Daily Archives: August 16, 2007

August 16, 2007 — Contents

THURSDAY AUGUST 16 CONTENTS


(1) Annals of the Russian “Economy”

(2) When America Stumbles, Russia Falls

(3) Another Day, Another International Review, Another Humiliating Failure for Putin’s Russia

August 16, 2007 — Contents

THURSDAY AUGUST 16 CONTENTS


(1) Annals of the Russian “Economy”

(2) When America Stumbles, Russia Falls

(3) Another Day, Another International Review, Another Humiliating Failure for Putin’s Russia

Annals of the Russian "Economy"

RosBusinessConsulting reports that Russia’s gas exports have plummeted:

Russia’s gas exports decreased by 14.55 percent to 81.6bn cubic meters of gas in January-June 2007, against a similar timeframe in 2006, the Federal Customs Service of Russia reported. Consequently, gas exports proceeds amounted to USD19.015bn in the reporting period, a 12.73 percent decrease compared to the first half of 2006. Russia’s gas supplies to the non-CIS countries declined by 16.98 percent to 70.9bn cubic meters, and the CIS countries – up 5.94 percent to 10.7bn cubic meters of gas. According to the Russian Industry and Energy Ministry, in 2006, the country produced 656.29bn cubic meters of natural gas, which is expected to increase 1.33 percent to 665bn cubic meters this year.

Meanwhile, RIA Novosti reports that Russia’s foreign trade surplus is has also fallen dramatically:

Russia’s foreign trade surplus declined 17.8%, year-on-year, in January-June 2007, to $70.7 billion, the Federal Customs Service said Tuesday. Russia’s foreign trade surplus decreased in the reporting period as imports grew faster than exports, the customs service said. In particular, the surplus of trade with countries excluding the Commonwealth of Independent States (CIS) declined to $61 billion from $76.4 billion a year earlier, while trade surplus with CIS states, a loose association of former Soviet republics, was actually unchanged at $9.7 billion, the customs service said. The European Union continued to be Russia’s leading economic partner in the reporting period, accounting for 52% of its trade turnover. CIS states accounted for 15.3% of Russia’s foreign trade, the Eurasian Economic Community (EurAsEC) contributed 8.7%, and Asia and Pacific Economic Cooperation (APEC) countries made up 18.5%, the customs service said.

Russia has the strengthening ruble to thank for both of these bad results. As the ruble appreciates against the euro and dollar, Russian products become more expensive for foreigners to buy, and hence less desirable. Combine that with Russian goods’ infamous reputation for shoddy quality, and consumer products become virtually unmarketable. This deprives the Russians who make them of wages and jobs. Meanwhile, foreign goods flow into Russia because they are cheaper for Russians to buy, giving wages and jobs to foreigners (and the goods are accessed only by Russia’s rich — working for an average wage of $3/hour, the man on the street can’t afford nice foreign things).

When Russian nationalist morons brag about the value of the ruble, they are really consigning their own economy the dustbin of history. As always, Russians are their own worst enemy.

When America Stumbles, Russia Falls


As shown in the graphic above, the Russian stock market has plunged in value from a high of 2,100 on July 23rd to just 1,800 today — a loss of nearly 15% of its value in just three weeks. Writing in the Moscow Times Chris Weafer, chief strategist at Alfa Bank, explains why Russians who cheer American economic setbacks are moronic fools dooming their own country to oblivion. It’s the American stock market that’s causing this crisis in Russia.

Anybody with access to the media has certainly heard of the problems caused by subprime mortgages in the United States, the growing global credit squeeze and troubled hedge funds. These are the main reasons cited for the large falls in world equity markets since mid-July and why investors around the globe are sitting today on pins and needles with one finger on the sell button. And they have every reason to be nervous and to remain so until the end of September or early October.

Despite the recent injection of cash into the financial markets by the world’s central banks, confidence remains badly rattled. Stock market investors, bankers, industrialists and consumers, while relieved that the world economy did not jump off a ledge last week, will remain nervous of spending until they are convinced that recent events are not the start of a long-term downtrend.

At first glance, it would seem that there is no reason for investors, the business community and ordinary consumers in Russia to be concerned. After all, assets are still, in most instances, a lot cheaper than their counterparts in the rest of the world. The economy, which is expected to grow by 7 percent in 2007, is expanding at more than twice the global rate. The consumer sectors are rising at around 15 percent annually. And the country’s budget and economy have among the strongest fiscal positions in the world.

