Commodity trading software maker Aspect has relocated its IT development teams from Russia to India, through an IT outsourcing deal with Avanade.
Aspect provides businesses such as BP with platforms to manage their oil and metals trades via an internet connection.
The company wanted to put its software development teams in a location where the right skills were, and at the same time, wanted to leave Russia because of political and economic instability.
The company signed an agreement with Accenture’s Avanade business and moved its outsourced IT development testing and delivery operations from Russia to Bangalore in India.
“We used to have our own development centre in Moscow, but last year we made the decision to transition and moved to Avanade in Bangalore,” said Aspect CIO Chetna Bhatia.
“We wanted to take advantage of industrialised processes and have the ability to increase and decrease the numbers of staff depending on demand,” she added.
Avanade now looks after development, testing and some support from Bangalore.
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“Because of the way the Russian ruble was, the costs were basically the same, but the decision to go to Bangalore was more about the access to resources in an IT hub,” said Bhatia.
Apart from access to resources and the Avanade offering, the political uncertainty and unstable ruble were major factors in the decision to leave Russia.
“Our problem was if the internet connection went down in Russia for any political reason, it heavily impacted us,” she said. “The Russian ruble has also been fluctuating drastically for a number of years, which directly impacts our cost and profitability.”
Aspect is currently looking to increase its use of the public cloud through Avanade’s skills.