MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE 1 MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE Nihal Vats PGDM 0810-50 A project report submitted in partial fulfilment for the award of Post Graduate Diploma in Management Institute of Public Enterprise Osmania University Campus Hyderabad
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
1
MARKET TRENDS AND COMPETITORS ANALYSIS FOR
INNOMINDS SOFTWARE
Nihal Vats
PGDM 0810-50
A project report submitted in partial fulfilment for the award of
Post Graduate Diploma in Management
Institute of Public Enterprise
Osmania University Campus
Hyderabad
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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DECLARATION
I hereby declare that this Project Report titled Market Trends and Competitors analysis
for Innominds Software submitted by me to the Institute of Public Enterprise is a bona fide
work undertaken by me and it is not submitted to any other University or Institutions for the
award of any degree/diploma/certificate or published any time before.
Nihal Vats
PGDM 0810-50
Institute of Public Enterprise
Hyderabad.
Signature
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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EXECUTIVE SUMMARY
Though India is one of the Favourite IT outsourcing destinations for offshore Outsourcing,
other players are also emerging. The Companies in India which Target providers from US
and Europe may not be able to fetch the projects from these countries in these Difficult
times.
The main aim of the project is to do a study of the Potential Countries from Europe which
are emerging as Outsourcing Destinations. In the project, analysis is done considering the
key Economic factors and Indicators such as GDP and Inflation to arrive at the conclusion.
In this Project some Competitors from each Country are analysed on their strengths as well
as their weaknessess considering Innominds as a benchmark.
This Study has tried to analyse the reasons why Innominds has an edge over these
Companies from each region. It has also tried to evaluate the various countries and rank
them to find the closest competitors of Indian software companies.
Suggestions have been given at the end of the study that will improve the market share
enjoyed by Innominds.
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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ACKNOWLEDGEMENT
First and foremost, I would like to thank the Asst. Vice-President-Business Development of
Innomind Software (P) Ltd., Mr. Arpan Banerjee for giving me the opportunity to do my
summer internship in his esteemed organization. He has truly enriched my knowledge on
what competition is in an industry and how to face it.
Ms. Parveen Sultana, of Innomind Software, Hyderabad, has encouraged me in my
academic pursuits to a great extent. She has been a constant source of inspiration and the
interactions I have had with her has enriched my experience at Innominds.
My thanks are due to Mr. S. Satish Kumar, Assistant Professor at Institute of Public
Enterprise for his keen interest in updating my project. He has helped me immensely in
supplying relevant material to me, as and when required.
I am also obliged to the management and staff of Innomind Software for treating me as one
of their employees and providing me all the information as and when needed. I take this
opportunity to thank each and every employee at Innomind Software, Hyderabad.
I express my deep sense of gratitude to my friends Mr.Abhishek Shukla and Mr.Balakrishna
Oguri along with whom this study was conducted.
Finally, I would like to thank all those who have been involved with my project, for
contributing their ideas and suggestions, thereby having helped in making this project a
successful one.
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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Table of Content
Introduction………………………………………………………………………………….1
Purpose of Study…………………………………………………………………………………3
Objective………………………………………………………………………………………….3
Significance of Project………………………………………………………………………….3
Sampling………………………………………………………………………………………….3
Data Collection………………………………………………………………………………….5
Methodology……………………………………………………………………………………..5
Limitation of the study………………………………………………………………………….5
Review Of Literature………………………………………………………………………..6
Outsourcing: Global Perspective……………………………………………………………..7
website design and development of complex internet systems. We base our
offerings on an understanding of clients business requirements and providing
dependable solutions.
Bigosit is an established global software development and information
technology outsourcing company with offshore development center in
Poland. Being in IT business for over 5 years now bigosit has a strong team
of 21 skilled experienced IT experts. Customers are companies of all sizes
ranging from startups to large enterprises.
Stability in IT outsourcing :
• Experience in Nearshore/Offshore software development since 2003
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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Nearshore location:
• Wroclaw, the capital of Poland
Professional IT personnel: 21+ employee
Strong background: more than 70 successful project
Software development rates:
Fixed Price model evaluated and charged according to the hour of work
Quality Management System: NA
Wide range of development skills:
Technical expertise: Java Software Development, .NET Development , Adobe Flex / AIR Development, PHP Application development , Web services , N-tier Applications
Expert in IT technologies:
• Microsoft Registered Partner • Oracle Network Partner
Industry experience
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BELARUS
Belarus
Map of Belarus
Capital – Minsk
Population – 9,724,723
GDP (PPP*) – $79.13 billion
Per capita – $7,700
Time Zone – EET (UTC+2)
Summer (DST) – EEST (UTC+3)
Serious support of IT sector from the Belarus state does promote IT outsourcing in the country. The market consolidation is very strong related to the other Eastern European countries. Belarus has very stable positions in hardware design.
