The Russian Offshore Software Development Industry Survey

The Russian Offshore Software Development Industry Survey 2003

2003 2

Table of contents PREFACE...5 DISCLAIMER... 6 OFFSHORE SOFTWARE OUTSOURCING IN RUSSIA: AN EXECUTIVE SUMMARY. 7 THE RUSSIAN OFFSHORE SOFTWARE DEVELOPMENT INDUSTRY SURVEY... 10 INTRODUCTION... 10 1. ORGANIZATIONAL STATUS OF COMPANIES... 10 2. COMPANIES FIELDS OF ACTIVITIES... 10 3. SIZE OF COMPANIES... 11 4. AVERAGE ANNUAL REVENUE OF COMPANIES... 11 5. AVERAGE SALARY, GROWTH ESTIMATION AND MARKET S SIZE ESTIMATION. «GRAY» TEAMS.... 13 6. AREAS OF SPECIALIZATION... 13 7. REPRESENTATIVE OFFICES: LOCATION AND STATUS... 16 8. CLIENTS BUSINESS... 19 9. GEOGRAPHICAL MARKETS... 19 10. RUSSIAN VENDORS: INDEX OF CITATION... 22 11. KEY TRENDS OF THE RUSSIAN OFFSHORE DEVELOPMENT MARKET... 22 12. MAIN PRIORITIES IN THE DEVELOPMENT OF COMPANIES... 22 13. SOFTWARE DEVELOPMENT PROCESS CERTIFICATION... 22 14. IT-ASSOCIATIONS...23 OUTSOURCING TO RUSSIA: HOW TO... 24 CAPABILITY AND MATURITY: MORE THAN JUST DEVELOPMENT ISSUES... 24 SHAPING YOUR AGREEMENT: TEN STEPS TO HELP YOU STEER CLEAR OF TRAPS AND TROUBLE... 26 RISK MANAGEMENT IN PROJECTS: 17 STEPS TO SUCCESS... 28 OVERVIEW LEGAL FRAMEWORK FOR ACTIVITIES IN THE SPHERE OF INFORMATION TECHNOLOGIES IN THE RUSSIAN FEDERATION... 31 SOFTWARE PROTECTION IN RUSSIA... 36 BUSINESS DIRECTORY... 40 APLANA SOFTWARE... 40 ARCADIA, INC.... 42 ARTEZIO, INC.... 45 ATAPY SOFTWARE... 46 AURIGA, INC... 47 DAROUT SERVICE CORP. LTD.... 49 ECTACO-RUSSIA, LTD... 51 EPAM SYSTEMS... 52 EVELOPERS CORPORATION... 53 FORS... 54 HITSOFT... 56 JENSEN TECHNOLOGIES... 57 JS RCOM... 58 J-SOFT JSC... 59 KANAR SOFTWARE... 60 LANIT-TERCOM... 62 LUXOFT... 64 NOVOSOFT, INC... 65 NTR LAB... 67 OKTET LTD... 69 PROGRESS-INFORMATICS... 70 REKSOFT... 71 SAMARA INFORMATION TECHNOLOGIES... 72 SOFTWARE TECHNOLOGIES... 73 SPIRIT CORP.... 75 SPUTNIK LABS... 77 STAR SOFTWARE... 78 TELMA LTD... 80 2003 3

TERRALINK... 82 V6 TECHNOLOGIES... 83 VESTED DEVELOPMENT, INC.... 85 CONTRIBUTORS AND SPONSORS... 86 OUTSOURCING-RUSSIA.COM... 86 BEITEN BURKHARDT GOERDELER RECHTSANWALTSGESELLSCHAFT MBH... 86 BROOKE NICOLE CONSULTANCY, INC.... 86 INFORUS... 87 STAR SOFTWARE... 87 2003 4

Preface Dear reader, Thank you for your interest in the Russian offshore software development industry. We ve done our best to present this unique, three-in-one report containing the most up-to-date information regarding Russian capabilities in offshore outsourcing. We also believe that the included guidelines will be valuable in your search for an outsourcing vendor, as well as a useful Business Directory of major Russian providers. This report was especially intended to help small and midsize companies, with no prior experience in outsourcing, to find a suitable software development partner in Russia and to avoid the most common problems. We at are devoted to helping the young, but quickly developing outsourcing industry in Russia to realize its great potential. I want to personally thank all those who share our vision and who contributed to this report. We also want to thank all the respondents who took part in the survey. Please feel free to contact in case you need further in-depth knowledge of the Russian software development industry or assistance in finding a reliable partner in Russia. Best regards Alexey Filimonov Editor, editor@outsourcing-russia.com 2003 5

Disclaimer Please be informed, that all of the information contained in this survey (except the Directory) is owned by and its Contributors and is protected by Russian and international copyright laws. Any reproduction or republication of all or part of this survey has to remain intact and include a notice on the copyright of or the Contributors, as applicable. While the information of this survey has been presented with all due care, does not warrant the accuracy, completeness, usefulness and truth of survey s information, links and logos derived from third parties. is not liable for any loss or damage occurring from the use of survey. 2003 6

Offshore Software Outsourcing in Russia: An Executive Summary The offshore software outsourcing industry in Russia has recently enjoyed a surge in interest and activity. There are more than 10,000 professional programmers in the industry in Russia, and recent estimations (particularly from Market Visio/EDC) put annual revenue at $150-200 million per year, with 50% annual growth. At least a dozen major international companies have established offshore development centres in Russia. These include Motorola, Intel, Sun, Boeing, LG, Lucent and Nortel. Russia has more personnel working in R&D than any other country in the world and ranks 3 rd in the number of scientists and engineers per capita. Other advantages are competitive labour costs, proximity to Western Europe and good transportation links to the USA, a shared European culture and history that facilitates cross-cultural understanding (Source: A Whitepaper on Offshore Software Development in Russia from the American Chamber of Commerce in Russia). The Russian offshore software outsourcing industry comes of age The Russian offshore software outsourcing industry is 10+ years old and three major centres have emerged: Moscow, St. Petersburg, and Novosibirsk. Moscow State University, St. Petersburg State University, and Novosibirsk State University are, respectively, the top sources of programmers for each centre. There are also a smaller number of software development providers in Nizhny Novgorod, Yekaterinburg, Sarov, and Perm. Russia is a rapidly growing offshore source for software development. Currently, more than 150 Russiabased companies are active in offshore software development. Labour costs are moderate and vary from $10 to $40 per developer s hour depending on required skills and project size. The major software development centres have adequate telecommunications infrastructures. The leading Russia-based software companies have 150+ permanent staff, established quality systems and are building their presence in the USA and Western Europe by opening sales and marketing branches. A number of U.S. companies have set up development centres in Russia, and have reported excellent results. According to the Whitepaper on Offshore Software Development in Russia, these include: Intel, which started in 1993 by contracting with 10 programmers, now has its own facilities and a team of approximately 200 software developers in N.Novgorod, with announced plans to expand to 500. Motorola, which started in 1993 with a small group of programmers, now has 200+ software engineers working as part of its global software manufacturing facilities in St.-Petersburg. This Motorola centre has recently achieved CMM Level 5 status. Sun Microsystems, which has been active in Russia since 1989, now has a Sparc Technology centre with approximately 300 programmers through a partnership. These programmers are involved in the development of new software and worldwide support of existing products. Other well-known companies developing software in Russia include IBM, Boeing, LG, Lucent and Nortel, as well as hundreds of less famous but large software and technology companies. All of these companies have reported similar findings in their work: The projects are all generally viewed as successful and the company has chosen to scale up their research and development teams in Russia Russian research and development and software development centres are ranked on a par with U.S. and Indian centers Cost savings exist, but are not the primary reason for the success and growth of their Russian software development teams The main benefits derived from their Russian development centres, and the reason for their success, are the strong technical capabilities (especially in the areas of mathematics and fundamental sciences) and innovative approaches of Russian professionals Intellectual Property rights and security have not been issues 2003 7

The advantages of Russia as an outsourcing partner Availability of resources. It is no secret that a unique set of factors enabled Russia to make remarkable technological achievements in the heyday of the Soviet Union, starting with Sputnik. The Cold War rivalries fed more than 40 years of massive government-sponsored scientific initiatives at the country s already highly developed academic establishment. Innovation and determined problem solving were at a premium. In the decade following the Soviet era, Russia has experienced a decline in its capacity to harness talent as it did in the past. With the opening of borders, emigration led to a short-lived brain drain and the weakened economy during transition to the market could not support R&D generally at former levels. However, Russia not only retains vast pools of untapped technical resources, but also continues to produce large numbers of highly skilled graduates educated in the proud academic tradition from Soviet times. With new economic expansion, Russia s fledgling IT sector is now attracting meaningful public and private support. The World Bank estimates that Russia has more than 1 million technically trained personnel, more than the U.S., China or Japan, and three times as many as India. The ratio of researchers to the number of total inhabitants in Russia is 3,801 per million, less than Japan (4,909) to be sure, but greater than the United States (3698), Europe (2476), China (454), and India (151). (Source: Russia: Offshore Software Development Diamond in the Rough, PWI, Inc). According to surveys by Microsoft Research, within the last seven years 1.3 million people graduated from Russian universities with the skills to work in the IT industry. But only 70,000 actually work in IT companies in Russia, and only 8,000-10,000 is working within the offshore software industry., a portal devoted to outsourcing of software development to Russia, estimates that the total number of IT-related specialists who graduate each year from Moscow universities alone is approximately 5,000-5,500 and that Moscow universities produce an additional 16,000-18,000 annual graduates in various engineering fields that are also available for employment as programmers. Costs. Although it is recommended to look beyond the low cost of Russian IT resources to the additional arguments in their favour, cost factors are undeniably a key consideration in any company's decisions around outsourcing. Pricing of software development depends on a set of factors: needed skills, project size, commercial renown of the provider, the geographical location and experience of a provider, the provider's order book, and various fixed overheads whether included in the base price or not, the specific type of contract under negotiation (development or maintenance), ratio of onsite to offsite work, guaranteed workload and other factors. Accordingly hourly rates may vary from as low as $10 (in rare cases) to $40 and even $50. Testers and quality assurance personnel typically cost 20-30% less, and project managers 50-100% and even 150% more. Key personnel, if the client insists on a certain candidate, can cost up to 2 times more. Technical excellence. Russian programmers possess all the needed up-to-date technical skills, as well as those needed for legacy migration. Within Russia all the latest worldwide technical literature is available both in English and in localized versions. Over recent years Russian student and school programming teams have consistently beaten their competitors from all over the world in closely watched international competitions. Local providers understand the meaning of keeping abreast of all developments in the field and take the requisite preparatory steps: they organize specialized technical libraries and invite leading specialist to give special lectures on the latest trends and technologies. In addition, there are a number of certification centres from Sun, Microsoft, and Novell as a well as independent authorities. R&D focus. Russian companies have a strong advantage in R&D and in software development that requires creativity plus additional skills in scientific domains. Esther Dyson, the widely recognized authority on technology stated to the New York Times in 2001 that, Many Russian programmers are not mere programmers; they are mathematicians and scientists who turned to software to make a living they excel at (solving) complex, large-scale technical problems. They don't simply want to follow directions; they want to be creative. The idea is that they can be very creative at solving tough problems, so their customers can put those solutions to practical use. 2003 8

European culture. Whatever else one may say about Russia, geography and centuries long tradition place it firmly in Europe. Today's young and middle age managers and specialists who work in hi-tech companies have the same or higher level of education, English language skills and motivation as their European colleagues. Location. Although Russia is a vast country, major development centres are situated in the European region - St.-Petersburg, Moscow, N.Novgorod. It takes 3 hours to fly from Paris or Berlin and 8 hours from the USA to reach Moscow or St.-Petersburg. Russian offshore software development companies normally compensate for the time difference with their European and even American clientele by adjusting their working schedules so as to have maximal overlapping hours for mutual contact. Political & economic situation in Russia Russia s economic and political climate has stabilized and improved during President Vladimir Putin s first term in office. Putin enjoys popular support in his domestic constituency as well as an increasing respect in the international community. Russia s debt and credit ratings are improving. Standard & Poor's has recently revised the outlooks on the ratings on the Russian cities of Moscow and St. Petersburg to positive from stable and affirmed its BB long-term credit and debt ratings on the two cities. Major legislative, regulatory and legal reforms planned and/or underway as well as rapid adoption of international accounting standards suggest stronger prospects for continued improvement of Russia s economy, international standing and general business climate. Political and legislative changes are beginning to exert a positive influence on the Russian offshore software development industry. The Russian government is planning to introduce tax privileges for software developers and IT specialists. Other programs including incubators to train new entrepreneurs and cooperative research programs such as the Russian Ministry for Economic Development s $2.6 billion Electronic Russia Program are taking shape. There is a growing understanding of the role the industry should play in a modern Russian economy. The authorities, media, industry and academic communities now agree that offshore software outsourcing is one of the markets where Russia must be competitive. 2003 9

The Russian Offshore Software Development Industry Survey Introduction Thirty-one companies from Moscow, Saint-Petersburg, Nizhni Novgorod, Novosibirsk, Samara, Taganrog and Voronezh took part in this survey of the Russian offshore software development industry, including all the major market players. 1. Organizational Status of Companies The status of the majority of the companies (80,6%) is as an independent Russian legal entity, while 19,4% of the respondents are development centers of international companies. Diagram 1. Organizational Status of Companies, % of Companies % 100 80 80,6 60 40 20 0 Russian company 19,4 Russian development center of international company 2. Companies Fields of Activities All the respondents are involved in software development and maintenance. Almost half of them are also engaged in the development of their own products. System integration is one of the fields of activity for 42% of respondents. Diagram 2. Companies Fields of Activity, % of Companies 100 % 100 80 60 40 42 42 20 0 S o ftw a re developm ent and m aintenance Products developm ent IT-consulting and system integration 2003 10

