Professional Documents
Culture Documents
Nihal Vats
PGDM 0810-50
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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
Hyderabad.
Signature
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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.
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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.
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.
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.
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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
Outsourcing: India…………………………………………………………………………….13
Company Profile…………………………………………………………………….……..17
Innominds Software……………………………………………………………………………18
Europe Region……………………………………………………………………………...23
Ukraine………………………………………………………………………………...26
Risk Assessment…………………………………………………………………………………27
Companies & their profile……………………………………………………………………..31
Romania………………………………………………………………………………..35
Risk Assessment…………………………………………………………………………………36
Companies & their profile…………………………………………………………………….40
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Poland………………………………………………………………………………….44
Risk Assessment…………………………………………………………………………………45
Companies & their profile……………………………………………………………………..48
Belarus…………………………………………………………………………………52
Risk Assessment…………………………………………………………………………………53
Companies & their profile……………………………………………………………………..55
Baltic States……………………………………………………………………………60
Estonia…………………………………………………………………………………60
Risk Assessment………………………………………………………………………………....61
Latvia…………………………………………………………………………………..63
Risk Assessment…………………………………………………………………………………64
Lithuania……………………………………………………………………………....67
Risk Assessment…………………………………………………………………………………68
Conclusion………………………………………………………………………………….82
Bibliography………………………………………………………………………………..84
Appendices A
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
List of Graphs
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
List of Tables
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Chapter 1
INRODUCTION
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
INTRODUCTION
Outsourcing is one of the best practices that helps an organization to reduce their effort in
generation of a final product. It makes an organization reduce their functioning cost as well
as completion of a project in a definite interval of time. Outsourcing is rather a difficult
decision to make, as it has a complicated set of requirements that have to be taken into
consideration. Outsourcing has been divided into different type depending on the distance
factor of outsourcing destinations. The main types of outsourcing destination considered are
Onshore, Nearshore and Offshore outsourcing destinations.
Nearshore is the concept in which the distance between the provider and the destination is
about 3-4 flight hours. As the nearshore concept is more prevalent in European union (EU)
because of the presence of many providers as well as outsourcing destinations
Offshore is the concept in which the distance is between the provider and the destination is
more than 4 flight hour. Offshore is a tough decision to be taken by an organization though
being the most popular concept. Companies taking this decision consider many factors into
account such as Quality, Cost, Human resource, Infrastructure, etc. The most popular
destinations for offshore are countries in the Asia Pacific region and some parts of America.
The slowdown has taken its grip and Indian Outsourcing companies are not able to get the
projects from US and as this slowdown has affected the whole world, the best thing that
companies can do to reduce their Cost is to outsource. India with its advantage of low cost
and highly skilled professionals is best place to incash on this opportunity. This study will
assist such an endeavor by leveraging on its strengths.
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
The purpose of the project is to give relevant information on the emerging preferred
outsourcing destination and also about the existing competitors of India in IT outsourcing.
The project is also aimed at finding and evaluating the competitors of Innominds Software
in these Outsourcing Destination countries.
OBJECTIVE
• To find out five outsourcing destination in Europe that fetch most of the nearshore
projects and identify the competitors of India in IT outsourcing. The destinations are
rated accordingly using SWOT analysis.
• To identify the competitors of Innominds software from each of the selected
countries and evaluate them according to some criteria, e.g. HR, successful
completed projects, certification, etc.
Recession has adversely affected the outsourcing industry. Adding to the woes is the
recently introduced US act of discouraging companies from outsourcing their projects to
offshore destinations. This has made the outsourcing companies to look out for new
providers. and the destination that they get concentrated is Europe rather to get an edge over
them so that they can prove themselves as better outsourcing destination compared to
nearshore outsourcing destinations they need the SWOT of the countries and some points
over their competitors.
SAMPLING
In order to carry out a reliable analysis, competitors and relevant outsourcing destination
from the five countries of Europe was chosen, namely Ukraine, Belarus, Baltic states
(Estonia, Latvia, Lithuania), Romania and Poland.
