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    Russian IT Quarterly: Software development outsourcing as a driver of IT market

    With Reksoft celebrates its 20th anniversary, the year that Russian IT industry along side . They passed the long way from the ruins of the USSR  scientific institutes to $16-billions IT market growing each year.   It has been the main Information Technology market driver and inspirer for all those years, And the software development outsourcing.   The scientists working in the institutes  on the national defence and space exploration projects were left out of work.  A pool of highly-skilled technical personnel — engineers, software developers, system architects available for a very low price, sometimes for ten times less than the corresponding labour force in the West.  It was the ideal moment to launch an outsourced software development center the  clients in the US and Europe.  Many of the outsourcing companies establish to meet the demand.

    In the sea of the turbulent domestic economy they were high-tech islands.  The outsourcing companies worked for foreign customers, mostly from Western Europe and USA.  This is because of the oftware industry in Russia had been undergoing a great depression, and domestic demand for IT services was nearly non-existent.   The states rose and the fell was capital, it was accumulated, the public assets were plundered, crime and the corruption flourished. This was the surreal atmosphere in the Russia in the 90’s.

    The middle of the havoc, the men and the women with the MScs and the PhDs was solving the most complex software of the development tasks for the international clients.  The communities has become the cornerstone of the Russian IT ecosystem. The Russian IT talent reservoir that gradually accumulated.  From local universities and best practices learned through work and cooperation with world market leaders. the deepest knowledge of programming technologies. It was transferred to the local market. In a few years, many of them looked like private business incubators, giving birth to new IT projects and products, this accumulated the business knowledge. Many of them looked like themooked like private business incubators, giving birth to new IT projects and products. It was a two-pronged process:  ” both the management of the development centres, interested in good investments, nurtured the new projects, while their employees, looking for an entrepreneurship opportunity, created their own start-ups. Business knowledge accumulated in international projects combined with the Russian engineers’ excellent IT skills and brought forth a tremendous harvest of local product IT companies. ”

    As a basis for the product sector development, the outsourcing companies has served. From the crises and the eviving domestic industry started to provide a stable local demand for IT services the Russian economy recovered.  The software development companies has turned to the Russian clients.  The merged into the partnership with the system integrators.  To established their own departments of SI or IT consulting pursuing the goal of creating a one-stop-shopping point for the customer.  The global best practices to the local market and the process of shifting the international experience. The local clients has generated about the third Russian IT  outsourcing companies revenue withe the rest coming from the overseas clients.,    The outsourcing here is still developing.l The outsourcing companies will be also demand at home.






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