3. Size of Companies Diagram 3.1 Companies Average Size Diagram 3.2 Percent of Companies Depending on Age Number of employees 250 200 150 100 50 0 202 96 31 under 3 years 4-6 years 7+ years 45,2 16,1 % 38,7 under 3 years 4-6 years 7+ years As one would expect there is a dependency between the age and size of companies. For example, the average size of 7+ year old companies is 202 persons, while for the majority of the young companies the average number of employees is 31 persons. The overall average size of all companies, that took part in survey, is 110 persons. Usually, the size of an offshore department composes 80% of the entire company. At the present time Russia s capital, Moscow, has the largest human potential more then 50% of the total number of employees work in the capital of Russia. Saint-Petersburg accounts for about 25% of the labor force. 4. Average Annual Revenue of Companies 27 (of 31) respondents have disclosed their annual revenue range. As it follows from the diagram 4.1, the annual revenue of 15% of these companies lies between $2m and $4m. 30% of providers have an annual revenue that is more then $4m. One should note that the most of these companies have been working within the global outsourcing market for more than 7 years. The annual revenue of the majority of the young companies does not exceed $2m. Diagram 4.1 Average Annual Revenue, % of Companies under $0,5m $0,5m - $2m $2m - $4m 30% 26% $4m and more 15% 29% Approximately 75% of vendors, with revenue more then $4m., are located in Moscow. 25% in other Russian regions (mainly in Novosibirsk). Moscow and Saint-Petersburg are also the home for providers with an average annual revenue between $0,5m and $4m. The providers with annual revenue less then $0,5m are located mostly outside the capitals (Moscow & Saint-Petersburg). See the diagrams 4.2-4.3. 2003 11

Diagram 4.2 Annual Revenue and Geographical Location, % of Companies under $0,5m $0,5m - $2m Moscow St. Petersburg Regions 7,7 16,7 30,7 62,5 50 15,4 12,5 46,2 33,3 25 n=8 n=6 n=13 $2m - $4m $4m and more 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Diagram 4.3 Geographical Distribution of Companies Depending on Annual Revenue, % of Companies under $0,5m $0,5m - $2 m $2m - $4 m $4 m and more 14,2 14,2 50 50 75 71,6 37,5 50 25 12,5 n=6 n=4 n=8 n=7 Moscow St. Petersburg Regions 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2003 12

5. Average Salary, Growth Estimation and Market s Size Estimation. «Gray» Teams. In this survey we have also studied average minimum and maximum monthly salary of employees. For specialists employed in programming it ranges from $380 to $1200, for managers, including projectmanagers, from $700 to $1900. In general, salaries are higher in Moscow in comparison with other cities. But due to the fact that the top companies are from Saint-Petersburg, Novosibirsk and Nizhni Novgorod this difference is not so significant. Despite a world economic recession Russian providers look to the future quite optimistically and estimate their growth on average at 64% in two years. Taking into consideration the average estimation for offshore software development market, given by respondents at $187m, and average companies growth, by 2004 the market is expected to grow up to $306m. This result more or less corresponds with the one predicted in the recent Market-Visio/EDC s research IT SERVICES AND OUTSOURCING IN RUSSIA - 2002. The companies have estimated average size of gray offshore outsourcing market in Russia at 40%. One should note that some respondents consider the decrease of gray teams share as one of the key trends of the market. 6. Areas of Specialization Diagram 5.1. Core Specialization of Russian Providers 60 51,6 % of Companies 45 45,2 38,7 35,5 30 29 25,8 15 0 Enterprise Resource Management Applications Electronic Commerce Content and Document Management Applications Information and Data Management Software Information Access and Delivery Networking Software As seen on the diagram 5.1, the majority of Russian providers have strong experience in development of various types of Enterprise Resource Management Applications, particularly 35,5% of vendors provide development of Services Industry Applications, including Banking/Finance Applications (25,8%) and Telecommunications/Utilities Applications (25,8%), Customer Relationship Management Systems (29%), Sales Applications (22,6%) and Project Management Applications (19,4%). Approximately 45% of the companies provide development of software for Electronic Commerce, including Web Content Management and Publishing Systems (38,7%), Websites Design and Development (35,5%) and Electronic Catalog Applications (22,6%). Development of Information and Data Management Software is also widespread, especially development of Database Management Systems (25,8%), Database Data Movement and Replication Tools (25,8%) and Database Administration Tools and Utilities (19,4%). Almost 30% of the providers develop Information Access and Delivery systems including Executive Information & Decision Support Systems (22,6%), End-User Query and Reporting Tools (25,8%) and Knowledge Management & Data Mining Tools (19,4%). 2003 13

If you take into consideration those fields of expertise where vendors have had at least occasional projects, then the picture is as shown in the diagram 5.2. A detailed description of the main fields of specialization is shown on the diagrams 5.3-5.6. Diagram 5.2. Fields of Expertise Where Vendors Have Had at Least Occasional Projects, % of Companies core specialization occasional projects % 0 10 20 30 40 50 60 70 80 90 Enterprise Resource Management Applications 51,6 32,3 Content and Document Management Applications Electronic Commerce 38,7 45,2 38,7 29 Information and Data Management Software Networking Software 25,8 35,5 25,8 19,4 Office Applications Information Access and Delivery Systems Middleware Collaborative & Messaging Applications Home Education/ Entertainment Software Speech and Natural Language Applications Application Design and Development Tools System Management Software Network Management Software 9,7 29 22,6 12,9 6,5 16,1 19,2 12,9 16,1 41,9 19,4 22,6 29 32,3 22,6 19,4 25,5 22,1 Diagram 5.3. Development of Enterprise Resource Management Applications, % of Companies core specialization occasional projects % 0 20 40 60 80 Project Management Applications 19,4 51,6 Customer-Relationship Management Applications Sales Applications 22,6 29 38,7 35,5 Marketing Applications Customer-Support and Contact-Center Software Human Resource Management and Payroll Applications Banking/Finance Applications Telecommunications/Utilities Applications Warehouse management systems 12,9 16,1 12,9 25,8 25,8 12,9 38,7 35,5 38,7 25,8 22,6 35,5 Product Supply Chain Applications Wholesale Distribution Applications Logistics Applications Retail Applications Accounting Applications Materials Management Applications 6,5 3,2 3,2 6,5 6,5 6,5 35,5 38,7 35,5 29 29 29 2003 14

Diagram 5.4. Development of Software for Electronic Commerce, % of Companies core specialization occasional projects % 0 10 20 30 40 50 60 70 Websites (design and development) 35,5 32,3 Web Content Management and Publishing systems 38,7 22,6 Online Community Software 12,9 35,5 Electronic Marketplaces Software 9,7 35,5 Electronic Catalog Applications 22,6 22,6 Retail/Point of Sale Applications 6,5 38,7 Diagram 5.5. Development of Information and Data Management Software, % of Companies core specialization occasional projects 0 10 20 30 40 50 % Database Administration Tools and Utilities 19,4 25,8 Database Data Movement and Replication Tools 25,8 16,1 DBMSs 25,8 12,9 Diagram 5.6. Development of Information Access and Delivery Systems, % of Companies core specialization occasional projects % 0 5 10 15 20 25 30 35 40 45 End-User Query and Reporting Tools 25,8 16,1 Knowledge Management & Data Mining Tools 19,4 16,1 Executive Information & Decision Support Systems 22,6 9,7 Multidimensional, Statistics and Technical Data Analysis Tools 16,1 16,1 2003 15

7. Representative Offices: Location and Status An analysis of the diagrams 6.1-6.7 reveals certain trends in geography and status of the current and planned representative offices of Russian providers. Diagram 6.1. Total Amount of Representative Offices 40 35 35 38 30 29 29 25 20 21 20 2002 2004 15 10 8 10 5 2 1 0 Sales office (with tech personnel) Sales office (without tech personnel) Partner company Commercial agent No representative The diagram 6.1 shows the total amount of current and planned representative offices. As seen on the diagram, companies strive to become closer to their customers by opening sales and support offices in their target markets. This trend has also been noted as one of the key market tendencies by more than a third of the respondents. Diagram 6.2. USA and Canada % of companies 45 40 39 39 35 35 30 25 20 19 19 26 26 2002 2004 15 13 10 10 7 5 0 Sales office (with tech personnel) Sales office (without tech personnel) Partner company Commercial agent No representative By 2004 the number of sales offices (with tech personnel) in USA and Canada is expected to increase by 90%. No wonder since the USA is the key market for a majority of Russian providers. 2003 16

Diagram 6.3. Germany, Austria and Switzerland 40 % of companies 39 32 30 29 29 20 19 16 2002 2004 13 13 10 3 3 0 Sales offices (with tech personnel) Sales office (without tech personnel) Partner company Commercial agent No representative A relatively high growth of the number of European sales offices and no substantial changes in the number of partner companies means that Russian providers plan to intensify direct sales to endcustomers. Diagram 6.4. Scandinavia % of companies 70 65 60 50 40 35 2002 2004 30 20 13 23 13 13 19 10 0 3 0 0 Sales offices (with tech personnel) Sales offices (without tech personnel) Partner company Commercial agent No representative Scandinavia is also attracting increasing attention from Russian vendors by 2004 more than half of the companies are going to have their representatives in this region (either sales offices or partner company). 2003 17

Diagram 6.5. Other Western European Countries 40 % of companies 35 35 30 25 20 15 16 26 26 29 19 26 2002 2004 10 5 3 6 0 0 Sales office (with tech personnel) Sales office (without tech personnel) Partner company Commercial agent No representative Diagram 6.6. Southeast Asia 70 % of companies 65 60 55 50 40 2002 2004 30 20 10 0 0 6 Sales office (with tech personnel) 6 6 3 Sales office (without tech personnel) 6 10 Partner company Commercial agent No representative 10 Few Russian companies keep in touch with countries from Southeast Asia, Israel and other regions. No remarkable changes are expected in these regions. 2003 18

Diagram 6.7. Other Countries % of companies 50 40 39 35 30 20 2002 2004 10 0 3 3 3 3 3 Sales offices (with tech personnel) Sales offices (without tech personnel) 0 6 Partner company Commercial agent No representative 6 8. Clients Business As it is shown in the diagram below, Russian vendors are used to work mostly with IT-related companies. Diagram 7. Clients Business Non IT 26% IT-consulting 15% Other IT 9% Software development 50% 9. Geographical markets The diagrams 8.1-8.6 present the current and projected location of vendors clients. As one should expect, a majority of all vendors clients are located in the USA and Canada for more than 70% of companies this region is a key market. However, no remarkable changes in this ratio are expected. 2003 19

Diagram 8.1. USA and Canada 80 70 % of companies 71 74 60 50 40 2002 2004 30 20 10 0 16 13 16 3 key market occasional projects no projects Diagram 8.2. Germany, Austria and Switzerland % of companies 60 50 52 48 40 30 29 23 2002 2004 20 16 10 10 0 key market occasional projects no projects The diagrams 8.2-8.4 show that in the near future more and more vendors will consider Europe as a key market. The number of vendors without clients in Europe may decrease to half. Diagram 8.3. Scandinavia % of companies 60 52 50 42 40 30 26 2002 2004 20 13 19 10 6 0 key market occasional projects no projects 2003 20

Diagram 8.4. Other Western European Countries % of companies 60 50 52 40 42 30 23 32 2002 2004 20 13 10 6 0 key market occasional projects no projects The diagram 8.5 shows that the Southeast Asia market will not undergo any serious changes. Diagram 8.5. Southeast Asia % of companies 60 55 50 40 30 26 35 35 2002 2004 20 10 3 6 0 key market occasional projects no projects Diagram 8.6. Other Countries % of companies 40 35 35 30 25 20 19 19 26 2002 2004 15 10 10 13 5 0 key market occasional projects no projects 2003 21

10. Russian Vendors: Index of Citation We have asked our respondents to name three leading Russian companies in the field software outsourcing. According to the number of citations, the undoubted leader among Russian software development vendors is LUXOFT. Runners-up are Novosoft, VDI, Reksoft and EPAM. Please note, that the diagram below reflects the number of citations among the respondents, not the size or annual revenue of companies or any other characteristics. The rating shows recognition in Russia, which correlates with the vendors activity in the domestic market. You may find an alternative rating in the recent Buyer s Guide to Offshore Outsourcing from CIO Magazine (http://www.cio.com/offshoremap/russia.html), which gives a slightly different picture (with Fort- Ross consortium, Novosoft, Luxoft, and STAR Software mentioned in alphabetical order as major providers). Diagram 9. Index of Citations % of answers 60 50 40 30 20 10 0 LUXOFT Novosoft VDI EPAM Reksoft 11. Key Trends of the Russian Offshore Development Market In this survey we have also questioned the major tendencies in the development of the Russian software outsourcing market. Almost 40% of vendors believe that more and more companies will certify their software development processes according to ISO 9000 and SEI CMM standards. Many predict market growth (20%) and expect an enlargement of market players (30%). Other tendencies are consolidation of software development companies under the umbrella of IT-associations (17%) and the decrease of gray teams share (9%). 12. Main Priorities in the Development of Companies Software process certification has been noted as the critical success factor by more than 43% of companies. (That is one of the key trends in the development of the Russian software outsourcing market). Other priorities are client acquisition (39%) and development of product model (39%), establishment of representative offices in the USA and Canada (30%), and vertical specialization (9%). 13. Software Development Process Certification As we have already mentioned, many vendors consider the software development process assessment as one of the main priorities in the company s development and one of the key trends in the Russian software outsourcing industry. According to the survey s results more than 35% of companies are certified according to ISO 9000 or SEI CMM standards. Diagram 13 shows SEI CMM is getting more and more recognition 35,5% of companies plan on obtaining SEI CMM status in the nearest future. A third of the vendors are planning to get ISO 9000. 2003 22

Diagram 10. Software Development Process Certification % of companies 60 50 40 32 Not planning 30 20 35 Planning Certified 10 26 9 10 0 ISO SEI CMM 14. IT-Associations Consolidation of software development companies under the umbrella of IT-associations is one of the key trends in the Russian software development industry. As it follows from the diagram 11, the leading association is RUSSOFT. Diagram 11. IT-Associations Membership, % of Companies SiliconTaiga 12,9% Other 9,7% Not a member 35,4% Fort-Ross 16,1% Inforus 12,9% RUSSOFT 41,9% 2003 23