For all the countries chosen relevant players were selected on the basis of their size and
specialization relevant to innominds software. The countries with their major players are as
follows:
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
• Mirasoft
• Outsourcing Ukraine
• 4e Software
• XII Software
• IP Devel
• PGS Software
• BigosIT
• Hyper Square
• Belsoft-Borlas Group
• Belhard group
• Qulix System
• Science Soft
Baltic States
• Media Works
• Euri Techa
• Alna
• Elsis
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
DATA COLLECTION
All the data used in this study were secondary data which were mainly collected from
websites of ITONEWS (www.itonews.eu), Euroitx (www.euroitx.com) and Gartner
(www.gartner.com). Data were also collected from the statistics given out by world factbook
2009. The companies data were collected from their respective sites.
. METHODOLOGY
Eight countries including India and three of Baltic States are compared on the basis of their
infrastructure, GDP, risk, cost and market opportunity. Rating is given to the countries
according to their preference of being considered as an outsourcing destination and their
competencies.
Apart from secondary data, some related reports and the current scenario of the outsourcing
industry has also been considered to facilitate a better study and comparison.
The research is a descriptive and qualitative one, data being collected from different
websites and reports.
The rating for each country is given on the lickert scale of 8 (1-8) according to the capacity
of the country. SWOT Analysis has been carried out on each country
• GDP: GDP has been considered taking base year as 2008 for each country
• FDI (INWARD): FDI is one of the major contributor which shows the infrastructure
growth in the country. For all the eight countries, the base year of FDI has been
taken at 2008
• Human Capital: Human capital is taken into consideration for the finding out the
availability of the human resource and to compare the strength of particular field.
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
• Rates: Rates are taken as an average of whole year sgowing that what is the lowest
rate in USD to complete the project . this is considered for the cost effectiveness.
• Inflation: Inflation is the one of the main reasons for the instability in the economy a
• Telephone Lines: Telephone lines are taken into point ranking as this shows the
effectiveness of the communication in the country
• Airports: This is taken into consideration as it shows the connectivity of the country
with the world
For the companies competitive analysis we have taken some criteria as keeping Innominds
Software as the benchmark and comparing the important aspects where other companies
lead and where they lag . The main point That are taken in to consideration for comparing
Companies are as follows:
• Quality Partnership
• Certificates
• No. of Projects
• No. of Employees
As the project is completely based on secondary data, while comparing the countries and
companies, the real scenario may be skipped. As in every country there are many
companies, identifying the right competitors has been a daunting task.
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Chapter 2
REVIEW OF LITERATURE
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
After considering different Repots and Journals I found that India is the most competitive
and popular IT-outsourcing destination in the world and tops the ranking of different Global
Outsourcing Reports, released by different Ventures. The reports examines the risk and costs
profile of the world’s leading outsourcing destinations by proposing two different indexes—
the Global Outsourcing Index (GOI), which describes the current competitiveness of doing
outsourcing work in the top 20 countries, and the Future Outsourcing Index (FOI), which
assesses the long-term (10 years) competitiveness of the top 30 future outsourcing
destinations. China takes the lead in the Future Outsourcing Index, followed by India, U.S.,
Brazil and Russia. In the future, the authors believe that China will most likely become the
largest and most competitive outsourcing destination, assuming China makes significant
progress in geopolitical and legal arenas.
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
1. China
2. India
3. USA
4. Brazil
5. Russia
6. Ukraine
7. Romania
Competitiveness has been measured along seven dimensions: geopolitical risk, legal risk,
cultural risk, economic risk, IT infrastructure risk, human capital risk and IT competency
risk. An added dimension is the cost of outsourcing in the respective countries.
REGIONAL ANALYSIS
Eastern European Countries (Czech Republic, Ukraine, Latvia, Hungary, Armenia and
Poland)
The former Soviet bloc influence tends to move faster to Western habits/culture and
economy. The people of these countries found the way to their economic independence by
fully integrating a European/American system. They have huge technical potential because
of their level of Western world comprehension and their educational system. Their potential
for innovation is definitively here. These people are hard and smart workers. Even Russia
will make a slower move to the Western system to keep a role in the world economy and
compete for integration and try to be as attractive as India or China.
A problem for these countries would be the price of technologies, which is still very
expensive compared with the buying power in place and a small language barrier that can be
broken easily. In ten years, these countries will be absolutely ideal for high-core competency
outsourcing and outstanding software innovation. The stimulation is definitively here.
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
These nations still have educational and infrastructure problems. They can be attractive for
specific types of jobs, but there are language limitations and an unmotivated workforce.
Some countries are developing tourism as greater source of their revenue.
These countries are tend to be marginal players in the offshore outsourcing arena. Despite
their high level of education and cultural integration that brings talented people to the table,
the cost of labor and a labor ruling system that is anti-economical development limit
outsourcing here. In fact, these talented populations tend to move away from their own
countries (France has 10% of its population living in Canada and the United States). They
are also starting outsourcing processes for the same reasons that make them unattractive.
