EPAM Systems
Encyclopedia
EPAM Systems is a USA provider of offshore software engineering
outsourcing
services with software development centers located in Hungary
, Russia
, Belarus
, Ukraine
, and Kazakhstan
. The company maintains European headquarters in Budapest
, Hungary, with support and delivery operations in Frankfurt
, Germany
, Stockholm
, Sweden
, Zurich
, Switzerland
, and London
, UK. EPAM provides software application and product development, re-engineering, implementation
, testing, maintenance and support, as well as ASM and infrastructure services.
, NJ
, by two school mates: Arkadiy Dobkin, who emigrated to the US in 1991 and Leo Lozner from Minsk
, Belarus
.
Originally, the company name was an acronym (EPAm) defined as "Effective Programming for America". With time, having expanded its reach beyond the US boundaries, the company adopted its present name - EPAM Systems.
In the early 90s Arkadiy Dobkin decided to employ the available software engineering pool from Eastern Europe, and Russia in particular, known for their strong educational traditions especially in mathematics and science intensive fields, a legacy of the Soviet-era military and aerospace industries. Thus Dobkin gradually went into building business relationships with US technology executives, while Lozner was in charge of the infrastructure development and management of the offshore software development teams.
In the making period the company was confronted with a number of obstacles:
The first major success came in 1995 when EPAM started to work on a sales force automation system development for Colgate. Further it was implemented in Colgate’s offices in 25 countries all over the world. The project was noticed by SAP AG and EPAM was contracted for development of a system prototype to be presented at the annual SAP conference in 1996. Later on EPAM was involved with SAP's Netweaver
software while it was still in the process of development.
As many other global IT companies, EPAM was adversely affected with the downturn
of 2002 in U.S. technology stocks. The company had to work very hard to bring in new clients, but was able to accomplish that and replaced most of the lost business the next year.
In 2004 EPAM completed the merger deal with Fathom Technology , a Budapest-based software engineering firm, and in 2006 with Vested Development Inc., a Russian offshore software development services provider.. In 2008 EPAM acquired B2BITS Corp., provider of solutions and consulting services to the Capital Markets. . In 2010 in pursuit to strengthen it Business Information service offering EPAM acquired Instant Information, a leading provider of cloud based information management and discovery services.
The launch of the new client facing locations in UK (2006), Germany (2006), Sweden (2008) and delivery centers across Ukraine (2005) and Russia (2004-2006) significantly accelerated the company's growth in staff and revenues triggering its inclusion in major industry ratings.
Despite many analysts are common in their view that Eastern European IT services providers are unlikely to rival India in size, they express opinion that such companies may appeal to enterprises seeking specific IT skills and refer to the increasing market share of Central and Eastern Europe in offshore IT outsourcing services market.
In June 2011, EPAM filed with the SEC for an initial public offering.
Software engineering
Software Engineering is the application of a systematic, disciplined, quantifiable approach to the development, operation, and maintenance of software, and the study of these approaches; that is, the application of engineering to software...
outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
services with software development centers located in Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...
, Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
, Belarus
Belarus
Belarus , officially the Republic of Belarus, is a landlocked country in Eastern Europe, bordered clockwise by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Its capital is Minsk; other major cities include Brest, Grodno , Gomel ,...
, Ukraine
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
, and Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...
. The company maintains European headquarters in Budapest
Budapest
Budapest is the capital of Hungary. As the largest city of Hungary, it is the country's principal political, cultural, commercial, industrial, and transportation centre. In 2011, Budapest had 1,733,685 inhabitants, down from its 1989 peak of 2,113,645 due to suburbanization. The Budapest Commuter...
, Hungary, with support and delivery operations in Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, Stockholm
Stockholm
Stockholm is the capital and the largest city of Sweden and constitutes the most populated urban area in Scandinavia. Stockholm is the most populous city in Sweden, with a population of 851,155 in the municipality , 1.37 million in the urban area , and around 2.1 million in the metropolitan area...
, Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
, Zurich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...
, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, and London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, UK. EPAM provides software application and product development, re-engineering, implementation
Implementation
Implementation is the realization of an application, or execution of a plan, idea, model, design, specification, standard, algorithm, or policy.-Computer Science:...
