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Press about Auriga

Apr 13, 2005

Russia is no India: Execs: Forget outsourcing

Boston Herald ,
Jay Fitzgerald

Russia may be a technologically advanced nation that can take credit for putting the first satellite and man into orbit.

But it's not about to become the outsourcing capital of the world like India, an industry expert said yesterday.

“They're too far behind,'' said Joseph Feiman, research director at Gartner Research, referring to Russia's small number of external service providers that can handle large jobs for foreign corporations.

Feiman's comments came prior to former Soviet President Mikhail Gorbachev's appearance yesterday at a Massachusetts Software Council conference in Boston.

Russian scientists' technical savvy and business opportunities in the former Communist country were big buzz at yesterday's gathering, with Russian firms setting up booths to woo business from potential Bay State customers.

Feiman agreed that there are many advantages to doing tech business in Russia - including low wages, a highly skilled work force and proximity to the European market.

But Russia is better off concentrating on specific technologies, not trying to be the go-to place for software outsourcing as India has become, Feiman said.

However, Bart Higgins, an executive vice president at Auriga Inc. in New Hampshire, said his company has 275 workers in Russia providing services for firms - and business is strong.

Yossi Elaz, vice president of research and development for Draeger Medical, a German firm with a presence in Danvers, said his company has been very pleased with the software work performed by Russians, via Auriga. "We had a trial project a year ago and it was very successful," Elaz said.

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