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Published on October 12, 2007

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Opportunities of Software Development in Saint-Petersburg and Russia :  Opportunities of Software Development in Saint-Petersburg and Russia Vera Semyonova, Executive Director Fort Ross Consortium www.fort-ross.ru Summary:  Summary Global tendency of IT outsourcing and where is Russia placed in the world competition IT education in Russia Overview of IT market in Russia and in St Petersburg in particular Why and how to co-operate with Nordic countries Fort-Ross IT Services IT Offshore Outsourcing – Still a Viable Option?:  IT Offshore Outsourcing – Still a Viable Option? Forrester Research, January 2002 Lessons learned by the Global economy year 2002-2003:  Lessons learned by the Global economy year 2002-2003 Outsourcing is not a means to merely cut expenses, it is a unique tool for surviving and winning competition on the Global scale! Routine coding on specifications does not match all the market growing needs in effective solutions Russia is changing for better, it looks like a real alternative and a candidate for strategic technological partnership Particular features of software development in Russia: :  Particular features of software development in Russia: High end solutions - Russian niche in the IT outsourcing Much higher degree of customers’ satisfaction (85% compared to 40%-50% on the average) Big Companies and small start-ups are major clients, leaving niche of the mid-sized clients free 67% of contracts are provided from the IT companies, that leaves good opportunities for “old economy” “Software Development in Russia: A Buyer’s Guide to the Russian Software Development and Services Export Industry”, Aberdeen Group, June 2003 Strategic advantages of the Russian Software Development Industry:  Strategic advantages of the Russian Software Development Industry Strong in-depth educational system Profound scientific knowledge “Genetic memory” of handling complicated R&D projects during the Cold War Inherent creativity and ability for engineering innovations “Revolution” in modern QA standards Ability to work in a team – “Team-sourcing” of Russian companies IT Workforce Potential in Russia:  IT Workforce Potential in Russia Within the last seven years, 1.3 million people graduated from Russian universities with the skills to work in the IT industry, an average of about 186K per year (India – 60K, China – 50K, NASSCOM) . Only 70,000 actually work in IT companies in Russia Microsoft Research Over 100,000 specialists in physics, mathematics, informatics and computer engineering annually graduate from Russian universities and institutes Forbes Magazine Slide8:  Annual ACM International Collegiate Programming Contests 2000 World Champions : St. Petersburg State University Silver Medal: St. Petersburg Institute of Fine Mechanics and Optics 2001 World Champions: St. Petersburg State University Gold Medal: St. Petersburg Institute of Fine Mechanics and Optics 2002 Silver medals: Saratov State University (European Champions) 2003 Gold medals: Moscow State University, St Petersburg State University of Fine Mechanics and Optics Silver medals: Saratov State University http://acm.baylor.edu/acmicpc/finals/default.htm Introduction to the Russian IT Market:  Introduction to the Russian IT Market Double-digit growth across all segments for 5 consecutives years (11% in 2002) Hardware ($5 bln in 2001, of which 90% is imported) represents 80% of the total IT market, with local companies dominating in the final assembling PCs ($1.6bln) - one of the largest and fastest growing segments Telecom hardware ($2.2bln) - growth is coming from mobile and data (100% growth) Software ($300M in 2001) is dominated by import (70%), with system software growing and applications outweighing other software types IT services ($760M in 2001) is fast growing, second biggest domestic IT industry Ernst&Young, September 2002 St-Petersburg - Situation in IT Business:  St-Petersburg - Situation in IT Business Good location for multinational IT companies and investments in IT and Telecom (Motorola, Lucent, LG, Borland, TeliaSonera) 200 companies in software development, with more than 6.000 engineers, 30 companies - IT outsourcing and Software Products’ active players on the International market, For 5 years running Universities are becoming winners at the ACM Collegiate Contests, Absolute Winners (Gold and Silver medals) in the Y2000 and Y2001!!! SWD Businesses in St.-Petersburg :  SWD Businesses in St.-Petersburg Main geographical areas of outsourcing :  Main geographical areas of outsourcing European customers:  European customers “Electronic Vikings”: European IT Future is Scandinavian?:  Penetration of mobile phones in Finland and Norway is more then 60%, in Sweden - 57% Internet penetration in Finland alone is about 40%, in Europe less then 30% The beginning Scandinavian Internet-companies are underestimated compared to American ones Potential of increase due to possible positive changes in Stock Exchange taxes’ regulation in Sweden Tasks: Development of corporative Scandinavian culture, overcoming of multi-languistic fragmentation Potential: front-edge technologies, advantages of pioneer “Electronic Vikings”: European IT Future is Scandinavian? Strategic co-operation in software development in the Baltic Sea region – the way to win on global market:  Win-win - to use fantastic IT talents located next door to Nordic countries (1 hour flight) Way to the West - to develop new products for global market together Way to the East - to penetrate the growing Russian market in co-operation with local partners Strategic co-operation in software development in the Baltic Sea region – the way to win on global market Follow the success stories!:  TeliaSonera, Nokia, TietoEnator, CSC Denmark, TetraPak, Volvo are already working together with St Petersburg software companies Governmental projects and local partners support the co-operation Follow the success stories! Fort Ross IT Services::  Fort Ross IT Services: Consortium of 31 leading software developing companies from Russia, Belarus and Ukraine, employs more than 3000 engineers, Covers about all areas of IT competence, Based on World leading Universities in mathematics and IT development. Member of the and all-Russian IT Association (APKIT) and National Software Developmnet Associations RUSSOFT Fort-Ross activities:  Fort-Ross activities Promotion of our member companies worldwide: direct marketing, organizing of events Attraction of investments Implementation of QA and QC standards for member companies Creation of IT infrastructure in St Petersburg Fort-Ross Major Activities in the Nordic countries:  Fort-Ross Major Activities in the Nordic countries 12 business trips and “road shows” to Finland, Sweden, Denmark and Norway Two times at Comdex Nordic in Sweden Large network of businesses, IT associations, science parks, governmental institutions All that is Fort-Ross:  All that is Fort-Ross Fort-Ross Marketing and Events Ltd. IT Centre (science park and business incubator) together with St Petersburg University of IT, Mechanics and Optics Russian Federation Chapter of Quality Assurance Institute IT Club in St Petersburg Welcome to Software Outsourcing Summit 2004:  Welcome to Software Outsourcing Summit 2004 June 23-25, 2004, St Petersburg Organizers: Fort Ross IT Services, and Administration of St Petersburg Plenary Session, Panels, Round Tables, Exhibition of Solutions, Match-making Area Participants: over 500 representatives from 20 countries www.soft-outsourcing.com

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