoring, navigation Customers: Ford Motor Company Pfleiderer Philip Morris Siemens Nixdorf General satellite Transas Technologies Transas Technologies Maly prospekt V.O. 54-4, Saint Petersburg, Russia Telephone: +7(812) tt@transas.com Contact person: Vladimir Ponomarev Managing Director Year of foundation: 1993 Headcount: 306 Share of export, %: 78 Sphere of activity: 3D image processing and synthesis, maritime navigation Application area: Virtual reality Customers: A. P. Moller Maersk Canada Maritime Chilean Navy Red Funnel German Navy 94

95 Trinet Trinet Finlandsky av. 4a, office 231, Saint Petersburg, Russia Telephone: +7(812) Contact person: Dmitriy Mironov CEO Year of foundation: 2000 Headcount: 50 Share of export, %: 99 Sphere of activity: Web-design and support Application area: Internet marketing, entertainment Customers: Gazprom MTS Kronwerk Cinema T-Systems T-Systems 13-Liniya V.O. 14-B, Saint Petersburg, Russia Telephone: +7(812) Contact person: Stanislava Makavskaya Marketing Manager Year of foundation: 1995 Headcount: 500 Share of export, %: 50 Sphere of activity: Software development and IT services Application area: Telecom Customers: Deutsche Telekom Volkswagen Daimler 95

96 Tune-it Tune-it 10th Krasnoarmeyskaya street 22A, office 60, Saint Petersburg, Russia Telephone: +7(812) Contact person: Dmitriy Sheshukov Marketing Director Year of foundation: 1991 Headcount: 40 Share of export, %: 10 Sphere of activity: CRM, Workflow Application area: CRM Customers: MTS Oracle Huawei KIT-Finance Bank Saint Petersburg VIAcode VIAcode Blokhina street 9, Business center "Kronwerk", Saint Petersburg, Russia Telephone: +7(812) Contact person: Roman Yuferev Business Manager Year of foundation: 2002 Headcount: 100 Share of export, %: Sphere of activity: Customer applications development Application area: Banking, finance, IT Customers: Microsoft JP Morgan Chase Tymetrix Citigroup Bank of America 96

97 Videotest Videotest Dvinskaya str. 10, block 2, P.O. Box 61, Saint Petersburg, Russia Telephone: +7(812) Contact person: Valeriy Panteleev CEO Year of foundation: 1990 Headcount: 50 Share of export, %: 20 Sphere of activity: Microscope Image analysis Application area: Biology, genetics, material science Customers: NizhnePharm NLMK Ulan-Ude Aviation Plant MSU WaveAcces WaveAcces Bolshaya Morskaya street 19, office 4d, Saint Petersburg, Russia Telephone: +7(812) Contact person: Ilya Feigin CTO Year of foundation: 2000 Headcount: 120 Share of export, %: 80 Sphere of activity: Microsoft Dynamics Customisation Application area: Enterprise Internet solutions Customers: Microsoft Thomson Reuters Aderant Volvo 97

98 WebCom WebCom 8th Krasnoarmeyskaya street 10, office 30A, Saint Petersburg, Russia Telephone: +7(812) Contact person: Maksim Laschevskiy Marketing Manager Year of foundation: 2001 Headcount: 20 Share of export, %: 99 Sphere of activity: Maestro Application area: Web-sites generation Customers: OJSC Rostelecom North-West Branch Mavis InterZet Yellow Pages Westconcept Westconcept Bumazhnaya street 9, Saint Petersburg, Russia Telephone: +7(812) Contact person: Kyrill Sanin CEO Year of foundation: 2003 Headcount: 70 Share of export, %: 95 Sphere of activity: System integration Application area: ERP Customers: PetroService Speech Technology Center Alpa Astoria hotel sector 98

99 Yumasoft Yumasoft 6-Liniya V.O. 59/1, Saint Petersburg, Russia Telephone: +7(812) Contact person: Nikolay Rogozhnikov CEO Year of foundation: 2003 Headcount: 40 Share of export, %: 80 Sphere of activity: Custom software development Application area: Hospitality, IT, media Customers: Productive Edge Veriforce Udutu IT Retail Inc. Antera Software USA Inc Zed Russia Zed Russia Smolenka River embankment 14, office 36, Saint Petersburg, Russia Telephone: +7(812) Contact person: Sergey Oleinikov Deputy General Director Year of foundation: 2001 Headcount: 70 Share of export, %: 20 Sphere of activity: Zed Russia OS Application area: Platform for mobile communications Customers: Yandex Samsung Intel Pulkovo Neval 99

100 3. Promising startups from Business Incubator Ingria 3.1 Companies A to Z CG Promo Gorizonty Rosta ivilka Octopod SeeMedia Webnotifier

101 3.1.1 CG Promo The company Group PROMO is a creative agency which provides a full range of on-line marketing and successfully promotes companies in Internet: website creation, SMM, SEO, promotion in blogs and on forums. Potential clients: Value proposition: The clients portfolio includes companies from different spheres and of different sizes, including large, middle-sized companies and startups. The company helps to: Promote websites, new products and services, special programs in Internet Increase sales through Internet Attract traffic to websites Estimate on-line advertisement effectiveness. References: Company was founded in 2009 Professional team with more than 5-year experience in the field of IT, application development and marketing Company is an official partner of the leading companies on the Internetadvertisement and software market CG PROMO is an official partner of vkontakte.ru and St. Petersburg International Economic Forum Clients portfolio includes: Microsoft, KFC/Pizza Hut, Oracle, hh.ru Contacts: Tel.: +7 (812) wikail@cgpromo.ru 101

