At the end of 2023, the analytical center Tadviser published a ranking of the Largest Russian Providers of Custom Development Services (available in Russian only), and JTC continues to be recognized among the top players in the market. All participants are ranked based on their project revenue.
Over the past few years, the volume of sales for custom development services has been declining. According to the RUSSOFT Association, prior to early 2022, custom development accounted for about 70% of service companies' sales and up to 20% of product companies' sales in the domestic market. By the end of 2022, these figures had dropped to 60.2% and 7.7%, respectively, and by the end of 2023, they further declined to 28.9% and 7.4%.
JTC's position in the ranking has declined in line with the sales dynamics of the entire market. For several years, the company has been strategically reducing its reliance on custom development, shifting its business model towards packaged remote banking solutions. In 2023, demand was driven by objectives such as import substitution and achieving technological sovereignty. Banks have shown significant interest in ABS, OS, and DBMS systems as they actively replace foreign vendor solutions.
"The sudden exit of foreign vendors and new regulatory initiatives have prompted many players in the banking sector to invest heavily in developing their own in-house teams. However, experience has shown that not all organizations can effectively establish internal processes, and this approach tends to be viable only for larger companies within specific software segments. Additionally, there is a shortage of qualified personnel in the market. As a result, we are now witnessing a shift towards hybrid or outsourcing models of collaboration. Domestic vendors have proven to be quite effective in terms of cost and speed of solution development, especially in an environment characterized by total uncertainty and rapidly changing requirements," comments Sergey Yuvchitsa, Managing Partner.
The company views its ranking results positively and will continue to focus on enhancing the functionality of its packaged solutions, particularly its flagship product—the RBS system for legal entities, Salto.Avanti.
Over the past few years, the volume of sales for custom development services has been declining. According to the RUSSOFT Association, prior to early 2022, custom development accounted for about 70% of service companies' sales and up to 20% of product companies' sales in the domestic market. By the end of 2022, these figures had dropped to 60.2% and 7.7%, respectively, and by the end of 2023, they further declined to 28.9% and 7.4%.
JTC's position in the ranking has declined in line with the sales dynamics of the entire market. For several years, the company has been strategically reducing its reliance on custom development, shifting its business model towards packaged remote banking solutions. In 2023, demand was driven by objectives such as import substitution and achieving technological sovereignty. Banks have shown significant interest in ABS, OS, and DBMS systems as they actively replace foreign vendor solutions.
"The sudden exit of foreign vendors and new regulatory initiatives have prompted many players in the banking sector to invest heavily in developing their own in-house teams. However, experience has shown that not all organizations can effectively establish internal processes, and this approach tends to be viable only for larger companies within specific software segments. Additionally, there is a shortage of qualified personnel in the market. As a result, we are now witnessing a shift towards hybrid or outsourcing models of collaboration. Domestic vendors have proven to be quite effective in terms of cost and speed of solution development, especially in an environment characterized by total uncertainty and rapidly changing requirements," comments Sergey Yuvchitsa, Managing Partner.
The company views its ranking results positively and will continue to focus on enhancing the functionality of its packaged solutions, particularly its flagship product—the RBS system for legal entities, Salto.Avanti.
