IT hubs (cities)

The majority of Russia’s export-oriented outsourcers are located in the country’s major cities: Moscow, St. Petersburg, Novosibirsk, and Nizhniy Novgorod. According to the RUSSOFT survey, Novosibirsk, Voronezh, Rostov-on-Don, Veliky Novgorod and Kazan are among the top ten Russian software development destinations. All of these cities also figure as key centers for research and development, and custom software development projects.

Regulatory climate

Since Russia’s emergence as a market-based and globally integrated economy, the country has been successful in enacting rational legislation and creating commercial and institutional structures that favor the implementation of software outsourcing agreements. Binding and enforceable, these have allowed the industry to grow and operate efficiently. The advantages of Russia as a destination for managed services outsourcing, IT companies, and Russian software development far outweigh…

Labor laws

Russian labor law, while adhering to international standards in most key areas, differs from EU and US law in significant ways that may increase the burdens placed upon an employer. While the letter of the law is extremely exacting, in practice there are many ways in which employers can and do get around the laws. Not only is there a difference in the way that the laws are laid out but also in the way that they are enforced. Differing types of software businesses in Russia – including software outsourcing providers and ISVs – require differing levels of adherence to the labor code, from virtually none to the necessity for full compliance. The most recent version of the Russian Labor Code...

Taxation

As with most countries, the laws that direct the collection of tax by the government are in a constant state of flux. The Russian Tax Code is no different and this has significant bearing on Russian outsourcing and the options that exist for Russian software development businesses. This section outlines the government’s various levies on economic transactions including those applying to ISVs and outsourcing vendors...

Government position

Recently, the Russian government has been making a concerted effort to develop the conditions necessary to become an important global force in the ICT sector. Russia has done much over the past few years to make outsourcing and software development key priorities. Much publicized recent meetings between Russian President Dimity Medvedev and industry leaders in Silicon Valley in 2010, and recent talks at Davos, were but the most visible manifestations of Russia’s intended move from a raw materials supplier into a high-tech, intellectual hub where innovation thrives...
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