Outsourcing to Russia: How To Capability and Maturity: More Than Just Development Issues Provided by Brooke Nicole Consultancy (http://www.brookenicole.com/) As Russia and other countries chase down India for the leadership role in providing offshore development and services there has been a lot of attention and priority placed by these countries on achieving a certification level or appraisal for their software development and services capabilities or maturity. Although these are indeed worthy goals, there is much more a buyer and supplier must consider when working on the global market. In a recent Gartner report, the independent research firm states, In the past, U.S. enterprises have traditionally sourced work to external services providers by choosing some pre-selected criteria (e.g., strength in a particular vertical or horizontal process, geographic coverage, technical competency and quality certification) and then quickly creating a list of external services providers that might meet those criteria. However, with the shift to global sourcing, enterprises may not know most, if any, of the leading vendors in a particular country. They must also decide whether they even wish to do business in a particular country. Thus, they must consider a number of country-specific criteria that bear no relation to the standard, individual company selection factors." This means that offshore companies that wish to remain viable long-term businesses must take the initiative to meet the customer s need for independently developed information about both a country and company. Offshore vendors that do this proactively can expect to gain an edge over the competition. Truly the software development and service capabilities must be addressed, and yes, and independent appraisals, such as the CMM, ISO, and COPC hold the most credibility. But there is much more that ultimately can impact the offshore experience. Brooke Nicole recommends both buyers and suppliers, regardless of what country they are from, ensure the following areas are communicated and understood during the business development life cycle: Company history Management team profiles Location Country laws Government support Geopolitical risk Infrastructure Labor pool characteristics Educational system English proficiency Cultural compatibility Labor cost advantage Technology capabilities Business / Market capabilities Reference account profiles Software development life cycle analysis Quality assurance program analysis Change management process analysis Project management methodology analysis Strategic partnership analysis Photographs of key personnel, facilities and infrastructure Capability and maturity in the above areas are critical success factors that must be completely understood before engaging in an offshore B2B relationship. Doing so without this level of detail exposes the buyer to unnecessary risks. As the offshore marketplace continues to grow, and competition expands beyond the traditional offshore hotbeds of Southern Asia and Eastern Europe, it will become more and more important for vendors to 2003 24

differentiate themselves. One such manner will be by proactively meeting the informational needs of today s savvy buyer. However, it is up to the buyer to challenge the supplier for the information. In the offshore development and services market, trust us simply doesn t suffice. In an effort to help both buyers and suppliers even further, Brooke Nicole is working with industry analysts (IDC, Yankee Group, and others) and independent media (CIO Magazine) to develop a set of criteria and a methodology for rating offshore companies. As an independent, unbiased consultancy Brooke Nicole will lead this project. The goal is to provide a scale, which buyers can use to determine the overall quality of an offshore company and the risks associated with doing business with it. Much of the core data is already available in the Offshore Suppliers Directory (http://www.offshoresuppliers-directory.com/) and will be used throughout the project. Once the criteria are finalized Brooke Nicole foresees each area being measured independently and then all the criteria averaged up to provide a rating. However, one important factor in this effort will be the validation phase. Brooke Nicole is still determining how this validation will occur but foresees training authorized assessors in key geographies to deliver this most important, final phase. As such, an offshore company will receive a preliminary rating and those that have been verified by a authorized assessor will receive a certified rating. As the offshore market continues to grow and mature it will become increasingly more important that an independent authority help oversee this market space. Brooke Nicole has positioned itself to do just that. ------------- About The Author: Jeff Crump is President & CEO of Brooke Nicole Consultancy, Inc. Mr. Crump welcomes your feedback and comments. He can be reached via email (jcrump@brookenicole.com). For more information about Brooke Nicole visit their Web site (www.brookenicole.com). 2003 25

Shaping your Agreement: Ten Steps to help you steer clear of traps and trouble Provided by BEITEN BURKHARDT GOERDELER Rechtsanwaltsgesellschaft mbh (http://www.bblaw.de) Online version: http://www.outsourcing-russia.com/kb/docs/legal/l02101-03.html Any IT Outsourcing Agreement requires both the company requiring services (Customer) and the company offering services (Supplier) to consider a number of issues that typically arise in international agreements. Keeping in mind the following points will minimize the risk of unforeseen problems and / or litigation. Of course, your agreement should serve your particular project and therefore the following points cannot be conclusive. They are, however, the basics that will get you started on the road to a sound agreement. 1. Parties Verify the power to represent of the person who will sign the agreement on behalf of the other party. If your partner is a Russian company, the power to represent is determined by Russian law independently from the place where the agreement is signed or the law applicable to the agreement. For example, a Russian limited liability company (in Russian: Obshestvo s ogranichennoj otvetstvennostju) is represented by its general director. Any other person requires a power-of-attorney in order to validly represent the company. 2. Be specific Be specific in determining the substantive scope of your agreement. Software Development Agreement (see "How good is your Software Development Agreement" (http://www.outsourcing-russia.com/kb/docs/legal/l02101-04.html)) Service Level Agreement (see "How good is your Service Level Agreement" (http://www.outsourcing-russia.com/kb/docs/legal/l02101-05.html)) 3. Subcontracting When you have found your Russian partner, you may have a particular interest in having the agreement carried out by that partner. Therefore, address the issue of subcontracting. If subcontracting is prohibited, it should be explicitly stated in the contract. There is also the possibility of regulating the terms of subcontracting. If the agreement allows subcontracting, agree on the liability of the Supplier in the event of the subcontractor's default. 4. Confidentiality IT Outsourcing Agreements are often confidential in character. Confidentiality can be addressed in a clause within the agreement or can be the core of a separate non-disclosure agreement. Any confidentiality clause or non-disclosure agreement should contain a precise definition of the information to be treated confidentially. The definition should refer to the subject matter of the information, the form of the information (for example, information given to the other party in writing and clearly identified as confidential information) and the recipients of the information (for example, the specific employee of the other party i.e. the project manager). It should specify the conditions under which the disclosure of information is allowed or that exclude liability of the other party. 5. Non-competition Address the issue as to whether and to what extent the Supplier may enter into agreements with the Customer's competitors. However, please note that non-competition clauses are not permitted in every country. Russian competition law prohibits an agreement concluded between a Customer and a Supplier in which the Supplier holds a dominant position, and such an agreement may be held void by a Russian court if it leads or may lead to a restriction of competition in Russia. 6. Limitation of liability Limitation of liability issues can be dealt with by agreeing upon a "cap" or maximum amount of liability arising from all breaches of the agreement and, in each single case, a "basket" or minimum amount of 2003 26

damages necessary to resolve a claim. Furthermore, you may want to agree on a limitation period for claims. 7. Taxes Check the applicability of Russian VAT (currently, July 2001, 20%). Whether Russian VAT applies depends on the structure of the agreement and, among other things, the activities of the Customer in the Russian Federation. For example, Russian VAT does not apply to agreements whereby the Supplier grants a license for the use of software to the Customer if the Customer has no presence or activity in the Russian Federation. If the Customer acquires software through a sale and purchase agreement, a 0% VAT rate will apply if the software is exported in conformity with the customs regulations for the export of goods. In order to achieve a more advantageous and cost efficient structure for both parties, the tax implications of any agreement should be reviewed on a case by case basis and at an early stage. 8. Applicable law In an international agreement, you should always determine in advance which law governs the agreement. You are free to choose the law that will determine the legal relationship between you and the other party and, therefore, you may choose the law with which you are most familiar. However, any IT Outsourcing Agreement implemented in Russia has to take into consideration Russian law. In particular, copyright law, legal provisions on the protection of software, legal provisions on export control, customs law, currency law and tax law will have an impact on the implementation of the agreement. It is therefore important at an early stage to seek professional advice on the impact of Russian law on your agreement. 9. Competent court Practice shows that the authority of a contract stems from its enforceability. Therefore, even if litigation is not what you have in mind, you have to make sure possible claims can be enforced in Russia. Not every court judgment is enforceable in Russia. If there is no bilateral treaty on the enforcement of judgments of state courts between your country (or the country of another intended place of jurisdiction) and Russia, two options remain: Russian commercial courts (in Russian: arbitrazhnye sudy) or commercial arbitration (in Russian: tretejskie sudy). Russia is a member of the New York Convention on the recognition and enforcement of foreign arbitral awards. If you submit your agreement to arbitration outside Russia and the place of arbitration is located in a member country of the New York Convention, the arbitral award can be enforced in Russia. However, practice shows that the enforcement of foreign arbitral awards in Russia can be difficult, time consuming and expensive. The choice of the competent court should be decided case by case depending on your interest and needs. 10. Language The parties to an international agreement are usually more at ease with the terms of the agreement if it is drafted in their respective languages. Agree on the preemptive status of one language in bilingual contracts. As a rule, the prevailing language should be an official language of the competent court. 2003 27

Risk Management in Projects: 17 Steps to Success Provided by Brooke Nicole Consultancy (http://www.brookenicole.com/) Online version: http://www.outsourcing-russia.com/kb/docs/outsourcing/o04062-01.html Theoretically, every decision on a project should be subjected to some form of risk analysis. However, to repeat a formal assessment is impractical for all but significant project events and changes. In other circumstances it is sufficient for the project manager to have a risk awareness of any changes taking place. The effective management of risk includes both this informal awareness and a structured approach. Within a project, there are 17 steps that can be taken to help manage risk. These steps can be grouped into four major categories: Planning: Identifying the type of response appropriate for each risk; developing a detailed plan of action; confirming its desirability and objectives; and obtaining management approval Resourcing: Identifying and assigning the people and other resources (e.g. money and equipment) necessary to do the work; also confirming that the plan is feasible Controlling: Making sure that events on the plan are really happening Monitoring: Making sure that execution of the plan is having the desired effect on the risks identified. Also ensuring that the management of risk processes is applied effectively The extent to which these activities need to be addressed depends upon the size and nature of the particular project under review. Also, these activities are not necessarily carried out sequentially. This paper will walk clients through the 17 steps and actions involved in risk management on a project basis. Planning The basis of risk management is in the action plan, which is developed in steps 1 7. It s important to note that inadequate attention to some of the early steps may waste time and effort later. Step 1: Determine risk indicators and pass information to risk evaluation. The level of acceptability of a risk or group of risks needs to be decided as part of the planning process prior to its use in the evaluation activity of risk analysis. Step 2: Using the ordered set of risks, assess each against its indicators. When risk estimation is finished during the risk analysis phase, all the identified risks are placed into an order of importance based on their likelihood and potential consequences. It is now necessary to superimpose upon this list the risk indicators that have been defined. Step 3: Select the most appropriate means of reducing each risk. No further action, other than monitoring, is required for risks that are below their risk indicator. Actions on risks, which are above their defined level of acceptability, may also be deemed undesirable. If the cost of such action is not justified then either the risk indicator needs to be adjusted or the project must be halted. Step 4: If the risk is to be accepted without trying to avert it, go to Step 6. If risk is to be eliminated, its likelihood or consequences reduced, or its consequences mitigated, then design an appropriate course of action. If a risk is to be accepted without any reduction measures taken, then it need only be monitored. It is important, however, that the approach to monitoring is planned. If the elimination of risks, or reduction of their likelihood or consequence is selected, some proactive action is implied. Step 5: Ensure that the course of action selected does not produce any unintended consequences. Part of the planning process is to ensure that whatever means are selected to deal with the risks identified, these new actions themselves will not make things worse. Step 6: Create a preliminary risk management plan and define the initial monitoring requirements. A detailed risk management plan is created as a result of the planning process, to implement the risk reduction measures decided upon. The risk management plan summarizes the risk analysis conducted, as well as recommends courses of management based upon the level and types of risk present. Step 7: Present plan to management for authority to proceed. Execution of the risk management plan must not begin until senior management has formally approved the plan. This step is undertaken to ensure that staff or cost commitments are fully appreciated, and that the approach being proposed for risk management is in line with the overall strategy of the organization. 2003 28

Resourcing To undertake the identified tasks, resources must be allocated to each task and final adjustments to plans made. These plans must reflect skills, experience and availability of the identified resources. Step 8: Allocate resources to risk management plan. The allocation of resources to risk reduction is one of the critical activities of the risk management phase, and can proceed in parallel with Step 6 of the planning activity. The risk planning process must concentrate on ensuring that the highest priority risks are attended to first. Step 9: Assign responsibility for the activities identified in the risk management plan. As part of the resourcing activity, authority for risk management activities is delegated and responsibility assigned throughout the organization to individuals and groups. Step 10: Ensure the risk management plan is feasible, and perform re-analysis of risks if necessary. Having allocated resources to the plan it is necessary to make a final judgment concerning feasibility of the plan. Aspects to consider at this stage primarily concern appropriateness of resource allocation and whether this allocation has implications for planned cost and time. Step 11: Finalize the risk management plan and begin its execution. Although the elimination of risks is the aim of management of risk, generally this is not plausible or practical due to the scarcity of resources available for risk reduction, the unacceptably high cost of any action, which would be effective, or the nature of the risk. Thus, a combination of acceptance, elimination, reduction and mitigation measures must be put into place. Controlling Once the risk management plan has been finalized and execution begins, then the activities defined within the plan must be undertaken with suitable control being exercised. Step 12: Ensure progress against the risk management plan is within resource limits. Control activities concentrate on ensuring that the risk management activities specified in the project plan are being properly executed. Step 13: Coordinate the execution of the risk management plan with existing organizational activities. Communication makes up a large part of the control activities. All risk reduction activities have to be coordinated with each other and with other activities, notably those concerned with the development of the project itself. Specific action may be necessary to harmonize the implementation of both risk reduction and project work. Step 14: Resolve any conflicts over resource allocation. Resource conflicts must be addressed before they compromise the implementation of the risk management plan or the project development activities. There must be no hesitation in using the escalation procedure if the problem cannot be resolved at the project manager level. Monitoring Having planned and then controlled the activities on the project, it is necessary to monitor progress against the plan and assess whether everything is proceeding healthily. Project progress is specifically assessed at the control points, such as end-stage and mid-stage assessments. Step 15: Capture lessons learned on the effectiveness of risk reduction measures. As project plans are executed, they must be monitored to ensure that their objectives are achieved as intended. It should be recognized that, in a high-risk environment, the one thing that can be expected is that not everything will happen according to plan. What is important is that an understanding of what needs to be done develops during the planning and monitoring processes. Step 16: Check that the risk indicators are not being exceeded, and that reduction efforts are effective. At regular periods, the progress should be checked against the plan to ensure that: Risks identified earlier are still valid, and the risk indicators have not changed Any changes of risk significance are understood and communicated to those who need to know Implemented responses have been effective and lessons learned are captured The risk reduction measures can be considered a success (or if they are failing then identify new measures that need to be put into place) 2003 29

