Our inaugural post (and now for something entirely different)...by alexadamopoulos
Like all great service models, offshore outsourcing continues to evolve and customers are demanding more from it. As someone who has been on both sides of the outsourcing arena, buyer and supplier, the demand for complex skills, faster time-to-market and software that actually works are only some of the key business drivers that today's outsourcing executive has in mind.
Other "top of mind" thoughts are where to outsource. Industry analysts, the press and colleagues are talking about Eastern Europe and Russia as the next big geo from where we'll get the best and most competitive outsourcing services. Of course I'm biased to Russia, but let's talk about the reason why companies need to, at a minimum, explore Russia as a viable option if not the best solution for their software development needs. Remember, we're not talking "call centers" or IT services and support, but rather advanced software development that encompasses the latest technologies and development methodologies that only a handful of companies are truly leveraging.
In terms of benefits there are several to consider:
- Proximity - most people in the U.S. and even EMEA don't realize that St. Petersburg is only a 3.5 hour flight from London's Heathrow airport. Eastern European countries are even closer, so what does that mean?
- Time zones nearly overlap so development teams and clients are able to communicate and address topics throughout the same day without lag times
- Client teams can visit their development team more frequently and be better integrated in the development process
- Stability - here is a little known fact unless you've experienced it first hand - the average attrition rate on projects outsourced to India is between 35% - 45%. This continues to be a huge issue for companies since the ability to keep the original teams intact is constantly at risk. Russia's attrition rate is 8% and StarSoft's is less than 6%. This is an obvious benefit since companies can look at their development team more like employees than consultants
- Skills & Expertise - on average Russia has 40% more scientists per capita than Germany. Each year there are thousands of engineers coming out of university with the latest skills to tackle complex projects. Additionally, companies like StarSoft have become global leaders in using Agile development methodologies, i.e. distributed scrum and xp. These facts are compelling for companies that need to catch up and leverage advanced software development
- Cultural Alignment - with the close proximity to Europe, Russia is more aligned to the West than the other nations known for outsourcing. English is a primary language and the culture differences are small. This makes for a better team approach.
Ok, these are some excellent points to consider but there are many more. As a supplier I am adamant about the level of quality, skills and know-how we bring to clients around the globe. As a former buyer of these services I know the value that is created when the time is taken to consider all the facts. You can find anyone to do software development for ridiculous prices at the expense of the real need - getting the software you want on time, in budget and having it exceed customer expectations.
As I've always said about many situations in life; think it through...
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