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Russian IT and telecom firms boost foreign contractor spending 38%

Our write-up of a story first reported by Cossa

Russian IT and telecom firms boost foreign contractor spending 38%

Russian IT and telecom companies increased total spending on foreign specialists by 38% over the past year, a shift that reflects structural changes in how the sector sources talent and allocates budgets.

Three metrics moved in tandem but at different rates. Overall spending on foreign specialists rose 38%. Payments per specialist climbed 20%. The average cost per task grew 6%. The gap between total spending growth and per-specialist cost growth signals that companies hired more contractors rather than simply paying existing ones more.

A 38% year-on-year increase is difficult to explain through inflation or currency fluctuations alone. Demand for external execution has grown structurally — firms now outsource work to foreign contractors that they previously handled internally. Since average task costs rose only 6%, expensive projects did not become significantly pricier. Volume and headcount drove the expansion.

For operators using foreign freelancers or agencies for digital work, the 20% annual increase in per-specialist rates is already embedded in the market. Budgets for external contractors warrant review more than once yearly. Teams building affiliate infrastructure through remote operations should treat the 38% spending increase as a planning benchmark — labour costs in this segment are rising sharply.

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