Outsourcing: Alexei Miller, Executive Vice President Of DataArt (Part 4)

Sramana Mitra: And when you talk about this domain knowledge, where does it begin? Are you getting involved at the business analysis level or functionality specification level, or are you coming in more at the implementation level?

Alexei Miller: We try to get involved in the architectural level. It is quite popular among outsourcing companies to call themselves consultants and for them to claim that they would be involved in a business strategy, the business transformation stage of the idea of the systems. I am quite skeptical about this claim, not because it is impossible to do but because I think it is an exceedingly rare skill, and a company that does it in a systematic way can be extremely, extremely successful. But the truth of the matter is that there are so few companies out there that can do it, and typically when the company is good at this strategy aspect, it is not good at everything else. So, we are very much aware of the fact at we are very good at system architecture, systems definitions and implementations, obviously, and we do like to get on board early when the client is considering how to do things, determine how this system is going to be used, and so on. But we are not trying to, as they say – there is a saying in Russian – trying to run ahead of the train. We are not trying to run ahead of the train in the sense that we will be telling a client how to run their business. We are at this end very ready to understand what they are talking about when they are ready to talk about it.

SM: OK. And in terms of geographical location, are your clients mostly in the United States? I believe you said that 70% of the clients are in the U.S.?

AM: Correct!

SM: Are your architects on location on-site or in the U.S.? What are the mechanics of handing this?

AM: Like many companies, we employ a mixed off-site, on-site model. Ours tends to be more tilted toward more off-site, with less on-site. This is more cost efficient for the client and what it enables us to do is this domain expertise. It is possible for someone in Ukraine to create a meaningful architecture and system development plan for a client 10,000 miles away if they are not only smart and experienced in technology, but if they have experience designing five or 10 similar systems in the past. And because we have this expertise in offshore project completion, and we have low turnover – those two factors are critical – we are able to do this. Not for every project, obviously, but more often than not.

To illustrate the same point, I will use one of my client’s words when we were first meeting with a potential client and making our case. The conversation went about what we do and how we do it and so on, and at some point the gentleman from a financial services client said, “Let me just to try and summarize how I perceive your service.” He said, “If I as a client (I’m paraphrasing his words now)“ need software developers, I have plenty. I have my group on staff, I have my ODC in India, I have my contractors in Singapore and what not, it is available, there is no sense in pitching new software development services to me.” He said, “If I need financial experts, I have access to those in New York and London. It is very expensive, but I can source them.” And finally, the third piece of the puzzle for him was, “If I need mathematicians to crunch data models, I have them, again in New York, London and occasionally in other places. I can approach those scientists and get those problems fixed.” He continued, “What I don’t have is one group that would have all three of those places in one group of people and that it would be proven [they could do all three.” He finished, “What you are claiming to have is exactly that company combination.” And that is true. Obviously, it was at the time a flattering picture of us, but this is the image toward which we strive; that would be a correct description, from the resource perspective, of what we are trying to do.

This segment is part 4 in the series : Outsourcing: Alexei Miller, Executive Vice President Of DataArt
1 2 3 4 5 6 7 8 9