The last week has seen two mergers announced involving firms with operations in Ukraine. First last week EPAM, which has been listed as one of the top or the top (depending on whose list you look at) outsourcing firms in Central and Eastern Europe, announced a merger with another Vested Development, Inc., with major operations in Russia. The merger brings the combined strength to 2200 software engineers and combined revenue of approximately $70 million. While a long way from the size of Indian firms, it seems the strength and value that a Central and Eastern European outsourcing firm can bring is being recognized, something I have been waiting for. Take note of the following blog entry on the Global Services site: http://www.globalservicesmedia.com/blog/hottopics/archives/2006/09/offshoring_20_e_1.html;jsessionid=HMROTR22GMRXQQSNDLRSKH0CJUNN2JVN
It shows that while CEE outsourcing firms are not the size of Indian firms, and they may never be, but they also do not need to be. They have already found ways to differentiate themselves from the competition and it is being noticed.
The second merger announced this week is also noteworthy, Indian firm Induslogic and Bonus Technology with operations in Ukraine have merged to form GlobalLogic with a combined strength of 1300 employees. The reasons for the merger make sense and show the growing interest of Indian firms to expand to have talent closer to European clients, which the Ukraine location provides. While they state that their partnership model is unique, based on a dedicated team model, it is not necessarily so, however, the client list of the newly combined firm is impressive.