So why should Russia care? Is not the almost 9 percent fall in its RTS stock market from the record high of July 23 a buying opportunity — a gift from global markets? For traders willing to take on the substantial risk of uncertainty in equity markets today, cheaper assets are certainly attractive. For investors looking for more stable conditions, the time is not quite right.

Global markets are set to remain very volatile for several weeks or months. Despite the liquidity injection, investors on Chicago’s options markets are betting on an increase in volatility and a second wave of selling. The Chicago Board’s so-called “VIX index” — referred to by some as the “fear index” that measures the market’s expectation of volatility over the next 30 day period — is at its highest since early 2003.

Despite the favorable domestic fundamentals, Russian equities are now firmly tied to global emerging markets and they, in turn, are linked to markets in developed economies. The price of oil no longer plays more than a supporting role to equity market trends, and it will not be until the fourth quarter, or early 2008, that investors can start to see the economic impact of the large state investment programs and consumption-based growth. Many hope that precisely these factors will drive the economy forward under the next government. At this point, I fully expected that Russian equities will once again exceed expectations by the end of this year and in 2008 as greater state-led investment leads to increased earnings and to expanded asset valuations. But in the meantime, the RTS and MICEX, Russia’s other stock exchange, will move tick-for-tick with the moves in emerging markets and with Wall Street.

People looking at the instability in global financial markets will have heard the usual mix of optimistic and pessimistic assessments, each presented with equal vigor. The optimistic case is based on the fact that global market valuations are not high in a historical context, corporate earnings and economic growth numbers are continuing at a satisfactory pace and the world’s financial regulators, having learned from past mistakes, are now much more adept at effective intervention. This is all true. For their part, the pessimists will argue that the fear of a change in expected growth conditions can often be enough to change the previously expected consumption and investment patterns, and this, historically, has caused recessions and equity market crashes. This is equally true. Timely liquidity injection is a major positive, but ultimately the decisive factor will be how confidence is maintained.

That is why this period of high volatility on the equity markets is likely to remain until the end of September or early October. Market participants will want to be sure that the recent problems will not affect the desired positive fundamentals. Consumer and investment activity indicators reported in September and October have a disproportionately greater importance to markets than at any other time of the year. If investors are already looking forward to a new year and if that optimism is subsequently shattered, the impact on valuations and prices can be swift and decisive. For good reason the world’s major equity market crashes have occurred in the early autumn. October 1929 was the first of those and the run-up to the October 1987 crash was just as uncertain, divisive and unpleasant.

We have heard the phase many times before — “it’s different this time,” which may constitute the four most expensive words in the English language. Historically, investors tend to lose the most money when they start thinking that there is a new market factor or a “new paradigm” in valuations. Investors in the dot-com era also thought it was “different this time,” and, of course, it was not. That said, there are indeed some important differences this time. The speed at which Central Banks now inject liquidity is different and positive. On the other hand, how the largely nontransparent, hugely influential and leveraged hedge funds will fare in any worsened crisis is a huge unknown.

Apart from the share market volatility, the same question needs to be asked: Why should we care in Russia? Is not the economy strong and growth robust? The answer is yes to both. But just as a shift from optimism to fear can cause a major shift in global investment and consumption patterns — thus, undermining the positive fundamentals — any shift in global growth and cross-border investment flows will sooner rather than later have a negative impact in all emerging economies.

China’s economy is the fastest growing in the world, but this could very quickly change if there is a major slowing in its major customer market, the United States. In that case, China’s demand for input products, such as oil and base metals, will fall. The continuous growth in China (and other Asian economies) for raw materials is the single most important factor in the commodities boom that has earned more than $700 billion for the Russian economy during President Vladimir Putin’s presidency. If that demand growth assumption is undermined, prices might revert quickly back to long-term averages, which, for oil, means about half the price that it is being sold for today. Even though growth indicators in the economy and “revitalized” domestic industries is impressive, the fact remains that more than 60 percent of the value of exports and the expected revenue into the federal budget still comes from oil, gas and the tax revenue from other commodities.

A major element of the favorable view for the Russian economy that supports my bullish view for the RTS through 2008 is based on at least a stable external environment. That will allow the government to pursue its plans to finally start more aggressively investing in such areas as downstream oil, petrochemicals, metal smelters, technology, aviation, IT and so on. But if this positive external scenario does not pan out, then it is unknown how the government will react to the undermining of revenue assumptions in its three-year budget. Will it dip into accumulated financial reserves more aggressively or will it retreat and delay plans? Either event will change the outlook for the investment case.