Middle East
We would note the complete absence of Middle Eastern countries, except Egypt and Israel.
World disparities on that level are creating major clashes of cultures.
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Numerous factors, including the severe global economic downturn, repeated product
health/safety scares related to Chinese goods, a collapse of commodity prices and the
election of a new U.S. administration concerned with the loss of domestic jobs will
slow globalization and one of its key manifestations, the global sourcing of services.
But the compelling business benefits of global sourcing, especially in tough
economic times, will continue to drive growth.
As buyer focus shifts to cost reduction and cost avoidance, organisations will
carefully analyse current and future outsourcing efforts and service provider partners
to ensure they are getting services from the most cost-effective location.
Outsourcing buyers and sellers must become more effective at hedging against
currency fluctuations that often negatively impact local currencies in emerging
markets, creating instability in cost profit margins. The seesawing value of the dollar
will make calculating the true costs of outsourcing/offshoring more complicated,
challenging buyers and service providers to project longer-term pricing, cost and
profitability levels. Efforts to do this should include explicit contractual
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
contingencies and, when possible, spreading global service delivery efforts across
multiple markets.
Buyers will continue to shift away from the use of project-based contract labor in
favors of longer term, formalized outsourcing relationships. By committing to
longer term and larger scale deals, buyers can get better pricing from service
providers, better levels of service and lock-in longer term cost savings strategies.
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
OUTSOURCING: INDIA
The world is discovering the fact that India is a super power when it comes to developing IT
solutions. India stands far away From all the Outsourcing Destination in ranking Given by
any research or Journal. Giving a glance at why India is such a great destination for IT
outsourcing.
Being the world's second highly populated country, human resources are a boon by itself.
Just as the Gulf is renowned for its natural resource of crude oil, and South Africa for its
diamonds, India is proud of the abundance and easy availability of its highly qualified and
technically skilled English speaking computer professionals; who are key to success in the
field of IT outsourcing to India.
Significant cost saving can be achieved by IT outsourcing to India, owing to the wide gap
between the personal costs in India and that of the developed countries. Offshore
outsourcing to India offers considerable economical benefits for those who are prepared to
exploit the advantages of outsourcing.
The Indian companies involved in IT outsourcing in India provide high quality work,
meeting international standards and complying with the ISO & SEI-CMM standards. Three
out of every four SEI-CMM 5 companies worldwide is located in India. Thus India promises
quality - IT outsourcing in India as it has the potential to furnish these services perfectly.
Excellent telecom, ISP, and cellular networks are available in all cities & towns in the
country. India prides in the reliable satellite and submarine communication links that
facilitate good band connectivity with the rest of the world. Thus companies engaged in IT
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
outsourcing to India, can be in touch with the vendors without any connection hurdles. This
plays a significant role in determining the success of offshore IT outsourcing to India.
The service sector in India contributes 51% of the GDP. Computer software export was
prominent with a growth rate of 40%-50% per year during the 90s. India being the second
largest software exporter in the world its large business houses and public sector units are
growing steadfastly towards raising economic growth..
India has a stable pro - IT government whose policies, economy, GDP growth, taxation,
power, telecom, industrial parks & special zones have been helpful in improving the
infrastructure as well as communication. The government proves to be a great support for
software firms by further providing all the basic facilities required for an outsourcing
company to flourish thus playing a major role in contributing to the success and well-being
of IT outsourcing to India.
• The liberalization and deregulation initiatives taken by the government are aimed at
supporting growth & integration with the global economy. These reforms have
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
enabled the entry of foreign companies to the Indian market. FDI investment from
NRI's including Overseas Corporate Bodies (OCB's); owned by the NRI's are
warmly welcomed in India.
• The new National Telecom Policy has invited private participants to the Indian
telecom sector.
• The IT bill passed in 2000, gives a legal framework for the recognition of electronic
contracts, prevention of computer crime and electronic filing of documents.
NASSCOM along with the government is playing a notable role in protecting the
interests of the IT sector. Thus with all these help, IT outsourcing to India has
reached a point of no turning back.
Yet another prominent reason behind Indias glittering success in the global IT market is the
maintenance of quality. In the recent years, India has been able to offer IT software products
and services, which match global standards of quality.
