Russian software developers and American customers have discussed on the cooperation prospects
Dec 03, 2002
On November 21st 2002 in San-Jose, California, the Second US-Russian IT Roundtable, with the participation of the leading software developers and representatives of the biggest American corporations took part. Totally, 130 Russians and Americans companies attended to this roundtable. This event was organized by National Software Development Association RUSSOFT and Intel Corporation with the assistance of the Foundation for the Development of Information Technologies and Mirantis (USA). The PR and marketing partners were Luxoft and Consortium "Fort-Ross"
The first step in developing a closer cooperation between Russian and USA IT companies was made in March 2002, when George Bush, USA President, visited Russia within the framework of the First US-Russian IT Roundtable. The second edition of this roundtable is the best proof that the intergovernmental initiative is hardly supported by IT communities from both countries.
At this Roundtable, the speakers were: representatives of Russian companies - Epam Systems, eVelopers, Telma, Star Software, Terralink, - and American companies - PRTM, Intel, Boeing, Cadence, CSC, and Phillips Semiconductors. By the way, the representatives of analytic companies (Aberdeen Group, Gartner Group, EDventure Holdings) expressed their doubt about conditions and prospects international offshore software market. The greeting messages were directed by Russian government chairman, Mr. Mikhail Kasianov and minister of communication and informatisation, Mr. Leonid Reiman.
The meeting's chairman was Mr. Eugeny Velikchov, as well as the academic and co-chairman of Us- Russian IT Roundtable.
Questions related on software development outsourcing were discussed. So, success stories about American-Russian IT cooperation were presented to the participants, as well as joint software development for international market and solutions of USA companies inner IT-missions. Also, the assistance of American IT-delivers to reach Russian market was discussed.
The main point, which the participants had a lot of questions, was the determining criterions in choosing the right outsourcing partner for software development projects.
As for Tom Sandsboy, Luxoft' sales director, he looks for the level of education and the technical expertise in a country, as well as the cultural affinity with the customer's country. But, it's necessary to analyze carefully the company's structures - stability, standard's quality, communicational infrastructure and managing skill within a project.
In meantime, the participants decided that for a successful cooperation in software development outsourcing area, it's important to look for a competitive price, which is an advantage of each company, but not the whole country, the availability and accessibility of qualified resources, the vendor production integration processes based on the customer's quality standards, skills in project management and company's conformity to international quality standards.
In opinion of Niels Erick Clausen, CSC, "in spite of the availability of enough amount of qualified technical specialists in every country, the main reason to outsource is the desire to reduce expenses". Stephen Lane, researching director Aberdeen Group, gave an advice as following: "choose a partner based on the company, but not the country. Cooperating in software area means partnership - a virtual subdivision of your inner IT-department. A common understanding and close cooperation between both companies is a key for success."
Many people think that the existence of qualified programmers in a country is a very important fact in choosing an IT-solutions deliver. So, Rita Terdiman, Gartner Group, believes, that "only in India, China and Russia, there are enough of resources to satisfy existent demand". Her thought is supported by Richard Wirt, Intel, who quoted last Microsoft research as an authority, said, that "in Russia every year, the universities prepare 180, 000 specialists, in India - 60,000, in China - 50,000". Because of it, Intel plans to broaden the software development centre in Russia.
All participants underlined that it's important for a partner, that he has a good system quality, is accredited international ISO 9001 and follows CMM standards. In opinion of Sergey Kravchenko, Boeing's vice-president, "paying attention to the managing quality standards is a factor in a trustfully relationship between large international corporations and potential offshore vendors".
At the end, Roundtable's participants conclude, that demand on software development outsourcing services will increase. Due to the Forrester Research predictions for the next 2 years, 28% of IT-budgets of European and North-American companies will be spent on projects, fulfilled by IT-outsourcing services providers. Also, Russia's role on international market is growing very fast. Sergey Kravchenko said: "during 2-3 years in Boeing, Russian development companies had strengthened their positions and have taken the second place on number of carried out projects after Indian companies." Esther Dyson, popular by her activity in developing US-Russia relationships in IT-area, assured that, "after 10 years, Russia will be ¦1 in outsourcing qualified IT-resources". In her opinion, "the most successful cooperation with Russian companies can be achieved by making long-term partnership agreements"
Eugeniy Velikchov said "Even today, more than half of Fortune 1000's companies outsource their IT projects. And they are partnering with either Russian or Indian developers services".
