When we begin to learn more about outsourcing, defining their impact and how they are perceived by society and the information technology industry, we met some of the problems that seem to outsourcing. Some questions are about outsourcing are positive and negative. One negative point was identified as the problem statement for this study. The outsourcing industry in the United States has been the target of political ideology and a good dose of fear. In this study,tried to explain the social and political environment for outsourcing. In addition, many U.S. companies have made losses in outsourcing, there is no infrastructure in the host country is the norm. We try to answer this question.

History of Outsourcing

On the history of human development, the history of outsourcing back to the industrial boom in the late 17th century began. For example, the arrival of America fallTrucks and machinery for cutting work by candles "was awarded to workers in Scotland, with raw materials imported from India. Textile industry in England has been so effective in the 1830s, later, not in competition, Indian manufacturer, and the work was entrusted to Great Britain. (Kelly, 2003, p. 3) The rule in ancient China and Japan are also experts in outsourcing of conquered peoples. Looking in the United States, recently, many companies computer used to outsource their payrollTransformation in the years 1970 and 1980. When learning that outsourcing has existed since the dawn of civilization, we wonder why no one, for example, back 10-15 years to speak? The reason for outsourcing was news, because what has happened previously on a small scale and focuses on specific regions such as the United States, in Europe. However, outsourcing is now 400 billion a year industry and the world can not afford to ignore. Globalization, the explosive growth of Internet andThe development of society in every region of the world, outsourcing is an integral part of the global economy.

In our study, we focused on information technology (IT) outsourcing. Outsourcing has gathered momentum since the Internet began to gather around the world and the dismantling of national barriers to globalization. Today, U.S. companies like Intel and Sun Microsystems, more research and development outside of the United States than inNation, Citibank has outsourced card processing in India, and customer support of and in the Philippines.

Some resort to outsourcing as a way for developing countries have access to new technologies, and have developed a way of economic and social empowerment.

Research on outsourcing

The main work is to Loma, the pre-test done and cons of outsourcing and offshoring. The focus of researchReport on Information Technology (IT) outsourcing and offshoring of IT services companies in the United States and India. Sources for the report, SEC reports, websites, press releases and governmental research institutes. The themes of this report are: a) Declaration of outsourcing b) notification of displacement, c) vendor selection, d) the reasons for outsourcing and offshoring to grow, e) impact tests and relocation outsourcingJobs.

However, it should be noted here that our lack of theoretical research can be found on outsourcing. The knowledge base of the sector, rather than theoretical research in the center, but the financial and economic trends and world politics. What we found that the IT industry looks at outsourcing as an economic phenomenon, and not focused on research, as in software, microprocessors, Internet, etc. done

Why Outsourcing is an important issue?Referring to our approach to this problem, we emphasize that the problem is not only important for the impact on outsourcing, but also by its impact on the world economy as a whole. We know that the outsourcing of 400 million euros a year, and the outsourcing industry is an important part of the sector. The case of IT outsourcing would result in a loss to the world economy.

Since the problems of outsourcing (such as political pressure from the United States and the lack ofInfrastructure in developing countries,) host can seriously growth IT outsourcing, the problem of the sector is important.

Finally, we wish to clarify that should not be considered in a vacuum. When you say you do not consider the contract itself can determine whether the company is good, but when you consider that outsourcing from the perspective of the global economy, increasing globalization, the rise of production costs in the United States and reduce costs in developingCountries, we can see that outsourcing has a positive side. Although less than 20% of the United States – total outsourcing companies use the software in general outsourcing (offshoring) is perceived as bad for the United States. We hope that through this study should be able to present a balanced picture of outsourcing.