Russia is now simply too big in the world to remain untouched by any major global shake-out. The economy is projected to be the world’s ninth largest by the end of this year and the stock market is the fourth biggest among emerging markets. The $700 billion of energy export earnings over the past seven years are largely responsible for these impressive statistics. This is exactly why the rest of the world matters.

Another International Evaluation, Another Pathetic Failing Grade for Putin’s Russia

CNet reports on yet more humiliating failure for Russia when judged by international experts:

Only 4% of the IT-projects in Russia are finished in time. According to the mentioned index our country is practically the last. Experts point out to some peculiarities, which do not allow the Russian companies to finish the projects in time.

<!–

–>According to the research, carried out not long ago by Hewlett-Packard and Economist Intelligence Unit (EIU) analysts, Europe is the first in the world by the IT-personnel irresponsibility. In case of delay in the projects’ launch 51% of IT-personnel is not afraid of problems with the managerial authorities. The leaders are Sweden (44%), Switzerland (22%), Czechia (20%), Germany (19%) and Denmark (16%). 1125 specialists worldwide have been questioned.

According to EIU analysts, outsourcing, shifting the accents midway, and lack of managerial coordination are the three main reasons for the IT-project completion delay. According to Russian experts, the IT-personnel responsibility for the project success in Russia is neither higher nor lower than in Europe. While in Russia several other reasons are usually added to the mentioned ones.

“In most cases the projects are launched under the conditions of absolute unreadiness on the part of constituency and transparency of the automated processes, – Alisa Melnikova, Financial Organizations Cooperation Manager of ISG says. – Under the mentioned conditions it is difficult to determine the criteria of the project successful implementation, and it is being run till the absolute budget exhaustion. Besides, the Russian market is in the early stage of development, so the surrounding is changing in Russia faster. If a large project is planned, then it is evident from the beginning, the priorities are to be changed regularly”.

According to Sergey Zakhartsev, Miel Holding IT-Department Director one of the main conditions for not finishing the projects in time in Russia results from the project’s outline being very general and the absence of adequate understanding how to achieve the goal. “When the project is being initiated, its aims, tasks, and expected results are being determined, the project management does not think of the technical ways of solving the problems”, – Mr. Zakhartsev says. Andrey Badin, Director of the Project Management Outsourcing Department of PM Expert agrees to the mentioned point of view. “In most cases the reason for the failure to finish the project on time is in ineffective supervision, beginning with the project initiation. The project context is not determined precisely and can be changed significantly within its implementation. However, the allocated finance in most cases is not enough to sustain the mentioned changes”.

The absent or ineffective risk management, according to Mr. Badin, results in the failure to finish the project on time because of long-term effects mitigation. “Besides, the IT-project manager is not usually a professional project manager, but the company’s IT-specialist, aimed at quality at the expense of dates and budget”. Sergey Zakhartsev considers outsourcers as a rule give any promises easily, believing the main thing is to get the project and then they will see what to do. While implementing a project at their own expense, they rely on impunity, as they are not strangers to the company, ordering a project. “So if real technical problems arise their settlement takes much more time than it is planned, – Mr. Zakhartsev says. – Finally, a lot of time is spent either to look for the necessary solution, or to improve the project target. So the terms of the project implementation enhance by 80-300%”.

Andrey Badin sees the way out of the existing situation through handing IT-project management for outsourcing. “For example, in the US, according to The Center for Business Practices data, 39% of companies constantly use the project management outsourcing. Wile the join report of Hewlett-Packard and Economist Intelligence Unit points out the strictest requirements to the project implementation are in the North America”, – the expert summarizes.

Not to prolong large IT-projects implementation, Alisa Melnikova, ISG employee advises to divide the projects into shorter phases, estimate the achieved results and improve the project plan correspondingly. “In such a case one can adhere to the mentioned development direction and achieve long-term goals”.

Another International Evaluation, Another Pathetic Failing Grade for Putin’s Russia

CNet reports on yet more humiliating failure for Russia when judged by international experts:

Only 4% of the IT-projects in Russia are finished in time. According to the mentioned index our country is practically the last. Experts point out to some peculiarities, which do not allow the Russian companies to finish the projects in time.

<!–

–>According to the research, carried out not long ago by Hewlett-Packard and Economist Intelligence Unit (EIU) analysts, Europe is the first in the world by the IT-personnel irresponsibility. In case of delay in the projects’ launch 51% of IT-personnel is not afraid of problems with the managerial authorities. The leaders are Sweden (44%), Switzerland (22%), Czechia (20%), Germany (19%) and Denmark (16%). 1125 specialists worldwide have been questioned.

