DataArt: Decade of Innovation Alexei Miller EVP of Project Management

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June 13, 2022 1 DataArt: Decade of Innovation www,dataart.com DataArt: Decade of Innovation Alexei Miller EVP of Project Management

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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: - PowerPoint PPT Presentation

Transcript of DataArt: Decade of Innovation Alexei Miller EVP of Project Management

Page 1: DataArt:  Decade of Innovation Alexei Miller EVP  of Project Management

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DataArt: Decade of Innovation

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DataArt: Decade of InnovationAlexei MillerEVP of Project Management

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The company

— DataArt:— History— Evolution— Vision

— Russia as an outsourcing destination— Outsourcing: looking forward

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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 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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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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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