Residual risks are acceptable, or are subject o continuing action on the plan; in this event the monitoring must continue No other risks have materialized over time Step 17: Discover the reason(s) for change in the risk status. If minor corrective action is required, return to Step 14. It is, of course, possible that the risk reduction measures are not working as well as had been expected, and thus that corrective action is required. If the corrective action required is significant in terms of cost and time, especially if it involves several risks (a highly likely situation), a new risk analysis may be required. In summary, helping to identify the possible options is central to risk analysis; choosing between such options is central to risk management. The effort expended on analyzing and managing risk depends upon several factors, including: Project size, length Criticality of project to the business Experience of the project team The effort expended on managing risk should be reasonable enough to keep risk exposure to acceptable levels within the overall constraints of the project. For More Information: Please contact Brooke Nicole via telephone (Toll Free +1.877.788.0404) / (Direct +1.931.788.0404) or email (Info@BrookeNicole.com). We welcome you to visit us on the Web at: www.brookenicole.com. 2003 30

Overview Legal Framework for Activities in the Sphere of Information Technologies in the Russian Federation Provided by BEITEN BURKHARDT GOERDELER Rechtsanwaltsgesellschaft mbh (http://www.bblaw.de) Online version: http://www.outsourcing-russia.com/kb/docs/legal/l16092-01.html 1. Protection of Software and Databases In Russia, copyright is available for software and databases. The two principle acts governing the copyright protection of software and databases in the Russian Federation are the Law of the Russian Federation "On Copyright and Adjacent Rights" No. 5351-I of 9 July 1993 (hereinafter - the "Law on Copyright") and the Law of the Russian Federation "On Legal Protection of Computer Programs and Databases" No. 3523-I of 23 September 1992 (hereinafter - the "Law on Computer Programs"). General Software products are protected as literary works and databases as compilations. Copyright protection is offered for software and databases either originally published in Russia or remaining unpublished but existing in some objective form in Russia. The copyright on software and databases is automatic upon their creation, with no formalities required, although the author may elect to register them at any time during the period of copyright protection in order to ensure the confirmation of his/her copyright. The copyright may be registered in the Russian Patent Office (ROSPATENT). The copyright protection is offered during the lifetime of the author and for 50 years after his/her death. Moral Rights and Economic Rights The author is an individual whose creative efforts brought the software or the database into existence. Regardless of any economic rights, the author is guaranteed the following moral rights: right of recognition as the creator of the product right to integrity right to use the work under the author's name or a fictitious name right to make public The author is granted the following economic rights: publishing right reproduction right distribution right modification right, including translation other economic rights Unlike the moral rights, which are personal to the author and non-transferable, the economic rights may be licensed or assigned. Licensing and Assignment At the parties' discretion the licensing agreement may be registered with ROSPATENT. The license agreement must be in writing and must specify rights of use, term, territory, license fees, and other terms that the parties consider essential. Unless the term is specified the licensor may withdraw the license in five years with a six-month written notice. Sales of the software to end-users may be in the form of 'shrinkwrap' licenses. The assignment of registered software or database is subject to mandatory registration with ROSPATENT. The licensee is automatically granted the adaptation right and the right to make back-up or archive copies. The licensee may also decompile the software provided that: (i) the information required for the interaction of the licensed software with other software is inaccessible from other sources; and (ii) the information derived from decompilation is used for the interaction with other software, and not for creation of other computer programs. Software Produced During the Course of Employment The author of software and databases created in the course of employment acquires moral rights therein, and his/her employer acquires the economic rights, unless the parties agree otherwise. Liability for Infringement In the event of infringement the following legal remedies are available to the aggrieved party: recognition of rights before the court restitution and termination of infringement (or acts which may potentially lead to infringement) 2003 31

damages, including lost profits compensation from approximately USD 16,000 to USD 160,000 as may be determined by the court, in lieu of damages 2. Chip Design General Protection of computer chip design in the Russian Federation is regulated by the Law of the Russian Federation "On Legal Protection of Chip Design" No. 3526-I of 23 September 1992. The chip design is protected, provided that it is original, i.e. it was created independently by the author and not copied. The originality of the chip design is presumed. The author of the chip design is an individual whose creative efforts led to creation of the chip. The proprietor may use 'T' on the chip for notification of his/her proprietary rights. Rights in Chip Design The author is guaranteed the right to be recognized as the author of the chip. This right is personal to the author and inalienable. The author is also guaranteed the right to use the chip design by manufacturing and distributing the same. The right to use the chip design may be assigned, licensed, and bequeathed. Term of Protection The rights in the chip design are protectable for 10 years after the earlier of: (i) the first use of the chip; or (ii) the registration of the chip design with ROSPATENT. Registration Registration with ROSPATENT is optional and may be effected within two years after the chip was first used. Assignments of registered chip designs are subject to mandatory registration. Liability For Infringement In the event of infringement the following remedies are available to the aggrieved party in court: recognition of rights restitution and termination of infringement (or acts which may lead to infringement) damages, in accordance with the Russian civil laws 3. Internet There is no specific legislative act in the Russian Federation governing the relations connected with the use of the Internet. The information and data placed on the Internet are therefore regulated on the basis of existing Russian civil laws and legislation on copyright, trademarks, trade names, mass media, telecommunications, and unfair competition. Providers of Internet services in the Russian Federation are considered providers of communication services and must act under licenses and certificates of compliance issued by the Ministry for Communications and Information. Until recently domains of the second level of zone.ru have been administered by the Russian Scientific Research Institute for Development of Public Networks (RosNIIROS). Under the Resolution of the Government of the Russian Federation No. 533 of 17 July 2002 "On Amending and Supplementing the Regulations of the Ministry of the Russian Federation for Communications and Informatization", the powers of administration of domains of the second level within the.ru zone have been transferred to the Ministry for Communications and Informatization. Case law on Internet During the last three years there have been several court cases connected with the infringement of rights in the Internet. However, decisions by the Russian courts of different levels and different regions do not always demonstrate clear understanding of the problems. Russian courts are prepared to give protection against 'cybersquatting' if the disputed domains contain the claimant's trade name (Mosfilm v RosNIIROS, Decision of the Moscow Arbitration Court No. A-40-22492/99-15-232 of 7 July 1999; Eastman Kodak Co. v Grundul, Decision of the Federal Arbitration Court of the Moscow District No. KA-A40/6520-00 of 25 January 2001). Also, several recent cases show that the registration of domains may also be challenged on the basis of trademark infringement (Baxter International v Unitair, Decision of the Moscow Arbitration Court No. A-40-12817/02-110-138 of 14 May 2002; Miele&C GmbH v Sters, Decision of the Moscow Arbitration Court No. A-4042141/01-26-19 of 10 January 2002). In all the above cases the claimant succeeded in obtaining a court order for re-registration of the disputed domains in his name. It is also important to note that documents placed on Internet are under protection of the Russian copyright laws 2003 32

(Media-Lingua v Rambler Internet Holding, Decision of the Moscow Arbitration Court No. A40 of 12 January 2001). 4. Electronic Commerce There is no specific legislative act in the Russian Federation governing e-commerce. Such relationships are governed by the general provisions on sale of goods in the Civil Code; Federal Law "On Electronic Digital Signature" No. 1-FZ of 10 January 2002; Federal Law "On Information, Informatization and Protection of Information" No. 24-FZ of 20 February 1995. Powers for development and implementation of trade policy in the area of e-commerce are vested with the Ministry of Economic Development and Trade of the Russian Federation (Regulations on the Ministry of Economic Development and Trade, approved by Resolution of the Government of the Russian Federation No. 990 of 21 December 2000). The first reading of a draft law on e-commerce is currently being considered by the State Duma of the Russian Federation. The draft law is based on the approach of the UNCITRAL Model Law on Electronic Commerce. 5. Electronic Signatures The Federal Law of the Russian Federation "On Electronic Digital Signature" No. 1-FZ was enacted on 10 January 2002 (hereinafter - the "Law on Electronic Signature"). The electronic signature is deemed legally equal to the handwritten signature on a paper document when the standards and conditions set out in the Law on Electronic Signature are met. The electronic signature keys must only be created using certified electronic signature devices. The electronic signature key consists of a private key (confidential and restricted to its holder) and an open key (required for confirmation of the electronic signature, available to all users of the system and corresponding to the closed key). The keys are created and issued by authorization centers licensed by the Federal Agency for Governmental Communications (FAPSI). Authorization centers also maintain registers of holders of electronic keys. The open key is issued to its holder in the form of signature key certificate, indicating among other things the software used for electronic signature. Electronic keys are valid for a period set out in a contract between their holders and the authorization center. The Law on Electronic Signature allows for individual and corporate systems of electronic signatures. Foreign signature key certificates are recognized in the Russian Federation if legalized or apostilled. 6. Licensing and Certification Activities which are only permitted to be carried out on the basis of a license are set out in the Federal Law "On Licensing of Certain Activities" No. 128-FZ of 8 August 2001 (hereinafter - the "Law on Licensing"). In accordance with the Law on Licensing, among others, the following activities must be licensed: development, manufacturing, and sale of encryption software and other software and hardware for the protection of confidential information- licensed by the State Technical Commission of the President of the Russian Federation; development, manufacturing, maintenance, distribution of, and services in the area of cryptographic devices - licensed by the Federal Agency for Governmental Communications (FAPSI); issuance of electronic signature key certificates, registration of holders of electronic signatures, services related to the use of electronic signatures, authentication of electronic signatures - licensed by FAPSI; development, manufacturing, distribution and acquisition of surveillance and interception devices - licensed by Federal Security Service (FSB); manufacture and distribution of products and services for the exposure of surveillance and interception devices - licensed by FSB and FAPSI; telecommunications services - licensed by the Ministry of the Russian Federation for Telecommunications and Informatization. Certain software and hardware may only be used in the Russian Federation if certified by the respective Russian authorities: telecommunications software and hardware (certified by the Ministry for Telecommunications and Informatization); encryption devices (certified by FAPSI); electronic signature devices (certified by FAPSI); software for protection of confidential information (certified by FAPSI); information systems and databases used for servicing individuals and companies (certified by FAPSI). 2003 33

7. Computer Crimes Chapter 28 of the Russian Criminal Code is specifically devoted to computer crime and contains three prohibited criminal offences: Article 272 "Unlawful Access to Computer Information" prohibits unlawful access to computer information if it caused deletion, blocking, modification or copying of any information, interference with the operation of an individual computer, computer system or computer network. The maximum penalty is five years imprisonment. Article 273 "Creation, Use and Distribution of Harmful Computer Programs" makes it an offence to create software or modify existing software so that it knowingly results in deletion, blocking, modification or copying of any information or interference with the operation of an individual computer, computer system or computer network, and to use or distribute such programs or any material media with such programs. The maximum penalty is seven years imprisonment. Under Article 274 "Violation of Rules of Operation of Computers, Computer Systems or Computer Networks" such violations constitute an offence if they lead to deletion, modification, or copying of confidential information protected by law and caused substantial harm. The maximum penalty is four years imprisonment. There are also a number of other activities prohibited by the Russian Criminal Code, which may be applicable to computer crimes, such as: Article 137 "Infringement on Privacy", Article 138 "Infringement on Privacy of Mail, Telephone Communication, Postal, Telegraph and Other Communications", Article 183 "Unlawful Obtaining and Distribution of Information Which Constitute Commercial, Tax or Bank Secrets", and Article 146 "Infringement on Copyright and Adjourning Rights". The Russian courts have considered quite a number of criminal cases on computer crime to date. The Russian Supreme Court, however, has not issued any comments or guidance on how such cases should be uniformly adjudicated. Responsibilities for investigation of computer crimes are vested with the specialized 'R-Department' of the Ministry of Internal Affairs of the Russian Federation. 8. Electronic Russia 2002-2010 The Government of the Russian Federation has approved the federal program Electronic Russia 2002-2010 (Resolution of the Government of the Russian Federation No. 65 of 28 January 2002). The purpose of the Program is broad implementation of information and communication technologies, free distribution, transmission and receipt of information, and training of IT specialists and users. The following goals must be attained to ensure successful implementation of the Program: formation of efficient IT legislation; increased interaction among governmental authorities based on IT; efficient and broad use of IT in social and economic spheres; IT-based training; further development of telecommunications network; formation of the unified information and telecommunication network for interaction among governmental authorities; and creation of conditions for development of e-commerce. The legislative developments in the area of IT must be based on the following principles: unified information field; integration of Russia into the international system of information exchange; rights of individuals to receive information from public sources; publicity and openness in drafting legislation; publicity and openness in considering applications for licenses and certifications; equal business conditions and elimination of monopoly in the area of IT; formation of legal framework for the use of electronic documents in the state management and civil law relations; legal resolution of problems related to investigation of crimes in computer networks; simplified export of IT products; development of a unified complex of Russian IT legislation and bringing the Russian legislation into compliance with the international laws. An Interdepartmental Committee has been created for the implementation of the Program. The chairman of the Committee is Mr. German Gref, the Minister of Economic Development and Trade, and the deputy chairman is Mr. Reiman, Minister for Communications and Informatization. The Program envisages three consecutive stages. First Stage 2002. The first stage includes a plan for the creation of a monitoring system for the following matters: global tendencies in IT development and its use in the social and economic spheres; the degree of IT development in Russia, the efficiency of application of state funds in IT; the efficiency of IT use by the governmental authorities and state-owned institutions and the availability of IT resources for them; and the 2003 34

efficiency of the existing IT legislation. The first stage also envisages the drafting of a number of bills in the areas of electronic documents, e-commerce, and bringing the Russian IT legislation in line with the international laws. Further, this stage of the Programme provides for implementation of pilot projects for transition to electronic documentation and development of telecommunications network by the governmental authorities and state-owned institutions, development of e-commerce, and training of IT specialists and users. Preparatory steps must be taken and pilot projects initiated to connect governmental authorities and state-owned institutions to computer networks. During the first stage the program for training government personnel, the unemployed and the socially unprivileged must be developed and initiated. Second Stage 2003-2004. The second stage has as its purpose the implementation of projects associated with the interaction between the governmental authorities and businesses in the area of tax, customs, company registration and liquidation, licensing and certification, and other statutory filings. Pilot projects for implementation of unified IT systems in the defence enterprises are envisioned. A unified information and communication network must be created for the governmental authorities. Resources must be allocated for training IT specialists in the leading schools and increasing the number of IT graduates. Third Stage 2005-2010. The third stage of the Program will create the basis necessary for massive IT access in all economic spheres on the basis of the single information and telecommunication network and the e-commerce system. A complex e-commerce system shall be implemented for the needs of governmental procurement. A standard system of electronic documentation and a system of security of information must be developed for these purposes. The unified system of information and communication of the governmental authorities and state-owned enterprises must be completed at the third stage. 2003 35

