There are very few Russian companies whose project management and quality control processes are certified according to international standards. Language is another distinct disadvantage, as all other major offshore software development locales are English speaking, resulting in a further dependence on project managers who may not be well experienced. Other drawbacks which affect the Russian industry itself are high bandwidth costs and a lack of marketing capability in the U.S. and other target markets. Finally, there are many legal and regulatory challenges in the areas of intellectual property, export and import, taxation, labor law, business registration, reporting, and currency control. Most of these issues affect only companies who are setting up wholly-owned offshore software development facilities in Russia.
Companies using Russian contractors dramatically reduce their legal and regulatory difficulties.
Intellectual property and security are major concerns of companies considering offshore software development in Russia. Thankfully, the laws on intellectual property ownership in Russia are relatively clear and developed. As always, companies can ensure their safety by working with reputable and experienced organizations and contractors. This industry is sure to continue growing quickly. Russian companies and project managers are quickly gaining experience and many are currently preparing to attain world recognized quality and business process certifications.