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- Path: sparky!uunet!not-for-mail
- From: avg@rodan.UU.NET (Vadim Antonov)
- Newsgroups: comp.programming
- Subject: Re: Software development in Russia?
- Date: 22 Dec 1992 23:48:01 -0500
- Organization: UUNET Technologies Inc, Falls Church, VA
- Lines: 73
- Message-ID: <1h8r21INNbpi@rodan.UU.NET>
- References: <1992Dec22.173838.1@dhvx20.csudh.edu>
- NNTP-Posting-Host: rodan.uu.net
-
- In article <1992Dec22.173838.1@dhvx20.csudh.edu> vnoble@dhvx20.csudh.edu writes:
- >I am contemplating investing some money in software development in Russia and
- >selling it here in US. It seems to be a good idea since software is a heavily
- >labor-consuming product with little hardware investment required to start it
- >out.
-
- Forget about it. You apparently isn't aware that the main problem
- with the software in US is that the competition is already too
- strong and the products themselves aren't decisive factors in
- capturing the market share; the marketing, advertising and support
- are. Get Microsoft for example -- the company succeeded selling
- nothing more than incredible crap no knowledgeable person will
- ever buy for himself. Now think about how do you will provide all
- those "services" with people sitting in Russia.
-
- There are three classes of software products on the market:
-
- 1) toys for computer illiterates (spreadshits, word processors,
- fancy file handling utilities) which can be written by a single
- person in less than a year. Development costs are about $100K,
- the risk is moderate.
-
- The market is saturated with that kind of stuff and people choose
- between such programs by the size of ads in PC Magazine.
- Software manufactured in Russia simply has no chance to succeed
- in that market.
-
- 2) professional software (databases, CAD, banking, etc) are usually
- developed with a specific consumer in mind. The market is relatively
- limited and requires strong "ties" (aka expertise in the particular
- area, personal links, government contracts etc). Development costs
- are in range $1M-$10M with moderate risk (mostly of technical
- nature).
-
- As a rule, Soviet programmers do not have expertise (and surely do
- not have friends in high places) required for succeding on that
- market. The projects require teamwork and the few groups capable
- of that kind of work in Russia (like the DEMOS team i used to work
- for) are already overloaded working for the local Russian market.
- Those teams are not interested in producing software "on demand"
- except if there is an opportunity to make relatively good bucks
- without much of hassle because they're already successful. As a
- rule their activity produce some "by-products" of the 1st class
- which probably can be marketed in the West because they're
- essentially "free". An individual "imported" programmers can
- work for US companies doing that kind of software rather successfully
- (to pick the expertise on the place is not a big deal for the
- usually self-educated Russian programmers).
-
- 3) research projects are usually require people with outstanding
- abilities which cannot be acquired by training. Arguably those
- people are equally distributed in the general population with no
- relation to the social and economical conditions and/or education.
- There is a strong evidence that there is a number of people of
- that kind in Russia who are virtually unemployed, for their
- abilities aren't much useful in getting the short-term profits.
- However, it is extremely hard to find them (or for them to get
- recognized in the West credentials) becasue the Soviet "scientific"
- society was a labour union of bueraucrats. Getting PhD in USSR was
- more an excercise in conformism and getting iron buttocks rather
- than act of creativity.
-
- With some luck and lots of research it is possible to find a
- team capable to producing something which will create revolutionary
- new products -- with odds 1:100. If you got spare $10M you can
- give a try. With a luck you may get richier that W.G. More likely,
- not. Only big companies in US (like AT&T, IBM, Xerox or the federal
- government) play these games.
-
- Resume: you'd be much better off importing programmers from Russia than
- importing software.
-
- --vadim
-