Experts discuss growth in exports of IT services and solutions

28 march 2018

The Analytical Center has held an expert conference to discuss how the state supports and develops exports of IT services and solutions in other countries and develop proposals for how to implement these practices in Russia, during which experts discussed the various approaches, programs and state support measures used in other countries to promote exports of IT services and solutions and put forward proposals for how the best international practices can be made use of when developing state support measures in Russia.

"Foreign state support measures for the exports of IT services and solutions usually come as part and parcel of various IT development programs. These involve the digitization of government agencies and state procurement," said Analytical Center expert Ksenia Sukhorukova. The expert noted that India is deliberately diversifying the countries it's exporting its IT services to while implementing a program called Digital India that seeks to engage both individuals and companies in this process. China has been focusing on financing fundamental research as a way to promote exports of IT services and solutions, while simultaneously providing tax benefits and exemptions from tariffs for imports of equipment. In 2014 France launched a program called La French Tech that includes support for fast growing companies, the creation of international IT centers, a special platform to promote and advertise the country's achievements in IT and measures to bring in foreign companies to set up startups in France. Israel is implementing a program to develop the economy's high tech industries and specifically the IT sector by encouraging employees of foreign companies to set up IT centers in the country and through state participation in international information and communication technology programs and projects. Israel has also been emphasizing a system of intellectual property rights protection. In Malaysia 2006-10 saw the organization of cyber cities and centers for information and communications technologies all across the country.

"The Ministry for Mass Media and Communications of Russia and companies that export IT services and solutions put forward a number of proposals that were submitted to the government in early October. So far none of the measures that we suggested have been included in any of the regulatory documents governing the activities of the government agencies supervising exporters of IT services and solutions," noted Deputy Head of the Department for International Cooperation of Russia's Ministry for Mass Media and Communications Mikhail Sharikov. One proposal was to increase the threshold for opening a foreign currency transaction passport to $100,000, increase the period for the submission of confirmation documents to 90 days and minimize the number of confirmation documents that must be submitted for the transfer of non-exclusive rights to a piece of software. Meanwhile, the issues related to factoring, tax holidays and tax exemptions for exporters require more expert discussion, Sharikov believes.

During the discussion the experts noted that Russian IT services and solutions companies should bet on international cooperation, expanding sales and marketing efforts. It's also important to simplify the procedure for issuing visas to representatives of foreign companies.