4 february 2014
IAOP Russia Chapter: The Russian IT outsourcing market will keep consolidating in 2014
Outsourcing professionals from throughout Russia joined together last week for IAOP’s Russia Chapter meeting. The expert community made a conclusion that the Russian IT outsourcing market will continue consolidating in order to meet the growing demand for packaged services.

The event was arranged by the IAOP Russia Chapter co-chairs Stragegic Outsourcing Organization ASTRA and MAYKOR, a Russian nationwide provider of IT  and Business Process Outsourcing.

About 40 experts participated in the meeting, including representatives of such companies as Rostelecom, IBS, KPMG, Russian Venture Company, KPMG, OTP Bank, Team Force, Optima, NVision, Sberbank, IT, Luxoft, Skolkovo, IBM, Fujitsu, Aplana, BDO, Accenture and others.

The key subject of the meeting was investments in the Russian service sector and outsourcing. Besides, the participants discussed ways of development of the Russian IT and business processes outsourcing (ITO and BPO) in 2014 in the context of global trends. Speakers pointed out that since customers' interest to business processes outsourcing is growing, the number of providers of BPO services will increase. New value propositions in that segment will be aimed at large businesses which are the least of all covered by the market.

"At this time business wants more integrated outsourced services that would include their strategic functions. This requires innovative value propositions and wide range of competences," says Vadim Grishin, MAYKOR's VP for Investors Relations. “MAYKOR's experience shows that organic growth is not always sufficient to create such propositions. On the other hand, M&A strategy enables the company rapidly strengthen its resources and expertise in order to meet the clients needs in full."

"Tremendous potential of the Russian outsourcing sector has emerged in the area of corporate and shared service centers. Last year's estimates showed that commercial outsourcing market in Russia, including IT outsourcing (ITO) and business processes outsourcing (BPO), was 3 billion dollars, and this does not include 'insourcing' service centers in large Russian enterprises that would make the figure at least 3-3.5 times greater. Thus, at this time the Russian corporate services market potential can be as great as more than 10 billion dollars," noted in his welcome speech Sergey Makedonsky, ASTRA President.

"Outsourcing in Russia is developing rapidly and will continue to do so based on the unique needs of the Russian marketplace. Active participation of Russian companies in activities undertaken by the international community of outsourcers is a sign of a qualitative leap of the market. In the course of meetings such as the one held by IAOP Russia Chapter an intercultural exchange of knowledge and expertise takes place, which is very important for the development of universal professional standards for the global outsourcing sector," noted Matthew Shocklee, IAOP Managing Director & Global Ambassador.

About ASTRA business club

ASTRA business club is an independent open discussion panel for heads of companies, outsourcing professionals, Russian and international experts in the field of organization of corporate services, shared service centers and outsourcing. It is a joint project of ASTRA Association and KPMG. 

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