Software Protection in Russia Provided by Provided by BEITEN BURKHARDT GOERDELER Rechtsanwaltsgesellschaft mbh (http://www.bblaw.de) 1. Introduction Russia is often described as a jurisdiction with a lax approach on intellectual property infringements. Occasional campaigns by state authorities against piracy in Russia has not yet brought any significant results. It is therefore sometimes thought that Russian laws are unable to offer effective legal protection for intellectual property rights. However, Russia has long been a party to a number of international treaties governing protection of intellectual property. In accordance with the world standards Russia has a developed legislation on principle issues of intellectual property. Furthermore, the court practice of the recent years (both in criminal and civil law courts) shows an increasing number of cases heard in respect of intellectual property matters. Analyzing the recent court cases, we may conclude that where an aggrieved party is prepared to demonstrate determination in pursuing legal redress, Russian laws may offer efficient tools to cure infringement. The following is a brief analysis of the existing Russian legislation protecting your intellectual property in Russia. The objective of this article is to outline the practical legal aspects of software protection. Software protection will be treated from two perspectives: (A) what should be done to avoid infringement; and (B) what should be done if the infringement nevertheless occurred. 2. Underlying Russian Legislation 2.1. International Treaties. In the area of software protection the relevant international treaties are the Berne Convention for Treatment of Literary and Artistic Works 1886 (as amended, 1971) (hereinafter the "Berne Convention 1971") (Russia acceded in 1994) and the Universal Copyright Convention 1952 (as amended in 1971) (Russia acceded in 1973, as the successor to the USSR) (hereinafter the "Universal Copyright Convention 1971"). These two laid down the principle of national treatment, which requires member states to offer, without any additional formalities, legal protection of copyright to non-nationals equally with its nationals. 2.2. Domestic Russian Legislation. In line with the world practice Russian legislators have adopted an approach protecting the software as literary works. Essentially, copyright offers protection against unlawful copying of computer programmes, but strictly speaking does not protect their contents. Unlike such jurisdictions as US or UK, computer programmes in Russia are expressly not patentable (Article 4 of the Patent Law of 23 September 1992 No. 3517-I). The main legislative acts in the area of software protection are Law of the Russian Federation "On Copyright and Neighboring Rights" No. 5351-1 of 9 July 1993 (hereinafter "Copyright Law") and Law of the Russian Federation "On Legal Protection of Computer Programmes and Databases" No. 3523-1 of 23 September 1992 (hereinafter "Computer Programmes Law"). These two acts accumulated the provisions of the Berne Convention 1971 and the Universal Copyright Convention 1971, and also have due regard for provisions of the EEC Directive 91/250/EEC of 14 May 1991. 2.3. Scope of Protection. Article 7(1) of the Copyright Law expressly lists computer programmes amongst objects of copyright protection. Russian copyright protection covers any computer programmes which exist in paper form or on any media (i.e. existing in an objective form). Under Article 5(1) of the law of the Copyright Law the copyright protection extends to: Any software, whether published or unpublished, in Russia regardless of nationality; Any software, whether published or unpublished, created by Russian nationals existing outside Russia; and Any software, whether published or unpublished, created by foreign nationals existing outside Russia, where stipulated by international treaties. 2.4. Formalities for Copyright Protection. Under Article 9(1) of Copyright Law and Article 4(1) of the Computer Programmes Law copyright in software will arise by the fact of its creation, without any additional formalities. However, the proprietor has the right to register the software with the Russian Patent Office (ROSPATENT). 2003 36

2.5. Term of Copyright Protection. Software shall be copyrightable for 50 years after their creation. 2.6. Contents of Copyright Protection. Copyright laws offer protection for moral rights and economic rights of authors and proprietors. Moral rights are essentially the rights to be named as the author of the person. They belong to physical persons who created a product and may not be alienated. Economic rights are any rights determining how computer programmes may be commercially exploited (such as the rights to sell, license, lease, assign, or distribute otherwise). Proprietors are mainly concerned with the economic rights, and therefore in this article for convenience by saying 'copyright' we will mean economic rights. 2.7. Registration of Copyright in Software. Registration of software is prima facie evidence of the proprietor's rights in respect of the copyrighted software. Rights in software may be licensed and assigned by an agreement in writing. A license, similar to initial registration, may be registered at the proprietor's discretion. Assignment of registered software is subject to mandatory registration (Article 13(5) of the Computer Programmes Law). 2.8. Protection of Copyright as Know-How. In addition to copyright protection, it is possible to protect computer programmes (especially when they are not yet complete) with the aid of the know-how (or commercial secrets) laws. Under Article 139 of the Civil Code commercial secrets are protected provided that the relevant information meets the following requirements: The information has actual or potential commercial value, due to the fact that it is not known to third parties; The information is not in the public domain; Proprietor of the information takes protective measures to keep it in confidence. 3. Practical Measures to Protect Software 3.1. Objective. This section will focus on practical recommendations on how to safeguard your software. Below are the steps which are usually taken to minimize or avoid risks of infringements, or at least to ensure that your have a strong case when an infringement occurred. 3.2. Registration of Copyright in Software. The two things which the claimant will have to establish in the event of infringement are that: (i) the claimant is the proprietor of a computer programme; and (ii) breach of his exclusive rights has occurred. Registration of a computer programme will help to easily prove the claimants proprietary rights in respect of the software. A certificate of registration of copyright in a computer programme issued by ROSPATENT, will constitute sufficient evidence for a court of your exclusive rights. Therefore, registration of software, although optional, is strongly recommended. 3.3. Proprietary Notices and Trademarks. Proprietary notices and trademarks are usually placed on products, screens, packaging, manuals, supporting documentation, etc. Proprietary notices serve to achieve two objectives. In the first place, proprietary notices warn the user of the proprietor's exclusive rights and may dissuade him from infringement. In the second place, once the user decided to go on with infringement, notwithstanding the warning, he will not be able to claim innocent infringement. Copyright Notice. Copyright notice is a warning of the proprietor's exclusive copyright, which includes, the name of the proprietor, and the year of publication. Confidentiality Notice. Confidentiality notices is a method of protecting the intellectual property under the head of know-how (commercial secrets). Such notices are placed on the outgoing and internal documentation. Confidentiality notices serve two purposes: they warn the recipient of the information of its sensitivity, on the one hand, and it proves that the disclosing party takes measures to keep it in confidence (which is one of the prerequisites of qualifying for commercial secrets under Article 139 of the Civil Code), on the other. Trademarks. Trademarks protect products containing computer programmes. It is unlawful to distribute goods with the use of trademarks without the proprietor's permission (Article 46, Law of the Russian Federation On Trademarks, Servicemarks, and Marks of Origin No. 3520-I dated 23 September 1992). Trademarks must be registered with ROSPATENT to be eligible for protection in Russia. 3.4. IT Contracts and Non-Disclosure Agreements/Clauses. Contractual documents must be carefully drafted as they define the limits of use and protection of computer programmes. Contracts should contain specific obligations in respect of intellectual property rights compliance and define with precision the scope 2003 37

of the rights granted. Furthermore, an IT contract may provide for additional remedies in case of infringement. 4. Software in Course of Employment Under the Russian law the employer automatically acquires copyright in a computer programme, created in the course of employment (14(1) of the Copyright Law). However, in order to ensure that this right of the employer is efficiently implemented, it is advisable for an employment contract to expressly stipulate that any intellectual property rights vest with the employer and that he may duly register them in his name. The employment contract should also contain a non-disclosure clause dissuading an employee from spilling information about the software and other sensitive data. Individual employees are advised to be issued written assignments for development of certain computer programmes, which in case of a dispute would prove that such software was in fact developed in the course of employment. Naturally, the employer should ensure that once a computer programme is complete, it should be registered with ROSPATENT in his name. It will also be advisable to register any new versions and upgrades of his computer programme. Technical and Administrative Measures. Using specialized data and access protection software is a widely used tool helping to avoid any unlawful access. It is critical to exclude any access to the protected computer programme by unauthorized persons. This can be achieved by internal regulations laying down the personnel, having access to the software, and by utilizing the relevant access and data protection software. 5. Remedies for Infringement In case of infringement the proprietor may rely on a number of legislative provisions in the area of civil law, criminal law, and administrative law. As current practice shows, the maximum effect may be achieved if the proprietor employs the remedies cumulatively, and that a favourable judgment in a civil law case is easier granted where the proprietor has been successful in initiating criminal prosecution. It is also highly advisable to engage assistance from the law enforcement bodies, since in many cases it will be problematic to attain evidence of the infringement without their participation. The right of the proprietor to turn to the law enforcement bodies is expressly provided for by Article 49(2) of the Copyright Law. Russian law enforcement bodies are given powers to stop infringement immediately and to ensure that unlawful materials are arrested pending the court judgment (Article 50 of the Copyright Law). Civil Law Remedies Under Article 18 of the Copyright Law the proprietor may turn to the court for the following remedies: Recognition of the rights; Restitution; Prohibition of infringement or acts which may lead to infringement; Damages, including lost profits; and Compensation in lieu of damages varying from US$ 16,000.00 to US$ 160,000.00. Pending the judgment the court may prohibit the defendant to carry out certain infringing actions, and to arrest and seize allegedly unlawful copies and facilities for their production (interim injunctions), in the event of sufficient evidence of infringement (Article 50(2) and Article 50(1) of the Copyright Law, and Article 91 of the Arbitration Code). It is the discretion of the court to grant such an interim injunction and it will do so if the claimant proves that otherwise the execution of the judgment will be impeded or that the claimant may incur losses (Article 90 of the Arbitration Code). The court will be obliged to grant an interim injunction if the claimant deposits a security amount to secure the requested interim injunction (Article 93(4) of the Arbitration Code). The Arbitration Code also allows for the issuance of an interim injunction even before the suit is filed with the court. In that case depositing of a security amount by the claimant will be mandatory (Article 99 of the Arbitration Code). We again remind, that the best result in a civil law action will be achieved if the proprietor has initiated criminal prosecution against the offender and engaged assistance of law enforcement bodies. Criminal Law Remedies Article 146 of the Criminal Code 2003 38

Under Article 146 of the Criminal Code prohibits unlawful use or appropriation of copyright, which caused substantial damage. There is no legal definition of what constitutes substantial damage for the purposes of this Article 146, but in accordance with the current practice of the law enforcement bodies 10 minimum wages (approximately US$ 33.00) may sometimes constitute substantial damage. This criminal offence is punishable with up to 2 years' imprisonment. In accordance with Article 50(2) of the Copyright Law the law enforcement authorities may arrest and seize infringing copies and facilities for their production in the event of sufficient evidence of infringement. Article 180 of the Criminal Code Where products are protected with trademarks, infringements of trademarks are prosecuted under Article 180 of the Criminal Code, prohibiting unlawful use of a trademark which is done repeatedly or caused substantial harm. Article 180 of the Criminal Code provides fore two years imprisonment maximum. Administrative Law Remedies Article 7.12 of the Administrative Code Under Article 7.12 of the Administrative Code it is unlawful to use pirate copies or to appropriate copyright. Administrative offences under the Administrative Code are prosecuted by the police, they are punishable with fines and seizure of infringing copies and materials. Article 10 of the Antimonopoly Law It may be possible to invoke Article 10 of the RSFSR Law "On Competition and Restriction of Monopolistic Activities on Commodities Market" of 22 March 1991 No. 948-I (hereinafter - the "Antimonopoly Law") and address the Antimonopoly Ministry for protection. Article 10 of the Antimonopoly Law makes it an offence to sell goods with unlawful use of intellectual property, and to unlawfully receive, use, and disclose commercial secrets. To invoke Article 10 of the Antimonopoly Law the proprietor will need to prove an element of unfair competition. The argument may be, for example, that selling low quality copies affects the proprietor's reputation on the market, or that selling unlawful copies at undermarket price affects the proprietor's competitiveness in the market. 6. Conclusion Despite the apparent increase in a number of cases heard by Russian courts recently over intellectual property matters, the number of such cases in general remains small. Court decisions on computer prorgrammes are even less frequent. The main reason, as we see it, is unwillingness to pursue legal remedies based on an assumption (which is rather a myth than reality) that intellectual property may not be efficiently protected in Russia. However, there are evident signs that proprietors are moving towards awareness of their rights, which will undoubtedly push the protection of intellectual property to a higher level. However, even the existing Russian legislation offers sufficient legal tools to ensure reliable protection of intellectual property rights. 2002 Alexey Mozzhukhov BEITEN BURKHARDT GOERDELER Rechtsanwaltsgesellschaft mbh, Moscow www.bblaw.de AMozzhukhov@kpmg.com 2003 39

