IT Business in Russia
Information Technology (IT) is a means of creating, processing, storing, securing and exchanging electronic data through the use of devices such as computers and networking (Bigelow, 2015). Information technology can be generally defined as a set of tools or systems used in sending, storing, and retrieving data. An IT system is the key driver of the productivity growth in Russia that allows the transformation of business applications and processes, which improves the effectiveness of nation’s business organizations. However, there are several factors that hinder the development of information technology structures in Russia that come under the influence of the government, nature, and the individual information technology experts. The availability of technological structures, environmental regulations and corruption in the IT structures of Russia make it difficult for Russia to develop information technology structures, which in turn make it more difficult to resolve IT problems. Each one of these problems have hindered the development of information technology structures in Russia.
One problematic factor that hinders the development of the information technology structures in Russia is the availability of inadequate technological infrastructure as there is not enough infrastructures available to allow further development. This underdeveloped technology provides restrictions and delays that hinder Russian productivity growth (Bailey, 2013). The solution to this problem could be a complete change of the system in Russia including business structure and government formation. This is not a small solution, but the problem is not small. This could happen in the next couple of generations and it could revolutionize the nation’s behavior. Russia is a huge country and people should not be frightened of the political system because the country has a lot of opportunities to develop in any field. Russian businessmen should invest more into the knowledge especially into the young generations with the perspective of the information technology field. This may be difficult due to the corruption that exists in the Russian government, however, it could be possible as there is significant interest in IT by the masses in Russia.
Additionally, lack of appropriate and advanced information technological skills in the IT structures is a problem faced by Russia. Existing information technological structures are being operated by few experts with no advanced knowledge on the information technology system. This makes it very difficult to expand the entire Russian information technological structure. The lack of advanced IT experts in Russia also makes it difficult for the younger generation with high capability to bring change to its IT structure. There is a lack of role models for the younger generation to admire in the field of information technological system
Another factor that hinders development of information technology structures in Russia is the unwillingness of the government to adopt and apply IT systems for public or company use. The Russian government has not supported the development of IT structures. It employs very tight rules and regulations in regards to various advanced information technology machines that could bring significant competition to the information technology innovations in Russia. With competition, many businesses would develop interest in the innovation of new technological devices which would boost full developmental structure of the information technology.
Russia’s strict environmental regulations and taxation on imports are additional factors that hinder the development of IT structures. The Russian economy relies heavily on the energy sector for its internal and external economic growth and productivity. With this extreme reliance on the energy section, the government ignores the IT sector, which has the high advantage of interest to boost the structuring of the new technological field that can further its business connectivity. The new information technology field has the capability to uplift Russia’s entire economy. However, the government has chosen not to do this, but instead has relied on the energy sector.
Another significant hindrance to the development of IT structures in Russia is corruption. Russia has deep roots of high level corruption in government. Russia is widely characterized by a higher corruption level in comparison to other countries of its same developmental level. Corruption has engrained the Russian wealth distribution and creation system. Government officials have the tendency to only think of themselves rather than the development of the entire country. The information technology sector requires full government support and without it, it will not development. Government officials prevent the share of funds for the development of its information technological structure.
Finally, hindering Russia’s IT development is its information technology instability. Russia has become dependent on other countries for new information technology innovations. Instead of challenging themselves to create and compete in the IT industry, Russian information technology experts give their support to the foreign technological discoveries that have more negative impact on the development of the information technology structure of Russia. Breaking from technological independency in the innovation of new devices has caused Russia to do poorly in the uplifting of its own information technological structures.
In order for Russia to resolve its hindrances to development in the information technological structure, the government needs to come up with a very comprehensive solution to address the entire problem. It needs to take the right steps. These steps should include enhancing competition in the information technology field, improving its information technology infrastructure and adjusting its strict rules and regulations, and eliminating corruption.
The improvement of the IT infrastructure by the government will enhance greater competition in the field of information technological development. The improved technological infrastructure with free rules and regulation in the innovation of information technology devices would boost the structural development of the IT system in Russia. Balancing its economy with less reliance on the energy sector would improve economic growth, as would creating effective strategies to allocate funds.
It would be appropriate for the Russian government leaders to take into consideration the needs of the economy and leave out their personal interest to better all the sectors that can bring good to the economic productivity. The Russian government needs to eliminate or reduce its high level of corruption that prevents it from allocating acceptable funds to its main economy stabilizers like the business of the information technology sector. When the information technology sector receives enough funds it will be in a better place to purchase quality and decent equipment needed in the development.
Additionally, the government of Russia should be more open to the use of online public services, including the internet. The use of internet services is currently restricted by the Russian government. If these services were made available to more businesses, the economic productivity of Russia would be enhanced, as online services would allow for the adoption and application of information technology systems in big companies. Investors would be more interested in establishing businesses in the IT industry. Also, many businesses require high connectivity that can only be done through online public service, and this would allow for enhanced productivity and profitability. Hence, fully leveraging online public services by the Russian government would greatly boost the development of its information technology structure (Westrup, 2012).
Although there are many factors hindering Russia’s development of IT structures, there are solutions. If Russia takes steps to change the availability of technological structures, its environmental regulations and the corruption in the government, there could be positive changes for information technology in Russia.
References
Bailey, T. (1987). Some Perspectives on the Management of Information Technology. Australian
Bigelow, S. J. (2015). Information Technology.
http://searchdatacenter.techtarget.com/definition/IT
Westrup, C. (2012). Problems with solutions seeking problems: debating ICT for development.
