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India would continue to lead the IT outsourcing market in 2007, although the battle for supremacy in the outsourcing business could witness a change with Russia emerging as a strong contender during the year, with an expected growth of 40-45% in 2007.
Currently, Russia is the third largest IT outsourcing supply market, behind India and China. Russian IT companies specialise in high-end software and embedded software product development, which acts as a differentiator from lower-priced Indian offerings.
According to Intel Chairman of their Russian branch The IT outsourcing market in Russia will reach a billion dollars in 2007.
According to neoITs latest report, the global IT services initiatives are expected to increase in 2007. Business conversion through services globalisation is one of the most significant force that global companies can no longer afford to ignore- said neoIT's CEO Atul Vashistha.
"Hundreds of companies are investing in Russia in outsourcing and this market is going to reach a billion dollars (740 million euros) this year," Steve Chase told the Russian Economic Forum in London.
Companies based in the West will take a keen interest to set up their facilities in the East to stay competitive as well explore eastern markets, which are not only cost effective delivery locations, but also rapidly emerging markets by themselves.
Large foreign firms have realised that in Russia there are "fantastic programmers they cant find in the US or India," and are increasingly delegating projects to Russian companies.
People know that a vibrant IT market is developing in Russia. And you have to be in Russia because its a very fast growing market.
Intel has invested 700 million dollars (515 million euros) in Russia in the last 15 years, while aircraft construction giant Boeing and telecoms equipment firm Motorola have also set up centres there employing local engineers.
Further Google and HP have also made their intensions clear by announcing their arrival in Russia. So far things are going perfectly in favour of the Russia thus making it a better place to invest for other players across the globe.
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