Union: COVID-19 may cut software firms’ Q2 revenue by up to 39%

MOSCOW, May 15 (PRIME) -- More than 80% of Russian software companies have faced delays in payments amid the coronavirus pandemic, which could undermine their revenue in the current quarter, software developers association RUSSOFT said on Friday in a research.

Under the optimistic scenario, the companies’ revenue will decrease by 12% on average and by 39% under the pessimistic scenario.

In January–March, total revenue of the polled companies rose by 2.4% compared to a previous turnover growth by 10–15% a year.

“More than half of respondents see risks in the loss of key employees, which could affect their development. As a consequence, a positive impact of software development on the whole economy could fall dramatically,” the research said.

The polled companies also estimated the approximate volume of state funding needed to cope with the problems at 24.3% of their turnover.

“Guided by a 997 billion ruble total revenue of the industry’s firms in 2018, 242 billion rubles will be required,” the research read.

RUSSOFT polled more than 30 firms-developers on May 8–Tuesday.

(73.9298 rubles – U.S. $1)

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