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Soviet technology legacy draws offshore work

The former Soviet Union is emerging as a research and development centre for software and telecommunications firms, according to the Aberdeen Group.

Aberdeen found that nearly three-quarters of the offshore work in Russia is undertaken by IT companies, said Stephen Lane, the analyst who authored the report.

"What they have is a culture that is focused on problem-solving and focused on using technology in an innovative fashion," Lane said, although he added that there is not a Russian company out there "that can compete with an Indian company in terms of scale or scope".

Bob Pryor, who heads New York-based Cap Gemini Ernst & Young's outsourcing services, agreed that Russia has some very advanced technological skills. But he believes the country will remain a relatively small part of the offshore outsourcing market because the government  is not developing the industry and may be living off the legacy of its past.

Marc Herbet, executive vice president of Sierra Atlantic, an application management company in California, which runs an offshore centre in India, said Russia may well take off as an offshore outsourcing centre if Europeans begin embracing offshore work, particularly because of the proximity.

Patrick Thibodeau writes for Computerworld


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