Volume of IT outsourcing market (USD Mlns)
288
Number of IT outsourcing companies 480 Number of employees involved in IT outsourcing
9,500
Rates per year** (USD) min Max 26,240 47,360
Largest IT outsourcing companies: Epam, IBA, Belhardsoft, Belhard Group, Softclub, System Technologies, B-logic
IT Associations: Infopark
www.infopark.by
TABLE - 5
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RISK DIMENSIONS: BELARUS
Political Risk
Belarus would like to reduce its dependence on Moscow whose financial backing does not
come without a quid pro quo. Russia thus benefited from the transfer of half ownership of
the local gas transport company to Gazprom, which reduced Belarus's earnings linked to the
transit of gas to Europe. But President Alyaksandr Lukashenka's authoritarian grip on power
has been an obstacle to rapprochement with the West, whose concretisation would also
depend on Belarus implementing the liberalisation measures that could effectively attract the
capital needed to modernise the economy.
Legal Risk
The fall of prices for oil re-exported to the West, deterioration of the terms of trade, the loss
of market share in Russia, and the increase in unit labour costs pose problems that call for
structural reforms. Industry remains handicapped by low productivity and very limited
energy efficiency. A business environment not very conducive to development of the private
sector has deterred investment despite a high level of education. The government does,
however, have plans to privatise 600 companies by 2009.
Human Capital Risk
Belarus was an “assembly plant” of the former Soviet Union, which resulted in a skilled and
well-qualified labor force, along with a number of technical universities, schools, labs and
scientific institutions. The Belarusian education system goes back to the time of the former
USSR. There are many universities, institutes and colleges that train high-quality
programmers, QA specialists, designers, etc. Every year, about 2,000 highly qualified IT
specialists come to the market.
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Economical Risk
GRAPH-5
Economic growth began to slow in 2008 and a more significant slowdown is expected in
2009. Subsidised imports of gas from Russia have contributed substantially to the country's
economic performance. The gradual alignment of the imports with world gas prices by 2011
thus tends to weaken local industry and spur surges of inflation. Currency issued by the
Central Bank reinforces the rise of prices. The slowdown in Russia also affects Belarus.
The deterioration of external accounts since 2005 is particularly troublesome in the current
difficult financial context. Foreign debt has been growing rapidly. With foreign exchange
reserves representing just over a month of imports, the economy depends on foreign aid
(IMF, Russia…).
Costs
One of the main advantages of outsourcing in Belarus is the low labor costs. Typically, the
rates of Belarusian software houses are about seven times lower than those of the U.S. or
Western Europe
Overall Assessment
The Belarusian government actively supports IT outsourcing. An offshore-programming
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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zone provides a legislative basis for offshore software development. There are also
preferential taxation policies. This will help Belarus Outsourcing Industry to grow more in
the Coming Years.
COMPANIES AND PROFILE:BELARUS
Belsoft – Borlas Group ltd. – www.belsoft-borlas.by
BelSoft-Borlas group is a part of a leading Russian IT and e-Business
consulting company - Borlas Consulting Group. Our company was founded
in 2006 in Minsk, the capital of Belarus, by Russian and Belarusian IT
leaders – BORLAS and BELSOFT.
Our mission is “Adding Value to Customers’ business through
comprehensive IT outsourcing and IT consulting solutions”. We aim to
become a trusted partner for our clients and business partners, including the
leading software and engineering companies around the globe.
In our work, we efficiently utilize expertise and experience gained by the
both founding companies during more than 14 years on the IT market: large-
scale comprehensive business automation projects, offshore software
development and systems integration projects.
With highly skillful software development staff and consultants in
Management Information Systems, we service our customers by providing a
creative and cost effective array of IT solutions from concepts through
implementation to businesses in the United States, Eastern and Western
Europe, Russia and Belarus.
Stability in IT outsourcing:
• experience in offshore software development since 2006
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Nearshore location:
• Minsk, Capital of Belarus
Professional IT personnel: 70+ employee
Strong background: More than 50 successful project completed
Software development rates
Quality Management System:
• ISO 9001:2000 certification
Wide range of development skills: Java2EE, .Net, Win32, Oracle AS, WebSphere, WebLogic, Tomcat/JBoss, IIS, Zope, Oracle Fusion Middleware, MQSeries, MSMQ
A2A and B2B integration based on J2EE, XML, Web services, EDI, ebXML etc.