As part of the debate on outsourcing: how to use outsourcing in China, DuPont

When we begin to see the debate on outsourcing, weDuPont, which has been commissioned to plan your on-line database of materials in China. The report published on the website of outsourcing in Asia, said that outsourcing companies in China have succeeded in creating a functioning 24 / 7 and complete the project ahead of schedule. The report also highlights why the company chose China as the destination and also talks about the future of China as a destination for outsourcing. (Rosenthal, 2005, p. 6)

As the U.S. Government has the right toOutsourcing

Using the example of DuPont, outsourcing, the company has helped to bring a project in time and costs are also saved, it was decided to examine how it could help the government outsourcing. We provide a report on the United States government and how outsourcing can be a help on the site of outsourcing in Asia. The report states that in 2005 50 percent of the 70,000 IT workers eligible for retirement in the federal government, according to aSurvey 1999. Moreover, the government has gained the older systems. Thus, while young people entering the workforce who are not trained in the old system. You need to be trained for the higher costs and expenses to the government intends. This gap has opened the doors for service providers to offer outsourcing as a solution to the problem. (Harney, 2005, p. 2) The report mentioned that many unions and workers in government outsourcing by the fear that the growing unemployment inUnited States. Although there is a general fear of outsourcing in the public sector, we believe that if we have a mutually beneficial agreement between two parties and show the benefits can provide people begin to feel positive about it.

The creation of a relationship of mutual benefit outsourcing

The report, entitled "Creating a culture of win-win outsourcing of interviews with the press of QinetiQ, which marked the end of an existing supply, and reachedRecognizing the need for a single solution for a wide range of services offered and their overall cost of services. In 2003 the company had a contract with Accenture to provide a wide range of applications, hardware and services for data centers, and the acquisition and program management. To achieve economy in the beginning, the two companies have bought into a structure and efficiency of governance and the establishment of good relations at all levels in both organizations. Theywere able to pass the savings target in the first year of the partnership through open communication, continuous innovation and convenient solution. Using the example of QinetiQ and Accenture, we can say that a good outsourcing relationship is a win-win culture, which can benefit both parties can be created. More and more, trying to copy the success of both companies. (Garner, 2005, p. 4)

After discussing the positive side of outsourcing, its advantagesthat companies and the government, now offer reduced the debate on the negative aspects of outsourcing, the outsourcing of customer satisfaction, safety risks, the social and public resistance. Customer satisfaction Lower outsourcing ratio lower satisfaction with the interviews in the study of outsourcing customer ZDNet Diamond Cluster International, has published, which indicated that the number of buyers satisfied with their provider of relocationdecreased from 79% to 62%. Furthermore, the number of clients to terminate their contracts prematurely move is doubled to 51%. (Frauenheim, 2005, p. 2)

Security risks in outsourcing

This low rate of recognition will be facilitated by the recent reports of vulnerabilities in call centers in India. As announced by Zubair Ahmed BBC that some call center employees of Mphasis in Pune India, large sums of money paid into the account wrong, that createsAccounts of U.S. Citibank customers, which purchase transactions, which were developed by the company. This incident has highlighted the lack of integrated safety management in call centers in India. The industry is still in a phase of growth, not much attention to ensure that they adhere to appropriate safety measures. Only after this incident that companies have started doing background checks on employees, and background checks are a standard in its approachTrial. This incident raises many questions about the safety and security of data when processes are outsourced, so that the ability of Indian companies to manage data. (Ahmed, 2005, p. 2)

The social impact of outsourcing

While the issue of data security in outsourcing, is a question about the social impact of outsourcing. This problem has been largely untouched since the industry is particularly concerned about the visible effects ofExternalization of costs and benefits of search, instead of social change, slowly but steadily causes of outsourcing. Kaushik Basu talks about this in his article "The policy of outsourcing of business", the website published by Project Syndicate. In his article, said that the loss of jobs due to outsourcing can lead to protectionism and nativism. In the long run, this can lead to racism and other discriminatory practices. E 'therefore very important to help workers displacednot develop this kind of feeling for the country, was in his work. (Basu, 2004, p. 9)

Against unions IT Outsourcing

The unions have on the U.S. side of the social impact of outsourcing – the loss of jobs and the impact on families and society has seen. They pass to protest against outsourcing and pressure on the government to ban outsourcing laws. In his report, "Trade unions in their efforts against outsourcing," said Juan Carlos Perez, that unions in the field of information technologyA fight to keep jobs in the United States of America. The head of this struggle is the international federation of professional and technical engineers (IFPTE outsourcing) trying to convince Congress to adopt legislation to protect jobs. The Union has also seen the hard work of lobbying, H1B get worse, including the rules that all the jobs remain in the United States for Americans. (Perez, 2005, p. 4) Although we are concerned that unions Painting Contractorthat the only reason for the loss of jobs in the IT industry, and close your eyes for other reasons, such as stagnation in the sector, the high costs and increased competition from companies based abroad. It would be better for the industry and for IT professionals who are beginning to see the whole picture, rather than deal with outsourcing as the only evil.

