What You Should Know about Outsourcing to Russia

If you're looking for a reliable, cost-effective way to outsource software development, chances are you've considered Russian outsourcing. Russian outsourcing is increasingly becoming more and more popular as the word about quality sources spreads.

Read the outsourcing article below to get the latest outsourcing information about the Russian programming market.

Outsourcing Software to Russia: A Growingly Viable Option

According to Russian analysts and leading western agencies, IT Russian outsourcing is one of the most quickly evolving segments of the Russian market. Gartner analysts estimate the revenue of outsourcing to Russia in 2004 as $500 million, which is half as much as the amount of 2003 and nine times as much as the amount for the past five years. Gartner forecasts the sales volume of offshore software development in Russia to grow half as much again in 2005.

IT Offshore Outsourcing in Russia Delivers Better Software

The Russian offshore outsourcing sector of the Russian economy possesses a unique combination of favorable features that enable rapid development of customized informational systems for western companies. The Aberdeen Group notes that increased outsourcing software to Russia means the quickly developing Russian software outsourcing market is very likely to gain a dominant position in the international market as well.

Despite the fierce competition on the international IT outsourcing market, Russian software programmers have a number of advantages that surpass rivals from other countries:

• Advanced qualifications based in good education that delivers not only knowledge of mathematics and applied sciences, but also teaches creativity, flexible thinking, and the ability to apply a multi-variant model to software development.
• Strong scientific schooling based on Soviet educational traditions providing a good combination of applied techniques and theoretical basis (including mathematical and fundamental analysis tools), which allows the development of clusters of advanced software products.
• Individual approach to each customer—a trait found only in Russian programmers who undertake complicated and individual tasks. Indian companies usually have lots of employees and prefer handling a great number of enormous orders. Russian offshore outsourcing companies are normally smaller, which allows them to fully adapt to each customer, work thoroughly to meet their requirements, and propose unique ideas and the best solution in terms of quality and price.
• Optimal price/quality combination. Russian offshore outsourcing companies were among the first in Europe to get the CMM/CMMI Level 5 certification to prove the quality of their services. China's pricing is very competitive. However, Russian programmers provide traditionally better quality of service. Due to the geographical nearness to Europe and good knowledge of European culture, Russian offshore outsourcing companies can provide an optimal price/quality combination, which makes them competitive on the world market.

Russian Outsourcing Strategy

The main strategic task of the Russian IT companies working in the offshore outsourcing field is positioning of their service on the market. Good positioning can bring success to the Russian IT industry.

However, Russian outsourcing has its difficulties. Most development companies are small and do not have enough resources to get to the international market or obtain big orders. Insufficient state support of the IT sector also affects the competitiveness of the Russian companies. India and China are serious competition to Russian developers. Nevertheless, the Russian advantages are obvious and are a good bet for any future offshore outsourcing.

Taking into consideration the political stability in Russia and the government's latest projects on the strategic development of the IT sector, it becomes mutually profitable to work with Russian outsourcing companies, especially for the customers trying to improve their cost efficiency.

Russian outsourcing companies work most efficiently and effectively with small or mid-sized Western companies that need solutions to complicated individual tasks. To make you confident in the advantages of Russian IT outsourcing companies, we invite you to try to work with us - one of the leading offshore outsourcing companies in Russia.

To learn more about our company, please see our Company, Services, Technology & Solutions areas, or contact us for more information.