Expert in IT technologies :
• Oracle Partner
Industry experience: Multiple
Belhard – www.belhard.com
Founded in 1994 by two friends Igor Mamonenko and Andrey Grigortsevich, BelHard has now grown into an IT holding giving jobs and opportunities for professional growth to more than 1000 employees.
Belhard’s big software development team consists of a firm chain of business-analysts, IT project managers, web developers, testers, and supporters that will flawlessly shape your ideas into cost-effective and reliable products..
Stability in IT outsourcing:
• experience in offshore software development since 1994
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Nearshore location:
• Minsk, Capital of Belarus
Professional IT personnel: 1000+ employee
Strong background: More than 500 successful completed Project
Software development rates
Quality Management System:
• ISO 9001:2000 certification • CMM
Wide range of development skills: Java2EE, .Net, Win32, Oracle AS, WebSphere, WebLogic, Tomcat/JBoss, IIS, Zope, Oracle Fusion Middleware, MQSeries, MSMQ, A2A and B2B integration based on J2EE, XML, Web services, EDI, ebXML etc.
Expert in IT technologies : NA
Industry experience: Multiplle
Qulix System – www.qulix.com
Qulix Systems is an international offshore software development company
with offices in the UK, Russia and Belarus. It has been successfully operating
for almost 7 years and currently employs more than 150 qualified software
engineers and managers. Our powerful combination of business process
analysis and technical expertise enables us to provide a wide range of IT
services across a number of industry verticals, these include finance &
banking, telecommunications, insurance, healthcare, SCM and
manufacturing. State of the art technology, ISO9001 compliant quality
processes and a unique blend of corporate values and enthusiastic, skilled and
experienced staff allow Qulix Systems to provide best of breed solutions,
services and products to customers across the globe.
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With Qulix now established in the UK, this allows for onsite project
management, a secure legal basis for trading and comprehensive insurance
while maintaining competitive costs, superior quality and process
transparency at the offshore end.
Stability in IT outsourcing:
• experience in offshore software development since 2001
Nearshore location:
• UK, Russia and Belarus • Minsk, Capital of Belarus
Professional IT personnel: 150 + employee
Strong background: more than 200 successful projects
Quality Management System:
• ISO 9001:2000 certification
Wide range of development skills:
Expert in IT technologies: NA
Technical experts: MS.Net, Java Solutions, J2ME development (MIDP 1.0 and 2.0),
Symbian software development, including core level development, Palm software
development, WinCE/ WinMobile development, Compact Framework, C++, Usage of
Bluetooth, GPRS, GPS etc.
Industry experience: finance & banking, telecommunications, insurance, healthcare,
SCM and manufacturing
Science Soft – www.scnsoft.com
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Founded in 1989, ScienceSoft Inc. is one of the most mature IT outsourcing
service providers in Eastern Europe. During 20 years our custom software
development center has successfully completed more than 200 large projects
(and some of them took more than 100 man-years). Today we are proud to
state that 40% of Fortune 500 companies use software developed by us.
Over the 20 years of success, our team has increased up to 250 full time IT
experts. Our custom software development center possesses strong
experience in custom software development successfully handling all major
programming languages and technologies: C++, Java, .Net , as well as
Unix/Linux, web and database based technologies.
Stability in IT outsourcing:
experience in offshore software development since 1989
Nearshore location:
• Minsk, the capital of Belarus
Professional IT personnel: 250 full time IT experts and a network of 100+ developers
Strong background: 200+ successfully completed large outsourcing projects
Quality Management System:
• ISO 9001:2000 certified, CMMI3 pre-assessed
Wide range of development skills: C++, Java, .Net , as well as Unix/Linux, web and database based technologies.
Expert in IT technologies :
• Microsoft Gold Certified Partner • Selected as an IBM Core supplier for technical services 2009
Industry experience: Telecommunications, Healthcare & Life Sciences, Security
Engineering, Retail, Media & Entertainment
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BALTIC STATES
Estonia, Latvia, Lithuania in Combined is called as Baltic States. The reason to call them
Baltic States is the all are situated near the Baltic sea. More or less there Culture Growth and
Political Situation are same. Here I will include all the three countries in Short except
Latvia, and some important Issues Such as Political Risk, Infrastructure Risk and
Economical Risk are included for Estonia and Lithuania.
