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Outsourcing to Russia



Russia is now the chosen destination for outsourcing by European and American firms. The reasons for this are pretty obvious. It is one of those countries with a very good technical expertise, with a high-pool of engineering talent. Russia also has a very good education system and also boasts of a booming home-grown IT sector which gets a good support from the government. And there is the distinct advantage of labor costs. So, the Outsourcing to Russia market is growing at a 25 % each year. Let us look at this in more detail here. Russia markets itself as an above-average player in its competence. They have managed to develop an incredible business environment with focus on innovativeness.

Multinationals such as Dell, Reuters, Siemens, Deutsche Bank all have an offshore software development team in Russia. Russia started getting its offshore projects during the Y2K issue. Then, they started getting routine and maintenance issues. But, nowadays, even extremely complex programming is being done there. Because of the technical expertise and the good work they have exhibited over the years, they have earned themselves a good reputation for ERP, education, content management, middleware, application development, data management and web applications. They also boast of research and development works, embedded system development, translation services, software package integration etc. In fact, Russia has marketed itself as the destination for sophisticated and critical application development works. They not only provide an excellent quality work but at a very competitive cost compared to the operation costs in the western countries. Russia has also benefited from the good feedback given by Intel’s Steve Chase and other industry experts like Esther Dyson. Russia has also benefited by its geographical location, it being closer to Europe. Thus, Russia is dubbed as the near-shoring location to outsource the complex work.

The workforce in Russia consists of highly skilled with qualifications in engineering and very good communication skills. They have over 4.7 million students out of which fifty percent is majoring in science, computer science and mathematics.  Russian students also are a regular at winning international programming contests. Also, UNESCO has ranked Russia as the third in the number of scientists and engineers per capita across the world. Russian workforce is known for their superior theoretical ability and exceptional software engineers. Now, even the financial services sectors are moving their critical development of systems Outsourcing to Russia . Russian workforce is reputed for their good work ethics and for keeping absolute customer satisfaction as its primary goal.

The important point to note is the progress shown by the IT sector in such a short span. They have over three hundred home-grown software companies with a total market size of $2.5 billion operating today. The government in Russia also has provided immense support which has helped to spiral the growth of the IT sector here.  The overall export share of Russia in the IT sector grew from a mere 0.3 percent to a 5 percent in just two years.  They have also maintained a healthy overall national growth.