Deputy minister: COVID cuts revenue of IT firms by up to 40%

MOSCOW, Oct 27 (PRIME) -- The Russian IT industry has lost up to 40% of revenue due to COVID-19 as companies reduced their IT budgets, Deputy Digital Development Minister Maxim Parshin said on Tuesday at an online meeting.

“There is an opinion that COVID boosted the industry, a widespread opinion. Yes and no. No because we see that many companies have incurred a significant fall in revenue. The central bank shows us the incoming money flows in the IT industry, the decrease is up to 40%, the money flow in the industry fell on the whole in some sectors,” Parshin said.

“It’s explained by the fact that the corporate sector, unlike the massive one, the massive consumer, is actively cutting its costs and budgets for the IT in first place. This is why many companies faced cash gaps and inability to push their solutions to a higher level.”

The pandemic has become one of the reasons of granting 7.1 billion rubles for IT companies in 2020, he said.

(76.4443 rubles – U.S. $1)

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