1. ISO 9000
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
2. SEI-CMM Model
4. CMM Model
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Chapter 3
COMPANY PROFILE
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
As Software entrepreneurs work towards identifying market needs and generate ideas to
develop a new product. Innominds has engineers capable of understanding these ideas and
translating them into world class products. In order to stay ahead of intense competition,
Innominds continuously endeavor to exceed customer expectations with consistent
innovations in technologies, methodologies and processes. Thus, as a part of the corporate
culture, Innominds is highly customer centric and believes in delivering the best quality
products every time.
INTEGRITY-INQUIRY-INNOVATION
SERVICES OFFERING
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
b. Quality engineering
d. UI Engineering
2. IT Services
a. ERP
b. CRM
c. Application Development
e. Re-engineering
a. UI Design
b. Information Design
c. Visual Design
d. E-Learning
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
The software engineering tasks include analysing the system requirements allocated
to software, developing the software requirements, developing the software
architecture, designing the software, implementing the software in the code,
integrating the software components, and testing the software to verify that it
satisfies the specified requirements.
C) Porting and Migration services: - All organizations reach a critical juncture in their
application development process where they decide to move their legacy applications
away from out-dated technologies. Migration and porting is a viable option. This
solution requires the right strategy, combined with in-depth knowledge of the latest
software technologies and the environments involved.
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
As the expert in GUI and application development, Innomind work with their clients
to review existing code and complete a comprehensive assessment to determine the
impact of the migration project. Innomind provides a cost/benefit analysis that
highlights any trouble spots, estimates the actual time required to complete the
migration, documents the potential long term savings, and completes the conversion.
With Innominds custom integration services, companies can achieve robust, efficient
integration without the overhead, complexity and cost associated with staffing for specific
technical expertise. Using its technical expertise, integration methodology, and business
integration framework, Innominds can rapidly design, develop and deploy solutions that
work between disparate systems.
Design and e-learning: - Innomind comprises an extensive design team with members of
various specializations. It combines the creative powers of information architects, visral and
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
information designers, writers and illustrators, with the technical proficiency of experienced
technologist. Together they are equipped to create, deploy and manage the range of content
rich information systems.
Areas addressed by Innominds design and learning products and services are:
• The architecture and design of software and system that deploy content.
• The design and production of content for new and traditional media.
E-learning systems are a major thrust area of Innominds design team. The team has forged a
niche for itself with the design and development of first-of-kind E-learning product Online
School of Photography, in collaboration with world leading creative professionals.
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Chapter 4
EUROPE REGION
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EUROPE REGION
Europe is, by convention, one of the world's seven continents. Europe is the world's second-
smallest continent by surface area Europe has enormous potential for development of IT
Outsourcing industry. This Region will definitely keep the appreciation of the customers
from all over the world. It will attract new clients by professionalism of the experts, Low
labor cost, friendly legislation as well as by geographical vicinity and cultural Connection to
the Western Europe. Europe as a continent consisting of 45 countries in total and divided in
sub regions.
Originally the main destination was to ‘offshore’ in India and the country still leads as an
outsourcing destination because it ticks the proverbial boxes of language skills, technical
now-how, a mature legal system, cheap labour and stable political system. Similarly the
Philippines, which had close military ties to America and hence good language skills, has
proven a popular destination. However, since the initial boom in Indian outsourcing in the
early 1990s, the EU has expanded to incorporate several countries which can tick as many, if
not more, boxes as India and the Philippines but have the advantage of being much closer to
home and ruled by common EU laws and best practice. These East European countries, such
as Poland, Hungary and the Czech Republic, are proving an increasingly popular destination
thanks to high language skills and, particularly for IT excellent universities.
Growth of the European spending on off shoring is expected in the next few years. Opinions
on the intensity of this growth differ. One source expects a 50% year-on year rise in
spending in 2007-2008. Another source forecasts that European spending will achieve an
average growth of 6% over 5 years and European companies will spend a total of €146
billion in 2011. IT jobs will move offshore most rapidly from the UK with continental
countries matching that trend at a lower level of impact. Up until now it is mainly the larger
companies that have started to offshore and nearshore their software and IT services.
Although still developing slowly, there is a trend in the Northern European countries (such
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
as Sweden, the Netherlands, Denmark and Germany) and the UK towards a greater
involvement of SMEs in outsourcing software and IT services. Off shoring / near shoring
software and IT services will be the next step for these SMEs. In other countries such as
Belgium France, Spain and Italy, SMEs are not ready for off shoring / near shoring yet.