Reduction of U.S. IT talent pool

To understand why outsourcing is happening, we must recognize that the United States – a rapid depletionPool in technical fields like computer science and physics. So companies are forced to look for talent outside the country or work for countries of origin, where there is a great talent pool. India and China are the best examples in this field. India has developed a large number of engineers who have technical skills and the ability to do the job for less. As China produces more engineers each year in computer science. So, to compete against those of the United States should seek toThe promotion of students to enter technical fields and should also improve adoption rates in schools and universities to technical expertise. The report, entitled "In the debate on outsourcing of IT jobs overseas," published by Manufacturing News, speaks of the dearth of talent in the United States. The report also to the growing number of professional groups, some sites, even if these groups are trying to highlight the loss of jobsand economic difficulties for the workers of America have been caused by outsourcing, some sites contain racist and biased. Instead of the reasons why resort to insult foreigners speak their employment abroad. (Manufacturing News, 2005, p. 6)

After thorough consideration of issues of outsourcing, such as security issues, the problems of loss of jobs, reduce the talent in America, and now we have discussions about the objectives of outsourcing andThe infrastructure in these goals. Destinations Outsourcing India and China are the first IT outsourcing jobs. In a study by an analysis of China as a destination for outsourcing.

The "Country Analysis: China" talk about China as a destination for outsourcing. Highlights of the report are summarized as follows: The software outsourcing market in China is a market of 1.5 billion U.S. dollars with an annual growth rate of about 35%. The Current situation in China, where India was 12 years ago. Growth in this sector is driven by the large supply of low cost skilled labor and a large domestic market. Although the Chinese market is promising, suffers from serious problems such as lack of English language skills are among the programmers and managers of Chinese companies established mechanisms for quality control, like their Indian counterparts. Many software problem> The piracy in China, which helps to become a credible destination for software development. The Chinese government has programs to promote and develop the software industry called life. But it was a good international image of the United Nations with his style of democratic government and many European companies and U.S. companies are reluctant to do business in China because it is too much.

Although China has a lot of IT professionals who are experts in the field of software engineering andSoftware are very limited, given that Chinese universities still focus on traditional areas of technology, such as mechanical engineering and electrical engineering. Moreover, China has made vast improvements in telecommunications infrastructure, but developments are concentrated in large cities and near coastal regions. The heart and rural areas are still far away. This limits the Chinese market for software sales and development. We see that China is promisingFor outsourcing, but also has some problems. The country is trying to assume the position of India in the outsourcing market, you may be able, if we are trying to infrastructure and other issues, market development around South Asia.

A report entitled 'the digital divide, the Internet infrastructure, policies and regulations to fight to be released in South Asia Net, talks about the problems of South Asian IT industry.Highlights of the report can be summarized as follows:

Internet has the possibility of the South Asia region in 1980 on the boards, governmental and non-governmental initiatives date. In India, in 1995, state-owned VSNL has started with Internet access for the public. Private companies entered the market in 1998. In Nepal, the Internet was introduced in 1993 and 1996 the population had access to the World Wide Web Initially, only large cities arethe region had access to the Internet, but now the use of the Internet has become widespread in rural areas. Decorated for example, in the governance of many people in India have their own websites and offers several services on the line.

Although the Internet is spreading in Southeast Asia, the lack of facilities for obsolete laws, language barriers and high costs of Internet access slow growth. We can see that South Asia has infrastructure problems, but industrytries to overcome and maintain its position as a preferred destination for outsourcing. (Rao, Bhandari, Iqbal, Sinha and Siraj, 1999, p. 7)

As we begin to learn about outsourcing, its impact and it is perceived by society and the information and communications technology industry, we encounter some questions that seem to define outsourcing. Some of the issues are positive about outsourcing and some are negative. A negative was identified as the problem statement for this study. The outsourcing industry in the United States has to fear is the goal of political ideologues and adequate supplies. During this study, we havewill attempt to explain the social and political environment affecting outsourcing. In addition, many American companies have losses to outsourcing, because the infrastructure is in the host nation does not suffer the same level. We will try to address this question.

