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Mirantis: on offshore semiconductor development in Russia

In one of our forums, current students often raise the issue of subsequent employment after graduation. This question is especially acute for future specialists in the semiconductor industry. Where to get an interesting job, do you really have to leave the country, etc.P. Interesting in this regard is the message from Mirantis, which told at its seminar in Foster City, California, USA, about the prospects for the implementation of offshore projects in Russia. We will present here some interesting theses from the company’s report.

“A mystery shrouded in mystery” – this is how Winston Churchill imagined Russia. For companies engaged in high-tech development, Russia presents many temptations in the form of a huge number of qualified engineers and scientists, but their attempts to attract Russian developers to their projects have so far brought nothing but disappointment. However, outsourcing company Mirantis stated that there is a way to attract Russian intellectuals to such projects. Moreover, the total costs will be no more than half of the costs of traditional offshore projects.

Mirantis, formerly known as ClearLogic Software, was formed by the London Bridge Group four years ago and has operated offshore technology centers in Moscow and St. Petersburg for over two years. The company itself manages production and infrastructure, manages relationships between local authorities and suppliers, and searches for technical specialists for its clients, including Cadence, Agilent and MIPS Technologies. Over the next year and a half, the company plans to open new technology development centers in China and Eastern Europe. Mirantis also plans to expand the list of customer companies involved in the development and manufacture of semiconductors.

Typically Mirantis contracts for two years, renewable. Now the company’s database contains about 2,500 – 3,000 people, more than half of whom have all the necessary skills for the development of semiconductor technologies. According to the company’s management, staff turnover is very low, no more than 5%. So far, project outsourcing companies are in no hurry to hire a large number of people, on average, no more than 20 people, although there was a one-time case of hiring 50 technicians at once. Basically, these are specialists in the field of applied mathematics, programming languages ​​C ++ and Java or ASIC design systems.

Mirantis has been working with Cadence Design Systems for over a year. Currently, the development department employs about 30 Russian specialists working on several different projects, including the development and support of software, improved and accelerated algorithms.

According to Cadence leaders, Russia is still at the initial stage of integration into the global economy. In Russia, they say, there are many talents who want to participate in the process of developing new technologies, but doing business in Russia is not easy. Therefore, even with a strong desire to get Russian engineers, it can be costly for Western companies.

Currently, outsourcing accounts for only about 5% of R&D projects in large world corporations. Mirantis, however, claims that using a slightly different approach, it will be possible to observe a new wave of offshore enterprises, which will reduce the cost of project development. Mirantis’ approach is to create the right conditions for research work, when the company acts as an intermediary between Western companies and Russian specialists looking for lucrative long-term contracts. All specialists are hired by the Mirantis development department and, accordingly, the remuneration is also carried out by Mirantis. However, the company’s clients are directly involved in hiring employees.

According to the company, the cost of development carried out with the help of employees hired by Mirantis is about half the cost of similar development carried out in the West. For example, at the Mirantis Technology Center, the average employee salary is about $ 6,000 per month, and the salary of employees in similar positions in the United States is more than $ 10,000.

Well, in general, there is nothing new in Mirantis’s approach. And everything that is said in the report has also been known for a long time. However, on the one hand, the fact that Mirantis is itself a large Western company helps it to find a common language more easily with Western firms that have a certain distrust of Russian companies (and, unfortunately, often justified). On the other hand, a long time of work in Russia and considerable experience can really help the company to select qualified candidates and communicate with the Russian authorities.

Source: Silicon Strategies

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