Russian IT Sector Growth Outpaces Broader Economy

In Q1 2025, Russia’s information‑communication technology (ICT) market surged 13.4%, nearly double the 6.4% pace of overall GDP growth, driven by booming software development and record‑high wages.

Russia’s ICT market ballooned to ₽1.89 trillion in the first quarter of 2025 — a year‑over‑year increase of 13.4%, compared with just 6.4% growth in GDP. For the first time, the sector accounted for more than 5% of the national economy.

Software development emerged as the primary engine, soaring 36% year over year and generating 61% of the sector’s revenue — ₽910.5 billion in just three months. Five years ago, software firms held roughly 30% of the ICT market; today, they’re approaching half. Systems integrators and service providers also made substantial contributions.

Hardware production saw mixed results: computer and peripheral manufacturing jumped 47%, and communications equipment climbed 38%, while consumer electronics sales fell 15%.

The ICT labor market expanded to 1.64 million employees — a rise of 8.8% — with developers and integrators commanding average monthly salaries of ₽199,400, versus ₽111,000 in telecommunications roles.

Investments in ICT totaled ₽271.4 billion in Q1, funneled predominantly into data‑processing infrastructure and software. Analysts predict that, if momentum in artificial intelligence and cloud services continues, sector growth could top 15% by year’s end, with cyber‑security, big data, and IoT poised to attract both domestic and foreign capital.

By outstripping the broader economy and bolstering wages, Russia’s IT sector is cementing its role as a key driver of the country’s digital transformation — and may soon become a competitive force on the global stage.