The Maturation of The Russian Offshore Software Industry by Stephen Hawk, William

McHenry

Russia:

PLUSES:

Excellence of Russia’s IT Human resources, e.g. in-depth technical skills, R&D experience, ex-perience
with complex projects
Excellent education system
European / Western Culture
Location (near to Europe and the U.S. east coast)
Low Labor Costs

MINUSES:

Inexperience in offshore software development; poor understanding of business practices and pro-ject
management on the part of Russian software firms
Poor English skills
Difficulty of visiting Russia due to visa require-ments
Bandwidth costs; deficient telephone and data communications infrastructure
Lack of certification organizations (and CMM certified IT firms)
Offerings too narrow; too little forward-looking strategic planning
Poor marketing capabilities; lack of a campaign; poor foreign representation
Poor business environment (intellectual property protection, tax and labor laws, perceptions of cor-
ruption and instability)
Lack of industry associations as effective as NASSCOM
Lack of meaningful support by the Federal gov-ernment for the offshore industry
Lack of world track record; perceptions of soft-ware piracy

Heeks/Nicholson (Software Export Success Model) and Carmel (Oval Method)

ISO and CMM (Capability Maturity Model)

Poor management

Who are Moldavian programmer?

What quality of work?

Wages

Infrastructure
Heeks/Nicholson Assessments Review (at the moment)
& Carmel
Poor marketing capabilities; lack of a Representation improved
campaign; poor foreign representation (Endava, Tacit, Allied, Ritlabs,
…), marketing and campaings
still absent.
Linkages Difficulty of visiting Moldova due to visa Europa and UK – don’t need
require-ments, dificulty to visiting other visa, minor problem, but major
countries (client side) visiting “client side”
Lack of world track record; perceptions of soft- Still need better track, piracy 4th
ware piracy place
Inexperience in offshore software Endava – Waterfall, try to
development; poor understanding of business introduce agile, Tacit – agile,
practices and project management on the part Simpals – process doesn’t exist
of Moldavian software firms 
Software
Lack of certification organizations (and CMM Medium (Microsoft partners),
Industry
certified IT firms) Endava (ISO27001 and
Characteristics
ISO9001, certified by Bsi)

Offerings too narrow; too little forward-looking Major

strategic planning
Excellence of Moldavian’s IT Human resources, Medium
e.g. in-depth technical skills, R&D experience,
experience with complex projects
Excellent education system Need improvement
European / Western Culture Plus
Domestic Input
Location (near to Europe) Plus
Factors /
Low Labor Costs Large savings possible,
Infrastructure
Competition on Human Capital
Poor English skills Medium (general, not only
PM/TL)
Bandwidth costs; deficient telephone and data Not big problem
communications infrastructure
Lack of industry associations as effective as Major
NASSCOM
Lack of meaningful support by the government Medium, Tax exemption, 2010 1
National Vision for the offshore industry jan
and Strategy Poor business environment (intellectual Major
property protection, tax and labor laws,
perceptions of cor-ruption and instability)

National Association of Software and Services Companies (NASSCOM)