Business Directory Aplana Software Contact Information Address: 84/32 Profsoyuznaya Str, Entrance 6, Floor 7, 117485, Moscow, Russia URL: http://www.aplana.com Contact Person, position: Maria Dragan, Marketing Manager E-mail: info@aplana.com Telephone: +7 095 7481345 General Description APLANA Software is a Moscow based steadily growing software services company, a member of Russia s top high-tech group I.T.Co. Formerly known as I.T.Co Software Development Center, Aplana provides a wide spectrum of high-quality software services for international customers with focus on development and integration of software systems according to customer requirements. Wide spectrum of technological and applied competencies allows Aplana to choose the most optimal solution for each particular customer depending on business requirements and installed IT solutions. Efficient processes and procedures make it possible to ensure a controllable and transparent project management process and best price/quality ratio for our customers Specialisation: development and integration of software systems, main business directions: Custom Software Development and Maintenance; Specialized solutions based on core reusable components; Application Integration and cross-technology development; Quality certification: ISO 9000:2000 Resources: over 80 developers, certified specialists MS, Oracle, IBM/Lotus, Sun, Rational and other technologies Project management: based on CMM and ISO 9000:2000 standards, PMBOK (PMI), RUP, MSF methodologies Core Expertise: A wide spectrum of technological and applied competencies allows Aplana to choose the most optimal solution for each particular customer depending on business requirements and installed IT solutions. Rich experience in multi-platform applications makes it possible for us to ensure efficient integration of software systems and to reduce total cost of IT ownership. Broad reliance on reusable components and proven technologies enables Aplana to reduce times, risks and costs of implementing specialized solutions in such areas as telecommunications, finance, machine-building and many others. Industry Expertise: Corporate Automation: Wide range of solutions available as entirely custom software development or customization of reusable components in the following areas: DocFlow&Workflow systems, Sales Force automation, Supply Change Management, Budgeting systems, Information security, Knowledge management, OLAP CRM/Call Centers: development, maintenance, customization of Relavis CRM series (WebSphere and Lotus Notes platform); Integration of CRM and Call centers (CRM Relavis + Genesys Call Center) Telecommunications and Billing systems: Maintenance and customisation of in-house allpurpose IT Billing system (Oracle platform); Integrated solutions for telecom operators (billing, mediation, back and frontoffice applications); Broad range of custom software development Banking and Finance: Implementation and customization of in-house financial&logistics core system (Oracle); E-commerce - portals and integrated solutions; Leasing systems special expertise; Smart cards solutions (payment systems, access control, all-purpose), experience with 2003 40

VISA VSDC project; Secured docflow systems (based on PKI); Broad range of custom software development Manufacturing: Bar-code based Identification and Traceability system for machine components production; Information security solutions, access control systems Customers: Aplana aims at long-term relations with customers and partners on the basis of co-operation and co-development. Aplana customer base include largest local and international companies such as Central Bank of Russia, AutoVAZ, Comstar, OTIS, Ernst&Young, and many others. Major successes include 2 years of maintenance of corporate SFA applications for GE Medical Systems (France), 6 years of co-development of smart-cards based technology (SmartCity, trademark of ICL/Fujitsu, USA) and product development for Relavis (USA). Value Proposition APLANA S VALUE PROPOSITION IS TO REDUCE THE TIME AND COST OF DEVELOPING AND IMPLEMENTING THE OPTIMAL SOLUTION FOR YOUR BUSINESS REQUIREMENTS AND INSTALLED IT SYSTEMS. OUR GOAL IS TO MAXIMIZE THE EFFECTIVENESS AND EFFICIENCY OF YOUR IT SYSTEMS. Best price/quality ratio for our customers; Compliance with international standards and ability to adapt our development processes to customer in-house standards; Higher quality and efficiency via Rational and Microsoft tools and proven methodologies (PMBOK, RUP, MSF); Full compliance with business requirements through visual modeling and iterative prototyping; Risks reduction, fully controlled software project plan risk management at all stages of the process; Openness and Transparency of the company structure and development process, flexibility of development and relations management; Close cooperation with the customer at all stages of the project, inclusion of customer representatives in project teams; Areas of Specialisation Enterprise Resource Management Applications Customer-Relationship Management Applications Electronic Commerce Technologies Expertise Programming Languages: Java, Oracle Developer; SQL: T-SQL, PL SQL, ANSI SQL; Script languages: Lotus Script, Jscript, VBScript, ASP; Visual Basic: VBA, VB, VB.NET; C#, VC++, XML, HTML Databases: Oracle, IBM DB2, Informix, My SQL, MS SQL, MS Access, Sybase, Docflow systems: Lotus Domino, MS Exchange 2003 41

Arcadia, Inc. Contact Information Address: P.O.Box 244, St. Petersburg, 191025, Russia URL: http://www.offshore-software.ru Contact Person, position: Natalia Tour, Business Development Manager E-mail: Natalia.Tour@arcadia.spb.ru Telephone: +7 812 1124009 General Description Arcadia, Inc. is a leading Russian offshore software development company founded in Saint Petersburg in 1993 by Arcady Khotin. We are 100% focused on providing software development services to Western companies. Our strong point is our ability to always produce quality software on time and on budget. We measure our success with our customers' satisfaction. Our customers have been working with us for many years, cutting their costs and gaining dedicated teams of software professionals. About 75% of our business comes from repeat customers. Our proven methodology, wealth of experience, and unbelievably affordable costs can add a great value to your business. Our reputation is based on the quality of our services. By year 2002, Arcadia, Inc. is going to be ISO 9001:2000 certified. Our flexible processes can be easily adapted to the clients' quality standards. Thus we achieve the maximal transparency and simplify managing, monitoring, communications and development procedures. Arcadia, Inc. has been providing offshore software development services since 1993, i.e. for 9+ years. In average, each year we work on 20-25 projects of various duration and complexity. Our projects differ in size from 5 person-years / 150 person-years projects to 2 months / 3 person-months ones. All senior developers we have on staff are experts in their field with at least three years of relevant experience. Ten PhDs in computer science, mathematics, physics and economy are working at our company. Our developers and project managers take courses in technologies and methodologies of software development in training centers. Our advanced professionals provide in-house training for the team members. Business language even for internal communications and documentation is English. All employees read, write, and speak English. In year 2000, Arcadia, Inc. branched out an IT recruitment agency Arcadia++. Today Arcadia++ recruits top-notch IT professionals for its clients and is able to form flexible software teams on a short notice. Arcadia, Inc. Fact Sheet In the international market since 1993 Located in Saint Petersburg, Russia 75% of business comes from repeat customers ISO 9001:2000 certification planned for 2002 Flexible software development and project management processes easily adaptable to customer needs Excellent technological and communication infrastructure with strong security system restricting access to all resources and facilities, which are monitored around the clock 100+ strong team of software professionals Close relationships with Saint Petersburg technological universities; best graduates are selected to work at Arcadia, Inc. Own recruiting agency Arcadia ++, also servicing other software development companies We offer the optimal technological solutions in the following areas: Internet-Related Programming: Large-scale Web-based applications Multi-tier applications with Web-based, desktop, and mobile clients 2003 42

Web design, multimedia programming Internet tools System Programming: Data security Application frameworks Windows kernel, low-level drivers COM/DCOM COM+ Plug-ins for MS Exchange, Lotus Domino, Adobe products, etc. Cross-platform development and porting: Windows-Unix-Mac-CE-Palm PDA Programming: POS systems Data synchronization services General applications development Networking COM Custom controls: ActiveX Controls Web Controls Testing, localization and documentation: Customers' software testing Software localization Software documentation We offer the optimal technological solutions even while starting work without detailed specs. We create synergy in software development! Value Proposition Our value proposition: Cost reduction of up to 50% in comparison to European prices Decreased time-to-market Top technological expertise Top quality of the software development Our proven methodology, wealth of experience, and unbelievably affordable costs can add a great value to your business. We are interested in establishing mutually beneficial working relationships with companies willing to outsource software development projects. No project is too large. We can assign a team of programmers to work on your job for several months or years. We can also set up and manage your permanent offshore development team here in St. Petersburg using our offices. No project is too small. We can turn around a job in as little as one day. Areas of Specialisation Electronic Commerce Retail/Point of Sale Applications Electronic Catalog Applications Online Community Software Bill Presentment and Payment Applications Web Content Management and Publishing systems Websites (design and development) Information and Data Management Software DBMSs Database Data Movement and Replication Tools Database Administration Tools and Utilities Application Design and Development Tools Application Life-Cycle Management Tools Information Access and Delivery End-User Query and Reporting Tools Packaged Data Mart/Data Warehouse Products Knowledge Management & Data Mining Tools 2003 43

System Management Software Network Management Software Security Software Internet Security Software Middleware Storage Software Serverware Networking Software Remote Software Wireless Technologies System-Level Software Technologies Expertise Programming Languages: C/C++(VS, GCC), Java, Java 2 SE, Java 2 EE, EJB,.NET, C#, VB, ASP, ASP+, Perl, PHP, ISAPI, CGI, DHTML, XML, XSL, JavaScript, LDAP, STL, MFC, ATL, JDBC, JSP, Servlet, JavaBeans, EJB, Freehand 10, Fireworks Studio 4, Dreamweaver 4, Flash 5, Director 8.5, Microsoft embedded Visual Tools, NSBasic/CE, NSBasic/PalmOS, Metrowerks CodeWarrior for PalmOS OS: Windows (9x/ME, NT, 2K, XP); UNIX (LINUX, FreeBSD, Solaris); Macintosh (MacOS 8.x, 9.x, X); PDA (Windows CE/Pocket PC, Palm OS, Epoc 32) Databases: MS SQL, Oracle, MySQL, Ingres, MS Access 2003 44

Artezio, Inc. Contact Information Address: 504 Gubkin St., Suite 3G, Moscow, 117333, Russia URL: http://www.artezio.com Contact Person, position: Pavel Adylin, CEO E-mail: info@artezio.com Telephone: +7 095 9562584 General Description Artezio, LLC is a professional software development center based in Moscow, Russian Federation. Established in 2000, Artezio provides high quality cost-effective software development services to the domestic companies as well as clients in Europe, North America and the Far East. To date, Artezio has developed software packages, in-house applications and designed web sites, using the most advanced technology available. Our primary expertise lies in the enterprise-level business information systems development using Java, C++, XML, J2EE, CORBA, Web Services and Oracle technologies. Projects developed by our company can yield up to 50% of cost related savings when compared to similar jobs done by the professional firms in North America or Western Europe, with no sacrifices in quality to speak of. Combination of the in-depth technical expertise, mature process management model and a pragmatic, delivery-oriented approach help us achieve flexibility and the ability to meet tight scheduling demands. Equipped with the most advanced tools and unparalleled expertise in cutting-edge technologies, Artezio comes best in outsourcing high-impact solutions that best fit your company s unique business needs. Areas of Specialisation Services Industry Applications Telecommunications/Utilities Applications Network Management Software Middleware Technologies Expertise Programming Languages: Java, C++; CORBA, EJB, Web Services; XML/XMI, XSL, ASP, JavaScript, Perl, PHP, HTML OS: Microsoft Windows 98/NT/2000, Linux, Sun Solaris, HP-UX. Databases: SQL Databases: Oracle, MS SQL Server, Informix, Sybase, MySQL, MS Access, PostGreSQL, InterBase 2003 45

ATAPY Software Contact Information Address: P.O.Box 233, Novosibirsk 630128, Russia URL: http://www.atapy.com Contact Person, position: Sergey Borovoy, CEO E-mail: office@atapy.com Telephone: +7 3832 396569 General Description We specialize in contract programming in the following areas: OCR/ICR Imaging computer linguistics other AI-intensive areas EDMS Data format conversion web programming. We also provide offshore scanning, KFI, key repair, data conversion and other similar services. We employ experienced software engineers and linguists, as well as multilingual typists for KFI. A separate QA group carries on constant control over all company s projects and procedures. We have completed contracts for companies from Russia, US, and several European countries. References are available from Mr. Jupp Stoepetie, MitCom GmbH (stoepetie@mitcom.de), Mr. Rob Camerlink, EasyData B.V. (rob@easydata.nl), David Yang, Cybiko Inc. (david_y@cybiko.com), more upon request. Value Proposition We welcome requests (in English, German, or French) for further information about our software development and data processing capabilities. Areas of Specialisation Home Education/ Entertainment Software Content and Document Management Applications Office Applications Speech and Natural Language Applications Customer-Relationship Management Applications OCR/ICR, forms recognition Technologies Expertise Programming Languages: C/C++, Delphi, Visual Basic, Java, Perl, SQL OS: Windows, Windows CE, Linux\ Databases: SQL Server 2003 46

Auriga, Inc. Contact Information Address: 1 Overlook Drive, Unit 2, Amherst, NH 03031 URL: http://www.auriga.com Contact Person, position: Sergei Riabov, Director of Business Development E-mail: riabov@auriga.com Telephone: +1 603 673 2300 General Description Auriga, Inc. is an IT consultancy which provides offshore software development services. Headquartered in Amherst, NH, Auriga has a state-of-the-art software engineering center in Moscow, Russia, with over 100 people. Auriga s core areas of expertise are systems programming and programming for web-enabled applications, client server systems and database applications. Auriga engineers have extensive experience in UNIX application, kernel, and driver development, embedded and real-time systems, programming for Windows, as well as software development for information portals, document and content management systems. For about 12 years, Auriga has been catering to a global clientele. Many Fortune 500 companies have benefited from Auriga solutions: Hewlett-Packard, Motorola Computer Group, Intel and others. Auriga has extensive experience in establishing offshore engineering teams, dedicated to specific clients. Auriga builds a team, provides secured facilities, infrastructure and administrative management. Auriga establishes engineering procedures for the team in conformity with client project management practices, making the offshore team a part of the client engineering department. This model has been used by many of Auriga s clients for over 9 years. Auriga s key advantage is the depth of the technical expertise of its engineers in Russia enhanced by the reliability and predictability of dealing with a U.S.-based company. Auriga, Inc. has been selected by Aberdeen Group, a leading market analysis and positioning services firm, to showcase an example of successful offshore service delivery in its special report Offshore Software Outsourcing Best Practices: Building Successful Relationships on a Diverse Delivery Mode released in September 2002. Value Proposition Auriga s key advantages are the depth of the technical expertise of our engineers in Russia as well as the reliability and predictability of dealing with a U.S.-based company. With more than a decade of experience in IT offshore outsourcing, Auriga has a proven track record for unique engineering, administrative, and managerial expertise. Full life-cycle software development solutions Given Auriga's 12 years of experience in software engineering and project management, our company can be relied upon to deliver partial or full life-cycle projects on time and within budget. By outsourcing a portion of their development needs to Auriga, our clients gain a flexible and cost-effective resource enabling them to increase product ranges, decrease time to market, and significantly lower development costs. Auriga provides information technology offshore outsourcing services encompassing the software application life-cycle: requirements analysis design development quality assurance and testing maintenance and technical support reengineering 2003 47