ESTONIA
Estonia
Map of Estonia
Capital – Tallinn
Population – 1,342,409
GDP (PPP*) – $13.10 billion
Per capita – $12,203
Time Zone – EET (UTC+2)
Summer (DST) – EEST (UTC+3)
High quality of services and cost effective production attract customers to Estonia – a traditional outsourcing center for the Northern European countries. Estonia is the country that developed Skype and is also well known for the large number of know-how’s of modern IT solutions for public sector.
Volume of IT outsourcing market (USD
Mlns) 140
Number of IT outsourcing companies 110
Number of employees involved in IT
outsourcing 3,700
Rates per year** (USD) min Max
30,600 57,800
Largest IT outsourcing companies: Webmedia, Mandator Estonia, Helmes, Skype,
Playtech, Microlink, Datel, ProExpert, Cybernet
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IT Associations: Estonian Association of Information Technology
and Telecommunications
www.itl.ee
TABLE - 6
RISK DIMENSIONS: ESTONIA
Political Risk
The three-way government coalition formed after the March 2007 elections has given signs of internal tensions. Any change of government would, however, have no effect on the pursuit of economy policy. The August 2008 conflict between Russia and Georgia, meanwhile, did nothing to improve Estonia's already strained relations with its powerful neighbor since the riots triggered in April 2007 when Estonian officials moved a statue commemorating the velour of Soviet soldiers. The repercussions of these tensions have nonetheless remained limited to tourism, and rail and port transit traffic.
Economical Risk
GRAPH-6
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Estonia slipped into recession as early as 2008 due to sagging domestic demand. The fall of
property prices and the upsurge of inflation eroded household confidence leading to a
reduction in consumption spending. With margins shrinking (under pressure from rising
payroll costs), access to credit increasingly difficult, and sales slowing, companies
postponed investment projects. And in this unfavorable context, companies have begun to
experience difficulties with payments to suppliers. Sectors like construction, consumer
goods, automotive spare parts, and, more generally, those that are credit-dependent or
labour-intensive have been the most vulnerable. The decline in domestic demand is expected
to continue in 2009. Weak foreign demand, meanwhile, will likely stall export growth. And
recovery will develop slowly, emerging at best late 2009. Although the inflation rate will
ease substantially in the wake of the economic slump and the drop in energy prices, it will
be unlikely to be in compliance with Maastricht criteria before 2011. The expected decline
in tax revenues will, however, be unlikely to jeopardise the financial solidity of a public
sector that ran a surplus until 2007 with government debt moreover virtually nil at four per
cent of GDP.
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LATVIA
Latvia
Map of Latvia
Capital – Riga
Population – 2,281,305
GDP (PPP*) – $36.49 billion
Per capita – $16,000
Time Zone – EET (UTC+2)
Summer (DST) – EEST (UTC+3)
Latvia is business friendly country, what makes it easy-to-outsource. The fastest GDP growth rates in Europe, low taxes (corporate income tax is 15%, flat), but competitive labour costs and high productivity of Latvian professionals attract customers to this country.
Volume of IT outsourcing market (USD Mlns)
20
Number of IT outsourcing companies 40 Number of employees involved in IT outsourcing
600
Rates per year** (USD) min Max 27,880 55,760
Largest IT outsourcing companies: Nexum IT, Tilde, DEAC, Lattelecom Technology, Exigen Services DATI, SAF Tehnika, TietoEnator Alise, Data Pro, DEAC, ZZ Dats, RIX Technologies, FMS GROUP.
IT Associations: Latvian Information Technology and Telecommunications Association - LIKT www.litta.lv Business Software Alliance www.bsa.lv
TABLE – 7
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RISK DIMENSIONS: LATVIA
Political Risk
Latvia has been able to engineer a smooth transition from Communist rule; stable
government. Russian minority is a concern.
Legal Risk
One of the most efficient tax systems in Europe; rule-based economy; liberal economy
modeled after Anglo- Saxon economies; IPR protection is still an issue, but Latvia has
improved its intellectual property rights.
Cultural risk
It is extremely hard for a Slav to get rid of Slavic accent when speaking English, however, it
is rather easy for Latvians or Lithuanians, whose language is much more similar to English.
Great affinity with Nordics.
IT Infrastructure Risk
Telephones: 653,900
Internet users: 936,000
Very good infrastructure; government is making more improvements with the help of
Nordics and the EU; telecom is inadequate, but is being modernized to provide an
international capability.
