The Russian BPO market has been witnessing growth in the recent years. Even though national and international companies started BPO operations in Russia in 1990’s the first survey regarding the state of Russian BPO market was carried out in 2009 by Russian rating agency called ExpertRA. The first survey was carried out on accounting services outsourcing in Russia. In 2010 a similar sort of survey was carried out and it was found that the Russian BPO market grew by 13 %. It was observed that among the 80 accounting service companies which were surveyed in 2009, their revenue has grown from 32 billion Rubles in 2009 to 3.8 billion Rubles in 2010.
A similar survey was carried out by ExpertRA in 2011, the results of which were published on 7th May 2012. This survey found that the Russian BPO market has shown a sustainable growth of 17%. It was further revealed that this time 90 companies were surveyed compared to the 80 companies surveyed last time and the revenue of these companies have grown to 5 billion Rubles in 2011. Most of the 90 outsourcing companies which were surveyed showed 20% growth in revenue which reflects robust growth story of Russian BPO market.
The type of business process outsourcing in Russia which is showing tremendous growth is financial and tax accounting outsourcing. Payroll outsourcing is also becoming another favourite outsourced activity. The one off outsourcing projects handled by outsourcing companies in Russia which are becoming quite popular among clients are:
- Accounts inspection and recovery
- Cash maintenance
- Accounting policy development
- Report preparation &
- Inventory & fixed assets auditing etc
One of the outsourcing activities which are not much popular in Russia is HR administration outsourcing and this accounts for just 4% of the total revenue of 90 companies surveyed by ExpertRA. The study done by ExpertRA highlights that BPO companies in Russia have vigorously added clients to their list, i.e. companies have added 2711 clients in 2011 when compared to 2189 clients in 2010. This speaks about the fast growth of business of these BPO companies.
Some of the top outsourcing companies in Russia
Russia has recently seen a change of guard with the Prime Minister Putin and President Medvedev virtually swapping their positions in the recently concluded elections. Though the country has been witnessing political turmoil and instability in the past, the country has been marching ahead in terms of growth in the BPO industry. Though India continues to dominate the outsourcing market, Russia is one of those fast growing BPO markets in the world. What is driving growth in this market in Russia is the availability of skilled manpower which is attracting enterprises to outsource high end R&D and IT services.
Almost 50% of the total Russian student population pursue courses in the area of science, engineering or technology which is far more than the student population in India, China, Japan or US. There are 1.3 million degree holders in Russia who are working and 2.35 million students are there in the University system. This shows the availability of skilled manpower and the scope for growth in IT/BPO sector. This pool of huge technically skilled manpower is all set to propel Russia into one of the favoured outsourcing destinations.