According to experts, the SMEs in these countries are only just discovering onshore
outsourcing. Driving factors for offshoring are still cost cutting, access to skilled labour and
improving quality. The main barriers are cultural and language differences and a lack of
trust. The best potential for offshoring / nearshoring lies in software applications and
software systems. For professional IT services, the best chances for offshoring / nearshoring
lie in implementation and operations management services. Support services have the lowest
chance in offshoring / nearshoring.
• Nearshoring is one of the most important trends in the EU, due to cultural and
geographical advantages and a greater sense of control for EU companies.
• Growth, efficiency and the availability of a skilled labour force will become more
important next to cost savings.
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UKRAINE
Ukraine
Capital – Kiev
Population – 46,490,400
IT industry sector in Ukraine has grown considerably during the recent years. Because this
country is the closest to Europe out of those which have not yet joined the EU and which has
a visa-free entry regime, Ukraine is very attractive to the Western European countries. A
large number of small companies provide a whole variety of outsourcing opportunities for
the medium and small businesses. Low rates and a huge pool of highly skilled professionals
are other advantages of outsourcing to Ukraine. Ukraine is a very convenient place, a so
called sluice for collaboration with Russian and Belarusian companies.
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IT Ukraine
www.itukraine.org.ua
TABLE - 1
Political Risk
Recent elections have shown that the country is still very unstable. The new government
gives hope that the country might at last attain true freedom and prosperity. Ukraine is a
young state, possessing both the material resources and the political will to enter into the
world market as a valuable emerging partner.
Legal Risk
Mafia still dictates daily life; no rule of law; piracy, specifically identified USTR foreign IP
protection; sanctions imposed; hidden costs of outsourcing. Expert
Cultural Risk
English skills still not very advanced; affinity toward the U.S. and the EU; Ukraine is the
largest neighbor of the EU
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Economic Risk:
GDP—purchasing power parity: $364.3 billion
GRAPH-1
Ukraine has the highest economic growth in Europe Up to year 2004. It has largest economy
market and credit rating is Growing; country is hungry to catch up with its neighbors.
Ukraine depends on imports of energy, especially natural gas, to meet some 85% of its
annual energy requirements. Growth has been undergirded by strong domestic demand, low
inflation, and solid consumer and investor confidence. Growth was a sturdy 8.2% in 2003.
The middle class plays an important role in the economic and social life. A sufficiently large
middle class (certain estimates claim more than 30%) is laying the foundations of social
stability and economic development in any country. This middle- class group is reported to
include middle and lower-ranked management, skilled workers, craftspeople and people
who run their own business. Lack of investments in the IT sector. As the Graph indicates the
increase of inflation in the country at the same time decrease in the GDP of the country
indicates clearly the effect of the recession over the economic slowdown of the country. As
the Forecast of 2009 the GDP will Go in the negative of-6% and at the same time Inflation
will reach at 29.7% clearly indicates the unstability and recession effect over Ukraine
economy.
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
IT Infrastructure Risk:
Telephones: 13 million
Internet users: 900,000
Cellular User: 56 million
IT Competency Risk:
No project management; many top programmers specialized in various areas Custom Code
Writing (body shopping): Average BPO: Poor System Writing Project R&D: Excellent High
technological level of development. The country is producing complex systems such as
carrier rockets, satellites and space research equipment. Ukraine is a considerable producer
of military equipment, including tanks, military transport aircrafts, SAM complexes and
optical equipment.
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Good pool of IT-workers (legacy of the Soviet Union), with strong knowledge of
mathematics and natural science; good education system (especially hard sciences); good
technical universities. The country provided many top computer programmers to the former
Soviet Union’s space and military efforts, and much of that expertise has spilled over to the
country’s private sector. Ukraine has approximately 1% of the world’s population, but 6% of
the world’s physicists, chemists, mathematicians, biologists, computer programmers and
other highly trained professionals. Technical schools provide specialized education in many
fields and higher education is gained at numerous universities, granting bachelor’s, master’s
and doctorate degrees.
Ukraine is considered a country with one of the highest levels of education in Eastern
Europe.
Costs
Costs are low now, but they won’t stay that way (especially when Ukraine starts
negotiations to become a member of the EU). Rates charged for programming in Ukraine are
more expensive those in India, but they are 25% cheaper than in Russia.
MARKET OPPORTUNITY
MARKET:
2005: 20%
2006: 2%
2007: 23%
Compounded growth 2005–2009: 21%
(source: Forrester Research)
—Population growth; 0.66%
The Ukrainian IT market has demonstrated a steady 30%- 40% annual growth for the past
three years.