"I think that Roundtable in San Jose showed one very important thing - American companies are interested in cooperating with offshore developers. Their interest is obvious. Moreover, they are interested in Russian companies. Our market has a bright future"- expressed Mr. Valentin Makarov, RUSSOFT president.
The first step in developing a closer cooperation between Russian and USA IT companies was made in March 2002, when George Bush, USA President, visited Russia within the framework of the First US-Russian IT Roundtable. The second edition of this roundtable is the best proof that the intergovernmental initiative is hardly supported by IT communities from both countries.
At this Roundtable, the speakers were: representatives of Russian companies - Epam Systems, eVelopers, Telma, Star Software, Terralink, - and American companies - PRTM, Intel, Boeing, Cadence, CSC, and Phillips Semiconductors. By the way, the representatives of analytic companies (Aberdeen Group, Gartner Group, EDventure Holdings) expressed their doubt about conditions and prospects international offshore software market. The greeting messages were directed by Russian government chairman, Mr. Mikhail Kasianov and minister of communication and informatisation, Mr. Leonid Reiman.
The meeting's chairman was Mr. Eugeny Velikchov, as well as the academic and co-chairman of Us- Russian IT Roundtable.
Questions related on software development outsourcing were discussed. So, success stories about American-Russian IT cooperation were presented to the participants, as well as joint software development for international market and solutions of USA companies inner IT-missions. Also, the assistance of American IT-delivers to reach Russian market was discussed.
The main point, which the participants had a lot of questions, was the determining criterions in choosing the right outsourcing partner for software development projects.
As for Tom Sandsboy, Luxoft' sales director, he looks for the level of education and the technical expertise in a country, as well as the cultural affinity with the customer's country. But, it's necessary to analyze carefully the company's structures - stability, standard's quality, communicational infrastructure and managing skill within a project.
In meantime, the participants decided that for a successful cooperation in software development outsourcing area, it's important to look for a competitive price, which is an advantage of each company, but not the whole country, the availability and accessibility of qualified resources, the vendor production integration processes based on the customer's quality standards, skills in project management and company's conformity to international quality standards.
In opinion of Niels Erick Clausen, CSC, "in spite of the availability of enough amount of qualified technical specialists in every country, the main reason to outsource is the desire to reduce expenses". Stephen Lane, researching director Aberdeen Group, gave an advice as following: "choose a partner based on the company, but not the country. Cooperating in software area means partnership - a virtual subdivision of your inner IT-department. A common understanding and close cooperation between both companies is a key for success."
Many people think that the existence of qualified programmers in a country is a very important fact in choosing an IT-solutions deliver. So, Rita Terdiman, Gartner Group, believes, that "only in India, China and Russia, there are enough of resources to satisfy existent demand". Her thought is supported by Richard Wirt, Intel, who quoted last Microsoft research as an authority, said, that "in Russia every year, the universities prepare 180, 000 specialists, in India - 60,000, in China - 50,000". Because of it, Intel plans to broaden the software development centre in Russia.
All participants underlined that it's important for a partner, that he has a good system quality, is accredited international ISO 9001 and follows CMM standards. In opinion of Sergey Kravchenko, Boeing's vice-president, "paying attention to the managing quality standards is a factor in a trustfully relationship between large international corporations and potential offshore vendors".
At the end, Roundtable's participants conclude, that demand on software development outsourcing services will increase. Due to the Forrester Research predictions for the next 2 years, 28% of IT-budgets of European and North-American companies will be spent on projects, fulfilled by IT-outsourcing services providers. Also, Russia's role on international market is growing very fast. Sergey Kravchenko said: "during 2-3 years in Boeing, Russian development companies had strengthened their positions and have taken the second place on number of carried out projects after Indian companies." Esther Dyson, popular by her activity in developing US-Russia relationships in IT-area, assured that, "after 10 years, Russia will be ¦1 in outsourcing qualified IT-resources". In her opinion, "the most successful cooperation with Russian companies can be achieved by making long-term partnership agreements"
Eugeniy Velikchov said "Even today, more than half of Fortune 1000's companies outsource their IT projects. And they are partnering with either Russian or Indian developers services".
"I think that Roundtable in San Jose showed one very important thing - American companies are interested in cooperating with offshore developers. Their interest is obvious. Moreover, they are interested in Russian companies. Our market has a bright future"- expressed Mr. Valentin Makarov, RUSSOFT president.