Q: What services are in demand in Russia?
A: The market for professional services in Russia is still relatively weak. In general, Russians are not used to paying for services and have a great deal of difficulty in evaluating quality. Initial decisions are there often based on price, or on 'perception'. There are some exceptions, notably 'international standard' accounting and auditing for financial institutions and listed companies.

Russians companies seem particularly unwilling to pay for marketing services, and often have great difficulty with agency/commission agreements. In general, Russian firms divide the world into two groups: first, companies that actually pay them money for goods and services and, second, everyone else.

Of course, the situation is developing rapidly. However, as the Russian economy develops and Russian companies become more sophisticated, local Russian service providers are also arising to compete with foreign firms.

We believe that services which can be packaged as products and/or which have an inherently international aspect to them, probably have more potential in the short run. Services that do not take place in Russia (such as exhibitions, international advertising, offshore conferences, etc.) also have a market: not only are these 'products', but because they are physically located outside the country, local firms cannot compete. Services which provide 'international standard quality', especially with certification, also can be successful. This includes, for example, inspection services (e.g. Veritas, SGS), architecture, auditing, etc.

Finally, as Russians start to do business overseas, Russia and Russians is becoming an important market for services that actually take place overseas. This includes real estate consulting, education, legal services, tourism, etc.