IT Competency Risk
Good project management; excellent regarding software development Custom Code Writing
(body shopping): Average to good BPO: Average to good System Writing Project R&D:
Excellent
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Human Capital Risk
Labor force: 1.18 million
Much better educated workforce technically. There is a larger percentage of IT students and
students of technical sciences in the Baltic States than in the rest of Eastern Europe,
especially for software development; good universities; limited supply.
Economical Risk
GDP—purchasing power parity: $23.9 billion
GDP growth: 7.4%
GRAPH - 7
Continuing economic growth; accession to the EU offers great opportunities. The majority
of companies, banks, and real estate firms have been privatized, although the state still holds
sizable stakes in a few large enterprises.
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Costs
Costs are low now, but they won’t stay that way. Proximity to Scandinavian companies. The
average salary in Latvia and Lithuania is higher than other parts of Eastern Europe and
Russia. To our knowledge, telecommunication costs from the ten new Eastern European EU
member countries are the highest in Latvia.
Market Opportunity
MARKET:
2005: 20%
2006: 24%
2007: 23%
Compounded growth 2005–2009: 21%
(source: Forrester Research)
—Population growth: 0.71%
Overall Assessment
Excellent destination for outsourcing, proximity to Nordics and the EU, good infrastructure
and skills; limited labor pool and an aging population; wages and costs are getting higher
due to EU integration.
Future
Together with its neighbours Estonia and Lithuania, Latvia is a major outsourcing center for
Northern/continental Europe. It may lose its status as a top 20 player due to an aging
population that’s getting smaller as well; limited labor pool; cost would increase
dramatically
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LITHUANIA
Lithuania
Map of Lithuania
Capital – Vilnius
Population – 3,575,439
GDP (PPP*) – $54.03 billion
Per capita – $17,104
Time Zone – EET (UTC+2)
Summer (DST) – EEST (UTC+3)
Lithuania has the fastest growing economy and the lowest corporate tax rates in Europe. Macro stability and flexibility, easy travel throughout the European Union, developing innovation policy all together attract the Western European countries. Well educated and professional personnel is guaranteed thanks to the highest number in EU of graduates that reaching 1000 per year.
Volume of IT outsourcing market (USD Mlns)
44
Number of IT outsourcing companies 90 Number of employees involved in IT outsourcing
1,300
Rates per year** (USD) min Max 27,880 55,420
Largest IT outsourcing companies: Baltic Software Solutions, Sintagma, Sonex Group, Gaumina, Elsis Group
IT Associations: Baltic Outsourcing Association www.balticoutsourcing.com Association INFOBALT www.infobalt.lt
TABLE – 8
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RISK DIMENSIONS: LITHUANIA
Political Risk
Very low political risk, The October 2008 legislative elections spawned a coalition just as
precarious as its predecessor. The broad lines of economic policy are, however, unlikely to
be in jeopardy. On the international level, relations with Russia have been strained since the
interruption of oil deliveries to the Mazeikiu refinery in July 2006. And Moscow's
recognition in August 2008 of the independence of Georgia's two separatists regions,
Abkhazia and South Ossetia, did nothing to improve them.
Economical Risk
GDP(PPP): $54.03 billion
GDP Growth % : 4
GRAPH - 8
GDP growth slowed considerably in 2008 affected by the property market downturn and
slumping private consumption. Economic stagnation is expected to grip the country in 2009
amid tightening credit conditions, sagging economic-actor confidence, and weakening
foreign demand. After surging in 2008, inflation has tended to ease recently as a result of the
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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domestic demand slowdown and the fall of raw material prices. Although trending down, the
price level will nonetheless remain high, which will very likely prevent the country from
adopting the euro before 2012. And excessive inflation previously disqualified the country
in 2007. Coface has recorded no noteworthy deterioration of payment behaviour on the part
of Lithuanian companies at this juncture. Construction, sectors associated with consumption
and, at a more general level, those dependent on bank credit could, however, gradually feel
the effects of the crisis.
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COMPANIES AND PROFILE: BALTIC STATES
Media Works – www.mediaworks.lt
MediaWorks is a technology company providing consulting and outsourcing
services to the Software Development, Education, Financial, Manufacturing,
and Media industries alongside IT recruitment and project staffing services.
The Company was set up in 2000 by a group of specialists with experience in
IT, Marketing and Finance. The company grew steadily and is further
successfully expanding in the Baltics and abroad. MediaWorks' employees
have extensive experience and strong capabilities in Business and IT Strategy
Consulting, Systems Design and Integration, Programming, Web design,
Project management and IT recruitment and staffing services.
MediaWorks' current clients are major Lithuanian companies and companies
in Finland, Sweden, Germany and Australia.
