Owner: IT Outsourcing Russia 2008 URL:http://epam-systems.blogspot.com/ Join Date: Mon, 14 Jan 2008 09:43:01 -0600 Rating:0 Site Description: EPAM Systems is the # 1 software development outsourcing services provider in Central and Eastern Europe. Founded in 1993, EPAM maintains North American headquarters in Lawrenceville, NJ, and European headquarters in Budapest, Hungary, as well as support Site statistics:Click here
Russia in 2007: Turning Point. Part II: IT Industry Overview 2008-03-03 03:56:00 Russian IT market has in recent years been the star performer in the region in terms of growth dynamics. According to Pawel Olszynka, Head IT&Telecoms analyst at PMR Research firm in 2000-2007 the share of IT services in the total IT spending increased from 9.5% to 28%. The total number of IT companies in Russia in 2007 was about 2,000 and the IT market in Russia was worth around $16.3bn. The Russian Ministry of IT and Communications is even more optimistic saying the market volume reached 17 bln USD in 2007.The government also contributes to the development of IT sphere. Several dedicated institutes were created, technoparks are being constructed, special tax regime was introduced, various promotional events are held – all of these are aimed at supporting the expanding national IT indus Read more:Russia
, Overview
Russia in 2007: Turning Point.Part I: Economic Overview 2008-02-28 10:50:00 2007 was a turning point for Russia
whose GDP grew 7.6 %, says a UN annual report titled “World Economic
Situation and Prospects 2008”. Economic growth was particularly promoted by the increase in consumption and investment levels, high oil prices and Russia's stable fiscal policy. The rapidly growing economy and the strengthening national currency are also reflected in the robust increase in exports which, in terms of volume, is expected to grow three times faster than total output in the next few years according to Bank of Finland BOFIT. Russia has also significantly improved its international financial position to finally vanish the aftermath of the financial crisis of 1998. The federal budget has run surpluses since 2001 and ended 2007 with a surplus of about 3% of GDP according to Read more:Overview
Eastern European vendors in the ITO elite 2008-02-18 10:19:00 Some key trends in the global ITO industry development were revealed with the announcement of this year’s Global Services 100 survey results. IT outsourcing evolves and current trends are more than positive for EasternEuropean
outsourcing vendors that come to the global arena and prove as solid players that shall be taken seriously now. The findings of the study attest that Russian and Eastern European software development companies have joined the Big League of IT outsourcing services providers to compete with India-based recognized giants.Over its 4-year history, the GS study has earned a reputation of a trusted source of global outsourcing information for ITO buyers which manifests the leading providers of business and technology services and reflects major trends of ITO market devel
Consolidation in Eastern Europe: Who is Still in the Outsourcing Game? 2008-02-08 03:57:00 For a long time the management of EPAM Systems, EasternEurope
’s largest software development company, was looking to enter the Russian outsourcing market. At the same time the labor market in Belarus, with a population of nearly 10 million and EPAM’s first offshore location, began heating up. So the need for new resources became more urgent.EPAM management selected Vested Development (VDI), a Russian software development company headquartered in Burlington, Massachusetts. “We looked at a number of companies, but with VDI we knew each other for many years and there was a strong level of comfort,” says Arkady Dobkin, CEO of EPAM. VDI, founded in 1993, began life as an offshore software development company. However, since the beginning of 2000, the company has placed a strong focus o Read more:Consolidation
, Outsourcing
IT outsourcing Klondike in Europe 2008-02-04 12:06:00 Every December is a high time for top management to gather and make serious decisions: drafting budget for the coming year and devising the company’s strategy. And IT outsourcing buyers are no exception. Board Directors gather in conference rooms and discuss plans for future company growth plans and new market expansions. And the question “where” they should outsource various IT services comes up in the first line. A recent survey showed that Europe
became the world’s largest outsourcing consumer. Given the evident nearshoring benefits - time-zone compatibility, cultural and geographical proximity leading to better communication and fewer costs on travel – which are coupled with enormous pool of highly skilled experienced IT professionals it’s quite likely that European corpor
Top 10 Leaders, Emerging European Markets--2008 Winner EPAM 2008-02-01 04:33:00 While the IT-services outsourcing market of Central and Eastern Europe is not more than 1 percent of the nearly $386 billion (est. 2007) global outsourcing market, providers like EPAM are grabbing this opportunity to emerge as global playersWith a high-profile clientele such as Reuters and Oracle, well-entrenched delivery capabilities that spreads from Ukraine to Budapest, the Russian services company makes it to the top of this list thanks to galloping growth coming from the U.S. market. Surprisingly, in 2007 the company was not even among the top five service providers.EPAM had started off as a software development and maintenance company in the U.S.A. However, it witnessed growth after the rise of the offshore delivery model.“In 2007, we won over 40 new clients, and thus expanded the Read more:European
