February 23, 2004
CIOs representing seven countries meet
29% say number one reason for outsourcing is to reduce projects costs;
27% say outsourcing driven by focus on core business
Saint Petersburg, Russia, February 23, 2004 – Twenty-nine percent of 104 global CIOs say reducing project costs is the number one reason for outsourcing development projects offshore; and 27 percent cite the number one reason is continued focus on core businesses. The poll was conducted on February 4, 2004 in Saint Petersburg, Russia at the Executive Technology Leadership Forum sponsored by the CIO Collective and DataArt.
Survey results show the reasons for outsourcing development projects offshore:
"Business is borderless. In the new global economy talent is tapped anywhere. The CIOs that we speak with say they are thinking in terms of global sourcing, not outsourcing. Companies that are insular with self incinerate," said Alister Piggott, chairman of the global executive recruitment firm Morgan Howard.
- 29% - Reduce project costs;
- 27% - Focus in-house resources on core business;
- 20% - Lack of in-house talent able to handle innovative development projects;
- 15% - Flexibility;
- 9% - Success with outsourcing lesser complex projects.
Outsourcing of technology is spreading far beyond India and the Far East.
According to Eugene Goland, president of DataArt, a New York-based software developer with offices in Saint Petersburg, London, and Silicon Valley, "Increasingly CIOs from U.S., U.K. and Western European companies are sending development projects to Russia, particularly to Saint Petersburg. It’s a one-two punch for outsourcing to Saint Petersburg. Development can be done there for rates comparable to other offshore development communities and the level of complexity handled here is very high. These highly skilled developers are using agile programming and project management techniques. This is one of the reasons that we chose to locate our development offices in the city."
About the Executive Technology Forum:
The Executive Technology Forum, sponsored by the CIO Collective and DataArt, was held February 4th, 2004 in St. Petersburg Russia. Over 100 CIOs met to discuss leveraging the unique Russian IT market, the emerging prominence of Russia on offshore outsourcing, vendor selection, meeting the needs of the U.S. CIO and other topics. Featured speakers included Stuart Robbins, executive director of CIO Collective, Eugene Goland, president of DataArt and Valentin Makarov. Attendees included select top scientific experts, university academics, government officials and foreign dignitaries as well as the top technology business leaders and CIOs of Russia's largest and most influential companies.
About Alister Piggott:
Alister founded Morgan Howard in 1992 and has been the driving force behind the company since its inception. Through his initiatives the company expanded across the globe completing this transformation by early 2000. Apart from his responsibilities as Chairman of the group, Alister very much remains at the front end of the business. His 14 years experience of search, focused within the Technology Sector, enables him to work closely with clients and candidates alike advising on a range of HR issues and concerns.
Very much a business developer he has led searches and developed accounts such as IBM, Dell, Unisys and EMC. His broad experience crosses many different functional areas, but his true strength lies within the services/outsourcing sector with bias towards executive management and sales marketing hires. Having lived overseas for the past 5 years spending time in Europe, Asia and now being based in the USA he also brings a rare understanding of international concerns and issues within the search process.
DataArt is an offshore software outsourcing company specializing in Microsoft .NET development, with a staff of over 100 software professionals in St. Petersburg, Russia and local project management capacity in New York, San Francisco, and London. DataArt leverages people, process, expertise and low cost to offer top-quality cost-effective long-term outsourcing solutions. DataArt have built solutions for the financial and health care industries and a variety of technology industries. DataArt have earned an exceptional reputation for managing successful projects. For more information, visit http://www.dataart.com.