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Outsourcing to Russia

posted Monday, 12 June 2006
Today's eWeek has published two articles on outsourcing to Russia. One is called Russia Revealed and the other one  "The Russians are coming". The title of the second article makes me wanna puke, but that's besides the point.  More importantly, the author brings describes dealing with russian programmers as  a positive experience.  When I wrote about cultural differences in outsourcing, some people have accused me in  stereotyping based on  nationlity. Sorry guys, but it seems that eWeek is also jumping to the same conclusions.

The bottom line is, Russia can provide you  good quality programmers...with an attitude. But if you know how to deal with them, the ROI can be just great.  The major Russian cities (Moscow and St. Petersburg) can be a little expensive by now. Consider Novosibirsk - a Syberian Silicon Valley. Another country that has a great potential is Ukraine. Their programmers have  have similar educational background, but will charge a lot less for the same job.  As always, management of the offshore team is crucial for the success of your project. If the project did not succeed, it's your fault. This explains why some companies are abandoning offshoring ventures, while others are increasing their presence over the ocean and in Russia too.

Some western firms use the-more-the-merrier  policy to staff the offshore teams. They get overly-excited by the dirt chip hourly rates and just assign  several  programmers to the same task assuming (or praying ) that someone will do it right. If you are looking for this setup, Russia/Ukraine/Belorussia are not for you.  In my opinion, the best model for these countries is having one Russian-speaking (preferrably hands-on) manager onsite and a team of strong programmers offshore. Hiring process is extremely important. Even if you are shooting for a fixed price deal,  cherry pick  each programmer. Always send your recruiter there. Just being a strong techie is not good enough. Try to get a sense if this person has an attitude... Price-wise, you can find excellent programmers working for under $30K a year.  A New York   programmer with the same set of skills would demand at least $90K.  You pay these extra $60K for better English, people skills and understanding of how Western corporate world operates.  So here's possible  outsourcing scheme:  a Project Manager (English) deals with  Business Analyst (English), who communicates with a team leader (English-Russian), who communicates with the team of developers (Russian). This team leader is a key figure and success of your project depends on this person a lot. And this facade should be trustworthy. Sure enough, a project manager must make sure that this project is well documented, the latest code is in the version control repository...otherwise  this team leader may  become an indispensable  prima donna and a single point of failure.  If you are familiar with design patterns, this team leader plays the role of a facade.  This can be a win-win solution, but you have to do it right.

I was born in the Ukraine, got my degree  in Russia, worked in Ukraine for a while, and during the last 15 years I live and work in the USA. Let me know if you need help in finding or dealing with a reputable Russian,  Ukrainian or Belorussian outsourcing partner.

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1. Vladimir Novikov left...
Tuesday, 13 June 2006 5:49 pm

Yakov is right saying that some developers in Russia and Ukraine have "attitude". However, there are no reasons for you, as a client, to deal with "English-Russian Team Leader" from USA - you'll simply waste your money for an unnecessary middle-man. There are many established outsourcing companies in Ukraine and Russia already, with an impressive portfolios of accomplished projects. Simply do a little reasearch, and you'll find good companies who are used to deal with Western clients. Rest assured, that the "attitude" of those outsourcing companies management does not differ too much from yours. If you want to buy a ship of goods from China, will you go to your local China-town?


2. Yakov left...
Tuesday, 13 June 2006 7:18 pm

At this point of the offshore evolution, I'd rather keep the key people onsite. This is not specific to outsourcing to Russia. I'd hire an Indian onsite team leader in case of outsourcing to India.