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DataArt: Decade of Innovation Alexei Miller EVP of Project Management

DataArt: Decade of Innovation Alexei Miller EVP of Project Management. The company. DataArt: History Evolution Vision Russia as an outsourcing destination Outsourcing: looking forward. Brief History. 2001 Crash and “the morning after”. 1997 Humble beginnings:

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DataArt: Decade of Innovation Alexei Miller EVP of Project Management

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  1. DataArt: DecadeofInnovation Alexei Miller EVP ofProjectManagement

  2. The company • DataArt: • History • Evolution • Vision • Russia as an outsourcing destination • Outsourcing: looking forward

  3. Brief History 2001 Crash and “the morning after” 1997 Humble beginnings: Generic IT consulting, no focus 2005 Focus in select industry verticals 1999 Internet love affair: MyPhoneBook, Mail.Ru, MediaRing 2002 Regrouping and growth 2007 Expertise-based outsourcing

  4. DataArt Today • Deep domain expertise: • Financial Services • Telecommunications • Media • Life Sciences Growth rate Client retention: >95%

  5. DataArt TodayThe Periodic Table of the DataArt Elements • 4 Software Engineering Centers in Russia and Ukraine • Team turnover —<5%

  6. Target Markets USA Europe USA UK 16% UK 2% USA USA 2004 2007

  7. Industry Recognition • Global Services • Magazine, • January 2007 • #4 Emerging Global Service Provider • #4 Emerging European Service Provider BusinessWeek, 2006 Top 5 Russian Outsourcing Vendor IAOP/Fortune Global Outsourcing 100 “Rising Star” Written up by:

  8. Corporate Evolution • Core Ideas • Start from the market, not skills • Do more with less: fewer smarter better faster people • Independent, flexible, organic growth • Agile: communicate, communicate, communicate

  9. Continuously Working On • Service standards • Domain knowledge • Delivery methodology • Resource scalability

  10. DataArt Philosophy: Position • Focus on business outcomes, short-to-long term • Value Analysis instead of Cost Analysis: • Cost • Benefit • Flexibility • Risk Business Outcomes Business Performance Improvement Transformation Operations Improvement DataArt Focus Area Enhancement Cost Improvement Efficiency The bulk of outsourcing deals today Relationship

  11. How We Understand Value • Cost • Labor cost • Solution TCO • Client overhead • Risk • Project failure • Operational • Legal • Geopolitical • Security and confidentiality • Disaster recovery • Flexibility • Scalability of resource supply • Broad range of skills • Change management • Integration: understanding of business domain • Flexible payment options • Benefit • Time-to-market • Focus on business outcomes • Technical excellence • Rare resources • Compliance

  12. Russia as an Outsourcing Destination Russian resources • Some 1.3 mln Russians have degrees in Computer Science or Engineering, yet only 70,000 currently work in IT-related jobs (Source: AMR Research) • Russia has one of the world’s largest and fastest growing developer populations that is expected to grow 40% between 2005 and 2008 (Source: IDC) • Russia has up to 40% more scientists per capita than Germany, France, and the UK (Source: Forrester Research) • World class education system: legacy of the Soviet Union • Traditionally strong in math and science, analytical thinking, problem solving • Half of Russian students major in science and math (20% more than in China, and at least twice the amount of India, Japan, or the United States) (Source: AMR Research) • A B.Sc. on average has 5-6 years of university training

  13. Russia: Current Market Position • The Russian software services industry has enjoyed year-on-year growth of over 40% since 2003, reaching $1.5 billion in 2006 (Source: RUSSOFT) • Leading technology companies have captive R&D centers in Russia/CEE (Sun, Intel, Alcatel, IBM, HP, etc.) • Enterprise and SME clients in various industries are actively augmenting their existing onshore and offshore capabilities with a footprint in CEE/Russia • “Eastern Europe is cementing its position as a viable offshore alternative to India” (Forrester Research) St. Petersburg RUSSIA Voronezh

  14. Outsourcing: Looking Forward • An industry in transition: From Outsourcing = India To Right-sourcing Until Multi-sourcing

  15. Changing the Risk /Responsibility Equation Application Outsourcing vs. Staff Augmentation Existing outsourcing relationships are often misunderstood: According to Gartner, more than 50% of contracts that clients call Application Outsourcing are actually Staff Augmentation in nature. Smarter vendors are reinventing themselves as Solution Providers

  16. DataArt in the Future: “The Enabler” • “On Time and on Budget” is not good enough! • Goal: Extend the area where outsourcing is considered feasible. • Enable enterprise customers use global resources for mission-critical, knowledge-intensive systems • Enable IT vendors deliver new products faster and better than thought possible

  17. Thank you

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