21 March 2006

Global Outsourcing : Offshore Locations : Russia's High Value Call

A good piece on Russia's place in the global outsourcing world. The author is definitely more optimistic than I am. Global Outsourcing : Offshore Locations : Russia's High Value Call.

The stat that I like is the average monthly wage between Russian and Indian engineers - $8-14k/year vs $7-11k/year respectively. You might just get an American mathematician for $1k/month in Moscow but anyone who does not need help in turning on a computer is $1.5k+ (paid white). And wage inflation is definitely 10-15% p.a. Clearly Novosibirsk, Tomsk and the other Siberian cities are cheaper. But that's a hell of a long way to go to get an engineer. So very soon Russia will be significantly more expensive than an Indian (and the Chinese??) and will be trying to sell more quality at a higher price - if they can.

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1 comment:

Nick Dolgov said...

Just a couple of cents on salaries:

1. Middle-level java developers with tolerable English in Moscow are definitely in the $2K-$2.5K range.

2. I was told by a collegue who was born in Novosibirsk that salaries in that city were about $200-300 less (a month) than they are in Moscow. I reckon he meant decent engineers (as opposed to entry level coders) but nevertheless

21 March 2006

Global Outsourcing : Offshore Locations : Russia's High Value Call

A good piece on Russia's place in the global outsourcing world. The author is definitely more optimistic than I am. Global Outsourcing : Offshore Locations : Russia's High Value Call.

The stat that I like is the average monthly wage between Russian and Indian engineers - $8-14k/year vs $7-11k/year respectively. You might just get an American mathematician for $1k/month in Moscow but anyone who does not need help in turning on a computer is $1.5k+ (paid white). And wage inflation is definitely 10-15% p.a. Clearly Novosibirsk, Tomsk and the other Siberian cities are cheaper. But that's a hell of a long way to go to get an engineer. So very soon Russia will be significantly more expensive than an Indian (and the Chinese??) and will be trying to sell more quality at a higher price - if they can.

Technorati Tags: , , , ,

1 comment:

Nick Dolgov said...

Just a couple of cents on salaries:

1. Middle-level java developers with tolerable English in Moscow are definitely in the $2K-$2.5K range.

2. I was told by a collegue who was born in Novosibirsk that salaries in that city were about $200-300 less (a month) than they are in Moscow. I reckon he meant decent engineers (as opposed to entry level coders) but nevertheless