According to EIU analysts, outsourcing, shifting the accents midway, and lack of managerial coordination are the three main reasons for the IT-project completion delay. According to Russian experts, the IT-personnel responsibility for the project success in Russia is neither higher nor lower than in Europe. While in Russia several other reasons are usually added to the mentioned ones.

“In most cases the projects are launched under the conditions of absolute unreadiness on the part of constituency and transparency of the automated processes, – Alisa Melnikova, Financial Organizations Cooperation Manager of ISG says. – Under the mentioned conditions it is difficult to determine the criteria of the project successful implementation, and it is being run till the absolute budget exhaustion. Besides, the Russian market is in the early stage of development, so the surrounding is changing in Russia faster. If a large project is planned, then it is evident from the beginning, the priorities are to be changed regularly”.

According to Sergey Zakhartsev, Miel Holding IT-Department Director one of the main conditions for not finishing the projects in time in Russia results from the project’s outline being very general and the absence of adequate understanding how to achieve the goal. “When the project is being initiated, its aims, tasks, and expected results are being determined, the project management does not think of the technical ways of solving the problems”, – Mr. Zakhartsev says. Andrey Badin, Director of the Project Management Outsourcing Department of PM Expert agrees to the mentioned point of view. “In most cases the reason for the failure to finish the project on time is in ineffective supervision, beginning with the project initiation. The project context is not determined precisely and can be changed significantly within its implementation. However, the allocated finance in most cases is not enough to sustain the mentioned changes”.

The absent or ineffective risk management, according to Mr. Badin, results in the failure to finish the project on time because of long-term effects mitigation. “Besides, the IT-project manager is not usually a professional project manager, but the company’s IT-specialist, aimed at quality at the expense of dates and budget”. Sergey Zakhartsev considers outsourcers as a rule give any promises easily, believing the main thing is to get the project and then they will see what to do. While implementing a project at their own expense, they rely on impunity, as they are not strangers to the company, ordering a project. “So if real technical problems arise their settlement takes much more time than it is planned, – Mr. Zakhartsev says. – Finally, a lot of time is spent either to look for the necessary solution, or to improve the project target. So the terms of the project implementation enhance by 80-300%”.

Andrey Badin sees the way out of the existing situation through handing IT-project management for outsourcing. “For example, in the US, according to The Center for Business Practices data, 39% of companies constantly use the project management outsourcing. Wile the join report of Hewlett-Packard and Economist Intelligence Unit points out the strictest requirements to the project implementation are in the North America”, – the expert summarizes.

Not to prolong large IT-projects implementation, Alisa Melnikova, ISG employee advises to divide the projects into shorter phases, estimate the achieved results and improve the project plan correspondingly. “In such a case one can adhere to the mentioned development direction and achieve long-term goals”.

Another International Evaluation, Another Pathetic Failing Grade for Putin’s Russia

CNet reports on yet more humiliating failure for Russia when judged by international experts:

Only 4% of the IT-projects in Russia are finished in time. According to the mentioned index our country is practically the last. Experts point out to some peculiarities, which do not allow the Russian companies to finish the projects in time.

<!–

–>According to the research, carried out not long ago by Hewlett-Packard and Economist Intelligence Unit (EIU) analysts, Europe is the first in the world by the IT-personnel irresponsibility. In case of delay in the projects’ launch 51% of IT-personnel is not afraid of problems with the managerial authorities. The leaders are Sweden (44%), Switzerland (22%), Czechia (20%), Germany (19%) and Denmark (16%). 1125 specialists worldwide have been questioned.

According to EIU analysts, outsourcing, shifting the accents midway, and lack of managerial coordination are the three main reasons for the IT-project completion delay. According to Russian experts, the IT-personnel responsibility for the project success in Russia is neither higher nor lower than in Europe. While in Russia several other reasons are usually added to the mentioned ones.

“In most cases the projects are launched under the conditions of absolute unreadiness on the part of constituency and transparency of the automated processes, – Alisa Melnikova, Financial Organizations Cooperation Manager of ISG says. – Under the mentioned conditions it is difficult to determine the criteria of the project successful implementation, and it is being run till the absolute budget exhaustion. Besides, the Russian market is in the early stage of development, so the surrounding is changing in Russia faster. If a large project is planned, then it is evident from the beginning, the priorities are to be changed regularly”.

