Russia offers significant business opportunities within the professional services sphere. With six years of strong economic growth and an increasing emphasis on quality of service, Russia today is fundamentally different from the past.

In 2004, services contributed more than 60 per cent of Russia's gross domestic product (GDP), according to the State Statistics Committee of the Russian Federation. This represents strong growth over 2000, when services made up only 49 per cent of GDP.

Overview of the Russian professional services market

After evolving rapidly from a centrally planned economy to a free market, present-day Russia is a dynamic and complex place. Its commercial, economic and legal environment has improved markedly, but there is still room for further development. For this reason, there is strong demand for internationally proven expertise and high-quality professional services.

Most Russian companies understand this need and are willing and able to pay for expert advice. Many businesses have a preference for proven commercial services, with price as a secondary consideration. This explains why Russia has become an important market for professional services firms around the world.

Market makeup

According to Expert RA rating agency, the value of the Russian professional services market is as follows:

• Information technology — 43.6 per cent
• Legal and tax consulting — 18.3 per cent
• Strategic planning — 14.0 per cent
• Assessment — 8.5 per cent
• Financial consulting — 8.4 per cent
• HR consulting and recruitment — 2.2 per cent
• PR and marketing — 1.2 per cent
• Other — 3.8 per cent

Emerging trends

In the past, most demand for professional services came from large industrial manufacturing companies such as highly profitable petroleum, chemical and multinational FMCG companies. However, in recent times there has been a clear shift in the market towards mid-size businesses, which are often looking to streamline and specialise their internal business functions. As a result, an increasingly large share of demand for professional services comes from medium-sized businesses. This development has undoubtedly encouraged the market to grow.

Businesses in Russia are focused on developing and implementing strategies to ensure their long-term survival in the face of tough competition. They want to develop business and information infrastructure and merge existing information systems into a single global network that cuts across all areas of the business. Experienced international consultants are often well placed to resolve these issues of business process reengineering and technical reform.

The focus on management infrastructure is creating significant opportunities for Australian professional services firms with relevant expertise and proven experience.

Particular areas of demand for international expertise include:

• Appraisal of intangible assets and intellectual property (IP) for financial reporting according to IAS/GAAP standards;
• Analysis and development of marketing and brand strategies;
• Formulation of strategies to manage intellectual property assets more effectively through approaches such as licensing, franchising, etc.;
• Preparing companies for investment such as venture funding and mergers and acquisitions;
• Customer service and customer management.

Demand for professional services continues to grow as Russian businesses become more structured and more active in global investment markets.