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Press Release

Jul 8, 2009

Auriga was a participant & sponsor of the Gartner Outsourcing & IT Services Summit 2009

On June 15-16, 2009, Auriga participated as a sponsor in Gartner Outsourcing & IT Services Summit, which took place in London, UK. Gartner Outsourcing & IT Services Summit is one of the key outsourcing events, exploring the practical steps you must take today to secure the success of your outsourcing initiatives.

“The summit is rightfully considered to be one of the most outstanding events on outsourcing organized this year, with large audience, and penetrative analysis of the current trends.”

Andrei Pronin, General Manager

During the summit, companies-members of RUSSOFT organized a roundtable devoted to the specifics of Eastern Europe, with main focus on Russia, Ukraine, and Belarus, as a software services outsourcing destination. The roundtable started with a 10-minute presentation of the region performed by Auriga's President, Dr. Alexis Sukharev, speaking on behalf of RUSSOFT, and concluded with a Q&A session of five leading regional service providers, including Auriga.

The presentation and the following discussion touched the role of the region in the global outsourcing market, and concentrated on defining the specifics of geography and appropriate tasks to outsource there. The key differentiators include the presence of educated and experienced workforce oriented at engineering excellence; the willingness and skills in using flexible engagement approaches and models; cultural proximity for both US and Europe (in addition to geographical proximity to Western Europe), and general orientation of the providers on building trust and long-term relationships with the customers.

With those strong points, considering the relatively small size of the Russian providers, the country is well-positioned for the certain type of projects. Profound know-how and attention to even small deals makes it ideal for the projects and teams of fewer than 100 engineers, where creativity and experience are more important than the ability to provide a huge amount of resources. Widely-known reliability and integrity of providers, mostly-European culture, and stability of the teams most closely correspond to establishing long-term relationships. Moreover, the ability to quickly grasp the new engineering and business topics, combined with resource-saving approaches, and augmented with the specific country risk profile, makes Russian companies a good option to use as a second source in multi-sourcing arrangements.

In the June 2009 Gartner presentation "Global Sourcing: State of the Market and Future Trends" by Ian Marriott and Gianluca Tramacere, Russia was included in Gartner's top 30 locations for offshore services.

” Russia has deserved the place among the top offshore/nearshore locations. It must be noted that our capabilities are concentrated in the application outsourcing area leaving BPO and IT infrastructure services domains barely populated. That is often considered as Russian weakness in the global race for becoming the outsourcing destination #1. But considering Russian outsourcing service providers, the focus of Russian outsourcers on software services is rather a benefit than a disadvantage, since the whole industry potential is focused in the area, most suitable for realizing the traditional strengths of the country,”

Andrei Pronin, General Manager

Linda Cohen and Chris Ambrose offered advice to buyers of outsourcing services in their presentation "Gartner Keynote: Multisourcing Today: Techniques for Optimizing Cost Containment and Performance Management". Among other do’s and don’ts, the Gartner analysts listed the following recommendations especially relevant for nowadays:

  • don't focus exclusively on cost cutting
  • do explore and exploit alternative delivery models
  • don't sign 10-year deals
  • do take advantage of flexible pricing

Auriga representatives noted that the tendency of outsourcing providers to offer flexible and alternative approaches in engagement and pricing models, confirms the adequate choice of the company development strategy. Auriga is currently elaborating a new pricing model, in addition to the existing more traditional pricing options offered to the customers. This new risk sharing model allows more comprehensive risk control and, thus, makes both parties – the customer and the service provider -- interested in risk reduction and mitigation. Auriga is also working on probing the boundaries of the software R&D services by augmenting the traditional and well-developed enterprise applications development services with a complete solution based on PUPM (Price Per User Per Month) and similar approaches.

"We are proud to speak on behalf of RUSSOFT and Russia at such an event as Gartner Outsourcing & IT Services Summit. Russia and neighbor countries are clearly underestimated as outsourcing destinations. Fortunately, there is a trend nowadays towards the 'right-sourcing' approach, when instead of thinking of outsourcing in general, the users consider all strong and weak points of various locations in application to a particular task in hand. And with that approach Russia has very good chances to succeed, as its strong points – talent, reliability, and flexibility – are quite clear at a closer look. During the summit we tried to share insiders' knowledge of the industry with the delegates, providing new bits of information for making informed decisions. And for those who recognize Russia as their 'right-sourcing' destination, Auriga will definitely be one of the top picks – being the truly poster child and the pioneer of the industry we have developed the strong points of the country to its maximum.”

Andrei Pronin, General Manager


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