Monday, July 03, 2006

This Blog has Migrated

The Russian IT Industry blog has migrated, as of July 3rd, 2006.

To get the latest news on Russian ICT Industry, and to share opinions and forecasts, please visit

Friday, June 23, 2006

IBM Opens an R&D Lab in Russia: Going for "a wealth of technology and programming skill"

Endless speculations on IBM plans concerning starting up R&D in Russia finally came to a practical resolution. A couple days ago, on June 20th, IBM Chairman & CEO Samuel Palmisano opened the first research and development center in Russia.

IBM will focus the newly built laboratory on hardware and software development for enterprise and scientific computing. Initial ramp-up and ongoing talent management should be quite simple - Russians have plenty of experience with IBM mainframes since 70s' (starting from the ES-EVM -- a clone of the IBM System/360 mainframe). The Russian skills are valued high - new lab is expected to boost the development of IBM System Z technology.

The rest of the story is available here: Russian ICT Industry (new hosting address)

Thursday, June 22, 2006

The World Bank to Finance Russian Technoparks

The World Bank is said (Interfax) to have opened a $100 million credit line to finance the Russian Technoparks development program.

The Bonch-Bruevich Technopark has attracted the interest of Google, and there are rumors that the company is considering establishing a base there, when the Technopark will be all set to welcome new inhabitants (2008)

The rest of the story is available here: Russian ICT Industry (new hosting address)

Tuesday, June 06, 2006

Russia – the Undisputed IT Leader in CIS

At least Microsoft seems to think so: starting June 1st of 2006, the Belarus office of Microsoft will report to the “Microsoft Russia” division, Bybanner reports. It was previously assumed, that the Belarus office will be subordinate to the Ukrainian division of Microsoft. Moreover, according to unverified sources, Microsoft is considering pulling out of the Belarus Technopark project.

Thursday, June 01, 2006

Forrester Research on Russia software Outsourcing

The Russian Outsourcing and Software summit started off this morning in Moscow Renaissance Hotel with the keynote of the key outsourcing industry analyst Pascal Maztke from Forrester Research.

The event brought together more than 300 attendees and will have profound sessions on Russian software outsourcing industry. The discussions among the leading industry analysts and key market players will span across a variety of topics ranging from the dynamics of the market, investment trends in the industry, legal issues and positioning of Russia in the global landscape.

Keynote speaker: Pascal Matzke from Forrester Research
Forrester sees several strong differentiators of Russia as application development sourcing destination. Those include the superbly educated engineering workforce of Russia, low attrition rate in Russia-based technology companies. He also mentioned good infrastructure and outstanding dynamics of the market.

"The Russian software industry "rocket" and finally taken off", he said.

The Russian Outsourcing and Software Summit 2006

We will cover the procedeengs and major happenings of the most important event for Russian nearshoring/ offshoring industry. The Russian Outsourcing and Software Summit (ROSS) have started today in Moscow.

Official web site of the event:

Friday, May 19, 2006

A Few Words on Outsourcing to Russia by IDC

Barry Rubenstein, a leading outsourcing expert from IDC, offered a collection of benefits to be gathered from outsourcing to Russian and CEE, at the 7th US-Russian IT Seasons, organized by RUSSOFT. This year, the Association held the Seasons in Miami, FL, from April 23rd to the 25th. The event gathered about a dozen of Eastern European IT Service front-liners and over 25 various Sourcing Officials from US-based companies.

The participants agreed that the Russian software outsourcing industry has shown significant growth over the last year and is now seriously considered as a solid and promising outsourcing destination by large US-based companies.

IDC’s Barry Rubenstein pointed out a number of proven strengths of outsourcing to Russia and CEE. Among others, he named access to talented and still low-cost workforce, with superior engineering and scientific training, combined with grater economic and political stability in the region, and continued major investments into telecom and infrastructure. The availability of multilingual skills and low employee attrition, combined with Russia’s geographical positioning as the gateway to Eastern and Western Europe, and to emerging markets - topped off the list of outsourcing benefits.

Source: Outsourcing-Russia

Wednesday, May 17, 2006

European IT Services Spending

A recent Forrester report prepared by Sonoko Takahashi, casts in a forecast for strong growth of European IT Services in the coming five years. European spending is expected to achieve a CAGR of 6% over the next five years. European firms will spend a total of EUR 146 billion on IT services in 2011.

The second observation concerns the growing maturity of the outsourcing market. And with this observation at hand, it comes as no surprise, that a substantial portion of end-customers are turning to direct offshoring/nearshoring relationships.
Gartner echoes the topic, with the words of Ian Mariott: "Offshoring needs to be part of a wider sourcing strategy that takes a longer-term view of where capabilities are best deployed, regardless of their location".
Exciting. But this requires more from vendors - end customers demand much deeper industrial understanding and clearer value propositions.

Europeans tend to use the project-based business model for offshore/nearshore sourcing. It doesn't mean that customers simply avoid any long-term partnerships and the corresponding investments. They are actually open to them, but strive to keep a relative independence and agility.

Besides, there is a lot of hype is on the market about the emerging sourcing destinations, Russia being the strongest player in the field of European nearshore application outsourcing and software development. Let's have a look at a list of representative suppliers, participating in the study:
Atos Origin, Cognizant, CSC, EDB,
EDS, EPAM Systems (Russia),
Equant, Getronics, HP,
Reksoft (Russia),
Satyam, TCS, TietoEnator,
T-Systems, Unisys, Wipro, Xansa