The State Of Russian Outsourcing
Russian outsourcing companies make strides in 2005; a growing opportunity.
Jan 17, 2006
A couple of years after Line56 first became acquainted with the Russian outsourcing scene, a survey by RUSSOFT and Outsourcing-Russia.com indicates that the market continues to grow.
Russia's software exports (including services as well as products) stood at $750 million in 2004, grew by 50 percent in 2005, and are expected to grow another 45 percent this year. This would mean that the market has nearly doubled in two years.
Sixty-five percent of surveyed Russian technology companies are targeting the U.S. and Canada as their primary geographies. Another 25 percent of companies are focusing on Germany, Austria, and Switzerland. The remainder are interested mainly in Scandinavia and Finland.
Here's the breakdown of Russia, Inc.'s foreign customer base: telecom (30 percent), banking and financial services (27 percent), government/public sector (21 percent), education (17 percent), and manufacturing (5 percent).
Of course, in comparison with India, the Russian outsourcing market dwindles in size and significance, but its growth can't be overlooked. Also, as the report pointed out, there are issues of proximity and affinity involved. "Russians are close to the Europeans both geographically and culturally...which makes Russia an ideal outsourcing destination for Western Europe."
Russia's software exports (including services as well as products) stood at $750 million in 2004, grew by 50 percent in 2005, and are expected to grow another 45 percent this year. This would mean that the market has nearly doubled in two years.
Sixty-five percent of surveyed Russian technology companies are targeting the U.S. and Canada as their primary geographies. Another 25 percent of companies are focusing on Germany, Austria, and Switzerland. The remainder are interested mainly in Scandinavia and Finland.
Here's the breakdown of Russia, Inc.'s foreign customer base: telecom (30 percent), banking and financial services (27 percent), government/public sector (21 percent), education (17 percent), and manufacturing (5 percent).
Of course, in comparison with India, the Russian outsourcing market dwindles in size and significance, but its growth can't be overlooked. Also, as the report pointed out, there are issues of proximity and affinity involved. "Russians are close to the Europeans both geographically and culturally...which makes Russia an ideal outsourcing destination for Western Europe."