Russia tries to stem IT brain drain

RUSSIA / FSU POLITICS - In Brief 04 Apr 2022 by Alex Teddy
Russia's economy is reeling. Few foreign firms will invest in Russian tech for a long term. The investment climate is deeply unattractive. Tens of thousands of IT workers have left the country since February 2022. The consequences for the economy and cybersecurity are serious. IT workers are shifting to Armenia, Uzbekistan and Kyrgyzstan. The USA and the EU have banned the sale of microprocessors. They are vital for IT. Apple, Samsung, Microsoft, Oracle and Cisco are all stopping their Russian operations. About 60,000 IT workers have left in 2022 according to the head of the Russian Association of Electronic Communication. He warned another 100,000 could leave in April. There are 1.8 million IT workers in Russia.Russia has a growing demand for IT specialists as people want fifth generation mobile tech and AI.The government is troubled by the brain drain. Putin announced a three year tax holiday and soft loans for IT firms. He is offering subsidized mortgages for IT workers. IT workers will also be excused from military service. It is reported that the head of an IT firm called Konkord called for a ban on IT workers' emigrating. Russia's cyber-defenses will be enfeebled. Some cyber-criminals will not leave Russia because they may be arrested abroad. Since 2000, many Western IT companies had outsourced work to Russia as the cost of labor is low. Russian IT workers are paid 25% of what an American is. About 200,000 Russians work for foreign IT firms. US tech firms EPAM and Data Art were founded by immigrants from Belarus and Russia. EPAM had 30,000 employees in Russia and Belarus before the war. EPAM is asking these people to move to Armenia and Georgia. On March 4, EPAM ...

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