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Russia, Philippines Catching Up with India in Outsourcing Market (Zeenews) [09.01.07]

Philippines and Russia may be behind India in the IT outsourcing market, but soon might give it a stiff competition in 2007, said the report.  In 2007 both countries will continue their growth as outsourcing locations, said offshore advisory and management services firm Neoit.  This year we will see companies significantly scaling up global service operations to accelerate transformation.

An overall growth of 25-30 per cent will translate into emergence of new offshore and nearshore locations with hard-to-ignore players, mergers and acquisitions.  "2007 will see Russia emerging as a strong contender in the IT outsourcing market. It currently is the third largest IT outsourcing market behind India and China," it said.

Russian IT companies specialize in high-end software and embedded software product development, which act as a differentiator from low-prices offerings from Indian companies. "We expect Russian IT offshoring industry to grow at 40-50 per cent in 2007," said the report.

The report also talks about a rapidly emerging European market where the market for global services will grow at a faster rate this year, as some European enterprises have "proved the concept" and set an example for their peers.

With increasing maturity in the nearshore delivery capabilities, European language speaking countries like Hungary, Czech Republic, Russia, Poland, Bulgaria and Romania shall support this trend.

Source: Russian IT Quarterly, Reksoft, January 2007