As reported in The Times today, Moscow has overtaken Tokyo and London to become the most expensive city in the world.
The Russian capital was found to be the costliest city on the planet by Mercer, the human resource consultants, who said that it was 12 per cent dearer to live in than London and nearly 25 per cent more expensive than New York City.
You can’t help noticing a sharp rise in wages and house prices over the last 2-3 years, even outside Moscow where we are. Our one-bed flat would have cost £10’000 two years ago, it is now £20’000. As the The Independant writes, flats were certainly undervalued here but wages have also risen rapidly. Unlike India, Russia has not flooded the market with IT trained employees, there is still a shallow Russian web industry.
In my view Russia will loose it’s reputation for cheap outsourcing in the next year. The quality of work is very high though, so it still offers a very competitive option for large scale projects. Also, from speaking to other firms here, local work is looking increasingly attractive.