Delivering Excellence in Software Engineering
EPAM Systems Inc
EPAM
POWER
POINT& Services
Corporate
Overview
Sub
Topic
TITLE
Oct 2009.
® 2008 EPAM Systems. All rights reserved.
Slide 1
Summarizing EPAM’s NearShore Value Proposition

#1 “NearShore” Engineering Services Provider for Central & Eastern Europe, rated by; size of resource
pool, accumulated experience, completed projects, # of clients, size of revenues, independent recognition.

Primary “Value Proposition” is MOST EFFICIENT, EXPERIENCED, HIGHEST QUALITY software engineering
services, to deliver more value per “Man-Day” of effort.

–
Pure focus and software engineering in a distributed environment from day 1. Heavy investment in developing and
continuously improving unique toolset. Dedicated CTO’s office adds “non-billable” value.
–
Confidence from experience engaging in advanced “value-oriented” engagement models, SLA and Fixed-Price, with more
experience of these more challenging risk-reward based models than any vendor (last 5 years varies between 45-55%)
–
Product/platform development for leading technology providers (SAP, BEA, Microsoft, Oracle, Novell, Google, ATG, SUN) and
high % of Product vendors- Very demanding, highly complex demonstrates recognized excellence in engineering.
–
Deep experience of all current Methodologies (RUP, Agile, AUP, Waterfall) supported by the most advanced SDLC toolset
specially advanced in Distributed AGILE (SCRUM, TDD, XP)
–
Largest employer in SW development in CEE region. Excellent reputation, not “staff to order body shop”, gives EPAM “Pick of
the crop” from regional talent, best training, clear focus and specialization, highly motivated.
Secondary “Value Proposition”; cost, convenience and de-risking via “NearShore” Delivery
–
Time-zone, ease of travel and communications to development centers. For EU enormous difference, for US still meaningful
item and travel benefits to India and Asia
–
350+ EU based resources. Simplifies, decreases costs, and increases success of workshops & face-to-face meetings.
Facilitates better “on-site activities”: Inception, Elaboration and Transition
® 2009 EPAM Systems. All rights reserved.
Slide 2
A Truly Regional Player
4,600+ staff; #1 in Hungary, #2 in Russia, #1 in Belarus, #3 in Ukraine;
41+ Mil. hours delivered projects in 34 countries in 15 Languages
Client Management Locations:
Frankfurt
London
Stockholm
Newtown, Minneapolis, Boston
Zurich
Moscow
® 2009. EPAM Systems. All rights reserved.
Production Development Locations:
Russia
Ukraine
Belarus
Hungary
Deployed project locations
No.1 Software Engineering Company in CEE, Top 10 Globally
 No. 1 – Depth of resources and scalability. 4600+ engineers with 100% focus on
software engineering.
 No. 1 – Geo-diversity. Risk mitigation, and largest resource pool catchment. Significant
SW engineering resources in Hungary (#1), Russia (#2), Ukraine (#3), Belarus(#1), not
country dependant, true regional leader.
 No. 1 – 41+ million person-hours completed projects.
 No. 1 – $161mil calendar ‘08 rev. 2000-2008 CAGR 39% organic
 No. 1 – Lowest Risk, Most Transparent. Most financially stable & transparent; Profitable
