Study Touts Russian Software Development

Though price often drives the initial supplier choice, these factors strongly influence the quality of service and strength of the relationship in dealings with outsourcing providers, according to interviews with U.S. and European firms. Participating companies also emphasized the availability of well-educated engineers, strong technical skills and sound methodologies in choosing Russian firms to outsource software application development projects.

"Several factors work as Russia's differentiators on the world market, such as the large pool of highly skilled professionals with mathematics and science backgrounds, capable of solving complex and math-intensive problems, and the ability of Russian companies to manage high-end, complex projects," said Vladimir Kroa, regional director for IT Services Research, IDC.

Softer factors often mentioned in the interviews included "cultural fit," similar work ethics, a clearer understanding of business issues, and similar time zones.