Posts Tagged ‘Russia’

IT specialists go extinct in Russia?

September 5th, 2011

IT specialist profession may soon be put on the red list in Russia, a recent survey shows, adding that by the year 2015 the number of IT vacancies will shrink by a third.

The authors of the survey offer several reasons for that. First of all, this is a global trend to switch to outsourcing. Experts say by the end of 2015 the number of regularly employed IT specialists in major companies will be twice as less than today. Ilya Sachkov of the Group-IB shared his thoughts with the VoR: “Focusing more on outsourcing is going naturally in Russia. We are following the way already passed by many Western and Asian companies. I`ve come across several Japanese companies, which in Russia have only 2-3 representatives, while all the rest work distantly. When IT experts work this way, as well as accountants do, this help save quite a lot of money and focus more on the company`s strategy”.

“The profession of an IT specialist as we know it now will be no longer in demand thanks to cloud computing, a new generation technology which is about delivering of computing as a service rather than a product, when shared resources, software and information are provided to computers and other devices as a utility via the Internet, – says Vladimir Korovin of the Advanced Technology Agency.- Imagine a user who has loads of files, including documents, pictures and video being stored on his PC. In a similar way, any organization also has lots of things to keep on its servers, their memory to small to endure this. Cloud computing helps us keep our files on separate servers. Here we should also mention the use of robots. Thus, Taiwan`s Foxconn already has robots working on some of its plants. Meanwhile, their functions are very simple but this is only the beginning, with robots quite soon be able to perform intellectual tasks.”

Ilya Sachkov argues: “IT specialists will never go extinct. Such people will always be in demand, most of them simply focusing on cloud computing or outsourcing”.

The international IDS research company predicts that by 2015 the cloud computing market will soar by three times to earn $73 billion, with the leading companies to be located in the US, Asia and India, continents already giving home to 20% of the world`s top IT corporations offering cloud computing services. By that time, Russia is supposed to earn 3-5% of entire profit obtained from cloud computing.

So, all IT experts who think of quitting their jobs, should better focus on upgrading their skills and joining the team of cloud computing specialists.

Source:http://english.ruvr.ru/2011/09/04/55636681.html

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Going up the value chain

May 10th, 2010

The maturity of the Indian business process outsourcing (BPO) sector has given birth to yet another wave in the global outsourcing arena—knowledge process outsourcing (KPO). An interesting competition is brewing between India and other countries such as Russia, Israel, South Africa, China and the Philippines.

Locations such as Bangalore, Chennai, Mumbai and Thiruvananthapuram are giving stiff competition to Moscow, Shanghai, Johannesburg and St. Petersburg for attracting niche KPO work.

Bangalore is jostling with Moscow and St. Petersburg for research and development; Chennai is competing with Gaunghzao, China for attracting engineering services; Mumbai is vying for financial analytics work with Singapore, Dublin and Toronto and Thiruvananthapuram is locked in a fierce competition with Shanghai and Beijing for attracting animation and game development work. Legal KPO work is dominated by Mumbai over Johannesburg, while Hyderabad is emerging as an attractive location for healthcare-related KPO work, a recent study by Tholons advisory firm points out.

KPO typically involves high-value work performed by highly skilled professionals who have specialised knowledge and skills. While the BPO industry efficiently handles a hugevolume of back-office processes, the KPO industry handles more of the high skilled work that requires analytics expertise and experience.

The type of KPO services that Indian firms are offering are investment research services, market research services, intellectual property and patent research services, legal research and legal process services, Web development services, clinical research, business research analytics, engineering services, data acquisition and supply management services.

Analysts reckon that India has proved its expertise in the low-end and voice-based BPO space over the past years. The move to attract high-end KPO work is the next progressive step. “Even though countries like the Philippines have taken the lead over

India in terms of English voice-based contact centres, India is going to stay on top with higher value service delivery capabilities and KPO work,” says Saugata Sengupta, senior analyst at Tholons. The $11.9 billion Indian KPO industry is expected to grow at a rate of 40% this year, compared to 10 to 15% last year, estimates Gartner.