History of Outsourcing

A look at the history of human development, the history of outsourcing back to the industrial development, in the late 17th Century began. For example, the production of America's coveredCovered wagons and sailing clipper ships "was a job outsourced to workers in Scotland, with raw materials imported from India. England textile industry became so efficient in the years 1830 to compete later, not the Indian producers, and that the work outsourced to England. (Kelly , 2003, p. 3) The ancient Chinese empire and the Japanese also sent in the outsourcing of their conquered peoples. Looking at recent time in the U.S., many computer companies used to outsource their payrollProcessing in the 1970s and 1980s. Learning that outsourcing has existed since the dawn of civilization, one may wonder why no one talked about, say, 10-15 years back? The reason for outsourcing was the news is because it happened before concentrating on a small scale, and was in certain regions such as the USA, Europe. But now, outsourcing is a 400 billion U.S. dollars a year of industry and the world can not afford to ignore them. Globalization, explosive growth of the Internet and theDevelopment of information society in all regions of the world has made outsourcing an integral part of the global economy.

In our study, we are focused on Information Technology (IT outsourcing). IT outsourcing gained momentum after the Internet began to merge from each corner of the world, and globalization brought national barriers. Today, American companies like Intel and Sun Microsystems have major research and development outside the United States than in theNation, Citibank has outsourced card processing to India, and customer support at Dell comes from the Philippines.

Some see outsourcing as a way into the developing countries can access the new technology, which have the developed countries and enjoyed a path to economic and social reinforcement.

Relevant research for outsourcing

The most important work is done by LOMA, done in the pros and cons of outsourcing and offshoring investigated. The focus of researchReport on Information Technology (IT) outsourcing and offshoring of IT services companies in the United States and in India. Sources for the report of the SEC filings, websites, press reports and government research institutions. The topics included in the report: a) Declaration of outsourcing, b) a statement of offshoring, c) the selection of providers, d) Reasons why outsourcing and offshoring grow, e) Evidence of the impact of outsourcing and offshoring onJobs.

However, said here that we found a lack of theoretical research on outsourcing. Not concentrate the knowledge base of industry on theoretical research, but on the financial data and global economic and political trends. What we have observed is that the IT industry is looking at outsourcing as an economic phenomenon, and not its focus on research, etc. as for the field of software, microprocessors, Internet

Why outsourcing is an important issue?Referring to our problem, we want to emphasize that the problem is not only because of its impact on the IT industry to a considerable extent, but also because of its impact on the global economy as a whole. We know that outsourcing is a $ 400 billion per year industry and IT outsourcing is an important part of the industry. A slump in IT outsourcing would mean a loss for the world economy.

Since the problems of IT outsourcing (eg, political oppression in the U.S. and the lack ofInfrastructure in developing countries, host) can seriously slow down the growth of IT outsourcing, the problem in this industry is significant.

Finally, we would find that nothing should be decided in a vacuum. If we are to judge by outsourcing, we would not even be able to tell whether for society or not is good, but if we are outsourcing from the perspective of the global economy, increasing globalization, the increasing cost of production in the U.S. and lower costs in developingCountries, we can see that outsourcing has a positive side. Although less than 20% of the total American software companies outsource their jobs, the generally offshore outsourcing ( "offshoring") as something bad times for the U.S.. We hope that with this study, we were able to present a balanced picture of outsourcing.

Within the outsourcing debate: How DuPont benefited from outsourcing to China

As we began to look at the debate about outsourcing, we foundDuPont, which has outsourced the project to build an online database of materials to China. The report said outsourcing website published in Asia that could by outsourcing to China, the company create a 24 / 7 operation and the project is completed before schedule. The report also pointed out why the company existed in China as the destination and also talks about the future of China as an outsourcing destination selected. (Rosenthal, 2005, p. 6)

