We are pleased to release the 37th issue of NASSCOM Market Intelligence Service.
This week, we focus on Offshore Development in Russia.
Offshore Development in Russia: A perspective Offshore Software Development is typically described as the business of outsourcing software programming and engineering services to contractors or wholly owned facilities, located in foreign countries, with lower labor costs.
India is the largest provider of such services, in 2001-03, revenues for IT Services, products & technology clocked in at approx US 7.2 billion. Lower costs, a steady demand for information and communications technologies, and labor shortages in the United Sates and Europe have been the primary drivers for the industry's growth. The United States is the world's largest outsourcing spender, accounting for around 45 per cent of the market. According to Gartner, the United States would spend around $160 billion on outsourcing by the year 2005, as compared to $100 billion in the year 2000, a growth of 9.6 per cent per annum.
Offshore software development in Russia has recently enjoyed a surge in interest and activity. In early 2003, the country reported over 150 companies in the line of offshore software development, with 10,000 professional programmers and revenues estimated between $150 million - $200 million, growing at 40-60 per cent per annum.
Estimates for growth through 2010 vary widely, from $1 billion - $6 billion. The IT sector is expected to account for 2 percent of Russia's total economic output by the year 2010 (from 0.61 percent in the year 2002).
MIS Issue no 37 and previous issues are available in the Member Exclusive Section at www.members.nasscom.org. Please feel free to get in touch with Avinash Raghava at email@example.com if incase you face any problems.
With warm regards,
Vice President - Research