Thursday, December 13, 2007

Russia’s tempting ITO opportunities

While India is still the mainstream IT outsourcing destination in absolute figures, it’s no longer the unconditional choice. It appears Russia is becoming increasingly seen as an alternative to India's dominance, says Karen Geldenhuys, newly-appointed MD of IT recruitment company Abacus Recruitment.

Geldenhuys says companies unwilling to invest all their IT outsourcing resources in one country, or who are simply looking for an alternative, are turning to Russia. … Russia boasts a growing number of IT outsourcers, offering anywhere between US$8 000 and US$14 000 for a programming job, according to the latest reports.

Geldenhuys says Russia is now parading its IT industry as a strong alternative in the outsourcing environment. "It is offering what it claims is top quality, cut-price programming, with the renowned Russian efficiency and a big pool of highly educated programmers."

Furthermore, reports show that income generated by exported Russian IT services were raised to US$450 million in 2004. “Not big in global terms – and certainly a drop in the proverbial ocean compared to India's US$20 billion industry – but it is certainly a definite trend upwards.”

"Russia is not a sleepy hollow. It … boasts expertise in a number of hi-tech areas, including aerospace. Additionally, the country's programmer population presents a strong front, boasting a 250 000-strong software engineering force – more scientists per capita than Britain, Germany, India and France.

“US companies seem to have taken note and have established R&D centres in Russia. Those making the move include Motorola, Siemens, Sun Microsystems and Intel,” she concludes.

Source: ITWeb

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