PULSE Magazine
RUSSIA'S FREQUENT REFERENCE AS THE "SLEEPING BEAR" IS ESPECIALLY TRUE NOW. RUSSIA HAS ALWAYS BEEN A COUNTRY OF VAST TERRITORY AND GREAT OPPORTUNITIES.
With its European face and Asian nature, formal innovations usually come slowly from the top-down. But real social and economic changes always seem to come from the bottom-up, as seen with the well-known Russian riots and revolutions.
Government: Over the last 20 years, much has been changing in Russia's industrial and information technology sectors. Russia's natural resources, such as crude oil and gas exports, have flourished. Nationally, the country has seen the development of a "New Russia Capitalism" with national asset privatization and increasing consolidation under government controls. This growth and prosperity is causing increased focus on social equality, increased market competition across the country, and information technology expansion.
Outsourcing Waves: The first wave of IT services outsourcing in Russia came in the crisis years in 1999-2000 as leading Russian software companies went abroad to sell their expertise in software development based on Soviet Union's historical strengths in education in the Natural Sciences. To support the potential for software outsourcing, the National Software Developers Association (NSDA) was created in 2001 (now known as Russoft Association). During the last decade the IT outsourcing export market in Russia has grown to be a mature market of more than $5 billion (USD) industry.
The second wave of IT outsourcing and shared services in Russia began in 2001 with the consolidation of IT assets of the largest private Russian oil company Yukos within a related company Sibintek. This trend featured most of the largest Russian corporations creating "insourcing" or "captive" shared service centers.
The third wave of outsourcing and shared services success began in 2008-09. This period in recent Russia history has seen strong local and national economic growth as the "New Russian Capitalism" is taking hold. In the field of IT, outsourcing leaders are local systems integrators such as CROC, Jet Infosystems and Technoserve, as well as more fully focused outsourcing service providers: DataFort, Optima Services, SBSystem and Maykor, which had 67 percent growth in 2012.
In Russia, the business process outsourcing (BPO) market also is rapidly developing with international companies like Intercomp Global Services, BDO Outsourcing Division, and UCMS Group leading the way. In 2012 alone, the Russian commercial ITO and BPO market is estimated near $3 billion (USD).
Promotion: Today, the rapidly emerging internal and external Russian outsourcing industry is promoted by the Russian Association of Strategic Outsourcing "ASTRA" created in 2008 (ASTRA became an IAOP Affiliate Association in 2010).
As Russia prepares for 2013 and beyond, it envisions continued democratization, market competition and increased development of a globalized economy with outsourcing as a key enabler. The Russian outsourcing industry will grow fast and significantly, driving a more innovative post-industrial national economy. The "Russian Bear" will soon awaken.