, Leaders
, Markets
The Old World to set the pace of outsourcing 2008-01-30 07:51:00 Europe took the lead over Americas and now is the world’s largest it outsourcing market, both in the number of major contracts signed and in their total value. In the past year European share of the IT outsourcing market showed impressive growth and even left both Americas far behind. While American companies signed 194 contracts, worth €21.3bn (£16bn), Europe settled 220 major contracts for €32.7bn (£24.5bn). According to Duncan Aitchison, TPI Europe president, the reason behind such a leap is the rising popularity of the outsourcing model in the countries, traditionally avoiding it.Apart from the well-established outsourcing market in the United Kingdom, Northern European countries like Germany, Netherlands, Switzerland, Sweden and France enhanced their outsourcing activity latel Read more:World
Russian Software Exports to see 7% amplification by 2010 2008-01-24 07:13:00 One of the world’s largest nations Russia keeps showing signs of full recovery from 1990-s financial crisis with impressive GDP growth rates in the last couple of years. This is to be accounted to Russia’s mature traditional industries, as well as innovative ones like software development for export (IT outsourcing). A recent report by market researchers at RNCOS entitled “Russia IT and Outsourcing Industry Forecast to 2011” states Russia is to maintain its leading position in the ITO market by surging its market share.The scrupulous analysis provides all-round overview of the Russian
ITO industry, its past and present day, IT spending, custom software development and box software solutions markets, perspectives and challenges for the country’s IT industry. According to the rep Read more:Software
India to conquer Russia? 2008-01-22 03:58:00 India’s largest software development and IT-consulting services provider Tata Consultancy Services (TCS) announced their plans to open an office in Moscow, Russia
in March 2008. It will sell products and services of the company to the customers across the CIS and Russia (the former members of the USSR). According to TCS vice-president, Gabriel Rozman, they can enter the Russian market either by acquiring a local firm or independently. With TSC entering the Russian IT market, the competition in systems integration, software deployment, IT consulting, and outsourcing, especially that of business processes, will sharpen.Experts claim that by 2010 TCS may bite up to 10% of Russian IT services market pie.Despite the boldness of these plans, the major Russian market players, with EPAM Systems Read more:India
, conquer
TrendScan Survey: Spending on ITO “will increase” in 2008 2008-01-17 11:18:00 Of the 250 global companies polled in Syntel's TrendScan survey, 52 per cent said that the impact of financial turmoil would prompt them to increase their outsourcing spend.Bharat Desai, chairman and chief executive officer of Syntel, said: "In a weak or uncertain economy, companies look for technology solutions that will increase productivity, efficiency and savings."Furthermore, she claimed that Syntel was "not surprised" that over half the respondents in the survey planned to increase their spending in 2008 despite threats of a slow-down in the economy. "Outsourcing is a hedge against general IT costs and can be a strategic component of research and development," Bharat explained.The survey also revealed that just 28 per cent of businesses polled would spend less overall to conserve bud Read more:Spending
Gartner Predicts Steady Growth for IT Outsourcing Market in 2008 2008-01-10 08:21:00 The spending on third-party providers will increase by eight per cent this year both in the United States and in Europe, according to research by analyst Gartner
.The value of publicly-disclosed business process and IT outsourcing contracts dropped by 50 per cent during 2007, says the study. But as the market matures and becomes more commonplace, fewer deals may be reaching the world's press, suggested the analyst. Companies are outsourcing more, but electing to use a multi-provider strategy and so deals are smaller in size and less reported.Gartner has identified 35 countries where IT directors could consider establishing their own software development and shared services operation, or where local service providers are beginning to sell services beyond their domestic market. Gartner says R Read more:Outsourcing
, Growth
, Market
Analysts Found Haven for Custom Application Development 2008-01-08 09:49:00 Russia has become a haven for custom software development across the full range of application types, as well as custom R&D and design work, embedded systems development, specialized testing, software package integration and translation services. These particular skills, Gartner Group says, are highly available due to Russia's unique strengths, which it lists as follows: an elite university system; a highly skilled and ample workforce; an array of specialized expertise capable of solving large-scale, complex technical problems; and cost of labor advantage compared with the US and Western Europe. As a result, Russia has expanded steadily over the last few years and is rapidly becoming a major destination for offshore software development business. Analysts predict that the country will have Read more:Haven
