Russian Software Exports to Cross US$ 15 Billion by 2012
Russia is expected to account for over 50% of the offshore outsourcing from Eastern Europe and to emerge as a preferred destination for offshore outsourcing after India and China.
Dec 23, 2008
Outsourcing has emerged as the fastest growing segment of the Russian IT industry, according to new research report "Russia IT and Outsourcing Industry Forecast to 2011" by RNCOS. During 2002-2007, software exports from Russia grew at a CAGR of over 44% as compared to just 24% growth recorded in the IT spending during the same period. As for future, the country is projected to export software worth over US$ 15 Billion by 2012.
As compared to other outsourcing destinations in Eastern Europe, Russia has a strong advantage in offshore software development. Closer proximity to the US and Europe, similar time zone, and government and association support has given thrust to the outsourcing industry. Also, Russia has the largest pool of qualified software professionals with advanced technical skills as compared to professionals in Eastern Europe, India or China.
Increasing investment from foreign companies and government initiatives, like development of techno parks and liberalizing tax structure for software companies, will drive the software exports from Russia in future. Besides rising investment, the government’s commitment to develop the IT and outsourcing industry will also provide the desired platform for the future growth of the outsourcing industry.
As compared to other outsourcing destinations in Eastern Europe, Russia has a strong advantage in offshore software development. Closer proximity to the US and Europe, similar time zone, and government and association support has given thrust to the outsourcing industry. Also, Russia has the largest pool of qualified software professionals with advanced technical skills as compared to professionals in Eastern Europe, India or China.
Increasing investment from foreign companies and government initiatives, like development of techno parks and liberalizing tax structure for software companies, will drive the software exports from Russia in future. Besides rising investment, the government’s commitment to develop the IT and outsourcing industry will also provide the desired platform for the future growth of the outsourcing industry.