Core areas of Auriga's technology expertise are: systems level software development, in particular, realtime, industrial and embedded systems; web-enabled e-solutions for all kinds of Web-based businesses, comprising operation support systems and business process automation, customer relationship management, content and document management systems. Our project planning, on-line project reporting, variance reporting, reliable and secure Internet connection allow our clients to retain as much control of the software development projects as they wish. The Auriga Advantage: Auriga is a unique resource for top IT expertise Our in-house team of over 110 engineers is extremely dedicated to Auriga and the needs of our clients Auriga has provided a stable, secure and highly professional environment that attracts the best and brightest Areas of Specialisation Content and Document Management Applications Telecommunications/Utilities Applications Web Content Management and Publishing systems Information and Data Management Software DBMSs Database Data Movement and Replication Tools Database Administration Tools and Utilities System Management Software Network Management Software Middleware Storage Software Serverware Networking Software Real-Time Systems Embedded Systems Industrial Computer S/W Technologies Expertise Programming Languages: Assembler languages for a wide range of embedded architectures and platforms, including Intel, PowerPC, MIPS, ARM, ColdFire, SuperH, Xscale, Altivec; UNIX scripting, including Tcl/Tk, Expect, Visual Tcl, and all UNIX command line text processing tools; C, C++; Perl, Java/XML OS: VxWorks, LynxOS, OSE, Windows NT Embedded, embedded Linux, Windows 2000, Windows XP Hardware platforms and technologies: PCI, CompactPCI, VME, and ISA buses Databases: Oracle, MS SQL Server, Sybase 2003 48

Darout Service Corp. Ltd. Contact Information Address: pr. Rimskogo-Korsakova, 22, St. Petersburg 190068, Russia URL: http://www.darout.ru/ Contact Person, position: Andrew Usov, CTO E-mail: andrew.usov@darout.ru Telephone: +7 812 3468530 General Description Darout Service Ltd. is one of the leading software companies in St. Petersburg with the strong organization and management aimed at performing projects on software design and implementation including: applications for the Internet and mobile devices ecommerce solutions in Banking and Finance areas databases design, administration and tuning web sites design and development Darout Service Ltd. was established in Saint-Petersburg, Russia in June 2001 as a subsidiary of the Swiss Company Darum Holding AG on the base of a big US Company that left the market of Saint-Petersburg. Our goals are: Performing all business processes at the company and increasing the strength of the organization Involving big companies into the collaboration and making long-term contracts Improving the quality of the products and services Increasing motivation of the employees and creation conditions for their professional growth By producing high-quality products and services, which completely meet customer's requirements, we always try to enhance customers' satisfaction and also to anticipate their expectations. We develop e-business and relationship management solutions that help you. Giving your customers and partners easy access to your products and services can improve their experience with your firm and reduce your costs to provide those services. We offer highly professionalism in building relationship management systems either with Web-based and Natural Language interface. Our professional team combine our years of experience with information management, large-scale databases and legacy systems along with our understanding of e-business to help you develop a proactive business model. Darout personnel is (Microsoft-, Sun-) certified in state-of-the-art technologies and different areas of software business. Value Proposition Darout Service Ltd. offers to the Client: Professionalism in Development Darout Service is a team of professionals in computer technologies, applied mathematics, engineering, design. Many of specialists have advanced technical degrees. All of them are certificated. All specialists have several years experience in programming. Strong Management The managers at Darout Service are experts in computing technologies. All of them speak fluent English. Many of them have experience in working at American software companies. Low Cost The cost of software implementation at Darout Service is approximately low. This fact rides on minimal sum of indirect expenses (small administration, low rent) and optimal organization of all business processes. High Quality During the whole product life cycle our Testers and QA engineers control quality of all processes that are connected with this product. Software development process in Darout Service Company includes more 2003 49

than 3 test cycles before the product is delivered to the client. The product is delivered along with the Test Report. Consistent Reporting Reporting system at Darout Service Company is applied on the following areas: software development, human resources, finances, and quality assurance. The reports show the effectiveness of development process, tasks performance, adherence to the plan, they expose problems encountered during the development and represent financial expenses on the projects. Clearness and Transparency in All the Processes At the outset of the project the Project Manager develops the schedule following the outlines made by the Client. Once this schedule is agreed by the Client, the work starts in strict accordance with this schedule so that the Client at any time can see what stage the project implementation is in. Furthermore the regular reports inform the Client about the status of the tasks under implementation, potential risks and problems encountered during the work. Areas of Specialisation Speech and Natural Language Applications Services Industry Applications Banking/Finance Applications Telecommunications/Utilities Applications Customer-Relationship Management Applications Sales Applications Electronic Commerce Electronic Catalog Applications Electronic Marketplaces Software Web Content Management and Publishing systems Websites (design and development) System Management Software Technologies Expertise Programming Languages: Java, C++, Smalltalk, Perl, Delphi, PL/SQL, (D)HTML,.NET series, ColdFusion (CFM) OS: Win32 platform, Solaris, Linux Databases: Oracle, MySQL, MS-SQL, Access, DB2 2003 50

Ectaco-Russia, Ltd. Contact Information Address: 72 pr. Kondratievskiy, St. Petersburg, 195271, Russia URL: http://www.ectaco.com E-mail: info@ectaco.ru Telephone: +7 812 545-3838 General Description Ectaco, Inc. is the world leader in the development and manufacture of handheld electronic dictionaries. Since the foundation of the company in 1990, we have produced 6 generations of Language Teacher, Partner and Universal Translator hardware and software dictionaries, translating from and into over 20 languages. The high level of expertise and experience of Ectaco linguists, programmers, designers and engineers have resulted in the creation of devices with modern design, high-quality linguistic databases and the widest range of features. Our specialists have made applications and systems for such companies as Franklin Electronic Publishers, L&H, C-Pen, G-Data, Adobe, etc. Our company's products have received significant industry recognition. The Partner ER586HT was given the 1999 CES Innovation Award, and Language Teacher dictionaries were in the finals in the Best Software Awards in the Language and Culture category. Total company staff numbers approximately 400 persons. A network of Ectaco offices in 16 countries allows us to survey and satisfy our customers' needs as much as possible. Areas of Specialisation Home Education/ Entertainment Software Speech and Natural Language Applications Technologies Expertise Programming Languages: Java, C, C++ OS: Windows, Pocket PC, Palm OS, Linux Databases: Oracle 2003 51

EPAM Systems Contact Information Address: 19, Kuznetskiy Most, Bldg 1, Moscow, 107031, Russia URL: http://www.epam.com Contact Person, position: Vladislav Shershulsky, Director of Business Development E-mail: info@epam.com Telephone: +7 095 9214776 General Description Established in 1993 as US entity, EPAM Systems with its ISO9001:2000 certified Development Centers in Russia and Belarus is a leading IT outsourcing services provider in the Former USSR. EPAM delivered software solutions and services in more than 30 countries worldwide for such global corporations as Colgate-Palmolive, Halliburton, Samsung, Verison, WestGroup as well as to such technology leaders as SAP, Microsoft and PTC. Value Proposition Count on us for proven offshore software development and software services outsourcing. By combining the best IT consulting expertise in the US and Europe with advanced offshore software development practices in Russia, we deliver cost-effective technology solutions to Fortune 2000 & Blue Chip companies worldwide. EPAM has the services, methodology, software development skills and experience to help your offshore technology initiatives succeed. Areas of Specialisation Content and Document Management Applications Project Management Applications Insurance Applications Healthcare Applications Customer-Relationship Management Applications Sales Applications Electronic Commerce Electronic Catalog Applications Electronic Marketplaces Software Web Content Management and Publishing systems Websites (design and development) Information and Data Management Software Database Data Movement and Replication Tools Application Life-Cycle Management Tools Information Access and Delivery Executive Information & Decision Support Systems End-User Query and Reporting Tools Multidimensional, Statistics and Technical Data Analysis Tools Knowledge Management & Data Mining Tools Technologies Expertise Programming Languages: Java, J2EE, C/C++, С#,.NET, Visual Basic, ABAP/4, RPG/400, COBOL, FORTRAN, PL/1, Scripting Languages (Javascript, VBScript, Perl, PHP, Python etc.),.net, Visual Basic, Java Server Pages, Active Server Pages (ASP), HTML/DHTML/XML/WML, WAP OS: Windows, Solaris, AIX, HP-UX, MacOS, OS/400, OS/390 Databases: Oracle, Microsoft SQL Server, IBM DB2, Informix 2003 52

evelopers Corporation Contact Information Address: 14-5 Bolshaya Raznochinnaya st., St. Petersburg, 197110, Russia URL: http://www.evelopers.com Contact Person, position: Andrey Narvsky, Managing Director E-mail: info@evelopers.com Telephone: +7 812 3243211 General Description Founded in 1999, evelopers is an offshore development company located in St. Petersburg, Russia with headquarters in Silicon Valley, California, USA. evelopers designs and builds complex web and wireless solutions for companies competing in the Net Economy. By applying top technical talent and delivering high-impact solutions in record time, evelopers help companies accelerate ebusiness opportunities and expand competitiveness. Value Proposition Exceptional quality at low cost Rapid development of applications using open standards-based framework and components Local project management and dedicated development teams State-of-the-art development center in St. Petersburg, Russia Proven development process ISO certified Over the top client collaboration Areas of Specialisation: Collaborative & Messaging Applications Content and Document Management Applications Enterprise Resource Management Applications Logistics Applications Project Management Applications Banking/Finance Applications Professional Services Applications Product Supply Chain Applications Technologies Expertise Programming Languages: J2EE, J2SE, J2ME, XML/XSL, SQL, ASP, VB and others OS: Windows, Unix, Linux Databases: Oracle, Sybase, MSSQL 2003 53

FORS Contact Information Address: Trifonovsky tupik 3, Moscow, 129272, Russia URL: http://www.fors.ru Contact Person, position: Nick Vasilchenko, Manager E-mail: develop@fors.ru Telephone: +7 095 7877040 General Description FORS is an integrated provider of complex computer-based solutions. We develop applications for key vertical markets, working for top international companies. Our staff includes world-class programmers, system analysts and computer scientists. Headquartered in Moscow, we have an affiliate in St. Petersburg, a representative office in New York and a network of partners and associates in Western Europe. We are building a global information technology company. FORS is a key partner of Oracle Corp. in the Russian market. We distribute Oracle products, write applications using state-of-the-art Oracle tools, provide customer service and training. Together with Oracle, we are moving to a leadership position in Internet development. In 1997 FORS was named Oracle Partner of the Year in Central and Eastern Europe. FORS was one of the first Oracle partners to become Certified Advantage Partner. FORS is one of the most successful high-tech start-ups to emerge in Russia since the development of the market economy. A privately held company founded in 1991 by computer scientists from the Academy of Sciences, FORS is the largest Oracle distributor in Russia, with 35 percent of the market and over 700 clients. We have on staff over 200 programmers and computer professionals-one of the largest Oracle development teams under one roof. FORS has teams specializing in specific vertical markets. In addition to high-level programming and system development skills, they have in-depth knowledge and understanding of modern telecom, transportation, banking and other industries. Value Proposition FORS has carried out over 300 projects for industrial companies, financial institutions and government agencies. Our teams use standard CDM/PJM methodology and modern development tools. FORS is a certified ISO 9000 company. We have expertise in developing OLTP and DSS systems, as well as DWH. We work with clients to identify their problems, design comprehensive solutions and implement our systems. We provide training, maintenance and customer support. FORS has worked with international system integrators and consulting firms on some of the largest projects in Russia. We developed products for foreign clients in the global IT market. Our Oracle-certified, English-speaking professionals are experienced in developing complex solutions. Our implementation teams include Oracle Applications specialists. We provide top-notch expertise at highly competitive rates. FORS has proprietary products for key vertical markets: telecom, banking, insurance, transportation. Our products are built using Oracle technology and in conformance with highest technological and functional standards. Several of our products have been awarded official certificates. FORS Training Center carries Oracle and Microsoft certifications. It is authorized to test and certify Oracle and Microsoft specialists. It conducts large-scale training programs for government agencies. Our instructors have been subcontracted to teach training classes abroad. Our certified database administrators have worked with Oracle products for over 10 years. They provide high-level technical support, enhancing standard maintenance services. We are called in to resolve problems, fix system bugs and train company staffs in advanced trouble-shooting techniques. 2003 54

Areas of Specialisation Enterprise Resource Management Applications Accounting Applications Materials Management Applications Warehouse management systems Services Industry Applications Banking/Finance Applications Telecommunications/Utilities Applications Information and Data Management Software DBMSs Database Data Movement and Replication Tools Database Administration Tools and Utilities Application Design and Development Tools Application Life-Cycle Management Tools Information Access and Delivery Executive Information & Decision Support Systems Packaged Data Mart/Data Warehouse Products Multidimensional, Statistics and Technical Data Analysis Tools Knowledge Management & Data Mining Tools Technologies Expertise Programming Languages: С/С++, Java, Javascript, Delphi, SQL, XML, HTML OS: Windows, Linux Databases: Oracle 2003 55

HitSoft Contact Information Address: P.O. Box 482, Novosibirsk,630090 URL: http://www.hitsoft-it.com Contact Person, position: Andrey Veselov, CEO E-mail: andrey@hitsoft-it.com Telephone: +7 383 2137939 General Description HitSoft is a software engineering company that provides a wide range of software solutions and services, specializing in: Telecommunications: The HitSoft Corporate Calling System a unique corporate hybrid solution that allows saving up to 70% on long-distance calls; Internet portals: Comprehensive online solutions of any scale; from WEB-presentations to e-business applications that are mostly in demand including e-commerce and B2B; Online gaming: Gambling portals, developed by our team, have a merited success owing to wide variety of game opportunities (including person to person games) and stylish design; Image storage databases and image processing: This solution has proved its reliability being installed in hundreds of police departments, medical institutions, investigation agencies and banks; Online marketing solutions: Affiliate system and MLM software for internal accounting, warehouse management, online ordering, and calculations of commissions; HitSoft professionals utilize the most sophisticated tools and methodologies available in IT industry today. Coupled with individual approach it guarantees success and prospect to any project that you plan to realize in collaboration with HitSoft. Areas of Specialisation Electronic Catalog Applications Online Community Software Websites (design and development) Information and Data Management Software DBMSs Database Data Movement and Replication Tools Database Administration Tools and Utilities Middleware Serverware Technologies Expertise Programming Languages: Java, JavaScript, HTML, SQL, Delphi, C/C++, UML, XML, XMS, Pascal Databases: MS SQL, Oracle, Interbase, ADABAS, DB2, Paradox, Sybase 2003 56

