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IDC Highlights the Strengths of the Russian Software Development Outsourcing Industry
10 May 2007
IDC Highlights the Strengths of the Russian Software Development Outsourcing Industry

IDC Highlights the Strengths of the Russian Software Development Outsourcing Industry
Twenty Companies Share Experience, Best Practices for Engagement

The Russian Software Developers Association (RUSSOFT) has announced the results of a study which focuses on Russia as a location for offshore software development. The study, produced by IDC, an independent and international market analysis firm, and sponsored by Russoft, bases its findings on in-depth interviews with senior management from 20 U.S. and Western European companies in the IT (hardware, software, and services) and telecoms sector that have outsourced development of software applications to Russian companies. Each of the 20 companies had nearshore / offshore experience with Russian suppliers for application development, from specific tasks to full R&D processes, including design, testing, and continuous maintenance. Company revenues ranged from $10 million to $100 billion. The results and recommendations of the resultant study are summarized in a white paper that is now available for free download.  

The research finds that stability within the working relationship, technical expertise, and relatively low staff turnover are key advantages of Russian software development companies. Though price is often behind the initial supplier choice, these factors strongly influence the resultant value that customers percieve in thier relationship with Russian outsourcing providers. The US and European respondents also indicated other factors such as a closer cultural fit (as opposed to that experianced in relation with Asian suppliers), similar work ethics, a clearer understanding of business issues, and (from the Europeans) similar time zones.

"American and Western European companies perceive Russian companies as a source of sophisticated technical expertise, which is absolutely necessary for approaching complicated technological tasks" said Valentin Makarov, President of RUSSOFT. "We believe Russia should be a key technological component in any multi-sourcing strategy." .

"Several factors work as Russia’s differentiators on the world market, such as the large pool of highly skilled professionals with mathematics and science backgrounds, capable of solving complex and math-intensive problems, and the ability of Russian companies to manage high-end, complex projects," said Vladimir Kroa, Regional Director for IT Services Research, IDC Research. Mr. Makarov adds to this, saying "One of the common misperceptions in outsourcing is that having more people on a project is better. In reality, having the right people is more important and will actually reduce project time and costs."

The Russian Software Developers Association (RUSSOFT) is the nationwide association for software development companies from Russia, Belarus and Ukraine. RUSSOFT unites more than 80 companies with 17,000-plus highly qualified programmers and software engineers with advanced graduate level degrees in Technology & Computer Science.  For more information about nearshore / offshore outsourcing options to Central and Eastern Europe, visit RUSSOFT’s website, www.russoft.org.

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