Stability in IT outsourcing:
• experience in offshore software development since 2000
Nearshore location:
• Vilnius and Kaunas, Lithuania
Professional IT personnel: 100 + EMPLOYEE
Strong background: More than 200 successful project
Software development rates
Quality Management System: NA
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Wide range of development skills: JAVA, EJB, JSP,Javascripts,C, C++,CORBA,VB VBSripts, ASP, Cold Fusion,PHP, Sybase DB, DB2, Oracle DB, MS SQL, PostgreSQL, MySQL.
Expert in IT technologies: NA
Industry experience: E-commerce, Business Management, Finance, Retailing, Distribution
Education
Euri Techa – www.euritecha.lt
“Euritecha” is IT Outsourcing Company founded in Y2001. We provide
Software development and Integration services.
Software development and Integration services:
• Development of the custom software that meets particular client’s needs;
• Integration of different software applications into one integrated system.
Our company has a Microsoft Certified Partner status (MCP). It guarantees
that our specialists know Microsoft technologies and products.
Our mission is to provide the best solutions to the customers. It means, that
our services benefit the customers the most. For building the best solutions
for you, we are choosing appropriate technologies, software and hardware.
In project development we are using the international standards (such as
IEEE 12207 and CMM), compliant processes. It guarantees the control and
predictability of the project results and costs. Project is being implemented in
a well-planned and managed way it has definite and particular results.
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Stability in IT outsourcing:
• experience in offshore software development since 2001
Nearshore location:
• Kaunas, Lithuania
Professional IT personnel: 100+ employee
Strong background: More than 150 successful Project
Software development rates
Quality Management System :
• IEEE 12207 standard and has incorporated Software Engineering Institute Capability Maturity Model (SEI CMM)
Wide range of development skills: .NET – core competence and other , Microsoft SQL
Server, Oracle,.NET, Web Services, BizTalk ,UML
Expert in IT technologies:
• Microsoft Certified partner
Industry experience: NA
Alna – www.alna.com
With Headquarters in Vilnius, Lithuania, Alna is a global provider of IT
services. Having started its activities 18 years ago, currently Alna operates in
the entire Baltic region as its home market with the aim to become the leader
in Baltic States, to compete successfully and expand to other EU countries.
With more than 420 professionals and business consultants in three Baltic
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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countries, Alna creates and delivers unique and valuable solutions that ensure
customers competitiveness and being one step ahead. Having focused in
three main IT areas - IT services and consulting, enterprise resource
application solutions and software development – Alna has become a
powerful source to offer increased customer value, innovation, speed and
flexibility.
Being one of the first in the Baltics to invest into R&D and to introduce
innovation centre F1, Alna demonstrates that consistent investments in the
development of knowledge and expertise can help to create unique
competitive opportunities. Alna suggests using innovations in everyday
activities and taking advantage of the opportunities offered by the
information society
Stability in IT outsourcing :
• experience in offshore software development since 2001
Nearshore location:
• Vilnius and Kaunas, Lithuania • Latvia and Estonia
Professional IT personnel: 120+ employee
Strong background: more than 300 successfully completed software projects
Software development rates
Quality Management System:
• ISO 9001:2000 certification • SEI CMMI Level 2 in the near future
Wide range of development skills: Microsoft, Oracle, Java, PHP, etc
Expert in IT technologies : NA
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Industry experience: Public Administration, Utilities, Telecommunications, Banking
Elsis – www.elsis.com
he group of enterprises "ELSIS" is composed out of UAB "ELSIS", UAB "ELSIS Biuro
Sistemos" (Office Systems), UAB "ELSIS Verslo Sprendimai" (Business Solutions), UAB
"ELSIS TS", UAB "ELSIS PRO", OOO "ELSIS Kaliningrad" and ZAO "ELSIS Spb".
The group of enterprises "ELSIS" operates in the field of information technologies &
telecommunications (ITT) and electronic engineering systems:
• - it designs, develops, manufactures, distributes and maintains the ITT equipment
and software products;
• - it projects, implements, maintains and modernizes the specialized systems of
business and technological processes management, the systems of radio
communication and the electronic engineering systems, meant for various
assignment.
At present the group of enterprises "ELSIS", which started its activity in the year 1991, is
one of the largest companies, dealing with the ITT and electronic engineering systems not
only in Lithuania, but in the Baltic states as well. In the year 2007 the consolidated income
of the group of enterprises "ELSIS" exceeded 83 mln. Litas (24 mln. Euro). More than 200
highly qualified managers, engineers, analysts, programmers and specialists of the other
profile work herein. The Quality Management System, implemented in the group of
enterprises, meets the requirements of the ISO 9001:2000.