According to Sergey Zakhartsev, Miel Holding IT-Department Director one of the main conditions for not finishing the projects in time in Russia results from the project’s outline being very general and the absence of adequate understanding how to achieve the goal. “When the project is being initiated, its aims, tasks, and expected results are being determined, the project management does not think of the technical ways of solving the problems”, – Mr. Zakhartsev says. Andrey Badin, Director of the Project Management Outsourcing Department of PM Expert agrees to the mentioned point of view. “In most cases the reason for the failure to finish the project on time is in ineffective supervision, beginning with the project initiation. The project context is not determined precisely and can be changed significantly within its implementation. However, the allocated finance in most cases is not enough to sustain the mentioned changes”.

The absent or ineffective risk management, according to Mr. Badin, results in the failure to finish the project on time because of long-term effects mitigation. “Besides, the IT-project manager is not usually a professional project manager, but the company’s IT-specialist, aimed at quality at the expense of dates and budget”. Sergey Zakhartsev considers outsourcers as a rule give any promises easily, believing the main thing is to get the project and then they will see what to do. While implementing a project at their own expense, they rely on impunity, as they are not strangers to the company, ordering a project. “So if real technical problems arise their settlement takes much more time than it is planned, – Mr. Zakhartsev says. – Finally, a lot of time is spent either to look for the necessary solution, or to improve the project target. So the terms of the project implementation enhance by 80-300%”.

Andrey Badin sees the way out of the existing situation through handing IT-project management for outsourcing. “For example, in the US, according to The Center for Business Practices data, 39% of companies constantly use the project management outsourcing. Wile the join report of Hewlett-Packard and Economist Intelligence Unit points out the strictest requirements to the project implementation are in the North America”, – the expert summarizes.

Not to prolong large IT-projects implementation, Alisa Melnikova, ISG employee advises to divide the projects into shorter phases, estimate the achieved results and improve the project plan correspondingly. “In such a case one can adhere to the mentioned development direction and achieve long-term goals”.

Another International Evaluation, Another Pathetic Failing Grade for Putin’s Russia

CNet reports on yet more humiliating failure for Russia when judged by international experts:

Only 4% of the IT-projects in Russia are finished in time. According to the mentioned index our country is practically the last. Experts point out to some peculiarities, which do not allow the Russian companies to finish the projects in time.

<!–

–>According to the research, carried out not long ago by Hewlett-Packard and Economist Intelligence Unit (EIU) analysts, Europe is the first in the world by the IT-personnel irresponsibility. In case of delay in the projects’ launch 51% of IT-personnel is not afraid of problems with the managerial authorities. The leaders are Sweden (44%), Switzerland (22%), Czechia (20%), Germany (19%) and Denmark (16%). 1125 specialists worldwide have been questioned.

According to EIU analysts, outsourcing, shifting the accents midway, and lack of managerial coordination are the three main reasons for the IT-project completion delay. According to Russian experts, the IT-personnel responsibility for the project success in Russia is neither higher nor lower than in Europe. While in Russia several other reasons are usually added to the mentioned ones.

“In most cases the projects are launched under the conditions of absolute unreadiness on the part of constituency and transparency of the automated processes, – Alisa Melnikova, Financial Organizations Cooperation Manager of ISG says. – Under the mentioned conditions it is difficult to determine the criteria of the project successful implementation, and it is being run till the absolute budget exhaustion. Besides, the Russian market is in the early stage of development, so the surrounding is changing in Russia faster. If a large project is planned, then it is evident from the beginning, the priorities are to be changed regularly”.

According to Sergey Zakhartsev, Miel Holding IT-Department Director one of the main conditions for not finishing the projects in time in Russia results from the project’s outline being very general and the absence of adequate understanding how to achieve the goal. “When the project is being initiated, its aims, tasks, and expected results are being determined, the project management does not think of the technical ways of solving the problems”, – Mr. Zakhartsev says. Andrey Badin, Director of the Project Management Outsourcing Department of PM Expert agrees to the mentioned point of view. “In most cases the reason for the failure to finish the project on time is in ineffective supervision, beginning with the project initiation. The project context is not determined precisely and can be changed significantly within its implementation. However, the allocated finance in most cases is not enough to sustain the mentioned changes”.