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Overall Assessment:
Ukraine’s big resource pool of qualified IT specialists and the low cost of labor make it a
competitive location for offshore programming firms. Currently, popularity is low, but
growing. The country is making a lot of progress to establish its position as a competitive
location in Europe; costs will remain low compared with other countries.
Future
Good future. The new government is fighting favoritism and corruption and willing to
transform the country into a rulebased economy; Ukraine has the potential to unleash even
more capacity to become a vibrant player in the global economy due to a large, highly
educated labor force. The challenge is political and economic risks.
Mirasoft Ltd (former branch of Swiss company Miratech AG) has been in
business since 1992 when it was founded by a group of scientists of the
Institute for Cybernetics (leading research institute of the National Academy
of Sciences) in Kiev, Ukraine. The significant participation in developing the
miracle xrp project started in 1994, which enabled Mirasoft to accumulate
know-how in the field of complex business information systems. More than
18 years of Mirasoft's success lays in the two main benefits they bring to their
customers - the significant cost reduction and the high technological
innovative solutions they provide.
39
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Stability in IT outsourcing
Nearshore location
40
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Wide range of development skills: 300+ technologies & tools (C++, C#, ASP.NET, Java,
J2EE, PHP, MS SharePoint, Lotus NotesDomino, Crystal Reports, dot Net programming,
etc.)
Expert in IT technologies
OUTSOURCING UKRAINE
Stability in IT outsourcing:
Nearshore location:
Professional IT personnel: NA
Wide range of development skills: Microsoft .NET, Microsoft SQL Server, XML Web
Services, Windows Server, ASP.NET Ajax, SilverLight
42
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
ROMANIA
Romania
Capital – Bucharest
Population – 22,276,056
Romania indeed attracts whole Europe, especially Italy and France. This country has the
largest number of IT professionals per capita in Europe. Good mastery of Germanic
languages. This is the perfect location for the multi-lingual call centers with the particular
specialty in Italian and French. All the working in IT sector in Romania should not pay
income tax that is 16%, flat.
43
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
TABLE - 2
RISK DIMENSIONS: ROMANIA
Political Risk
Rampant corruption; Hungary amended status law extending special social and cultural
benefits to ethnic Hungarians in Romania, who had objected to the law. Romania has good
relations with the former Soviet Union states (from the point of view of political doctrine
and economic relations) and the Middle East (it has always had very good links to the
countries from that region). Romania is in the privileged position in which it can serve as a
bridge between the nations and companies from this area.
Legal Risk
Red tape hinders foreign investment; ongoing piracy issues; lack of IPR protection; lack of
enforcement, but piracy rate has decreased more than 20% in the past few years. The
government is committed to attracting and retaining IT talent by exempting IT professionals
44
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
from income tax payment. There’s a lack of legislation, but the important laws are already
being prepared for approval, including copyright, electronic signature, electronic commerce
laws and a ruling concerning personal character data processing.
Cultural Risk
Attractive for European outsourcing; same time zone for EU; very little time overlap;
understand Western European culture. The business culture and Romanian attitude is
European and a very high percentage of the workforce speaks English, French, German or
Italian.
Economic Risk
GRAPH-2
Romania has successfully concluded an IMF agreement; has to achieve a lot to enter the EU.
An effective public-private partnership in the IT sector will ensure a competitive and
45
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
IT Infrastructure Risk
Poor domestic telco infrastructure, but improving; ranks sixth in the world in the number of
certified IT professionals. The government’s IT "Vision for Romania" is summed up in the
following mission statement "Romania should aspire to become the ‘Internet hub’ for the
Black Sea region. The Romanian have implemented almost all the international standards of
mobile telecommunications, and the country has registered one of the largest growths of
mobile communication in Europe during the last five years.
The extension of the e-Procurement system to a national level has become a key component
in the process of modernization of the government in Romania. With electronic
procurement, the Romanian government can lower the cost and encourage the private sector
to move to B2B. It also creates the premise for lowering corruption, reducing bureaucracy
and ensuring transparency. Companies investing in R&D centers in Romania include IBM,
Oracle, Siemens, Alvarion and Alcatel.
IT Competency Risk
Highly skilled workforce, focus on specialized software; excellent R&D and creative skills
Custom Code Writing (body shopping): Very good BPO: Poor System Writing Project
R&D: Excellent
46
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Cost
Wages are low. It will take seven to eight years for wages in Romania to catch up with the
rest of the EU; IT costs are $2,360; very top MCSE annual cost is $12,000.