Stability in IT outsourcing
• one of the oldest IT outsourcing company in Baltic States • experience in offshore software development since 1991
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
83
Nearshore location:
• Vilnius and Kaunas, Lithuania • Latvia and Estonia
Professional IT personnel: 200+ employees
Strong background: more than 200 successfully completed software projects
Software development rates:
• ISO 9001:2000 certification
Quality Management System:NA
Wide range of development skills: C++, C#, ASP.NET, Java, J2EE, PHP, MS SharePoint, Lotus NotesDomino, Crystal Reports, dot Net programming, etc.)
Expert in IT technologies :NA
Industry experience:
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
84
Chapter 5
Analysis
Findings
&
Suggestions
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
85
ANALYSIS, FINDINGS & SUGGESTIONS
COMPETITORS FOR INNOMINDS
Romania Poland Baltic States Belarus
Ukraine
Inno
min
ds
Company
IP D
eve
l
XII
Sof
t
4e
Sof
t
PG
S
Big
osi
t
Hyp
er
Sqr
M
edi
a
Eur
i tch
Aln
a
Els
is
Bel
soft
Bel
hard
Qu
lix
Sci
enc
e
Mira
soft
Otr
c U
kr
Qua
lity
Par
tner
ship
Mic
roso
ft Y N Y Y Y N N Y N N N N N Y Y N Y
Ora
cle
Y N N N Y N N N N N Y N N N N N Y
Su
n
Mic
rosy
ste
ms
N N N N N N N N N N N N N N Y N Y
Cer
tific
ate
s ISO
9
00
1:2
00 Y Y Y Y N Y N Y Y Y Y Y Y Y Y N Y
Ot
her
s
Y N N N N N N Y Y N N Y Y N N N N
No
of Y
ears
In
Fun
ctio
n
5+ Y Y Y N Y Y Y Y Y Y N Y Y Y Y Y Y
10+ N N N N N N Y N N Y N Y N Y Y N Y
15+ N N N N N N N N N Y N Y N Y Y N N
No
of p
roje
cts 100+ Y Y Y Y N N Y Y Y Y N Y Y Y Y Y Y
200+ Y N Y N N N Y N Y Y N Y N Y Y N Y
300+ Y N N N N N N N Y N N Y N N N N N
No
of
empl
oyee
100+ N N Y N N Y Y Y Y Y N Y Y Y Y Y Y
200+ N N N N N N N N N Y N Y N Y N N Y
300+ N N N N N N N N N N N Y N N N N N
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
86
The companies have been analyzed and tabulated according to the objective mentioned
earlier which is, to evaluate the companies of the respective countries keeping Innominds as
benchmark. ‘Y’ indicates Yes and ‘N’ indicates No in the table. Overall Summary of the
Table is as follows:
ANALYSIS: ROMANIA
As in the table mentioned above three competitors for Innominds has been chosen from
Romania and have been examined over some criteria. Detailed information about the
companies are mentioned in the companies profile of the country. From the table we can
find out that Innominds have an edge over the companies on almost all the criteria. The
following are the areas where Innominds lag and lead.
Innominds Weakness
• Some companies have More than 1 certification
• Some Companies have done More Projects than Innominds
Innominds Strengths
• Innominds have more Quality Partnership than all Romanian Companies
• Innominds have more Human resource
• More years of Experience
ANALYSIS: POLAND
Poland Companies seems not that competitive in any respect. Innominds have got edge over
all the companies of Poland
Innominds Strengths
• Innominds have More Quality Partnership
• Innominds have more human resources
• Innominds have more years of experience
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
87
ANALYSIS: BALTIC STATES
In Baltic States Companies have an edge over Innominds . Baltic States Companies Beats
Innominds in all fields except Quality Partnership.
Innominds Weakness
• Companies have More Certifications
• Companies have done more projects than Innominds
• Companies Have more Human Resources than Innominds
• Companies have more years of Experience
Innominds Strengths
• Innominds have more quality certifications
ANALYSIS: BELARUS
In Belarus according to the Table is less or more in the same situation as Baltic States.