, testing, maintenance and support, as well as ASM and infrastructure services.
Technology Focus
History
EPAM Systems was founded in 1993 in PrincetonPrinceton, New Jersey
Princeton is a community located in Mercer County, New Jersey, United States. It is best known as the location of Princeton University, which has been sited in the community since 1756...
, NJ
Nj
Nj or NJ may stand for:*New Jersey*Nanojoule , an International System of Units unit of energy equal to 10−9 joules*Nj *Narva-Jõesuu, Estonia*Nordjyske Jernbaner, a Danish railway...
, by two school mates: Arkadiy Dobkin, who emigrated to the US in 1991 and Leo Lozner from Minsk
Minsk
- Ecological situation :The ecological situation is monitored by Republican Center of Radioactive and Environmental Control .During 2003–2008 the overall weight of contaminants increased from 186,000 to 247,400 tons. The change of gas as industrial fuel to mazut for financial reasons has worsened...
, Belarus
Belarus
Belarus , officially the Republic of Belarus, is a landlocked country in Eastern Europe, bordered clockwise by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Its capital is Minsk; other major cities include Brest, Grodno , Gomel ,...
.
Originally, the company name was an acronym (EPAm) defined as "Effective Programming for America". With time, having expanded its reach beyond the US boundaries, the company adopted its present name - EPAM Systems.
In the early 90s Arkadiy Dobkin decided to employ the available software engineering pool from Eastern Europe, and Russia in particular, known for their strong educational traditions especially in mathematics and science intensive fields, a legacy of the Soviet-era military and aerospace industries. Thus Dobkin gradually went into building business relationships with US technology executives, while Lozner was in charge of the infrastructure development and management of the offshore software development teams.
In the making period the company was confronted with a number of obstacles:
- In the beginning of 90s the business relations between the US and Russia as well as other former Soviet bloc countries were still shadowed by the political confrontationCold WarThe Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...
. The collaborative business environment was slow to materialize.
- The India-based software companies had taken an early start, had a large amount of English speaking population and were supported with governmental programs proactively, which enabled them to dominate the market
The first major success came in 1995 when EPAM started to work on a sales force automation system development for Colgate. Further it was implemented in Colgate’s offices in 25 countries all over the world. The project was noticed by SAP AG and EPAM was contracted for development of a system prototype to be presented at the annual SAP conference in 1996. Later on EPAM was involved with SAP's Netweaver
NetWeaver
SAP NetWeaver is SAP's integrated technology computing platform and is the technical foundation for many SAP applications since the SAP Business Suite. SAP NetWeaver is marketed as a service-oriented application and integration platform...
software while it was still in the process of development.
As many other global IT companies, EPAM was adversely affected with the downturn
Stock market downturn of 2002
The stock market downturn of 2002 is the sharp drop in stock prices during 2002 in stock exchanges across the United States, Canada, Asia, and Europe...
of 2002 in U.S. technology stocks. The company had to work very hard to bring in new clients, but was able to accomplish that and replaced most of the lost business the next year.
In 2004 EPAM completed the merger deal with Fathom Technology , a Budapest-based software engineering firm, and in 2006 with Vested Development Inc., a Russian offshore software development services provider.. In 2008 EPAM acquired B2BITS Corp., provider of solutions and consulting services to the Capital Markets. . In 2010 in pursuit to strengthen it Business Information service offering EPAM acquired Instant Information, a leading provider of cloud based information management and discovery services.
The launch of the new client facing locations in UK (2006), Germany (2006), Sweden (2008) and delivery centers across Ukraine (2005) and Russia (2004-2006) significantly accelerated the company's growth in staff and revenues triggering its inclusion in major industry ratings.
Despite many analysts are common in their view that Eastern European IT services providers are unlikely to rival India in size, they express opinion that such companies may appeal to enterprises seeking specific IT skills and refer to the increasing market share of Central and Eastern Europe in offshore IT outsourcing services market.
In June 2011, EPAM filed with the SEC for an initial public offering.