Second Survey of the Russian Software Outsourcing Industry! - RUSSOFT
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Second Survey of the Russian Software Outsourcing Industry!

A unique report featuring an up-to-date Russian software outsourcing industry Analysis and Business Directory of Russian outsourcing vendors.

Oct 14, 2004
Dear readers,

Thank you for your interest in the Russian offshore software development industry. We are proud to present you with this second report containing the most up-to-date information on Russia's capabilities in offshore outsourcing. We have done our best to compile a comprehensive Business Directory of major Russian providers and hope that it will help you in your search for an outsourcing partner.

In the year since the publication of our first survey, the Russian offshore software development enjoyed some positive changes. Some of those changes are reflected in this survey.

Having emerged in early 1990's, the Russian offshore software outsourcing industry is still very young, and it has achieved some impressive growth in the last several years. A typical list of Russia's strengths as an outsourcing destination would look like this: availability and excellence of IT resources (Russia has more personnel working in R&D than any other country in the world, and ranks 3rd in the number of scientists and engineers per capita), strong fundamental education, closeness to the European culture and mindset, low cost of labor, and relative geographical proximity (as opposed to India). Absence of ISO/CMM certified companies, lack of seasoned managers, immaturity and lack of cohesive effort on the part of trade associations in comparison with, for example, NASSCOM, and insufficient representation abroad were the Russian industry's most commonly acknowledged weaknesses.

However, the situation has been changing, especially in the last year, and we can now speak of Russian software development industry maturing into a competitive player in the global outsourcing arena. The Success Stories section that we launched this year shows the patterns of successfully executed projects and demonstrates the strong expertise in software development appreciated by large international companies. Last year was also a milestone for Russian IT vendors in the area of software development process certification. Many companies were certificated according to ISO standards and accessed at SEI CMM/CMMI Levels 3 to 5. Another important trend manifested through the two leading Russian IT associations, The Fort-Ross Consortium and RUSSOFT, announcing their imminent merger at the Russian Outsourcing & Software Summit held in June 2004 in St. Petersburg. The new unified association will be more effective in promoting Russia as a competitive outsourcing destination. This report shows that many vendors have strengthened their presence in international markets, especially USA and Europe, during the last year. These and other trends testify to a great potential of the Russian outsourcing industry.

Outsourcing-Russia.com is devoted to helping Russia's software outsourcing industry in Russia realize its full potential. As editor of Outsourcing-Russia.com, I want to personally thank all those who share our vision. Our thanks also go out to all participants of the survey and contributors to this report. Please feel free to contact Outsourcing-Russia.com for more in-depth knowledge of the Russian software development industry or assistance in finding a reliable partner in Russia.

Best regards
Alexey Shonin
Outsourcing-Russia.com
[email protected]