Friday, December 21, 2007

Russia: A turning-point in IT outsourcing

In 2007 the majority of the large Russian companies have shown a trend towards more positive views to IT project outsourcing, state the market players. The understanding that in conditions of the fast-paced economy it would be logical to transfer some of the enterprise's non-core functions to an external professional service provider facilitates this trend.

According to some expert estimation, over the past year the Russian outsourcing market has narrowed the gap in growth rates between it and Europe more than twice. Russian outsourcing providers report that large domestic companies are becoming less prejudiced against the IT segment. As of now quite a few companies in Russia realize the financial benefits of enlisting help of the independent service providers. However it is particularly justified in such cases when the number and complexity of projects is increasing rapidly but there are no sufficient in-house resources for handling the work on their own. The customer gets immediate access to a team of professionals, which, should they decide to rely on their own resources, might take several years to staff. In conditions of the fast-paced economy, transferring the company's non-core operations to an external specialized service provider is more than beneficial.

According to an insider's view, the Russian IT outsourcing industry wins more and more confidence among the world's leading vendors, like IBM and HP, for example, in such services as application development and maintenance and support. Russia is a promising destination and the companies actively intensify their outsourcing activities in the region. Correspondence to the international quality and business standards such as CMMI and ISO is considered to be one of the decisive factors in selecting a service provider. These standards also help plan further ways for improving the IT services quality. Today the share of the outsourcing services in the total IT market does not exceed 2,5%. However the experts are confident the segment is going to expand. The number of projects, customers and, as a result, Russia's IT expertise level is augmented rapidly. The growth rates demonstrated by some of the Russian ISVs in 2007 indicate that the Russian outsourcing market's 50% increase reached in 2006 will be surpassed, state the CNews experts.

Source: Cnews.ru

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