Indian information
technology companies are following their global customers to different corners
of the world and some are moving towards Russia, reports CNBC-TV18. Indian
IT companies are looking at Russia because it has what Indian IT companies desperately
want highly skilled talent. An IDC survey of 20 West- European and US companies
outsourcing to Russia, found Russians excelled at high-end software. An
attrition rate of just 4 per cent sweetens the deal. IDC adds that developing
new products in Russia costs at least 30 per cent less than in Western Europe
or the US. The
question is ''should India be worried?'' The answer is an emphatic no, because IT
companies like TCS, want to use Russian talent to advance their outsourcing capabilities. "We
will definitely look at Russia, sometime in the future. I cannot give you a timeline
now. That is a market we will look actively to create a resource base," said
N Chandrasekaran, COO, TCS. Already
companies like Hewlett Packard, Intel, Google and Capgemini have set up development
or offshore centres in Russia. Besides, Russia itself offers a market. "In
terms of the domestic market opportunity, according to the Russian Ministry, they
expect it to be a USD 40 billion industry by 2010. It is almost three-fold from
2006 levels. Oil and gas, banking and financial services are some of the areas
where there are opportunities," said Ashwin Mehta, Senior Research Analyst,
Ambit Capital. Analysts
also say the money in offshoring is in high-end work, a sector in which the Russians
excel. Also, an offshore development centre there will help Indian IT companies
get outsourcing business for the East European markets, of companies based in
the US and Western Europe. So, we might soon see Diwali celebrated in Russia!
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