April 22, 20231
DataArt: Decade of Innovation
www,dataart.com
DataArt: Decade of InnovationAlexei MillerEVP of Project Management
April 22, 20232
DataArt: Decade of Innovation
www,dataart.com
The company
— DataArt:— History— Evolution— Vision
— Russia as an outsourcing destination— Outsourcing: looking forward
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DataArt: Decade of Innovation
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Brief History
1997Humble beginnings: Generic IT consulting, no focus
2001Crash and “the morning after”
2005Focus in select industry verticals
1999Internet love affair: MyPhoneBook, Mail.Ru, MediaRing
2002Regrouping and growth
2007Expertise-based outsourcing
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DataArt: Decade of Innovation
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DataArt Today
Deep domain expertise: — Financial Services— Telecommunications— Media— Life Sciences
Growth rate
Client retention:>95%
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4 Software Engineering Centers in Russia and UkraineTeam turnover — <5%
DataArt TodayThe Periodic Table of the DataArt Elements
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DataArt: Decade of Innovation
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Target Markets
USA
USA Europe
UK2%
UK16%
2004 2007
USA USA
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Industry Recognition
Global ServicesMagazine,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:
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DataArt: Decade of Innovation
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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
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Continuously Working On
— Service standards— Domain knowledge— Delivery methodology— Resource scalability
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DataArt Philosophy: Position
— Focus on business outcomes, short-to-long term
— Value Analysis instead of Cost Analysis:
— Cost— Benefit— Flexibility— Risk
Transformation
Enhancement
Efficiency
Business Performance Improvement
Operations Improvement
Cost Improvement
The bulk of outsourcing deals today
DataArt Focus Area
Business Outcomes
Relationship
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How We Understand Value
Cost— Labor cost— Solution TCO— Client
overhead
Benefit— Time-to-market— Focus on business
outcomes— Technical
excellence— Rare resources— Compliance
Flexibility— Scalability of
resource supply— Broad range of skills— Change
management— Integration:
understanding of business domain
— Flexible payment options
Risk— Project failure— Operational— Legal— Geopolitical— Security and
confidentiality— Disaster recovery
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Russia as an Outsourcing DestinationRussian 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
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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
VoronezhRUSSIA
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UntilMulti-sourcing
To Right-sourcing
Outsourcing: Looking ForwardAn industry in transition:
From Outsourcing = India
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Changing the Risk /Responsibility EquationApplication 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
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DataArt in the Future: “The Enabler”
“On Time and on Budget” is not good enough!
Goal: Extend the area where outsourcing is considered feasible.
1. Enable enterprise customers use global resources for mission-critical, knowledge-intensive systems
2. Enable IT vendors deliver new products faster and better than thought possible
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Thank you