since 1993, US Corp (Newtown PA), Debt-free, Deloitte audited to US GAAP (’02-08) in
all locations, unmatched IPR protection & security 78% shareholders US entities.
 No. 1 – Lowest staff turnover in region. (undesirable ~5.8%), highest average tenure
of Top 7 vendors.
 No. 1 – First (only) to receive SAS 70 Type II in CEE (Hungary Belarus & Ukraine).
 No. 1 – First in Europe with CMMI Level 4 in 2003, only vendor with 2 CMMI centers.
 No. 1 – More independent awards and recognition as #1 than all competitors
 No. 1 – Financial Services Clients than any CEE vendor (over 700 resources currently
serving 15+clients)
 No. 1 – Successfully deployed project in 34 countries and 15 languages
More engineers, more completed projects, most comprehensive regional talent
access, higher revenues, greater stability & lower risk than any competitor.
Consequently, EPAM was recognized by 11 independent industry awards in the
last 4 years, to be No. 1 in the CEE region!
® 2009. EPAM Systems. All rights reserved.
Independently Recognised as #1 IT Outsourcer in Eastern Europe
●
The Global Outsourcing 100 (2006 – 2009): Ranked the top Eastern European and Russian ITO
vendor 06-09, also:
−
−
−
●
Black Book off Outsourcing; Top 50 Best Managed Global Outsourcing Vendors (2006 2009): #38, Only Central and Eastern European ITO company included in the rating:
−
5
Best 10, Leaders (globally) – Entertainment and Media
Best 20, Leaders (globally) – Financial Services
Best 20, Leaders (globally) – Technology
#1 Software Product Development and Engineering company in; Technology, Media & Publishing,
Consumer Packaged Goods, Transportation, Telecommunications, and verticals
●
The Global Services 100 (2005 – 2009): Global Top 10 (#7) "Best Performing IT Services
Providers“ (2008, 2009). Selected No.1, 2008, in “Emerging European Markets” category
●
International Business Award (2007, 2008): Best MIS & IT Organization category winner 2007,
runner up to BT 2008. (other category winners, Daimler, EY, BAT, Vodafone, HP, Travelocity etc. . .)
●
The Software 500 (2004 – 2009): Included in the rating of the world's largest software and services
providers, in 2009 EPAM made 10 positions up from 2008 (placed 180 th)
●
The CRN Fast Growth 100 (2006 – 2009): Ranked among fastest growing solution providers in North
America
●
Inc 500/5000 (2002, 2005 – 2009): Named to the fastest growing private companies in US
●
Deloitte’s Technology Fast 500 in North America / Fast 50 in NJ (2002 – 2009): Included in the 500
fastest growing technology, media, telecommunications and life sciences companies in North America
●
The Top 25 Consultants 2006 - EPAM CEO and President named one of the Top 25 Most Influential
Consultants by Consulting Magazine
® 2009. EPAM Systems. All rights reserved.
More Global Leaders Choose to Work With EPAM
® 2009. EPAM Systems. All rights reserved.
Results, Transparency and Corporate Governance
High level of profitability and cash flow ... strong balance sheet
GAAP, audited
Revenue
2006A
$
Gross profit
69,801
F2007A
$
28,898
114,045
F2008A

