Reksoft CEO Speaks on Outsourcing as a Source of Innovation

St. Petersburg, Russia, September 30, 2012 --( Reksoft, a leading software development outsourcing provider in Eastern Europe and part of Technoserv Group, led a discussion at German CIO’s Think Tank conference on new outsourcing techniques.

According to Outsourcing Verband research, in 2010 a market for outsourcing services in Germany, Austria and Switzerland (DACH) was estimated at 22 Billion EUR with a potential growth of about 7 Billion EUR in the next five years (with a yearly growth of about 6%). At the same time Germany was lacking around 88,000 employees with ICT skills in 2011 and 77% of the Austrian companies reported difficulties in recruiting talent in the technology field in 2010.

Alexander Egorov, Reksoft Chief Executive Officer, was invited to speak at Think Tank strategic session on the subject of turning outsourcing into an innovation source. He built his talk and the overall discussion around such relevant challenges faced by CIOs in Europe - budget pressures vs. introduction of new technologies. The budget pressures manifest themselves in more quality services from service providers expected for the same budget, new services expected by the business departments to secure USP while these services have to be launched faster. At the same time, there are always new technologies arising, which have to be accommodated. Besides, there is a missing technological competence in several fields due to low project repetitiveness.

A shift from the common sourcing practice to the outsourcing as a source of innovation requires new collaboration models between buyers and providers. In the beginning of the cooperation, the exact matching between the requirements and expectations of clients has to be set up.

During the vendor selection process CIOs and purchasing departments should discover strong commitment to the relationship’s success with the desire to go above and beyond contractual expectations and KPIs.

“CIOs should definitely involve suppliers in the front end processes since it is crucial for an outreach program to be a participative process and not just a one-way broadcast. This is important not only to head off critics and resistance but also due to the fact that both a client and an outsourcing partner need the cooperation of all stakeholders to be successful in the long term,” commented Alexander Egorov.

Reksoft has been operating in the DACH region since the company’s inception in 1991 and has gained trust from such renowned enterprises as Ascom, Aastra Telecom, ASC, Fujitsu, Springer Science+Media, and T-Systems.
Svetlana Vronskaya
+7812 3252100