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Russian Outsourcing Russia
Business ClimateGeopolitical risk: Moderate
Infrastructure/Communications: Fair. Poor telecom infrastructure overall, but much better in technology centers. High cost of bandwidth.
English proficiency: Poor
Labor cost advantage (average IT programmer salary): $5,000-$7,500/year; $10-$40/hour
Pros: Rocket scientists for nearly rock-bottom prices. Russia has the third-highest number of scientists and engineers per capita, according to the World Bank.
Cons: Although Putin's government have stabilized rouble and the economy, the risk of instability is still high. Lack of managerial talent, and poor consumer protection and intellectual property laws continue to cause problems. Some talented IT workers flee to friendlier climes.
Cultural compatibility: Fair.
Government support/laws: Poor. Byzantine business laws and tax structures hamper growth, but there are signs of improvement such as the recently signed U.S.-Russia Double Tax Treaty.
Quality initiatives/CMM/ISO: Three Russian companies currently certified to CMM standards; 1,517 ISO 9000 certifications.
Size of industry: 100 companies employ 8,000 professionals; $60 million to $100 million.
Total labor force: 72.6 million.
Areas of expertise: Application development, migrating and porting, application maintenance, enterprise application integration, QA testing, packaged software implementation.
Global Technology Index reports, cio.com, Outsourcing-Russia.com, Gartner, Forrester Research, Renodis
Russian Outsourcing Articles
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