Abstract
RNCOS has recently published its extensive research " Russia IT and Outsourcing Industry Forecast to 2011" to give a rational analysis on the Information Technology (IT) outsourcing industry in the transcontinental country. It thoroughly evaluates the opportunities and factors critical to the success of the IT industry in the region. It underlines the issues related to the success of the industry and provides a prudent analysis on its various aspects. The report presents a comprehensive overview of the past and current performance of the IT industry including software, hardware and services industry.
The IT and outsourcing industry in Russia is attracting companies from around the globe to set their R&D centers and to make Russia as outsourcing hub because of a multitude of reasons, including better manpower services at relatively low cost and huge investment potential in the ICT sector.
The study on issues related to human capital and the IT professional cost lets the clients to compare the Russian outsourcing industry with Eastern European region.
The report also gives a future projection of the industry along with the opportunities existing in the Russian industry. For the purpose of this report, IT market has been defined as the total spending on IT industry, including spending on hardware, packaged software and IT services market.
Key Findings
- Russian software exports grew by 38.84% from 2002 to 2006 and are further estimated to grow at a CAGR of 79.02% till 2010.
- Low cost outsourcing services and highly qualified talent pool is driving the industry. Growing IT industry provides opportunities for consultancy firms, R&D centers and ICT industry.
- The IT spending by SMBs in Russia is expected to cross US$ 20 Billion by 2011.
- Going up at a CAGR of 20.4%, spending on IT is expected to reach approx US$ 37.0 Billion in 2011 from 2007.
Key Issues & Facts
- How big is the Russian IT industry?
- How is the ICT industry related to IT industry?
- What are the current IT industry trends in Russia?
- What are the factors that are critical to the success of IT outsourcing?
- What are the various challenges and opportunities before the industry?
- How is the low cost and cultural proximity driving the IT outsourcing industry?
- Who are the domestic and international players in the industry?
- What are the software development services and skills sets of players in the industry?
Research Methodology Used
Information Sources
Information has been sourced from various credible sources like books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases.
Analysis Method
The analysis methods include ratio analysis, historical trend analysis, linear regression analysis using software tools, judgmental forecasting, and cause and effect analysis.
Table of Contents
1. Analyst View
2. Industry Overview
- 2.1 Global IT Market
- 2.2 Global Software Market
- 2.3 Emerging Outsourcing Destinations - 2015
3. Eastern Europe Software Market Overview
4. Why Russia as Outsourcing Destination?
- 4.1 Human Capital
- 4.2 Low Attrition & Cultural Similarity
- 4.3 Low Cost Labor
- 4.4 Time Zones
- 4.5 Language Proficient Workforce
- 4.6 Bottom-line Economics
- 4.7 Industry Association Support
- 4.8 Regional IT Cluster
- 4.9 Government Support
- 4.10 Techno Park
- 4.11 IT Infrastructure Spending
- 4.12 Favorable Tax Environment
- 4.13 IT Spending
- 4.13.1 Packaged Software
- 4.13.2 IT Hardware
- 4.13.3 IT Services
5. Outsourcing Industry
- 5.1 Software Exports
- 5.1.1 Customized & Packaged Software
- 5.2 SWOT for Russian Offshore Outsourcing
- 5.3 Future Outlook (2007-2010)
6. Russia Outsourcing: Opportunities & Challenges
- 6.1 Opportunities
- 6.1.1 Hardware Industry
- 6.1.2 Consultancy Firms
- 6.1.3 Education Service Market
- 6.1.4 R&D Centers
- 6.1.5 ICT Industry
- 6.1.6 Small & Medium Business Companies
- 6.2 Challenges
- 6.2.1 Software Piracy
- 6.2.2 Stiff Competition from India & China
- 6.2.3 Quality of Service
- 6.2.4 Finding Right Talent
7. Key Players
- 7.1 Domestic Companies
- 7.1.1 Reksoft Co. Ltd.
- 7.1.1.1 Software Development Services & Skills
- 7.1.2 EPAM Systems
- 7.1.2.1 Software Development Services & Skills
- 7.1.3 Luxoft
- 7.1.3.1 Software Development Services & Skills
- 7.1.4 Artezio
- 7.1.4.1 Software Development Services & Skills
- 7.1.5 Aplana Software
- 7.1.5.1 Software Development Services & Skills
- 7.1.1 Reksoft Co. Ltd.
- 7.2 International Companies
- 7.2.1 SolovatSoft
- 7.2.1.1 Software Development Services & Skills
- 7.2.2 IBA Group
- 7.2.2.1 Software Development Services & Skills
- 7.2.3 Auriga, Inc.
