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Nizhny Novgorod a Top Developing Outsourcing Destination
2 November 2009
Nizhny Novgorod a Top Developing Outsourcing Destination

Nizhny Novgorod a Top Developing Outsourcing Destination

As a recent Global Services-Tholons Study shows, Russia continues to strengthen its positions as IT and R&D outsourcing destination, and Russian cities consistently appear in the list of the best outsourcing locations for various branches of software development.

A report, issued in October 2009 by Global Services-Tholons research team, features 3 Russian cities - Moscow, Saint Petersburg and Nizhny Novgorod - in several categories of outsourcing locations, and Russia as No. 2 in the independent Next 5 Offshore Nations list.

Let us start with the least known of the three locations – Nizhny Novgorod, the fourth-largest Russian city, featured at the first place of the Top 10 Aspirant” - a category containing cities that have potential to enter into the main list in the coming years and are being supported by their governments to develop and facilitate outsourcing sectors. Nizhny Novgorod, which was mentioned among new Tier-2 cities in the Tholons survey of 2008, is known for its engineering R&D and software development capabilities. The city’s IT industry is one of the largest in Russia, and many major software development companies, for example Intel, already have offices in Nizhny Novgorod. Nizhny’s educational structure helped building world-class engineers and technical experts. Nizhny has top-level higher educational institutes, such as Nizhny Novgorod State University, Nizhny Novgorod Technical University, and Nizhny Novgorod Institute of Information Technologies that provide a wide range of educational programs in computer science. The city, about 400 kilometers to the east from Moscow, is a good nearshore location for European countries.

It is no coincidence that Auriga has been operating a software development center in Nizhny Novgorod since 2006. Auriga specialists in Nizhny Novgorod that graduated from top-level technical universities are capable of performing the most complex engineering tasks and developing cutting-edge products.

Moscow and Saint Petersburg are included in the list of Top 50 Emerging Global Outsourcing Cities, as No 32 and No 38 respectively. In previous years both cities appeared in the list, with Moscow moving up, and Saint Petersburg steadily occupying the same position in years 2007-2008. In the focused ranking of Top global outsourcing cities by functions St Petersburg is mentioned as one of the best established locations for Engineering Services, and Moscow – as one of the best emerging locations for Engineering Services and Animation / Game Development.

Next 5 Offshore Nations is a new category that includes countries, - great alternatives for specific types of processes, - and which are considered as outsourcing destinations with prominent near-term potential (compared to the traditional Top 5 Offshore Nations category that lists mature outsourcing locations). It is noted in the report that division between these two categories is based on the customer perception, which may change with years.

Russia, which has been named as No 2 in the Next 5 Offshore Nations list, has great potential to become a global leader for high tech R&D outsourcing. Russia is known for its excellent software development skills and vast resource pool, and top organizations like Intel, IBM, Motorola, Samsung and Google have their software R&D centers in Russia. The authors of the Global Services-Tholons study emphasize that Russia, while sharing the niche service characteristic for the offshoring and outsourcing industry with other Eastern European countries, stands out in the region for its capacity to deliver large-scale, high value services.


About Auriga:

Auriga (www.auriga.com) is a software R&D and IT outsourcing services provider incorporated in the U.S. and operating development centers in Russia. The list of provided services covers all aspects of software product engineering for a broad range of knowledge areas from embedded and mobile software to enterprise and Web applications. Auriga combines top engineering talent with flexibility, cultural proximity, and focuses on clients’ interests and convenience as its main driving strategy.

Founded in 1990, Auriga was the first Russian company to provide offshore/nearshore services to EU/US customers. Auriga is in top 10 outsourcers in Eastern Europe and Russia, and a worldwide leader in such services as R&D, OPD, software testing and QA, and such verticals as high-tech, healthcare, and telecom. Auriga is constantly included in Global Services 100, Global Outsourcing 100, The Black Book of Outsourcing and other global industry ratings. The client list combines industry majors, leaders in their segments, and innovative start-ups, including IBM, Draeger Medical, LynuxWorks, Dialogic, Actel, BroadVision and many others.

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