The absent or ineffective risk management, according to Mr. Badin, results in the failure to finish the project on time because of long-term effects mitigation. “Besides, the IT-project manager is not usually a professional project manager, but the company’s IT-specialist, aimed at quality at the expense of dates and budget”. Sergey Zakhartsev considers outsourcers as a rule give any promises easily, believing the main thing is to get the project and then they will see what to do. While implementing a project at their own expense, they rely on impunity, as they are not strangers to the company, ordering a project. “So if real technical problems arise their settlement takes much more time than it is planned, – Mr. Zakhartsev says. – Finally, a lot of time is spent either to look for the necessary solution, or to improve the project target. So the terms of the project implementation enhance by 80-300%”.

Andrey Badin sees the way out of the existing situation through handing IT-project management for outsourcing. “For example, in the US, according to The Center for Business Practices data, 39% of companies constantly use the project management outsourcing. Wile the join report of Hewlett-Packard and Economist Intelligence Unit points out the strictest requirements to the project implementation are in the North America”, – the expert summarizes.

Not to prolong large IT-projects implementation, Alisa Melnikova, ISG employee advises to divide the projects into shorter phases, estimate the achieved results and improve the project plan correspondingly. “In such a case one can adhere to the mentioned development direction and achieve long-term goals”.

Another International Evaluation, Another Pathetic Failing Grade for Putin’s Russia

CNet reports on yet more humiliating failure for Russia when judged by international experts:

Only 4% of the IT-projects in Russia are finished in time. According to the mentioned index our country is practically the last. Experts point out to some peculiarities, which do not allow the Russian companies to finish the projects in time.

<!–

–>According to the research, carried out not long ago by Hewlett-Packard and Economist Intelligence Unit (EIU) analysts, Europe is the first in the world by the IT-personnel irresponsibility. In case of delay in the projects’ launch 51% of IT-personnel is not afraid of problems with the managerial authorities. The leaders are Sweden (44%), Switzerland (22%), Czechia (20%), Germany (19%) and Denmark (16%). 1125 specialists worldwide have been questioned.

According to EIU analysts, outsourcing, shifting the accents midway, and lack of managerial coordination are the three main reasons for the IT-project completion delay. According to Russian experts, the IT-personnel responsibility for the project success in Russia is neither higher nor lower than in Europe. While in Russia several other reasons are usually added to the mentioned ones.

“In most cases the projects are launched under the conditions of absolute unreadiness on the part of constituency and transparency of the automated processes, – Alisa Melnikova, Financial Organizations Cooperation Manager of ISG says. – Under the mentioned conditions it is difficult to determine the criteria of the project successful implementation, and it is being run till the absolute budget exhaustion. Besides, the Russian market is in the early stage of development, so the surrounding is changing in Russia faster. If a large project is planned, then it is evident from the beginning, the priorities are to be changed regularly”.

According to Sergey Zakhartsev, Miel Holding IT-Department Director one of the main conditions for not finishing the projects in time in Russia results from the project’s outline being very general and the absence of adequate understanding how to achieve the goal. “When the project is being initiated, its aims, tasks, and expected results are being determined, the project management does not think of the technical ways of solving the problems”, – Mr. Zakhartsev says. Andrey Badin, Director of the Project Management Outsourcing Department of PM Expert agrees to the mentioned point of view. “In most cases the reason for the failure to finish the project on time is in ineffective supervision, beginning with the project initiation. The project context is not determined precisely and can be changed significantly within its implementation. However, the allocated finance in most cases is not enough to sustain the mentioned changes”.

The absent or ineffective risk management, according to Mr. Badin, results in the failure to finish the project on time because of long-term effects mitigation. “Besides, the IT-project manager is not usually a professional project manager, but the company’s IT-specialist, aimed at quality at the expense of dates and budget”. Sergey Zakhartsev considers outsourcers as a rule give any promises easily, believing the main thing is to get the project and then they will see what to do. While implementing a project at their own expense, they rely on impunity, as they are not strangers to the company, ordering a project. “So if real technical problems arise their settlement takes much more time than it is planned, – Mr. Zakhartsev says. – Finally, a lot of time is spent either to look for the necessary solution, or to improve the project target. So the terms of the project implementation enhance by 80-300%”.

Andrey Badin sees the way out of the existing situation through handing IT-project management for outsourcing. “For example, in the US, according to The Center for Business Practices data, 39% of companies constantly use the project management outsourcing. Wile the join report of Hewlett-Packard and Economist Intelligence Unit points out the strictest requirements to the project implementation are in the North America”, – the expert summarizes.

Not to prolong large IT-projects implementation, Alisa Melnikova, ISG employee advises to divide the projects into shorter phases, estimate the achieved results and improve the project plan correspondingly. “In such a case one can adhere to the mentioned development direction and achieve long-term goals”.