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

Russia:

PLUSES:

Excellence of Russias IT Human resources, e.g. in-depth technical skills, R&D experience, ex-periencewith complex projects

Excellent education systemEuropean / Western CultureLocation (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-jectmanagement on the part of Russian software firmsPoor English skillsDifficulty of visiting Russia due to visa require-mentsBandwidth costs; deficient telephone and data communications infrastructureLack of certification organizations (and CMM certified IT firms)Offerings too narrow; too little forward-looking strategic planningPoor marketing capabilities; lack of a campaign; poor foreign representationPoor business environment (intellectual property protection, tax and labor laws, perceptions of cor-ruption and instability)Lack of industry associations as effective as NASSCOMLack of meaningful support by the Federal gov-ernment for the offshore industryLack 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

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Heeks/Nicholson& Carmel

Assessments Review (at the moment)

Linkages

Poor marketing capabilities ; lack of acampaign; poor foreign representation

Representation improved(Endava, Tacit, Allied, Ritlabs,), marketing and campaingsstill absent.

Difficulty of visiting Moldova due to visa

require-ments, dificulty to visiting othercountries (client side)

Europa and UK dont need

visa, minor problem, but majorvisiting client side

Lack of world track record; perceptions of soft-ware piracy

Still need better track, piracy 4 th

place

SoftwareIndustry

Characteristics

Inexperience in offshore softwaredevelopment; poor understanding of businesspractices and project management on the partof Moldavian software firms

Endava Waterfall, try tointroduce agile, Tacit agile,Simpals process doesnt exist

Lack of certification organizations (and CMMcertified IT firms)

Medium (Microsoft partners),Endava (ISO27001 andISO9001, certified by Bsi)

Offerings too narrow; too little forward-lookingstrategic planning Major

Domestic InputFactors /

Infrastructure

Excellence of Moldavians IT Human resources,e.g. in-depth technical skills , R&D experience,experience with complex projects

Medium

Excellent education system Need improvementEuropean / Western Culture PlusLocation (near to Europe) PlusLow Labor Costs Large savings possible,

Competition on Human CapitalPoor English skills Medium (general, not only

PM/TL)Bandwidth costs; deficient telephone and datacommunications infrastructure

Not big problem

National Visionand Strategy

Lack of industry associations as effective asNASSCOM

Major

Lack of meaningful support by the governmentfor the offshore industry

Medium, Tax exemption, 2010 1 jan

Poor business environment (intellectualproperty protection, tax and labor laws,perceptions of cor-ruption and instability)

Major

National Association of Software and Services Companies (NASSCOM )