Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management

    Russia Navigates a Bumpy Road to Outsourcing Future

    By
    Stan Gibson
    -
    June 19, 2006
    Share
    Facebook
    Twitter
    Linkedin

      Stereotypes may be odious, but sometimes they are accurate.

      During my recent visit to Moscow to interview executives at Russian software outsourcing companies and to participate in the Russoft Associations Russian Outsourcing & Software Summit, one theme emerged time and again: Russian software developers are talented, hardworking and opinionated. In contrast, Indian software developers are talented, hardworking and not so opinionated.

      Stereotypes? Sure. Odious? Perhaps—there must certainly be exceptions. But hearing these views expressed often, and by a wide range of people, convinced me there must be truth to them.

      So who needs programmers who will tell you what you want is all wrong—and what you really should want is something else? We all do.

      How many times have we heard that management needs to hear “no” much more than it needs to hear “yes”? Ive got a stack of business management books on my desk on that very topic.

      So when you get creative push-back from an outsourcing partner, you should probably say a prayer of thanks rather than get your hackles up.

      /zimages/3/137785.jpg

      While hearing “nyet” may be a disconcerting blessing, there are other questions with regard to the Russian providers that need to be considered.

      Size. The Russian companies need to get bigger, and it appears that the largest of them—Luxoft and Epam—will do that through acquisitions, which they have already begun making. Luxoft has just acquired IT Consulting International, a New York-based financial services specialist, while Epam acquired Hungarian outsourcer Fathom two years ago.

      There is reason to believe that these two could emerge as global players after another couple of years of solid growth. Size will enable these companies to bid on larger contracts and gain corresponding credibility.

      /zimages/3/28571.gifClick here to read more about Russian software outsourcer Auriga and its move to the United States.

      Marketing. The Russian companies are just feeling their way here, often dependent on word of mouth. But if a drive through Moscow is any indication, the Russians certainly are “getting” marketing, and in a big way. The city is festooned with billboards and banners in a seeming celebration of commercialism.

      During the Soviet era, you wouldnt have seen such bourgeois displays—and you wouldnt have seen the emerging middle class or the rising standard of living, either.

      Security and intellectual property. These are potentially serious, but if your outsourcing partner is on the level, I cant see these dangers being more grave than you will encounter in any other offshore destination, or the United States for that matter.

      Oil. A more serious threat might be the current oil boom in Russia. Moscow is becoming one of the more expensive cities in Europe as a rising oil tide lifts many boats—and drives some of the smaller software companies to cheaper ground.

      While Luxoft and Auriga, a Russian software outsourcing company with headquarters in Amherst, N.H., have recently constructed new Moscow headquarters, Epam maintains only a small sales office there, preferring to have its developers live and work in lower-cost areas.

      /zimages/3/28571.gifRead more here about the Russian outsourcing industry and its potential advantages.

      The Russian government understands the importance of the countrys oil industry, but, until recently, just didnt get it with regard to software outsourcing—in stark contrast to the Indian government. But the Russian government is stepping up to the plate by aiding in the construction of several technology parks in the country. In addition, the Russian parliament may pass tax legislation favoring software makers.

      If several factors converge favorably, we could see the top Russian players getting a piece of big outsourcing deals just as Indian providers Wipro, Tata, Infosys and Satyam are doing.

      But Russia is not India. Comparisons can be odious, too, and its a mistake to think that Russia is on some kind of junior India track. But Indian inheritance of the IT world is not foreordained. Innovation and events have a way of changing the game, and, as long as the Russians remain players, you never know how things might turn out.

      Stan Gibson can be reached at [email protected]

      /zimages/3/28571.gifCheck out eWEEK.coms for the latest news, reviews and analysis on IT management from CIOInsight.com.

      Avatar
      Stan Gibson
      Stan Gibson is Executive Editor of eWEEK. In addition to taking part in Ziff Davis eSeminars and taking charge of special editorial projects, his columns and editorials appear regularly in both the print and online editions of eWEEK. He is chairman of eWEEK's Editorial Board, which received the 1999 Jesse H. Neal Award of the American Business Press. In ten years at eWEEK, Gibson has served eWEEK (formerly PC Week) as Executive Editor/eBiz Strategies, Deputy News Editor, Networking Editor, Assignment Editor and Department Editor. His Webcast program, 'Take Down,' appeared on Zcast.tv. He has appeared on many radio and television programs including TechTV, CNBC, PBS, WBZ-Boston, WEVD New York and New England Cable News. Gibson has appeared as keynoter at many conferences, including CAMP Expo, Society for Information Management, and the Technology Managers Forum. A 19-year veteran covering information technology, he was previously News Editor at Communications Week and was Software Editor and Systems Editor at Computerworld.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Information

      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×