, Application
, Development
Hungary on the Offshore IT Services World Map: EPAM’s presence 2008-01-03 06:27:00 Russia isn't the only game in Eastern Europe, though. Countries such as Poland, Romania, Bulgaria, Czech Republic and Hungary
are all growing technology hubs. Like Russia, they are reaping the benefits of one of the few positive legacies from the Soviet era - a well-established education system. EPAM Systems, for example, has large-scale software development centers in Hungary, Russia, Belarus and Ukraine, as well as client support and delivery units in USA and UK. Its Hungarian customer base includes London Stock Exchange and British Telecom (BT).It helped BT Group, one of the largest telecom providers in Europe, for example, develop a massive customer portal. BT Global Services
, a subsidiary of BT Group, is a service provider helping organizations master the complexity of business commun Read more:World
, Offshore
2008: seven new Russian techno parks to be launched 2007-12-27 12:48:00 The first objects will start operating in Russian
pilot techno parks in 2008, said Leonid Reiman, Russia’s Minister of Communications. He noted the infrastructure of the objects constructed is being actively developed and the first investment agreements are being signed. The Ministry of Communications plans that in 2011 the output of seven pilot techno parks will amount to $4,7 bln, while the overall number of employees in the given techno parks might exceed 75 thousand.Mr. Reiman said at the Global Investment Financial Forum in Moscow that the key mechanism of state support is currently revealed in co-funding the development of engineering, transport and other infrastructural items. Also this is going to give a serious boost to the Russian ITO industry. Currently this work is well under
Russia: A turning-point in IT outsourcing 2007-12-21 09:05:00 In 2007 the majority of the large Russia
n companies have shown a trend towards more positive views to IT project outsourcing, state the market players. The understanding that in conditions of the fast-paced economy it would be logical to transfer some of the enterprise's non-core functions to an external professional service provider facilitates this trend. According to some expert estimation, over the past year the Russian outsourcing market has narrowed the gap in growth rates between it and Europe more than twice. Russian outsourcing providers report that large domestic companies are becoming less prejudiced against the IT segment. As of now quite a few companies in Russia realize the financial benefits of enlisting help of the independent service providers. However it is particularly j Read more:turning
, point
IT Services market buoyant in Russia 2007-12-14 10:19:00 According to a recent research by Renaissance Capital, one of the largest financial and investment corporations in Russia
, the IT services industry (IT consulting, software development, etc.) will be the fastest growing sector of the Russian IT market. Analysts expect the demand for IT services to grow by around 25 % in 2008 and 2009 compared to 20% growth in IT products demand for the same period. In general the growth rate if the global IT market have a bit slowed down and amount to 6.7% in 2007. Russia is the second most rapidly growing IT markets in the world after India. Analysts from Troika Dialog suppose its annual growth rate will keep at 18.3% till 2010, whereas India will be ahead by minor 0.8%. These predictions were released at the November conference “Investment potential of Read more:Services
Russia’s tempting ITO opportunities 2007-12-13 04:38:00 While India is still the mainstream IT outsourcing destination in absolute figures, it’s no longer the unconditional choice. It appears Russia
is becoming increasingly seen as an alternative to India's dominance, says Karen Geldenhuys, newly-appointed MD of IT recruitment company Abacus Recruitment.Geldenhuys says companies unwilling to invest all their IT outsourcing resources in one country, or who are simply looking for an alternative, are turning to Russia. … Russia boasts a growing number of IT outsourcers, offering anywhere between US$8 000 and US$14 000 for a programming job, according to the latest reports.Geldenhuys says Russia is now parading its IT industry as a strong alternative in the outsourcing environment. "It is offering what it claims is top quality, cut-price progra
Forrester says: Outsourcing to Eastern Europe is a great option for the European companies 2007-12-10 11:39:00 When do Indian outsourcing services providers fail to fit the mould? This is the question Stephanie Moore, VP at Forrester, raised at their annual Services and Sourcing Forum.In terms of outsourcing, India may not always be the best decision for a business, explained Forrester.…India does have its drawbacks as an area, said Moore in her keynote. India is more expensive than many locations, travel can be difficult and the India’s infrastructure has difficulty supporting its growth, Moore added.“One of the most important issues companies struggle with is time zones,” Moore said, adding “you don’t want critical systems supported by someone on the night shift, who probably isn’t the brightest in the company.”Also businesses need companies with similar language and cultural effi Read more:Eastern