Market Opportunity
MARKET:
Annual rate of growth of the Romanian IT companies exceeded on average 25% for the last
few years, and that of export 60%; IT spending is the lowest in the region. —Population
growth: 0.11%
Overall Assessment
Romania has an abundance of welleducated and highly skilled workers deleted Being
located in the heart of Europe, Romania is the best choice when targeting both the massive
EU market and the emerging CIS region with its unsurpassed labor costs and IT expertise.
47
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Highly-skilled, relatively cheap labor. A very high percentage of the work force speak
English, French, German or Italian Major players: More than 5,000 software-producing
compa- nies are located in Romania, mainly at the great university centers in Brasov,
Bucharest, Cluj, Iasi and Timisoara
Future
Romania will be a promising player in the Future with quality and abundant IT resources in
Central Europe. Costs might rise a bit in the future, but on the whole, remain competitive.
4esoftware – www.4esoft.ro
Stability in IT outsourcing:
48
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Nearshore location:
Expert in IT technologies :
Industry experience
Stability in IT outsourcing:
49
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Nearshore location:
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: NA
IP Devel – www.ipdevel.net
50
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Stability in IT outsourcing :
Nearshore location:
Wide range of development skills: 300+ technologies & tools (C++, C#, ASP.NET, Java,
J2EE, PHP, MS SharePoint, Lotus NotesDomino, Crystal Reports, dot Net programming,
etc.)
Expert in IT technologies :
51
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
POLAND
Poland
Capital – Warsaw
Population – 38,518,241
52
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
TABLE – 4
Political Risk
Strong government is relatively stable, but corruption is an issue. There’s growing support
for the IT industry; continuing to work with foreign governments; political stability; EU
member.
Legal Risk
An inferior and sometimes nonexistent IP and legal system; growing set of incentives, but
not as high as other countries; mixture of continental (Napoleonic) civil law and holdover
communist legal theory. Changes are gradually being introduced as part of a broader
democratization process; limited judicial review of legislative acts; lack of political will by
the Polish government to shut down the open air market for selling copyrighted materials,
plus a lack of enforcement; lack of legislature to enforce; improvements are slowly made.
Cultural Risk
English not widely spoken, but gaining; German is the major foreign language, affinity and
respect for the U.K., U.S. and Germany; lack of customer service.
53
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Economic Risk
GRAPH - 4
Small and medium-size state-owned companies and a liberal law on establishing new firms
have encouraged the development of the private business sector. Poland has steadfastly
pursued a policy of economic Liberalization throughout the 1990s and today stands out as a
success story among CE/EE economies; strong economic growth during past year. Poland is
now facing a rather flat growth. EU-membership may provide new impetus; strong foreign
investment; fiscal problems; economic reforms under way; losing out at FDI inflows. Poland
currently suffers low GDP growth and high unemployment.
IT Infrastructure Risk
54
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
IT Competency Risk
40,000 graduates per year; biggest Eastern European country; larger labor pool than other
EE countries; highest number of universities, excellent education system;
Costs
Market Opportunity
MARKET:
2005: 20%
2006: 24%
2007: 23%
Compounded growth 2005–2009: 21%
(source: Forrester Research)
55
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Overall Assessment
Interesting for continental European countries especially. Germany. Good for nearshoring
from continental Europe. Major outsourcing for Western defense manufacturers; excellent
relationship with the U.K.; pool of educated IT workforce; growth is slowing down; a player
in EE/CE market; political stability; losing out on foreign investments; good telecom
infrastructure; proximity to Western Europe.
Future
Poland’s outsourcing industry will build on the enthusiasm with regard to the EU-accession;
cost will get higher, but due to a larger pool of it workers, Poland will remain a future
favorite destination; larger than the Czech Republic or Hungary.
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
They regains that your business must keep pace with the speed of thought and
we believe that your ideas and innovations deserve a better return on IT
spend. They address these changing needs of your business with solutions
that are not only cost-effective but also fast to deploy, highly scalable and
reliable.
Stability in IT outsourcing :
Nearshore location:
Wide range of development skills: Microsoft .NET and Java EE, scripting tools, such as
JavaScript and PHP, together with a deep understanding of state-of-the-art software-as-a-
57
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
service (SaaS) architectures, cloud computing, mashups and user-generated applications and
Web 2.0 social media platforms.