102 3.1.2 Gorizonty Rosta The company develops and implements business solutions for business processes managing, planning and control: Go-System: Repair, construction and project management Go-RFID: automatic system for identification, tracking and control of industrial equipment used in the aggressive environments Go-Base: on-line database of equipment and components which unites producers and customers. The system is used for the quick search and selection of equipment, components, products and materials for companies from all over the world. It can be integrated with ERP and RFID. Potential clients: Value proposition: References: Go-Base can be effectively used in: Oil recovery and refining; Gas industry; Oil recovery, petrochemistry; Chemical production; Ferrous and non-ferrous metallurgy; mining; Machine and instrument engineering; Industrial and civil construction; Any industrial enterprise which wants to buy equipment on better conditions. The company s product helps clients to: Search and buy necessary equipment, components, parts according to many optimal parameters Increase the number of customers and partners Increase sales Place and promote new products and services on the global market About company: Founded in 2009; Professional team with more than 10-year experience of software development and implementation. Clients include Tatneft JSC, Gazprom Transgaz Yugorsk Ltd., TMS Group JSC Implemented projects: Project and construction management automation in the vertically integrated oil company; Automatic generating and visualization of models based on the attributive information; RFID-technology: corporate project on identification of the equipment used in the aggressive environment; Localization and adaptation of software for examination of drill pipe, pump-compressor tube and other equipment. Contacts: Tel.: +7 (812) info@go-rost.ru 102

103 3.1.3 ivilka The company offers restaurants, bars and cafes a tablet-based interactive menu system integrated with most of the existing restaurant automatization systems as well as a pager system for waiters. Potential clients: Value proposition: Restaurants, bars and cafes The company provides electronic menu management system which: Allows guests to select dishes, look though photos, read information and guests feedback, comment on dishes in social networks. Moreover, a guest may pay with e-money. Waiters receive information on any guest s activity on pager which significantly saves wait time. Restaurant manager can change menu online and use embedded tools for promotion of dishes. Contacts: Tel.: +7 (812) info@ivilka.ru 103

104 3.1.4 Octopod Potential clients: Value proposition: The Octopod Platform for building corporate and consumer mobile applications is a universal set of tools for cross-platform mobile application development. The Octopod Platform can be effectively used in corporate mobile application development by: Independent software vendors; In-house developers teams; Outsource teams. The Octopod Platform helps its clients to: Reduce time and cost of improvements and software configuration for each ISV client; Accelerate application development and simplify deployment of new functionality for in-house development teams; Provide outsource teams significant competitive advantage, reducing the cost of the whole cycle of production of custom software. References: The Octopod Platform has been aprobated on several projects since 2007; Among the company s clients are «NevaFilm», «DocsVision» and «Manzana Group». Contacts: Tel.: +7 (812) info@octopod.com 104

105 3.1.5 SeeMedia SeeMedia was founded in 2011 with the aim of helping people organize workshops and online trainings easier. The service is designed for teachers and instructors of educational and training organizations to hold seminars and trainings. Currently, the company released a beta version of the service and attracted 9,000 users. Potential clients: Value proposition: References: During the first year the targeted audience will be trainers and instructors of training and consulting organizations of Moscow and St. Petersburg (about 5,000 companies). Targeted audience profile: trainer, coach, entrepreneur holding two or more trainings a week in Moscow and St. Petersburg and experiencing problems with efficiency, company s or team training organization efficiency. Using a lot of different internet services for organization of trainings takes a lot of time and increases costs of workshops or trainings. SeeMedia provides a universal online service for organization of trainings: On-line registration for training; and SMS mailout; Acceptance of payments via Internet; Online seminars and webinars. The company offers universal tool for organizing and holding of trainings and webinars: A package proposal which reduces training costs, as well as a complete set of tools to start your own business training without initial investment; Free platform for webinars and online broadcasts for unlimited number of participants. Contacts: Tel.: +7 (911) sales@seemedia.ru 105

106 3.1.6 Webnotifier The company provides instant delivery of user targeted information to achieve awareness and efficient feedback right to the browser without installing additional software on user side. Potential clients: Value proposition: Wireless and Broadband operators Benefits to operators: Increasing cash flow from customers, ARPU growth, increasing loyalty, new service creation. Easy new applications and cases development in the future: Airport Customer Care. Inform passengers about flight details and condition changing; Cafe chain. Special offer promotion, call waiters, service quality feedback, ad. References: Founded in 2009 Big experience in product marketing and development. SpeedFly - Mobile Traffic Optimization SaaS service for Internet surfers via USB modems (MTS, Beeline, MegaFon, SkyLink, Yota, BWC) Webnotifier ready to ship product tested on high load live network (SpeedFly) Many open trial zone in wireless and broadband operators (Yota, Tiera, Obit, MegaFon) Recent international activity (Elisa, DNA (Finland) First customer: MegaFon Nord-West branch, one of the biggest GSM/3G mobile operators in Russia Contacts: Tel.: +7 (921) s.nesmachny@rubicpro.com 106

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109 Legal disclaimer All of the information included in this document is for informational purposes only, and may not reflect the most current legal developments, judgments, or settlements. This information is not offered as legal or any other advice on any particular matter. Enterprise Europe Network - Russia, Gate2Rubin Consortium, Regional Center St. Petersburg and the contributing authors expressly disclaim all liability to any person in respect of anything, and in respect of the consequences of anything, done or not done wholly or partly in reliance upon the whole or any part of the contents of current brochure. No client or other reader should act or refrain from acting on the basis of any matter contained in this document without first seeking the appropriate legal or other professional advice on the particular facts and circumstances. If you have finished with this document, please pass it on to other interested parties or recycle it. Thank you. This publication was developed and printed in the framework of the project co-funded by the European Union, the Russian Federation and the Republic of Finland. Printed by printing house AiB St. Petersburg, 9 Ruzovskaya Street 109