How the U.S. Government Can Benefit FromOutsourcing

Using the example of DuPont, the outsourcing helped the company complete a project in time and also saved costs, we decided, such as outsourcing the government might seek help. We came to a report on the U.S. government's IT challenges and how outsourcing can help to website outsourcing in Asia. The report says that in 2005 50 percent of the 70,000 government IT professionals would be eligible for retirement, according to aStudy of 1999. Moreover, the government's IT legacy systems are also in old age. So even if young people's work force, they are not trained to join in the old system. You need to be trained, increasing the costs and expenses of the government does. This gap has opened doors to the providers offer outsourcing as a solution to the problem. (Harney, 2005, p. 2) The report mentioned that many unions and government workers from outsourcing because they fear that it will increase unemployment inUSA. Although there is a general fear of outsourcing in the public, we believe that if we are able to mutually beneficial outsourcing relationship between the two parties and show the advantages of creating opportunities for people to feel it, it to start positively.

Creating a mutually beneficial outsourcing relationship

The report, entitled "Creating a Win-Win Culture" in Outsourcing Journal speaks of QinetiQ, which has reached the end of an existing outsourcing contract andrecognized the need to provide a one stop solution offering a wide range of services and to reduce the total cost of their IT services. In 2003, the company signed a contract with Accenture to offer a wide range of applications, hardware and data center services, shopping and program management. To achieve this, early savings, bought two businesses in a structured and efficient governance, together with good relationships at all levels of the two organizations. Theywere the savings target in the first year of its partnership with the help of open communication, continuous innovation and multi-win-win solutions. Using the example of QinetiQ and Accenture, we can say that a good outsourcing relationship is a win-win culture, which can benefit both sides can be created. More and more companies try to copy the success of these two companies. (Garner, 2005, p.4)

Having discussed the positive aspects of outsourcing, the benefits ofcan to the company and the government, we now offer our discussion on the negative side of outsourcing that is declining satisfaction among outsourcing customers, security issues, social impacts and public opposition. Decline in satisfaction among outsourcing clients about declining quality of outsourcing customers on ZDnet talks about studying Diamond Cluster International, who found that the number of buyers satisfied with their offshoring providers publisheddecreased from 79% to 62%. Also the number of buyers to terminate their contracts prematurely offshoring has doubled, reaching 51%. (Frauenheim, 2005, p. 2)

Security risks in outsourcing

This decline in satisfaction will be helped by the recent reports of security vulnerabilities in the call center in India. It has been reported on the BBC by Zubair Ahmed that some employees of Indian call center in Pune MphasiS large sums of money paid to the fake account they created from theAccounts of U.S. customers of Citibank, whose reputation operations were treated by society. This incident has brought into focus the lack of integrated safety management system at call centers in India. The industry is still in the growing stage, and does not take a lot of attention to ensure that adequate safety precautions are followed. It is only after this incident that started the company to do background checks of employees and have the background checks carried out a standard in their attitudeProcess. This incident raises many questions regarding the safety and security of data when processes are outsourced, including the capacity of Indian companies to manage data safely, is in question. (Ahmed, 2005, p. 2)

Social Impacts of Outsourcing

While the data security in outsourcing called into question, it is a question about the social impact of outsourcing. This question is maneuvering largely sidelined since the industry especially with the more visible effects of theOutsourcing as the cost savings and profit, rather than search for the causes slow but steady social transformation outsourcing. Kaushik Basu talks about this topic in his article "The Politics of Business Outsourcing," on the website published by Project Syndicate. In his article says that he can to lose their jobs due to outsourcing lead to protectionism and nativism. In the long run, this can lead to racism and other discriminatory practices. Therefore it is very important to help the laid-off employees to enable themnot develop this kind of feeling for the land where his job went. (Basu, 2004, p. 9)

Unions Opposing IT outsourcing

The unions have in America on the one side of the social impact of outsourcing – job loss and the effect of looking at the family and society. They are protesting against outsourcing and urges the Government to pass, legislation to prohibit outsourcing. In his report, "The unions strengthened anti-outsourcing efforts," said Juan Carlos Perez, that information technology trade unionsto fight to keep American jobs in America. Leading this battle is to convince the International Federation of Professional and Technical Engineers (IFPTE), which tries to outsource the Congress of the United States, the laws that protect the employment pass. The Union is also lobbying hard to get the working visa, reinforced especially H1B rules, so that everything that goes jobs stay in America to Americans. (Perez, 2005, p. 4) Although we are concerned that the unions painting Outsourcingas the only reason for the loss of jobs in the IT industry, while they turn a blind eye on other grounds such as stagnant economy, high costs and increasing competition from foreign companies. It would be better for the industry and also for IT professionals, when they look at the whole picture, instead of starting on outsourcing as the only evil.

