Russia as the greatest outsourcing partner
 

For more than ten years, Russia has been the poster child of the offshore outsourcing. Foreign companies simply afraid of have any business with unknown, unpredictable and unstable country. Since 1990 year which is  critical point of post Soviet history, former empire went through hard time acquiring new economy.

Only the Russian IT market reached a volume of just over $7.6 billion in 2003, up 19% from the previous year. Offshore contracts, and especially hi-tech research and software development now is a large slice of that total, growing at an estimated rate of 50% a year.

U.S. giants like Dell, Intel, Siemens and Motorola have huge Russian development centers. And Boeing, GE, Sun Microsystems, IBM, Citibank, the U.S. Department of Energy and many others now are turning to Russia for all manner of complex software tasks.

Historically, Russian education system as offering high-tech workers there a competitive advantage. In another countries, where traditionally US companies placed huge number of outsourcing contracts, based on lower cost of labor, engineers learn specific, narrow area of technical disciplines,  programmers learn generic development and mass-produced coding for Java and C++. Russian development resources have stronger math skills and are often used to develop algorithms and complex formulas. Russia takes a higher-level approach, picking individuals more carefully in a similar manner as highest ranked American university. As a result, Russian engineers, programmers and developers are more schooled on advanced math and computing techniques than their competitors from previously more attractive countries.

Russian immigrants-inventors

2 Americans, Russian Win Nobel for Physics

Building the world's largest particle accelerator

The International Space Station
 

Not surprisingly, Russia is earning a reputation as the place to go for development work that involves sophisticated scientific and engineering activities, such as world largest particle accelerator and International Orbital Station. 

The choice of Russia had a lot to do with the sheer quantity and quality of science and computing graduates -- 50% of Russian graduates major in science -- 55 out of every 10,000 people in Russia are engineers, one of the highest ratios in the world -- 4% of programmers working in the world today are Russian. Russia possesses a unique intellectual capital that should translate into existing investment opportunities in the years to come.

As a result of the educational system and culture, Russian engineering and scientific expertise is married up with a quality that American companies find highly desirable -- the ability to innovate and be creative in their approach to solving customer problems.

With outsourcing to offshore development firms becoming a mainstream practice, competition is definitely growing from Russia in high-end, as well as low-end work. US companies beginning to see offshore firms successfully go up against the big American consulting and integration firms for development and integration jobs.

 


 


Useful Information about Russian Federation

Russian immigrants-inventors

Vladimir Zworykin 1889-1982
Vladimir Zworykin invented the cathode-ray tube called the kinescope in 1929, the kinescope is a tube needed for television transmission.

Igor Sikorsky (1889 - 1972)
Helicopter and aircraft designer.

2 Americans, Russian Win Nobel for Physics

STOCKHOLM, Oct 7 - Three scientists who worked separately to explain the nature of matter at extremely low temperatures won the 2003 Nobel Prize for Physics on Tuesday.

Building the world's largest particle accelerator

The contribution of the Russian Federation to the LHC machine is valued at SFr 100 million. One-third is channeled into a special fund for CERN-Russian collaboration.

The International Space Station

Russia is providing two research modules; an early living quarters called the Service Module with its own life support and habitation systems; a science power platform of solar arrays that can supply about 20 kilowatts of electrical power; logistics transport vehicles; and Soyuz spacecraft for crew return and transfer.


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