In February, Unitedlex, an LPO entered into an agreement with BT (British telecom) to handle a part of its global in-house legal work, beginning with a team of 15 lawyers based mostly in India. Dan Reed, CEO at Unitedlex believes that it is a new trend in the legal segment when a third party provider has acquired a captive group set up by a corporate, here in India.

Another LPO Integreon signed a five-year contract with the Monitor Group recently. Last year, London-based Rio Tinto entered into a legal services outsourcing agreement with Gurgaon-based CPA Global that is projected to save Rio Tinto up to 20% annually in legal costs. Genpact, the country’s largest BPO informs that their analytics business is growing rapidly. Shantanu Ghosh, senior vice-president at Genpact says, “With analytics business, there is higher value added. You capture higher value and higher margins.”

Arun Kharbanda, business unit leader, research and analytics at WNS Global Services informs that in the last four to six months, newer clients want to do business with WNS Global in market research. Similarly, Rohit Kapoor, CEO, EXL Service reveals that in the last two quarters, the company’s analytics business has experienced a growth of 70 to 80%.

Clearly, India is going to stay on top with higher value service delivery capabilities in the times to come.

Source:http://www.financialexpress.com/news/going-up-the-value-chain/616287/0

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Microsoft Russia confident of IT prospects

May 4th, 2010

RN interviewed Nikolay Pryanishinikov, the president of Microsoft Russia, at the Krasnoyarsk Economic Forum. He says he cherishes the potential in Russia

What are Microsoft’s current priorities in Russia?

One is our “Tvoi Kurs” (”Your Course”) initiative, which entails opening centres to train people. Our company plans to open 100 such centres in Russia, the first of which are already in operation. In early February, in Krasnoyarsk, we opened a centre where computer literacy is taught for free. Within three years we plan to train one million people.

Our second programme is to support innovative companies. Microsoft provides them with free software. In addition to training and investing certain efforts and means in this project, we help these firms with access to financial resources and breaking into the international market. Investors are far more favourably disposed toward projects that have a recommendation from Microsoft. More that 1,000 Russian companies are participating.

Our third focus is the technology centre we opened in Moscow. It is now the most modern IT centre in Europe and we are very happy that we were able to open it in Russia.

We also support education in Russia, providing students with free software, and universities and institutes with training courses.

When will Russia’s dependence on raw materials end?

I have to say that Russia has not made very much progress in this respect. But the focus of the government and the president on questions of modernisation and innovation is a very positive step.

How would you assess the IT market in Russia today? Will the situation with piracy change?

In this sphere great progress has been made in the last few years. The level of piracy has gone down while the IT market has grown, although it is still substantially smaller than in other developed countries no matter how you look at it. The dynamic is good, but in and of itself the IT market is still small.

In my view it’s very important to grow it because to some extent it is the motor of efficiency and productivity of labour and innovations. It is important that IT companies appear and thrive here in Russia and it’s important that every enterprise invest more in IT – this will promote greater efficiency in business.

If you analyse the structure of the Russian IT market, then you see a large share of equipment and a small share of service and software. In developed countries, as a rule, the ratio is 50/50. So we expect the software and service sector to grow.

Some people have a high opinion of Russian programmers. Is this justified?
There are many extremely talented people in Russia, but so far the powers that be have not been able to offer a convenient means of applying their knowledge and abilities. First, there is a low level of entrepreneurial know-how and skills. There are lots of smart people in Russia, but few know how to create a business and make a profit from that. As a rule, Russian programmers can write a good code, good software, but cannot create a business. We try to help. Microsoft was created in a garage.

Actually, we have a project for young businesses – Start in Garage – where we explain how to start up, how to make a business. Thanks to it, some 100 companies have been created.