Expert in IT technologies:
Industry experience:
BigosIT – www.bigosit.com
Stability in IT outsourcing :
58
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Nearshore location:
Fixed Price model evaluated and charged according to the hour of work
Technical expertise: Java Software Development, .NET Development , Adobe Flex / AIR
Development, PHP Application development , Web services , N-tier Applications
Expert in IT technologies:
Industry experience
59
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
BELARUS
Belarus
Capital – Minsk
Population – 9,724,723
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.
www.infopark.by
TABLE - 5
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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.
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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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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
Stability in IT outsourcing:
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Nearshore location:
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
Belhard – www.belhard.com
Stability in IT outsourcing:
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Nearshore location:
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
65
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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:
Nearshore location:
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
66
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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:
Nearshore location:
Professional IT personnel: 250 full time IT experts and a network of 100+ developers
Wide range of development skills: C++, Java, .Net , as well as Unix/Linux, web and
database based technologies.
Expert in IT technologies :
67
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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
Capital – Tallinn
Population – 1,342,409
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.
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
TABLE - 6
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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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
LATVIA
Latvia
Capital – Riga
Population – 2,281,305
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.
TABLE – 7
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Economical Risk
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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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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
74
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
LITHUANIA
Lithuania
Capital – Vilnius
Population – 3,575,439
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.
Association INFOBALT
www.infobalt.lt
TABLE – 8
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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 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
76
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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.
77
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Stability in IT outsourcing:
Nearshore location:
78
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Expert in IT technologies: NA
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.
79
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Stability in IT outsourcing:
Nearshore location:
• Kaunas, Lithuania
• 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:
Industry experience: NA
Alna – www.alna.com
With more than 420 professionals and business consultants in three Baltic
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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 :
Nearshore location:
Expert in IT technologies : NA
81
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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:
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
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Nearshore location:
Wide range of development skills: C++, C#, ASP.NET, Java, J2EE, PHP, MS SharePoint,
Lotus NotesDomino, Crystal Reports, dot Net programming, etc.)
Industry experience:
83
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Chapter 5
Analysis
Findings
&
Suggestions
84
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
Ukrain
Romania Poland Baltic States Belarus
e
Innominds
Company
Otrc Ukr
IP Devel
Mirasoft
XII Soft
Euri tch
Belhard
Science
Bigosit
Belsoft
4e Soft
Media
Hyper
Qulix
Alna
Elsis
PGS
Sqr
Y N Y Y Y N N Y N N N N N Y Y N Y
Microsoft
Partnership
Y N N N Y N N N N N Y N N N N N Y
Quality
Oracle
N N N N N N N N N N N N N N Y N Y
Microsyst
ems
Sun
Y Y Y Y N Y N Y Y Y Y Y Y Y Y N Y
Certificate
9001
:200
ISO
s
Y N N N N N N Y Y N N Y Y N N N N
her
Ot
5+ Y Y Y N Y Y Y Y Y Y N Y Y Y Y Y Y
No of Years In
Function
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
100+ Y Y Y Y N N Y Y Y Y N Y Y Y Y Y Y
No of projects
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
100+ N N Y N N Y Y Y Y Y N Y Y Y Y Y Y
employee
No of
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
85
MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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
Innominds Strengths
ANALYSIS: POLAND
Poland Companies seems not that competitive in any respect. Innominds have got edge over
all the companies of Poland
Innominds Strengths
In Baltic States Companies have an edge over Innominds . Baltic States Companies Beats
Innominds in all fields except Quality Partnership.
Innominds Weakness
Innominds Strengths
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
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
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
Innominds Strengths
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COUNTRY ANALYSIS
TELEPHONE LINES
FDI(Current Inward)
HUMAN CAPITAL
AVERAGE POINT
VOLUME OF IT
GDP (Current)
Country
INFLATION
AIRPORTS
MARKET
RATES
RANK
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.
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Chapter 6
CONCLUSION
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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.
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BIBLIOGRAPHY
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MARKET TRENDS AND COMPETITORS ANALYSIS FOR INNOMINDS SOFTWARE
BIBLIOGRAPHY
BOOKS
1. Malhotra, Naresh K., 2008, Marketing Research, Pearson Prentice Hall, New Delhi,
1. “Global Outsourcing Report”, Mark Minevich, Going Global Ventures Inc., March
2005
4. “ Global Sourcing Trend”, Alistair Maughan (London), Julian Millstein (New York),
Nigel Stamp (Hong Kong), Morrison Foerster
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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
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Appendices
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APPENDICES
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:
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