- 7.2.3.1 Software Development Services & Skills
- 7.2.4 Murano Software
- 7.2.4.1 Software Development Services & Skills
- 7.2.5 DataArt
- 7.2.5.1 Software Development Services & Skills
- 7.2.1 SolovatSoft
List of Figures:
- Figure 2-1: Global - IT Market (in Billion €), 2005-2008
- Figure 2-2: Global - IT Market by Region (%), 2006
- Figure 2-3: Global - Software Market (in Billion US$), 2001-2006
- Figure 2-4: Global - Forecast for Software Market (in Billion US$), 2007-2011
- Figure 3-1: Eastern Europe - ICT Market by Segment (in Billion €), 2006 & 2008E
- Figure 3-2: Eastern Europe - Share in European Software Market (%), 2006
- Figure 3-3: Eastern Europe - Forecast for Share in European Software Market (%), 2008
- Figure 3-4: Eastern Europe - Software Market (in Million ?), 2004-2008E
- Figure 3-5: Eastern Europe - Software Market by Type (in Million ?), 2004-2008E
- Figure 4-1: Russia & Eastern Europe - Average Salary of IT Labor (in Euro)
- Figure 4-2: Russia & Eastern Europe - Hourly Rates of IT Labor (in Euro)
- Figure 4-3: Russia - English Proficient Workforce (%), 2005
- Figure 4-4: Russia - Software Outsourcing by Location (%), March 2005
- Figure 4-5: Russia - Software Developers by Region (%), 2006
- Figure 4-6: Russia - IT Spending on Infrastructure by SMBs (in Billion US$), 2006 & 2007E
- Figure 4-7: Russia - Storage Spending by SMBs (in Million US$), 2005 & 2006
- Figure 4-8: Russia - IT Spending (in Billion US$), 2001-2006E
- Figure 4-9: Russia - Forecast for IT Spending (in Billion US$), 2007-2011
- Figure 4-10: Russia - Spending on Packaged Software Market (in Million US$), 2001-2006E
- Figure 4-11: Russia - Forecast for Spending on Packaged Software Market (in Million US$), 2007-2011
- Figure 4-12: Russia - Spending on IT Hardware Market (in Million US$), 2001-2006E
- Figure 4-13: Russia - Forecast for Spending on IT Hardware Market (in Million US$), 2007- 2011
- Figure 4-14: Russia - Spending on IT Services Market (in Million US$), 2001-2006E
- Figure 4-15: Russia - Forecast for Spending on IT Services Market (in Million US$), 2007- 2011
- Figure 4-16: Russian - IT Services by Industry (%), 2005
- Figure 5-1: Russia - Software Products & IT Services (%), 2006 & 2010F
- Figure 5-2: Russia - Software Exports (in Million US$), 2002-2006
- Figure 5-3: Russia - Share in Global Outsourcing Industry (%), 2006
- Figure 5-4: Russia - Software Exports by Company (%), 2006
- Figure 5-5: Russia - Software Exports by Region (%), 2005
- Figure 5-6: Russia - Share of Customized & Packaged Software Exports (%), 2006
- Figure 5-7: Russia - Forecast for Software Exports (in Million US$), 2007-2010
- Figure 6-1: Russia - Forecast for IT Spending on Infrastructure by SMBs (in Billion US$), 2008-2011
- Figure 6-2: Russia - PC Software Piracy Loss (in Billion US$) & Piracy Rate (%), 2003-2006
- Figure 6-3: Russia - PC Software Piracy Rate in Comparison with Global & Central/Eastern Europe (%), 2005 & 2006
List of Tables:
- Table 2-1: Global - Ranking of Emerging Outsourcing Destinations (2005 & 2015F)
- Table 4-1: Russia - University Graduate Statistics (in Numbers), 2002-03, 2003-04 & 2005-06
- Table 4-2: Emerging Outsourcing Destinations - Quality of Workforce
- Table 4-3: Russia - Tax Policies for IT Companies
- Table 5-1: Russia - SWOT for Offshore Outsourcing Industry
- Table 7-1: Reksoft Co. Ltd. - Technical Expertise & Certifications
- Table 7-2: EPAM Systems - Technical Expertise & Certifications
- Table 7-3: Luxoft - Technical Expertise & Certifications
- Table 7-4: Artezio - Technical Expertise & Certifications
- Table 7-5: Aplana Software - Technical Expertise & Certifications
- Table 7-6: SolovatSoft - Technical Expertise & Certifications
- Table 7-7: IBA Group - Technical Expertise & Certifications
- Table 7-8: Auriga Inc. - Technical Expertise & Certifications
- Table 7-9: Murano Software - Technical Expertise & Certifications
- Table 7-10: DataArt - Technical Expertise & Certifications
