A new issue of Russian IT Quarterly newsletter saw the light today. It focuses its attention to the major trends which are visible on the market and were noted at the latest outsourcing events such as Gartner IT and Outsourcing Summit.
Looking for outsourcing alternatives
Outsourcing optimisation has become the main theme for all outsourcing events including the Gartner IT and Outsourcing Summit, held in London last month.
Already, a series of events taking place between 2008 and 2009, as well as the economic slowdown, has lead to a surge of interest in readjusting companies’ outsourcing strategy. Leveraging current outsourcing contracts, minimising the risks of new provider engagements, and new delivery models such as software as a service and cloud computing are being discussed in every corner.
The world is looking for outsourcing alternatives - not just cost-cutting but enriched services. The speed, professional expertise and reliability of the outsourcing partner appear to be no less important than the price.
Customers are increasingly turning to nearshoring with its cultural proximity and lower indirect costs. Right now, Eastern European countries close to Western business capitals may seize another chance to further develop their outsourcing services. A shared business culture, accessibility via 2- or 3-hour flights and flexible business models are making this region more and more attractive while its prices are dropping mildly along with local currencies.
According to the Russian outsourcing providers association “Russoft”, prospects are looking good. At the Gartner roundtable event, Russoft reported that combined revenues of IT services export from Russia, Ukraine and Belarus reached $3.4 bn last year, a figure second only to India. In recent years, American clients have formed the bulk of orders, but European demand is expected to increase as the region shifts from offshoring to nearshoring. As a matter of fact, when short-term planning becomes a must, offloading projects to neighbouring countries can turn out to be much more convenient. The speakers underlined agile methodologies used by the local teams and a creative approach that makes local IT companies indispensible in sophisticated projects with complex customer requirements or medium-sized contracts requiring close attention.
So, have Eastern European providers found their niche? Can their tailor-made services complement or even successfully overtake the traditional concept of large-scale, off-the-rack outsourcing?
Well, let’s wait – and see!
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