Everything You Always Wanted to Know About...
Transcript of Everything You Always Wanted to Know About...
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Everything
You Always Wanted
to Know
About Russia
But Were Afraid to Ask
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Agenda
1. Some Key Facts about Russia
2. Where are the Money?
3. Business with Russians
4. Outsourcing to Russia
5. Culture-related Aspects
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1. Some Key Facts
about Russia
Geographical Summary
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Nikolay Dekhtyarenko
Partisans
Legendary Russia
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Real Russia
Area: 17,075,400 km2
Population: 145,000,000
Brazil, Russia, India, China:
countries of growing economics.
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History (simplified)
• Up to 1547: Feudal dominions.
• 1547–1721: Feudal Kingdom (old school).
• 1721–1917: Russian Empire (European).
• 1917–1922: Red Russia.
• 1922–1991: Soviet Russia = USSR.
• 1991–today: Russia (as we see it today).
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Russian Cyrillic Alphabet
Cyrillic LatinА а U (but)
Б б B
В в V
Г г G
Д д D
Е е YE (year)
Ж ж ZH
З з Z
И и I
Й й Y (way)
К к K
Л л L
М м M
Н н N
О о O
П п P
Cyrillic LatinР р R
С с S
Т т T
У у U (cool)
Ф ф F
Х х H
Ц ц TS (zurück)
Ч ч CH
Ш ш SH (push)
Щ щ SH (ship)
Ъ ъ no sound
Ы ы E (we)
Ь ь no sound
Э э E (letter)
Ю ю YU (you)
Я я YA (yard)
Поезд (“poyezd”)
Собака (“sabaka”)
Кошка (“koshka”)
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Russian Language
Good news:
• No articles
• No auxiliary verbs (like be and are in English)
• Word sequence in a sentence is not fixed
Bad news:
• Grammar features three genders
• Plural of nouns is often irregular
• 12 forms for a noun (2 numbers, 6 cases)
• 1000…0 forms for a verb (gender, tense, person, number, mood, etc.)
• Verb’s form depends on the gender of the corresponding noun or person
• Punctuation rules are strict and complicated
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Currency: Ruble
Abbreviation: RUR
Symbol: (informal), р. or руб.
$1 ≈ 32 р.
1 € ≈ 43 р.
How much we
earn and pay in Russia
Some Common Costs
Ticket to a subway: 0.65 €
Average bill in a decent restaurant: 30 €
Two bedroom flat in Moscow: 700 € monthly
My laptop: 850 €
Core Taxes
Individual income tax: 13%
Corporate wages tax: 34.2%
Corporate VAT: 18%
Corporate profit tax: 25%
Average Wages in IT*
Team leader: 3,500 €
Senior developer: 2,800 €
Developer: 1,800 €
*data for Moscow, monthly(!)
Р
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How hard we work
in Russia
• Working week: 5 days (Mon–Fri)
• Working day: 8–10 hours
• Vacations: 20 business days per year
• Holidays:– Dec 31– Jan 11
– Feb 23
– Mar 8
– May 1, 2, and 8, 9
– Jun 12
– Nov 4
We
work
We
don’t
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2. Where are the Money
Why it’s a good idea to do Business with Russians
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We have Much Money Now
The Main Customers are:
• Gas, Oil, and Minerals Companies
• The Russian Government
• Retail as B2B customer
• Retail as Channel of Sales
• Banking and Insurance
• Telecom
…and we use it or lose it.
Just do right things and they’ll share their profit with you.
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We still have Good
Engineers and Researches
The main branches are:
• Software Development
• Security and Cryptography
• Aviation and Space
• Weapons
• Medicine
• Specific Technical Branches
…and we use it or lose it.
Just do right things and they’ll share their profit with you.
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Get Ready
for the Russian Business
In Russia you can quickly make
a lot of money but you have
to render very strange activities
in order to achieve that.
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Doing Business
with Russians
Understanding Strategies of Your Russian Partners-to-be
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Reasonable Approach
to the Russian Market
You
The MainCustomers
Russian
IT-related Companies
Russian
Engineering Companies
The BestEngineers
Help them bringtheir solutions
to the worldwidemarket
Give them new buzzwords and products
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Strategy 1: Help the Big Guys
to spend money
1. Fast: Informal agreement: subject and budget.Be ready to send your datasheets and prices ASAP.
2. Slow: Wait for OK from the customer.Don’t worry. Feel free to call your Russian friends.
3. Fast: Do entire work in a draft mode.Start work promptly but insist on signing a contract.
4. Slow: Set up a formal contract with customer.Don’t do anything before they sign a contract with the customer.
5. Normal: Finalize or even remake the draft.Be ready for numerous changes and corrections.
E. g. implementation of some technology or product.
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Strategy 2: Help the Smart Guys
move to the West
1. Making a prototype that looks like a real product.
2. Checking if anybody out of Russia wants to pay for it.
3. Setting up contracts with foreign customers or partners.
4. Producing a final version of the product (from the start).
5. Starting product sales via Internet or foreign partners.
6. Client’s company branch out of Russia.
E. g. developing a product for the worldwide market.
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2. Outsourcing to Russia
What, When, How
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What and When Outsource
to Russia?
Extremely complicated task:No one wants to do it.
Problem solution needed:It’s not just product making.
You need it fast!
Or even yesterday.
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Economy of Outsourcing
to Russia
Price = Wages + Taxes + Profit = Wages • 3.5
How an outsourcer bids you:
300–500 € for a developer’s work daily
If it is much more:
• They can’t calculate
• They are too big
• They are really greedy
If it is Less:
• They can’t calculate
• Their skills are poor
• They will re-outsource your task
• It is not a legal company
• They don’t understand your task
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How to Negotiate
with Russian Outsourcer
• Must have an English website
• Must react rapidly
• Make presale estimations for free
• Let them know the entire budget
• Give them time to consider your task
• Write and reconcile detailed requirements
• Request a fixed price
• Always sign written contracts
• Reconcile the payment method
THEM:
YOU:
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5. Culture-specific
Aspects
Dos and Donts
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Don’t Be Confused by the
Following Behavior
We might:
• Try to prove your task doesn’t make sense
• Delay (up to forever) calling or writing back
• Come up on the deadline point with an
announcement of ‘not having enough time’
• Come up on the deadline point with a ‘much
better idea how to implement all that’
• … and so on.
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But there is a bright side
We will survive with:
• Deadline shifted to the day after tomorrow
• Requirements modified on the fly
• Exotic technology needed to be grasped in a wink
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You don’t want to try these…
• Run a project in absence of a specific manager in charge.
• Report the other party to their boss without any war declaration.
• Make general answers to specific questions.