US GAAP audited from 2001 (current auditor – Deloitte US).
All subs/locations audited fully
61,971

Parent entity owning all operating subs is US Corp.
$
18,907

Only regional provider with SAS 70 Type II report (Deloitte) –
Kiev, Minsk Budapest

Experienced management team, 124 years of international
experience

Retention/equity plans (15% equity in options to 350+ staff)

75%+equity owned by US Fund or Individuals
$
54,286
160,632
EBITDA
$
15,138
Cash
$
15,741 $
26,495 $
30,658
Current assets
38,051
65,323
76,214
Total assets
52,104
86,116
108,824
Net assets
34,731
50,385
90,031
$
20,529
Highest level of transparency and accountability
2004-2008 Revenues
$161
$114
$80
$29
2004
$40
2005
High level of transparency and accountability
2006
2007
® 2009. EPAM Systems. All rights reserved.
2008

All software fully legally licensed in all locations (SAM System)
audited by several main vendors including MS)

DLA Piper and Deloitte approved transfer pricing and
contractual structures for all operating entities

$20+ million of real estate assets

Profitable since founding in 1993

2008 large capital investment into expansion for new locations
to further improve scalability
Results, Transparency and Corporate Governance
Experienced, contemporary BOD and governance policies

Arkadiy Dobkin, CEO EPAM Systems

Karl Robb, EVP EPAM Systems

Drew Guff, Siguler Guff

Don Spencer, Siguler Guff

Ross Goodhart, Siguler Guff

Audit, compensation committees
Experienced, contemporary BOD and governance policies

US Corp is head entity, US tax payer

Debt Free

Options registered in US

$20m + real estate assets

Formal board committees for Comp &Audit

Board observer from other investment
institutions
® 2009. EPAM Systems. All rights reserved.
Diversified, credible, reputable shareholder base
Other
3%
Four
institutional
investors
58%
Management
& Employees
39%

350+ employees. Non founders 21%+

4 institutional; Siguler Guff, EuroVentures, Rencap,
DaVinci. Funds from;

Lombard Odier

EBRD

European Investment Fund (Luxembourg, part of
EIB, European investment bank which is EU money

IFC

DEG (Deutsche Entwicklungsgesellschaft)

TIAA-CREF is Teachers Insurance and Annuity
Association - College Retirement Equities Fund
Client Revenue Distribution
60%
56%
50%
40%
47%
38%
6 Clients with 100-300 FTE teams

80 active clients

Horizontal split:
45%
39%
37%
34%
33%
30%

25%
20%
Top 5
Top 10

22%
0%
2004

2005
2006
2007
2008
EPAM has most balanced distribution of
revenues in industry/region

Not heavily dependant on 3 or 4 large clients

No specific 1 or 2 clients have unfair control
or leverage on talent pool
® 2009. EPAM Systems. All rights reserved.
App development
54%

Maintenance / support
37%

Consulting
9%
Geographical split:


10%

North America/Europe
52% / 48%
Industry split (ISV causes >100%):

Financial Services
31%

ISV *
42%

Travel
9%

SAP
11%

Taxation
4%

Media & Publishing
13%
EPAM’s Recruitment and Staff Retention Advantage
Recruitment & Selection: Setting the Bar High
•
Largest CEE recruitment team (29 dedicated staff and 13 support staff).
Connected via EPAM’s Applicants Workbench System, integrated to PMC
and eLearning systems. 18,000 resumes of people interviewed/tested
and recorded and skills known.
•
People selected for Technical + Soft skills ( English, Consulting aptitude
etc). High status in the Region.
Training and Progression: Growth
•
All engineering staff have compensation containing a variable % (2030% variable compensation). Connected to their performance, their
progress against targeted skills development and performance in their
learning curriculum
•
Core technical + non-technical training. In-house to accredited courses
(learning/coaching), External Certification.
•
Promotion to different levels (D1, D2 D3, D4 etc…)based on meeting
actual skill measurements, language levels ,project experience and
mangers review.
Retention initiatives: 5.8 % Attrition
• Largest company in region, most management opportunities
• International career perspective, active career development
• Health Insurance
• Assisted favorable mortgages (below market rates with major bank)
• Share options plan (nearly 350 participants @15%)
• Day care / children supervision
• Gym memberships
® 2009. EPAM Systems. All rights reserved.
EPAM Technology Leadership – Via Real Client Engagements
Java EE
.NET
 Service Oriented Architecture
 Standards-based
Portals/Portlets
 BPEL for Business Processes
 Web development, AJAX, JSF,
Flex, Flash,
 Desktop apps (Swing/ Eclipse
RCP)
 Enterprise Service Bus
platforms
 Service Oriented Architecture
 Windows Communication
Foundation
 Windows Workflow
 Presentation Foundation,
Silverlight
 Mono for cross-platform .NET
 WinForms, ASP.NET
NetWeaver




Java Development
Cross-Applications
Migration and Certification
Enterprise Portal /
WebDynpro
 BW / XI / MDM
 ABAP
 C#, .NET, SAP NW .NET.
connector (VS.NET for
NetWeaver future)
UNIX/C++









