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Press about Auriga

Feb 15, 2008

The Washington Post: Russian IT sector experiencing upturn

The Russian IT sector is on the rise. This conclusion comes from The Washington Post (December 19, 2007), which comments on the growth of Russia’s high tech industry and federal government support of the sector.

It says in the article that the volume of this market grew by 20 percent in the last year, reaching a capitalization of some 1,162 trillion rubles (approximately $48 billion). Software exports alone account for a 54 percent increase since last year. There have been improvements in infrastructure, knowledge of English, management, and intellectual property rights. In 2006, the number of companies with international ISO or CMM/CMMI standard management systems increased from 18% to 28%.

The Washington Post quotes Alexis Sukharev, Auriga CEO and founder, as saying, “The Russian engineering labor pool now has a lot to offer to companies who need specific R&D skills and comprehensive approaches to complex projects.” He adds that Russian companies are increasingly able to become reliable strategic partners for Western high-tech and software companies.

This viewpoint is shared by Steve Chase, President of Intel Russia. He believes that global leaders are increasingly turning to Russia with the most complex problems: “The policy we have at Intel is simple. If we can, we commit difficult problems to engineers in the USA. If the task is very labor-intensive, we assign it to the Indian specialists. If the problem cannot be solved, we offer it to the Russians.”The publication admits that although India remains the indisputable leader in the outsourcing market, its superiority at the top end of this sector is no longer as assured as it used to be.

Generally, the economic situation in Russia is rapidly changing. According to Valentin Makarov, President of RUSSOFT, the Russian software industry’s representative, the volume of direct investment in Russia is now growing by 100% annually. Specifically in the area of IT, there have been radical changes in federal government policy, including the provision of tax breaks and investment capital to high-tech companies.All this adds to the competitive edge of Russian IT companies, which are emerging as global players.

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