Degradation of the IT talent pool in the U.S.

To understand why outsourcing is happening, we must recognize that the U.S. has a fast-depletingTalent pool in technical fields like computer science and physics. So the companies are forced to look for talent outside the country or to send the order to the country, where there is a large talent pool. India and China are the best examples of this. India has done a large number of engineering graduates, refined technical skills and are able to work for less. China also produces the largest number of computer science engineers per year. So, should compete against them for United States try toEncourage their students to enter technical fields and should also increase adoption rates in schools and universities to technical skills. The report, "In the debate over outsourcing Information Technology Services Jobs Overseas," published by Manufacturing News, talks about the issue of talent shortage in America. The reports also discussed the rising number of job protection groups, some of which have Web sites, although these groups are trying to keep the focus of job lossand economic problems of American workers have been caused by outsourcing some of their locations include racist remarks and biased. And instead of reasons that they are an insult to the foreigners who speak their jobs overseas. (Manufacturing News, 2005, p. 6)

Having regard to the length of the problems with outsourcing, such as security, questions on job loss, reduce talent pool in America and other discussion, we move our discussion to the outsourcing objectives andIT infrastructure in the destinations. Outsourcing destinations, India and China as the leading destination developed IT job outsourcing. For out study, we have an analysis of China as an outsourcing destination.

The report, "Country Analysis: China" talks about China as an outsourcing destination. The highlights of the report were summarized as follows: The software outsourcing market in China is a U.S. $ 1.5 billion market with annual growth of around 35%. The current position of China is, when India used to be around 12 years ago. Growth in this sector is fueled by the large supply of low-cost and skilled workforce and a large internal market. Although the Chinese market is promising, suffers from several serious problems such as lack of English language skills among programmers and managers who do not have Chinese companies have established quality control as their Indian counterparts. The major problem of softwareNot help> piracy in China, it become a credible destination for software development. The Chinese government is launching programs to promote and develop the software industry. But it still has a good international reputation because of its un-democratic style of government and many European companies and U.S. companies do business in China because of this reluctance.

Although China has a large supply of IT professionals who have a teaching certificate in software engineering andSoftware are very limited, given that Chinese universities still emphasize the traditional areas such as mechanical engineering and electrical engineering. Moreover, China has made great strides in the global telecommunications infrastructure, but will focus on developments in the major cities and near the coastal regions. The heartland and the rural areas is still far behind. This restricts the Chinese market for software sales and development. We see that China is a promisingDestination for IT outsourcing, but it has some problems. The country, however, the situation in India, the outsourcing market, where there may be in a position where we, the IT infrastructure, and other surrounding issues, see the IT development in the South Asian market.

A report titled "Struggling with the Digital Divide, Internet infrastructure, policies and regulations, published in South Asia Net, talks about the problems of the South Asian IT industry.The highlights of the report can be summarized as follows:

The Internet has revolutionized the way the South Asian region in the late 1980s through bulletin boards, governmental and non-governmental initiatives. In India, in 1995, state-owned VSNL started with Internet access for the public. Private companies entered the market in 1998. In Nepal, the Internet was introduced in 1993 and in 1996 the people were given access to the World Wide Web. In the beginning, only the major cities inthe region had access to the Internet, but now using the Internet has spread to rural areas. For example, in the Government of India, many villages, "agencies have their own websites and many offer their services online.

