Criteria |
Russia |
China |
India |
Culture |
- Vast talent pool from top Russian military conglomerates with solid experience (av. 5-15 years) in sophisticated environments
- Low labor costs
|
- Largest, mostly untapped pool of IT talent in the world
- Lowest labor costs, but major ethics questions
|
- Large pool of IT talent
- Competition for talent increased significantly and will only intensify
- Presently low labor costs
|
Talent |
- Russian work ethic and culture are European and very similar to that of US
|
- Significant differences between Asian (and specifically Chinese) culture and business environment and business culture of US/Europe
|
- Cultural environment differs significantly from US/Europe
|
Infrastructure |
- Communication cost: * 8,000-12,000 $/month
- Stable power grid based on multiple technologies. Practically unlimited supply of oil.
|
- Communication cost: ~$10,000-15,000$/month
- Modernized power grid in major cities only
- Primitive economic infrastructure
|
- Communication costs $15,000 -20,000/month
- Very frequent power outages and other infrastructure problems
|
Geopolitical factors |
- Democratic government with political stability
- No outside enemies
- Direct flight to Moscow from most US cities: 8-10 hours
|
- Precarious business environment due to communist government, particularly in regard to IT sector
- International tensions due to relationships with Taiwan, Tibet, 'rogue states' and internal human rights situation
- No direct flights from East coast USA. Flights from West and Midwest take 12-14 hours
|
- Stability of political system varies, but is weakened by internal religious divisions and nuclear conflict over Kashmir
- Active conflict with Pakistan over Kashmir with mutual threats of nuclear war; 'live' exchanges of cross-border fire commonplace
- No direct flight from the US; 22 hours flight time
|
Business incentives |
- Income tax applies
- Total customs duty exemption
- No VAT for IT services export
- No import duty on IT equipment
|
- Software policy 2000 offered some limited tax and VAT exemptions
- 15% customs duty on technology imports
- Very limited exemption
|
- Income tax holiday till 2010
- Customs duty exemption
- No VAT for foreign entities
- No import duty on IT equipment
|
