Russian IT Quarterly Argues the Choice of Locations to Sell Outsourcing Services

The new Russian IT Quarterly Issue focuses on discussing why Europe is set to be the perfect choice to sell software outsourcing services to, from Russia.

Nearshore outsourcing location

The first and the most obvious "pro" item for choosing European markets over US and Asia. It is based on the fact that Russia is a nearshore location for European companies. This offers an array of attractions for prospective clients. Short traveling time allows for time savings. Close time zones mean smooth project management with easy communication. Cultural proximity - although impalpable and therefore immeasurable - is often mentioned in customer satisfaction surveys by European clients.

Cost Advantage

For a European company, cooperation with a Russian provider presents an alluring cost advantage when compared to expenses incurred in cooperation with nearshore providers from new EU member-states. On the other hand, enormous engineering labour pool in Russia undoubtedly beats that of alternative locations, both in EU and in lower-cost CIS countries.

Excellent Track Record

The other good news for Russian software development providers is their excellent track record in Europe: Deutsche Bank, Nokia, TietoEnator, T-Mobile, T-Systems, and other respected clients, willingly speak about the success of their joint projects with Russian vendors. This positive past experience serves as a solid base for Russians, strengthening their positioning on European markets: hiring professional PR agencies, showcasing the services at Europe-wide events, etc.

Strong Outsourcing Demand in Europe

Sizeable compound outsourcing market in Europe (UK included) brings the promise of a wealth of revenue for Russian ESPs. According to TPI advisory firm, the demand in Europe jumped by 25 per cent in the first three quarters of 2007 to make it the strongest outsourcing geography. The Gartner Group analysts add that although spending on offshore services is three times higher in North America than in Western Europe, the gap is closing. The fact that the majority of the largest outsourcing deals in 2007 happened to be in Europe is a good sign of that there is an enormous opportunity for growth.

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