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The Magnit retail chain needs no introduction: the company’s geography covers almost 4,000 cities and towns in Russia, 16 million people visit 27,000 retailer stores daily, and the staff includes 370,000 specialists. However, few people know that Magnit is also a large IT company.
The scale of Magnit’s IT department is evidenced by a huge team of IT specialists, numbering regarding 4,000 people, of which 3,000 are developers, testers, analysts, project and product managers who create technological solutions for the retail network and personalization of customer experience. For IT staff, the company has deployed offices in Moscow, Krasnodar and Innopolis. At the same time, many employees work remotely or in a hybrid format.
Currently, over 600 IT systems are deployed in the IT infrastructure of the distribution network, connected to the storage with more than 500 petabytes of data. About 70% of the company’s technological landscape is built on the basis of Russian software that ensures the smooth functioning of cash registers, back offices, warehouse, assortment and transport logistics management systems, analytical platforms and other business-critical software systems. A significant part of the software is our own development. Therefore, from the point of view of sanctions pressure, the Magnit retail chain is quite stable and feels confident. Moreover, today it is its competitive advantage.
The Moscow office for IT employees is designed on the principle of co-working and has 319 stationary workplaces
Of course, Magnit has IT areas in which the company is still dependent on foreign software. Among these products is the SAP ERP system, which underlies the process of digital transformation of the retail chain launched 1.5 years ago. Magnit decided not to abandon SAP and only slightly transformed the platform, transferring the HR module to a mix of its own solutions and 1C. In addition, the company is now actively creating its own SAP Competence Center in order to independently provide support for the software package. In parallel, Magnit interacts with the Russian technology community and regulators, and also has plans to create a domestic equivalent of ERP for large corporations.
Particular emphasis is placed by specialists of the IT department of Magnit on cloud technologies. By the end of the first half of 2023, the company intends to transfer two Mission Critical-level systems to Russian cloud platforms, and by the end of the year, transfer up to 20% of the company’s services to the cloud. Until now, the main focus has been on Amazon and Microsoft, now the retail chain is considering closer cooperation with domestic cloud service providers.
Magnit intends to actively work with Russian vendors to create and develop domestic retail systems. At the same time, the company is convinced that the process of import substitution in IT should proceed gradually and smoothly, government regulation should be predictable and reasonable. It is necessary to avoid rigid deadlines for the transition to certain domestic solutions, there is no need to artificially accelerate the complete rejection of foreign analogues. Sustainability is important for business, customers should not feel the changes – on the scale of Magnit, this is a matter of the country’s food safety. The approach and those measures to support the IT industry that are now being discussed and implemented at the level of the Ministry of Digital Development and the government are very sensible, rational and balanced, Magnit fully supports them.
As part of the digitalization process, Magnit aims to create a modular business architecture that can quickly adapt to changes. In addition to Russian software, proprietary software and cloud services, the company intends to actively use the modern Data Lake architecture, Big Data technologies, microservices and, of course, solutions that ensure the cybersecurity of the products being created.
Another confirmation of Magnit’s focus on digitalization is the fact that despite the high uncertainty in the market, the company has not reduced investments in IT this year, moreover, the retail chain will invest more than in 2021. In addition, this year the company plans to create regarding 40 new product teams, and increase the development staff by 20%.
Additional information regarding the IT division of Magnit is available on the website magnit.tech. At the link provided, you can find not only comprehensive information regarding the company’s IT team and completed projects, but also current vacancies for those who seek to build a successful career in one of the most promising and fastest growing industries.
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