World Region Outsourcing Guide

Outsourcing to Russia

In terms of quality and volume, Russia is an attractive destination for offshored work. Russia’s outsourcing strength is in the number of technically sophisticated engineers capable of doing cutting-edge research. There are a considerable number of capable personnel available in Russia; however, the stability of the business environment and the capabilities of management may preclude Russia as an outsourcing location.

The Accelerance Global Partner Network includes teams from Russia that have been thoroughly screened and vetted.   These GPN members have reasonably good command of English and have agreed to Accelerance’s terms for intellectual property protection. 

Working with outsourcers in Russia   – Pluses

Russian programmers have expertise in large, complex systems requiring careful engineering and sophisticated algorithms. Scientific applications involving hardware and software and complex mathematics are well implemented.  The skill levels of today’s Russian programmers are quite high and they are considered good problem solvers. On the other hand, project management skills for large projects may not be as strong.

Software built with open-source technology, like Linux, C++, and Java, is a strong candidate for implementation in Russia. The experience with C and C++ goes beyond your usual Windows application into C++ software written for Linux using the C++ standard template library (STL) and other related open-source tools.

The independent Russian software industry consists of small firms. As of March 2005, only the largest firm had over 1,000 employees.  There are a few other firms in the 500 to 1,000-employee range. Despite this size limitation, Russian firms have won business from important multinational customers, including Boeing, IBM, Dell, and Citibank. 

Working with outsourcers in Russia - Minuses

Applications requiring a deep understanding of Western business concepts that are less familiar to Russians may take some ramp-up time, compared to other locations more experienced with capitalistic practices.  For example, a basic brokerage account management system would require a detailed specification. However, a sophisticated options trading system, using advanced math to implement a trading strategy, would be a good fit.

Be careful if you are developing highly proprietary software, because of weak intellectual property protection in Russia. 

Russia may also present a difficult business environment.  Experienced managers are in short supply and few Russian firms have secured certification from standards-setting bodies. In 2005 only the largest Russian development firm had reached CMMI Level 5 certification.   

Programmers with adequate English-language capabilities are in short supply; bandwidth costs are higher than in most of the other contracting nations; and the general legal environment in Russia is quite uncertain.

Accelerance Global Partners in Russia

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Note to Outsourcing Firms (both offshore and in the US)  Accelerance is searching for highly-qualified, experienced outsourcing vendors to join our exclusive Accelerance Global Partner Network.   Learn More >>

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