The second problem – from the point of view of the IT market – is the reluctance or inability to work with outsourcing, to hire outside companies to do the work that you don’t specialise in. Often Russian IT specialists think that they’re smart enough to do everything themselves. The result is poorer quality and fewer products than those of colleagues who rely on outsourcing.

What has become of Microsoft’s collaboration with Yandex (the Russian rival of Google)?

We are now partners. We’re collaborating on the monetisation of our business and considering expanding our co-operation in several additional projects.

Could Yandex become a global brand?

It’s a local brand for now. It has a very good search for Russianised resources. Naturally for all those who speak Russian, Yandex is the number one search engine. But it hasn’t yet managed to break into other markets, and I think that to do this will be extremely difficult.

In overall terms of conducting business, have conditions changed since

Microsoft began working in Russia?

There is progress. This is clear in the improvement of the general business milieu and the right approaches of the government. Of course, there are still areas where the situation in Russia needs improving. This includes transparency, and the many levels of bureaucracy. Deputy prime minister Igor Shuvalev, who’s now in charge of improving the investment climate in Russia, is a moderniser, an energetic man, and correct in everything he says. But between him and real life in the provinces there are several levels of not-so-efficient chiefs.

Some international experts suggest that Russia should be excluded from Bric.

Do you agree?

Russia is a large market with a large potential – that is what Bric implies. And the members of Bric are very different. China and India are completely different, while Brazil and Russia are a little more alike – large countries with populations of roughly the same size, roughly the same economic level. Russia has a large intellectual potential, which we will strive to work with.

Source:http://www.telegraph.co.uk/sponsored/russianow/technology/7678663/Microsoft-Russia-confident-of-IT-prospects.html

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Russia IT And Outsourcing Industry Forecast To 2011

January 8th, 2010

According to Russia IT and Outsourcing Industry Forecast to 2011, a new research report by RNCOS, the Russian IT & outsourcing market has been growing at a rate of more than 20% since the past few years. The Russian IT hardware market, accounting for more than 50% of total IT spending, continues to dominate the total IT market. However, software spending has reported high growth rates compared to that of hardware and services spending over the recent past. Considering the future market potential, RNCOS believes that software spending will continue to lead the growth patterns in the IT industry during 2008 to 2012.

The Russian software and services market will be mainly driven by the country’s emergence as an IT Outsourcing (ITO) center, thanks to its close proximity with Europe, similar time zone, and availability of high quality workforce at low cost. The ITO market is undergoing phased transformation and is progressive from nascent stage to the development stage. Investments are also being phased in from both the government and private sector. The Russian government is increasing its IT investments in order to expand and develop the IT infrastructure in the country. Private sector investments are concentrated into opening of new software development centers in the country and also towards the expansion of the existing software development centers.

The report thoroughly evaluates the opportunities and factors critical to the success of the IT industry in Russia. It underlines the issues related to the success of the industry and provides a prudent analysis on its various aspects. It presents a comprehensive overview on the past and current performance of the IT industry, including software, hardware and services industry.

Industry Forecast till 2011

IT spending as percentage of GDP and fixed investment
IT spending in Billion US$
IT spending by segments in percentage terms
Packaged software sales in Billion US$
ERP software market in Billion US$
Antivirus market in Million US$
IT hardware spending in Billion US$
IT services spending in Billion US$
Computer games market in Million US$
Retail sales of IT products in Billion US$
Revenue from printers and multifunctional devices by value (in Billion US$) and volume (in Million Units).
Information security software market in Million US$
IT spending on infrastructure by SMEs

Key Players Profiling

This section covers the key players currently operating in the Russian IT and outsourcing market. This section describes the business overview of key players, operating system platforms, technologies used, application and web servers, and their area of expertise. The key players have been discussed under two heads – Domestic Companies (including Reksoft Co. Ltd., Artezio and Aplana Software), and International Companies (including IBA Group, Auriga, and DataArt).

Source:http://www.officialwire.com/main.php?action=posted_news&rid=54507&catid=1044

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