Although the Internet is spreading in South Asia, the lack of infrastructure are hampered outdated laws, language barriers and the high cost of Internet access growth. We see that the South Asian IT has-fighting infrastructure problems, but the industryis trying to overcome it and keep its position as a favored outsourcing destination. (Rao, Bhandari, Iqbal, Sinha & Siraj, 1999, p.7)

Are you interested in knowing who is the holder of the keys to the future of IT? Me too! Consider this. According to the Moscow Times, in 2006 Google held its annual Global Code Jam, brings the programmers from around the world to compete with the same problem online. And these tasks are not a joke, but for from-hard-Programmers . What is your guess about the winner? (True, I was a little biased and I thought that Russia would be among the top-programmers.) And that is exactlyCase, a Russian programmer won the prize. In fact, among the 100 finalists, 33 were Russians. Other important "youth power" contained twelve Chinese seven Americans, six German and three Canadians. Surprisingly, not a single Indian there …

Given all this brain power, it is no wonder that the results of the IT market developments in Russia, are the most prominent outsourcing, very promising. According to Leonid Reiman, Russian Minister of Communications and IT, the growthRussian IT market grew a total of 13.6 billion USD in 2006, representing a growth of 17% over the previous year. 23 million PCs (33% growth) and 25.1 million users (15% growth) were in Russia in 2006. Russia expects an increase of digital TV, total Internetization the school system and Techno-Park Development, said the Minister. Techno-parks alone should output a value of U.S. $ 4 billion achieved, while the total revenue from the IT sector is at 40 billion U.S. dollars directly to the year 2010.

The real cashCow of the Russian IT industry has its IT outsourcing (ITO) sector. RUSSOFT reported that the Russian software exports increased by almost 54% and reached USD 1.5 billion volume in 2006. During the last five years the Russian ITO market grew by 30-40%. Russia is right behind India and China with regard to the best offshoring locations of the market volume. RUSSOFT highlighted that over 50% of the market of Moscow and St. Petersburg company was created, with others located in primarilyNovosibirsk, Nizhny Novgorod and Yekaterinburg. NeoIT company estimates that this year the growth of the outsourcing industry will reach 40-45% at.

Intel Russia under President Steve Chase recently Reksoft IT Quarterly as saying that the outsourcing market is "going to reach one billion U.S. dollars has been cited this year. People know that you are in Russia, because it is a very fast growing market. "The U.S. IT giant has invested 700 million U.S. dollars in Russia over the past 15 years, while other companies such asBoeing, Motorola, Google and HP has its R & D centers in Russia.

As the Moscow Times reported Epam and Luxoft, the leading Russian outsourcing companies employ approximately 5,000 employees and a turnover in 2006 reached USD 148 million, an increase of 45% over the same month last year. When in India, compared to 80% of global market share, provides Russia with its tiny little 3%, but the potential is strong, since it increased by a growing number of IT graduates, strong education system and better infrastructureLevel.

All these important developments were conceived in the huge Russian presence at CeBIT, the annual IT fair in Hanover, Germany, instead. This year, Russia was the official CeBIT-country partner. The Russian Pavilion will present approximately 150 exhibitors and major Russian IT, IT consulting, outsourcing and information company. The pavilion was established by high-ranking government officials, including Deputy Prime Minister and Minister Naryshkin Reiman, who accompanied them proudly supportsGerman Chancellor Angela Merkel at the booths of the participants. Minister Reiman was optimistic announced, that would be the Russian IT exports were $ 1.8 billion increase in 2006 and over the next three years to 10 billion USD.

Of course, without sin? There are a number of issues that prevent a more rapid development of IT industry in Russia. Lack of marketing capabilities and global experience, high product and venture capital funding does not adequately represent major obstacles. Letus look more closely at what happened in the latter.

High-Tech Investment Set to Grow

In Russia in 2006, about ten investment funds specializing in high-tech industry. The IT companies that were favored by investment funds mature and successful IT company, says CNews Analytics. Currently, the situation has been changing as more and more funds are looking seriously interested in smaller companies.

In May 2006 the Russian Ministry of Economic Development and Trade has announcedThe winner of the tender for the management of five state and private venture capital fund that has been created in Russia. The government wants to co-invest in the Funds managed by private companies. Under the terms of the offer, 25% of venture capital funds are federal funds, 25% regional and 50% private capital. The winner of the tender are large investments by Russian companies, including Allianz ROSNO Asset Management, Troika Dialog and Monomakh, reports CNews Analytics. These funds will beto increase investment in innovation, thus the risks of private investors and the creation of venture capital in Russia.

While the growing interest in high-tech companies, many mutual funds a little cautious and companies just beginning the test seriously, when a business grows, revenues hit U.S. $ 5-10 million, and capitalization. However, local investors are a significant proportion of those who invest in small and start-up IT companies.