Linux
Solaris
FreeBSD
SCO
Cluster (high availability)
Posix
C++/STL/Boost/ACE
GCC/Sun Workshop
TCP/UDP/SMTP
EPAM maintains technology leadership as strategic development partner
to main technology vendors!
SAP, Microsoft, BEA Systems and ORACLE are major customers of EPAM. (SAP Since 1997,
BEA & Microsoft since 2001, Oracle since 2003, Google and Novell since 2007). EPAM has
over 500 engineers working under contract on R&D, Product Development and Product
Customization for 4 of the most innovative technology providers.
EPAM’s staff’s knowledge of these platforms, is “ahead of the curve”. Often trained on new
technologies head of market release, having participated in development of these platforms,
or having been in Beta or “Early Adopters” program as preferred development vendor.
® 2009. EPAM Systems. All rights reserved.
EPAM’s Service Delivery Practices
Reengineering
Re-factoring
Porting &
Migration
Straight
Re-factoring
Straight Port
or Migration
Functional
Uplift +
Re-factoring
Functional
Uplift + Port
or Migration
Maintenance
& Support
Development
Maintenance
Bespoke
Applications/
Solutions
Commercial
Software
Products
2nd & 3rd
Level Support
Release
Functionality
3rd level
Support
Issue Patches
2nd Level
Support
3rd Party
Maintenance
24*7 3rd
Level Support
Testing - Integrated into EPAM Service Line & Independent Projects
Unit Testing – API Level, Coded Tests, Automated Running
Functional Testing – Manual or Automated, Use Case, Use Scenario Compliance
Performance Testing – Load, Resilience, Scalability
Integration Testing – Internal Component/Services & External Integration Points
® 2009. EPAM Systems. All rights reserved.
Multiple SDLC Support & Flexible Engagement Models
Fixed Price
DNC (Dedicated NearShore Center or ODC)
SLA Based
Time & Materials Consulting
T&M Elaboration, Fixed Price Construction-Transition.
® 2009. EPAM Systems. All rights reserved.
Special Competency Focuses (Cross Technology Platform)
Capital Markets – Financial Services
Travel & Hospitality
Media & Entertainment
Business Intelligence
SAP
® 2009. EPAM Systems. All rights reserved.
Infrastructure and Tools
Tools, Methodologies: EPAM Project Management Center
Production Systems as a Differentiating Factor

Unique SDLC toolset creating unmatched efficiency

Transparency of development team operation.
Promotes collaboration

Combination of PMC & BEP increases quality

Significantly reduces overhead of communications
and oversight for both clients and EPAM staff
Key Production Systems
PMC – Full System Development Lifecycle (SDLC)
Project Management Tool


Multi-site, multi-project capabilities

Activity based SDLC; providing full traceability between
artefacts (Requirements, Tests, Bugs, Issues, Risks,
Documents) and actual activities

Project role based access control, comprehensive &
flexible. Open to EPAM, client and 3rd parties

Fully configurable workflow engine with built in
notification/messaging, integrated into all modules

Extensive reporting and KPIs, highly configurable

All open web service based APIs to allow integration with
open market tools
PMC (Project Management Center)
 Optimises transparency, traceability, efficiency

BEP (Build Engineering Portals)
 Provides quality management and KPI feed

Other tools include UPSA (Utilisation and Project
Staffing Analyser), Applicant Workbench,
Knowledge Management Portal, Training Portal,
PAL (Project Asset Library), and many others
EPAM’s delivery system is a differentiating factor
® 2009. EPAM Systems. All rights reserved.
Delivering Excellence in Software Engineering
EPAM Systems, Ukraine
Karl Robb
EVP, EPAM Systems Inc.
President EPAM Systems Europe.
Fiskultury 28
Kyiv, Ukraine
Phone: +38 067 449 2175
Karl_robb@epam.com
http://www.epam.com
® 2009. EPAM Systems. All rights reserved.
® 2008. EPAM Systems. All rights reserved