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Offshore Outsourcing World: Next US outsource target: Russia
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Tuesday August 23, 2005 at 7:23AM - Offshore Outsourcing World Staff

Next US outsource target: Russia

Companies unwilling to invest all their IT outsourcing resources in one country or are simply looking for another alternative to India’s dominion can turn to Russia. The former communist capital now boasts of around 250 IT outsourcers offering anywhere between US$8,000 – US$14,000 for a programming job.

Russia is now presenting its IT industry as a “skilled back room to the world’s corporations” – same top quality, cut-price programming, with the renowned Russian efficiency and an abundant supply of highly educated programmers who include rocket scientists and nuclear physicists in their ranks.

Income generated by exported Russian IT services have ballooned to twice their original rates over the years, to reach a laudable US $450 million by 2004. While this is peanuts compared to India’s US$20 billion industry, Russia has a lot more going for its IT outsourcing programs, among them its expertise in areas like aerospace.

The country’s programmer population presents a strong front as well what with its 250,000-strong software engineers – more scientists per capita than Britain, Germany, India, and France.

US companies have taken heed and have planted R&D centers in Russia. Motorola, Siemens, Sun Microsystems, and Intel have set the trend.

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