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Gartner: Russia Confirms Position as a Leading Outsourcer
29 December 2008
Gartner: Russia Confirms Position as a Leading Outsourcer

Gartner: Russia Confirms Position as a Leading Outsourcer

In a recent research presented by Gartner at China Outsourcing Summit, Russia is listed among Top-30 world outsourcing destinations. After analyzing 72 countries to assess their competitiveness and prospects as offshore services locations, Gartner compiled a list of 30 countries, grouped by four geographical regions, which demonstrated most promising outlook as outsourcing destination.

Representatives of official IT associations from Russia, Brasilia, Mexico, China and Philippines visited the summit to share their views on the future of outsourcing.

To sum up the information discussed at the event, the estimated export volume of Russian IT industry is 1,7 milliard USD, which makes it second after the Indian outsourcing IT industry (23 milliard USD), and the key differentiator remains the high quality of education and scientific background of the Russian engineers.

Russia is still the only offshore destination that can satisfy the needs of the most science-intensive projects, where the client can choose from a multitude of service providers with huge R&D experience.  Importantly, Russian IT can be viewed as a part of integrated resources, where Russia, Ukraine and Belarus represent a “unique East-European Outsourcing Pole, culturally and linguistically close to USA and to EU”, and Auriga was mentioned by Gartner as a visible outsourcing services provider in this region of the “Vast Global Sourcing Solar System”.  The total IT services export volume for this alliance is 2,5 billion USD, which surpasses the current figure for China (1,1 billion USD).

Over the recent year, a lot of countries have been making steps to consolidate their positions in IT outsourcing industry. BRIC countries (Brazil, Russia, India and China), leading the world IT outsourcing industry, have found formidable competitors among smaller states. For example, Mexico, Poland and Vietnam are continuing to strengthen their positions, and other countries, new to this list, may as well use the impact of economic crisis and offer cheaper services to the companies who have started to take cost cutting measures.

Although Brazil and Mexico scored “very good” on political and cultural compatibility, and all countries from Latin America were rated “good” or “very good“ for political and legal maturity, Gartner noted that intellectual property, data protection and privacy, copyright laws etc., are still an issue for all developing countries.

Ten countries from Asia/Pacific region were included in the list, with India traditionally being an absolute leader, and China being the second. Although mature countries can offer services at a reasonable cost, service costs are even cheaper in such countries as Malaysia, Pakistan, Philippines, Thailand and Vietnam.

When it comes to the prospects of IT industry in the nearest future, Russia is among the most attractive and fast growing IT markets, attracting vendors from all over the world. Several can contribute to its development. Firstly, the Russian IT services market, with an annual growth rate of about 40%, is growing faster than the IT product market. Secondly, the volume of internal corporate IT services in the world is expected to reduce, due to the inclination of large companies to optimize their IT infrastructure, ignited by the crisis. This means that the demand for external IT services will presumably increase.

(Information source: RUSSOFT)

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