DataArt Decade Of Innovation Miller

Slide1: 

DataArt: Decade of Innovation Alexei Miller EVP of Project Management

The company: 

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

Brief History: 

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

DataArt Today: 

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

DataArt TodayThe Periodic Table of the DataArt Elements: 

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

Target Markets: 

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

Industry Recognition: 

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:

Corporate Evolution: 

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

Continuously Working On: 

Continuously Working On Service standards Domain knowledge Delivery methodology Resource scalability

DataArt Philosophy: Position: 

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

How We Understand Value: 

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

Russia as an Outsourcing Destination: 

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

Russia: Current Market Position: 

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 Voronezh RUSSIA

Outsourcing: Looking Forward: 

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

Changing the Risk /Responsibility Equation: 

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

DataArt in the Future: “The Enabler”: 

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

Thank you: 

Thank you