Moscow-based software developer iDeveloper Network (iDN) is poised to move in on the UK insurance IT market, specialising in claims handling systems.
Managing director Yuri Shalimov said: "With our extremely competitive rates and access to the latest technologies, we believe that now is a good time to demonstrate the advantages of offshore outsourcing."
IDN's rates start from $25 (£18) per hour - UK rates for similar services reach £1,000 per day.
Shalimov said the lower costs were possible because iDN's engineers operated out of ten smaller cities across Russia. With lower wage rates in Russia, overheads were lower.
The company, which develops bespoke applications, will also target website development and testing for smaller broker systems.