This chart demonstrates how the oil prica has been changing over the last decade

Software Outsourcing in Russia? Now?

Unfortunately, over time Russia has built up quit an ill reputation. This is the reason why it is particularly difficult for international customers to start offshore software development projects in Russia. However, collaboration with Russian specialists will allow you to get a high quality product at quite a reasonable price. Wonder why? Let me explain.

 Ever since in 2014 the Central Bank of Russia announced that it would no longer support the ruble exchange rate, the world saw its sudden fall against dollar and euro. As a result ruble reached the all time low of 80 rubles for a dollar. Previously since 2010 ruble had been retaining stability (40 rubles fora dollar). This was caused by price drops in the raw materials market. From 2010 till 2014 the price for a barrel of Brent oil was 100$. Currently the price is only 37$. Due the the Iraq’s return to the international oil market in 2016 the prospects of rise in prices are quite gloomy. This is the reason why prices for both local and imported products are now much higher.
Despite of the fact that these events actually have their positive consequences , they don’t really contribute  to the growth of the local production, because the market is already dominated by international suppliers. Although the Russian IT industry is still able to to derive benefit from this situation, Russian IT specialists are still rivaled by those from India and China. Asian specialists are traditionally known to be qualified and and available at really reasonable prices.
In October 2015 The Russian Software Developers Association RUSSSOFT conducted a poll, in which it claims the Russian IT export market to reach 7 billion $. This, in fact, is by 16% more compared to 2014. More details are available here. This number is still much lower compared to the IT export rates of European  countries such as Germany (18,9 billion $ in 2014). Read more. However, this definitely means that Russia should also be considered when choosing and offshore software development partner.

If you are looking for offshore opportunities for your software development projects, you should remember, that  there are a lot of reliable IT companies, ready to make you offers at reasonable prices.

Demonstration of how the Brent oil price changes over time.

Brent Oil Chart