Eastern European Trends in Software Outsourcing Services

By Kathleen Goolsby

Outsourcing Journal, the publishing and marketing channel of Everest Group, one of the world’s most prominent consulting firms, devotes a feature article to the trends in Eastern European Outsourcing and showcases DataArt as a successful representative of the region. “Alexei Miller, executive vice president overseeing customer relations and project management at DataArt, a global provider of high-end software outsourcing services, says it won't be "doom and gloom" for corporate IT spending over the next two years. In fact, he predicts that as the dust settles, Eastern Europe's outsourcing service providers will emerge relatively unscathed.”

“Miller's opinion is that the Eastern European software services market is at a crossroads and will split into two distinct categories: (a) the specialist firms such as DataArt, which could each have 100 to several thousand people but will remain small, niche players on a global scale and (b) the firms focusing on a commodity, labor-arbitrage play.”

“One area of software services specialization for DataArt is development of complex online trade marketplaces, writes the magazine. “A client for these services is artnet Worldwide, an innovator in the art business and the leading Internet portal for the art market. DataArt built for artnet an online auction platform that offers continuous online auctions of modern and contemporary fine art, prints, and photography. Jacob Pabst, vice president of technology and product development at artnet, says his firm did extensive research for half a year and reviewed providers' proposals. "We were very convinced by DataArt's abilities," recalls Pabst. “We were convinced that DataArt could provide the kind of quality that we already have on our team." He adds that it's difficult to find enough resources with the necessary skills at reasonable costs in the United States, even though the company has a job search running all the time.”

The article concludes with Lessons from the Outsourcing Journal on selecting an Eastern European provider.

View original article or download PDF