, European
, Europe
, Outsourcing
, option
SAP CIS made the top 3 selling SAP units worldwide 2007-11-30 07:29:00 This year SAP CIS made the top 3 selling
SAP units
worldwide,” - said Jovan Maryanovich, SAP CIS Managing Director, at SAP Effective Enterprise Resource Planning Forum in Almaty, Kazakhstan.Although the US and Germany lead SAP’s sales of Enterprise Resource Planning (ERP) software, CIS made the top 3 selling SAP units in 2007 - reported Jovan Maryanovich, SAP CIS Managing Director. As it turned out the SAP’s share of enterprise applications market reached about 45% in the CIS, according to IDC and Gartner. Jovan Maryanovich says SAP owns over 50% of ERP systems market in Kazakhstan and this achievement is quite remarkable. However KZ has still a long way to go till it catches up with the CIS sales leader Russia. According to IDC Russia analysts the sales of ERP solutions in KZ reache
Demand for IT Outsourcing in Central and Eastern Europe is improving again 2007-11-29 08:10:00 This week EquaTerra’s analysts published the results of their 3Q07 Pulse Surveys. Against the background discussions of 2008 outsourcing trends – whether the demand will go significantly up or drastically down – the EquaTerra’s findings look pretty optimistic.Particularly, the survey revealed that demand for Information Technology (IT) outsourcing is improving and is especially strong in the Europe
, Middle East and Asia (EMEA) markets.The pick-up in outsourcing demand is strong across all major industries, and is occurring even as growth in many vertical markets, such as financial services, is challenged by a range of economic and demographic challenges.Key trends identified in EquaTerra's 3Q07 Pulse Surveys include: • Globalization of Outsourcing
: The use of remote, lower cost Read more:Eastern
, Central
Russian and Ukrainian IT Services 2007-11-26 06:13:00 A couple of months ago Goaleurope experts were scanning ITO market of Eastern Europe and now have summarized their findings and a few facts about the industry.We have identified over 150 companies of various sizes, vertical mix, product and services mix. One certain observation that came out of our research is that the industry is highly fragmented. These companies together employed over 50 000 people and generated $12.5B in revenue.Goaleurope suppose there is a lack of resources in the services sector in Russia. However we find the annual supply of graduates with IT and IT-related degrees sufficient for the internal market demand. Despite being almost 80% smaller by population, Russia produces the same 200,000 graduates capable of entering the IT sector as India, according to Microsoft Re Read more:Russian
, Services
, Ukrainian
The Russians are coming! Why IT buyers are selecting Russian suppliers like EPAM 2007-11-12 11:33:00 Five years ago, India was synonymous with IT offshoring. Today, that is not the case. IT buyers can find IT developers and engineers in every corner of the world.Two areas are seriously challenging India's supremacy: China (position No. 2) and Russia (No. 3). Today, many IT outsourcing buyers are experienced offshore customers. They are going outside of India for specific skills they can't find there, in the US, or in Western Europe. And they want to mitigate risk by sending work to more than one locale. China and Russia have been the big beneficiaries.According to the Russian
Software Development Association (RUSSOFT), Russian outsourcers have enjoyed 40 percent annual growth since 2003; 2007 is on par to equal that growth spurt. EU and US-based IT outsourcing buyers are sending work to R Read more:Russians
EPAM: Success Offshore and Nearshore 2007-09-20 08:42:00 EPAM Systems (VARBusiness 500 # 281) embraces the global economy, maintaining a global headquarters in New Jersey, a European headquarters in Budapest, Hungary and a Russian headquarters in Moscow. This solutions provider delivers software product development, testing, maintenance and support services, as well as complex industry solutions, their customization and deployment to clients in more than 30 countries worldwide. EPAM's focus on solutions that provide cost-savings and high-end functionality drove this company's growth by 75 percent last year, resulting in revenue of more than $70 million. In an interview with CMP Channel, Arkadiy Dobkin, EPAM CEO and president, recently discussed how it conducts offshore and nearshore activity, as well as challenges it expects to face in the next Read more:Offshore
, Success
Large Companies Amount to 55% of Russian IT-Export 2007-07-26 03:30:00 According to Russoft research presented at the Russoft Forum being held in St. Petersburg the software export capacity and software development services amounted to $ 1,495 in 2006.Source: CNews Jun 22, 200755% of the export was carried out by large companies (more than 120 people), 10% - by middle-size companies (from 35 to 120), 8% - by the small ones (less than 35), 5% - universities, 3% -informal developers units and 19% - foreign companies software development centers. Russoft mentioned the significant increase of the ready-made software stake in the overall export bulk as one of the main 2006 trends.Source: Read more:Russian
