Monday, January 10, 2005

Russia Outsourcing Challenges

CRM News reports Russia needs new infrastructure. Russia lacks the wealth of basic Internet "backbone" infrastructure already in place in the United States and India; that has kept inexpensive, high-bandwidth Internet capacity out of reach for many.

"The biggest problem," Sukharev said, "is finding skilled workers who not only specialize in theory but in practice. Many still need English-language training." Still, that figure for programmers is growing. In 2004 the number of Russian graduates with master's degrees in computer science or majors in software engineering was 68,126, up 6.9 percent from 2003, according to the Russian State Statistics Committee.

Russia also needs new infrastructure , something on which India has made more headway. Russia lacks the wealth of basic Internet "backbone" infrastructure already in place in the United States and India; that has kept inexpensive, high-bandwidth Internet capacity out of reach for many here, Sukharev says. A T-1 line, or fast, dedicated phone and data line, with high capacity might cost $500 a month in the United States. In Russia, it costs $50,000 a month. "That is something only the Russian government can build," he said.

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