Innominds in this Country also leads in only Quality Partenership
Innominds Weakness
• Companies have More Certifications
• Companies have done more projects than Innominds
• Companies Have more Human Resources than Innominds
• Companies have more years of Experience
• Innominds have more quality certifications
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
88
ANALYSIS: UKRAINE
This the country which has got the lowest number of competitors and the only area where
Ukrainian companies lead is the Year of Functioning / Experience
Innominds Weakness
• Companies have more years of Experience
Innominds Strengths
• Innominds have More Quality Partnership
• Innominds have more human resources
• Innominds have more years of experience
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
89
COUNTRY ANALYSIS
Country
GD
P (
Cur
rent
)
FD
I(C
urre
nt In
war
d)
HU
MA
N C
AP
ITA
L
VO
LUM
E O
F IT
M
AR
KE
T
RA
TE
S
INF
LAT
ION
AIR
PO
RT
S
TE
LEP
HO
NE
LIN
ES
AV
ER
AG
E P
OIN
T
RA
NK
India 1 1 1 1 1 2 1 1 1.125 1
Poland 4 2 3 4 8 1 3 3 3.5 2
Ukraine 6 3 2 2 2 8 2 2 3.375 3
Romania 2 4 4 3 6 3 6 4 4 4
Belarus 3 8 5 5 3 7 5 5 5.125 5
Lithuania 5 7 7 7 4 5 4 6 5.625 6
Latvia 7 6 6 8 4 6 7 7 6.375 7
Estonia 8 5 8 6 7 4 8 8 6.75 8
TABLE – 9
As mentioned earlier in the methodology, the ratings are given to each cpuntries depending
on the points received by them. Overall points and ranks are mentioned in table–2. The
country with the lowest point is ranked 1 and as per the rating, India with 1.125 points is at
rank 1. The last rank is given to Estonia as the worst outsourcing destination with 6.75
points.
Hence from the analysis, taking 2008 as the base year. We can say that India is still the most
preferred destination for IT outsourcing and their closest compititors are Poland, Ukraine
and Romania with 3.5, 3.375 and 4 points and are ranked 2, 3 and 4 respectively.
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
90
Chapter 6
CONCLUSION
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
91
CONCLUSION
Being on the Top doesn’t mean you will always be there. To maintain the Position, one
should always be competitive and beware of Threats and their own weakness. India is
currently a leader in IT Outsourcing. Many new countries that are emerging may be the
leaders in the coming years.
India is far ahead of all its competitors and will be the leader for coming few years. India has
no opportunity in nearshore outsourcing; but as an offshore outsourcing Player it has
enormous Potential. Culture, Language, and Distance are few points which can make india
into the race with the Nearshore Destinations like Ukraine, Poland, Romania etc. of Europe.
The recession has gripped the companies all over the world and the best option to reduce
their functional cost is to Outsource their work, Current Situation is the best time to get the
opportunities from European Providers by Offering new and better options to reduce their
current functioning cost.
The Biggest threats for India are the countries from Asia Pacific regions such as China,
Philippines and Vietnam; From some of the reports it is clear that if India does not work on
its weaknesses China, will over India. Quality and quantity of human capital well versed in
both English and IT is the biggest strength of India. To continue their journey to be a leader
India should emphasise on improved foreign language skills and take an extra edge over
other countries who are becoming a threat for India.
Stable Government, positive growth etc. show a trend that India is shining and to continue
its journey it should move fast toward in grabbing the opportunities.
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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BIBLIOGRAPHY
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
93
BIBLIOGRAPHY
BOOKS
1. Malhotra, Naresh K., 2008, Marketing Research, Pearson Prentice Hall, New Delhi,
2. Hitt,Hoskisson,Ireland 2009, Management of Strategy, South Western Cenage
Learning,New Delhi
RESEARCH AND ARTICLES
1. “Global Outsourcing Report”, Mark Minevich, Going Global Ventures Inc., March
2005
2. “Central & Eastern Europe IT Outsourcing Review ‘2007”, Ukraine Hi-Tech
Initiative, December 2007
3. “Outsourcing Industry in Ukraine”, GOAL Europe, June 2007
4. “ Global Sourcing Trend”, Alistair Maughan (London), Julian Millstein (New York),
Nigel Stamp (Hong Kong), Morrison Foerster
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
94
WEBSITES AND ONLINE DATABASES
1. www.itonews.eu
2. www.euroitx.com
3. www.worldbank.org
4. www.unctad.org/fdistatistics
5. www.gartner.com
6. www.ceeoa.org
7. www.pri-center.com
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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Appendices
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
96
APPENDICES
FDI – Inward and Outward for European countries and India
Graph - 9
Graph indicates some countries had negative FDI. Negative FDI is often interpreted as withdrawal of investment by foreign investors from the host economy. While one can observe a negative value of FDI in such a scenario, it can also arise when:
1 Continuous losses in the Singapore affiliate leading to negative reserves