, Companies
, Amount
Add Russia to ITO “Favorites” 2007-07-24 06:08:00 To outsource or not to outsource is not a question any more. The tricky point is where to outsource.At the Gartner Outsourcing Summit in Dallas in mid March 2007 it was reconfirmed that offshoring is no longer that India-centric as before, and is going more and more global with emerging destinations trying to adopt India’s success model. By 2012, India's dominant position will be significantly diluted by effective alternative destinations, the so-called challengers. At present smaller market players with relatively limited resources try to gain competitive advantage by narrowing their services specialization. Given that cost reduction is no longer the most powerful incentive to go offshore, the market repartition may be explained primarily by the need of the client companies for certain Read more:Russia
Hungary: Optimal Nearshoring Choice for IT Outsourcing Buyers 2008-03-11 06:31:00 Hungary, a beautiful country conveniently located in Central Europe, successfully made a transition from a centrally planned to a market economy at the end of the 1980s. Although the economic growth of the country has been often cyclical, the accession to the EU had an overall positive effect on its economic performance. According to European Information Technology Observatory (EITO) the IT outsourcing market is showing a robust growth: already in 2006 it reached 91 million EUR (over 135 mln USD) and continues growing at an impressive pace. Hungary’s strong ITO value proposition, geo and cultural proximity to the Western Europe which recently outrun the US in terms of ITO activity (source: Forrester) makes it an optimal nearshoring option. The global shortage of IT professionals has not Read more:Hungary
, Choice
, Outsourcing
, Buyers
Ukraine to lure ITO buyers 2008-03-18 10:50:00 With rich farmlands, a well-developed industrial base, highly trained labor, and a good education system, Ukraine
has the potential to become a major Eastern European economy. According to The World Factbook of CIA the growth of GDP in 2007 was 6,9% which was fueled by high global prices for steel - Ukraine's top export - and by strong domestic consumption, spurred by rising living standard. Economical stability is one of the key factors for ITO services buyers when choosing on offshore destination. as well as for ITO providers who plan new development centers launch. Currently Ukraine boasts the fastest-growing software development Industry in Eastern Europe. In its study Goaleurope, an Eastern European advisory firm, estimated the size of the outsourcing industry in Ukraine reached over
SAP reports solid growth in 2007 revenue in Russia and CIS 2008-03-20 05:34:00 Following the 2007 results SAP reports its total worldwide revenue in 2007 reached 10,25 billion euros, which is a 9% increase as compared to last year (corresponding increase in US dollars is about 20%). The revenue from software and corresponding services sales grew by 13% (or by 24% in US dollars), while the level of the net operating margin made the 26-27% planned. SAP’s share in the world market of applied software and corresponding services amounted to 28.4% (a 4% growth) in 2007. Its immediate rivals Oracle and Microsoft closed the year with 16.5% and 3.3%, respectively. In terms of the Russia
n and CIS markets SAP experienced even more dramatic results: SAP CIS' total annual revenue made 47,2%, while the maintenance services sales increased by 59,3%. This makes SAP CIS the 4th mos
Any hints about the IT Outsourcing next day? 2008-03-27 08:36:00 Looking back at the past often helps predict the future… or at least gives hints about the next day’s trends. According to Gartner approximately $730 billion was spent on IT services in the world in 2007 which was by 8.7% more than in the previous year. The following segments showed robust growth: IT management, custom software development and maintenance, and IT consulting. About 10% of the world volume of IT services is provided by outsourcing companies with cost competitive workforce: China, India, Russia, and Ukraine. In Russia and other CEE countries the growth of IT services is even more impressive. Younger but no less mature and credible than the mainstream offshore outsourcing destinations, this region’s ITO industry has already caught up with the ITO pioneers in terms of d Read more:Outsourcing
The 2008 Global Outsourcing 100 announces winners: the Russians excelled! 2008-03-31 10:30:00 The International Association of Outsourcing
Professionals (IAOP) has finally announced the long-awaited Top 100 world outsourcing service providers. Four critical characteristics are taken into account by an independent jury: size and growth, customer references, organizational competencies, and management capabilities. It’s good news to know that six Russian companies have been included in the rating in comparison with only four in the previous year: Auriga, DataArt, EPAM Systems, IBA, Luxoft, and Mera. The results of the rating speak for themselves: the most rapidly growing segment of IT services in Russia is IT outsourcing. As Maxim Troitsky, director of special solution and service sales department at ISG, says “…those engaged in retail sales, finance sector arrangement, and sev Read more:Global
, Russians
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