Jensen Technologies Contact Information Address: 10 Canal Griboedova, 2, St. Petersburg, Russia URL: http://www.jensentechnologies.com Contact Person, position: Dan Dougan, President E-mail: dpd@jensentechnologies.com Telephone: +7 812 1035585 General Description Jensen Technologies is a creative, ambitious offshore programming company that offers expertise in remote software application and product development. Jensen Technologies is headquartered in San Francisco, California with an international office in St. Petersburg, Russia. We specialize in custom design and development of systems to client specifications. As an American owned and managed company, we combine the security and customer service of a Western firm with the excellence of Russian programming. We build all of our projects at our development center in St. Petersburg, which is ideally located to deliver high quality, low cost programming to our clients worldwide. The city of St. Petersburg has always been the educational, research and scientific center of the former Soviet Union an now is rapidly becoming the Silicon Valley of Russia. Our programmers are well trained in fundamental mathematics and are excellent problem solvers for a variety of projects. We tend to focus on financial applications, business management/crm solutions, internet/e-commerce projects and code conversion. We are highly skilled in C/C++, Java, web technologies and database construction. Because of our training, experience and commitment to customer service, we feel confident that Jensen Technologies can provide the most advanced, comprehensive and cost-effective software solution for your business with surprising speed. Value Proposition We provide the security and customer service of an American managed firm with the quality and low prices of Russian programming. Jentek can solve clients complex development problems at a fraction of their normal costs. We can also serve as an inexpensive way to temporarily or permanently scale up clients development operations. We tend to focus on financial applications, business management/crm solutions, internet/e-commerce projects and code conversion. Areas of Specialisation Content and Document Management Applications Enterprise Resource Management Applications Banking/Finance Applications Customer-Relationship Management Applications Customer-Support and Contact-Center Software Electronic Commerce Electronic Catalog Applications Web Content Management and Publishing systems Websites (design and development) Technologies Expertise Programming Languages: C, C++, Object Pascal, Basic, Java/J2EE, Perl, ASP, C#, JSP, Perl, Java Script, PHP OS: Windows 9x/2000/ME/XP/NT/CE; Unix; Linux; Solaris; Palm OS Databases: Oracle, MS SQL, MySQL, Informix, Borland Interbase, ACCPACC, MAS 200, PostGre SQL 2003 57

JS RCOM Contact Information Address: off. 203, 16, Vokzalnaya Magistral, 630099, Novosibirsk, Russia URL: http://www.rscom.ru Contact Person, position: Pavel Konovalov, CEO E-mail: pasha@rscom.ru Telephone: +7 3832 299064 General Description JS "RCOM" is a Russian company developing the software for enterprise economic activity and business process automation. The main lines of activity: System integration; Design, development, and implementation of process control systems with their further maintenance, Consulting, and stuff training. The resources that we have at our disposal allow us to solve the whole complex of problems arising during the project life cycle. Building the relations with our customers we treat them as the competent partners. Areas of Specialisation Enterprise Resource Management Applications Marketing Applications Customer-Support and Contact-Center Software Web Content Management and Publishing systems Websites (design and development) Information and Data Management Software DBMSs Database Data Movement and Replication Tools Database Administration Tools and Utilities Application Design and Development Tools Application Life-Cycle Management Tools Information Access and Delivery Executive Information & Decision Support Systems End-User Query and Reporting Tools Multidimensional, Statistics and Technical Data Analysis Tools Technologies Expertise Programming Languages: Visual C++, Java, PHP OS: MS Windows, Linux, BeOS Databases: SAP DB, Oracle 2003 58

J-Soft JSC Contact Information Address: Second Floor, Utochkina st., 4, St.Petersburg, 197371, Russia URL: http://j-soft.spb.ru/ Contact Person, position: Denis Specakov, CEO E-mail: info@j-soft.spb.ru Telephone: +7 812 9568074 General Description The main goal of "J-Soft" JSC is to develop the top-quality software and IT services you need. We provide finest software development services, computer graphics, internet programming, web design, web hosting and LAN engineering based on cutting-edge technologies and advanced quality assurance process. "J-Soft" works with all kinds of customer requirements ranging from general target setting to detailed specifications. You'll be satisfied with the visibility of development process and we hope you'll be back more than once. "J-Soft" officially operates on the world IT market since 2000 when it was established company by a few groups of well-experienced IT professionals. Today, we are proud to have a strong team of professionals that satisfy the highest standards of the modern IT market. Areas of Specialisation Web Content Management and Publishing systems Websites (design and development) Technologies Expertise Programming Languages: C\C++; Object Pascal (Delphi); Visual Basic; Assembler (Intel, DEC); SQL; JAVA; HTML, DHTML XML; Perl, Java Script, VB Script; ASP, CGI, PHP OS: MS Windows NT/95/98/2000; FreeBSD; Linux; OS/2; QNX; MAC OS; NOVELL; MS DOS Databases: Oracle; MS SQL; PL/SQL; My SQL; InterBase; DBase; Paradox; Fox Pro; Access; Clipper 2003 59

Kanar Software Contact Information Address: Of.1, bldg.31, Studentcheskay, Voronezh, 394000, Russia URL: http://www.kanarsoft.com/ Contact Person, position: Irina Eihvald, CEO E-mail: irina@kanar.comch.ru Telephone: +7 0732 512780 General Description KANAR is a Russian private limited company providing services in software development. It is based in Central Russia in the city of Voronezh. The company has been active in the Russian IT market since 1993. KANAR have been specializing in work in outsourcing mode during the last three years. In this period we have remotely performed 9 projects in the area of enterprise financial activities, retail/wholesale business management, publishing, medical insurance, EDI. KANAR has gained sound hands-on experience of working as a subcontractor with American companies. KANAR Company offers services on software development using outsourcing programming on Contract/Subcontract basis. We are ready to provide the following works: Developing programming projects using corporate databases (Client/Server Application); Developing computer-aided enterprise management projects (Custom Software); Developing Internet-based projects including electronic payments; Customizing of existing information systems according to the changing business world. We carry out the whole cycle starting with Terms of Reference and Specifications analysis up to testing of the developed system. Software testing is realized at all stages of project developing. It consists of unit testing, integration testing, functionality testing, interface testing and final testing. Special attention we pay to customer s work conveniences and simplicity. Each phase of the testing is clearly identified in advance in the project plan. KANAR team includes highly qualified ITs proficient in foreign languages. Professionalism and ability to work in team are the guarantors of success in project working. Programs of further company personnel education and evolution allow permanently improving professional level of employees. Employees of the company are certified in various fields of computer and programming technologies. All our project management personnel have got experience in guidance of outsourcing work. Average age is 31. Professional experience varies from 3 to 15 years including not less than 3 years experience in outsourcing programming. Value Proposition KANAR Company offers services on software development using outsourcing programming on Contract/Subcontract basis. We are ready to provide the following works: Developing programming projects using corporate databases (Client/Server Application); Developing computer-aided enterprise management projects (Custom Software); Developing Internet-based projects including electronic payments; Customizing of existing information systems according to the changing business world. We carry out the whole cycle starting with Terms of Reference and Specifications analysis up to testing of the developed system. Software testing is realized at all stages of project developing. It consists of unit testing, integration testing, functionality testing, interface testing and final testing. Special attention we pay to customer s work conveniences and simplicity. Each phase of the testing is clearly identified in advance in the project plan. Areas of Specialisation Office Applications Enterprise Resource Management Applications Accounting Applications Human Resource Management and Payroll Applications 2003 60

Materials Management Applications Warehouse management systems Project Management Applications Banking/Finance Applications Retail Applications Sales Applications Information and Data Management Software DBMSs Information Access and Delivery Packaged Data Mart/Data Warehouse Products End-User Query and Reporting Tools Technologies Expertise Programming Languages: Java, Delphi, Visual Basic, C/C++ for Win32, Web Server: IIS, JRun, IBM Web Sphere, Technologies: COM, ActiveX, XML, UML, HTML, JSP, ASP, EDI OS: Windows NT 4/; Windows 9x, MAC OS Databases: MS SQL Server, Sybase, InterBase, MS Access, Informix, Pervasive.SQL 2000 2003 61

Lanit-Tercom Contact Information Address: Universitetskii pr. 28, 198504, St. Petersburg, Russia URL: http://www.tercom.ru Contact Person, position: Dmitriy Baikov, Marketing Manager E-mail: dbaikov@tercom.ru Telephone: +7 812 4284194 General Description LANIT-TERCOM Inc. evolved from the Software Engineering Laboratory of St. Petersburg State University. The accumulated experience and already formed research group, consisting of highly qualified mathematicians, software developers and electronics engineers, enabled to organize in 1991 TERCOM Enterprise with the main task was industrial implementation of the lab's scientific results. Our team possesses a unique 20 year experience of successful research, development and implementation of complex systems, such as: Networks and Telecommunications Real-time Systems CASE Systems Database Management Systems Cryptography and Data Security Compiler Technology The core of our team consists of professors, researchers and graduates of Department of Mathematics and Mechanics, St. Petersburg State University. The majority of our leading researchers and developers have advanced academic degrees and professional certificates. The General Director of the Company is Prof. Andrey N. Terekhov, Head of the Software Engineering Chair of St. Petersburg State University. Long-term cooperation with St. Petersburg State University gives us almost unlimited supply of the best talented graduates and researchers LANIT-TERCOM provides full range of software outsourcing services from short-term projects to dedicated software development centers. Main services: Research & Development Software Development Reengineering Hardware Design LANIT-TERCOM has been working in the international outsourcing market since 1993. The total amount of outsourcing services that we have provided to our customers in the United States, Finland, Italy and Israel is over 600 person-years. The focus of our offshore development services is on long-term relationships with our customers. We have been working with some of our clients for more than 7 years and a large part of our revenues come from repeat business. We have two dedicated offshore software development centers that develop and maintain our clients' software products. International Customers: Relativity Technologies, Inc., USA. BluePhoenix Solutions Inc. USA (former Seer Technologies Inc.) USA Sonera Oy, Finland Jipeq Oy, Finland Value Proposition Since the year 1971 we have been increasing the scientific experience and academic network in many areas of software engineering, hardware design and information technologies. Today we marry high professionalism of the best St. Petersburg mathematicians, developers and engineers with latest scientific achievements and international business practices to help running the profitable business of our clients and partners all over the world. 2003 62

Areas of Specialisation Services Industry Applications Telecommunications/Utilities Applications Application Design and Development Tools Application Life-Cycle Management Tools Network Management Software Networking Software Wireless Technologies Technologies Expertise Programming Languages: C/C++, C#, Java, Visual Basic, Pascal/Delphi, COBOL, PL/I, Algol, Ada, Assembler, ML, Haskell, Seer*HPS Rules, Adabas Natura OS: Microsoft.NET, Windows 95/98/NT/2000, Linux, HP UX, Solaris, OS/2, Seer*HPS, Mainframes Databases: Oracle, Microsoft SQL Server, Informix, Sybase, DB/2, Progress 2003 63

LUXOFT Contact Information Address: 9-b Dmitrovskoye shosse, Moscow, 127434, Russia URL: http://www.luxoft.com Contact Person, position: Vera Kurochkina, Marketing Director E-mail: info@luxoft.com Telephone: +7 095 9678030 General Description LUXOFT is member of the IBS Group, the largest IT holding company in Russia, employing over 2000 professionals and operating in 16 countries worldwide. LUXOFT was founded in April 2000. Our years of international experience with Fortune 500 clients and extensive expertise gained through the years of operation guarantee the top quality of all our software deliverables. LUXOFT offers software solutions developed according to the specific business requirements of our clients. Our solutions can be integrated to any existing IT environment and can be either based on modern state-of-the-art technologies or support most of the existing legacy systems. We offer a wide range of software-related services and turnkey solutions providing all types of business consulting, analysis, custom software development, implementation support and maintenance. Our portfolio of services includes: Consulting Software Development Enterprise Application Integration Legacy Systems Re-engineering ERP Systems CRM Solutions Maintenance Testing Areas of Specialisation Content and Document Management Applications Manufacturing Applications Customer-Support and Contact-Center Software Electronic Commerce Executive Information & Decision Support Systems Multidimensional, Statistics and Technical Data Analysis Tools End-User Query and Reporting Tools Technologies Expertise Programming Languages: C, Java, CORBA, XML, Visual Basic, Mainframes OS: Windows, Sun, Unix, Mainframes Databases: Oracle, SQL, DB2 2003 64

Novosoft, Inc. Contact Information Address: 4 pr. Koptyuga, Novosibirsk, 630090, Russia URL: http://www.novosoft-us.com; http://www.novosoft.ru; http://www.novosoft-jp.com; http://www.novosoft-de.com Contact Person, position: Sergey Kovalev, General Manager E-mail: marketing@novosoft-usa.com Telephone: +7 3832 303 469 General Description Novosoft Inc. is one of the leading Russian based offshore programming companies, with incorporation in Austin, TX, and a staff of 370+ experienced software engineers (450+ is total staff) residing in Novosibirsk, Siberia. Being founded in 1992, Novosoft started its operations with the staff of only 6 people. Since then, Novosoft has steadily grown and has become a viable presence in the IT market due to its innovative management practices, use of technology, and high quality services. Now it is IBM & Lotus Premier Partner and also is a certified Microsoft and Sun Microsystems partner. Our competencies range from system analysis to solution implementation with high-quality technical support. Over the last 10 years, Novosoft has been providing top quality services to customers in a variety of industries, such as Finance and Investment, Communications, Retail and Wholesale, Healthcare and others. Novosoft s customers range from small businesses to multinationals and government agencies IBM, Samsung America, Hewlett Packard, and US Department of Energy to name just a few. Our production process is based on the quality methodologies of Rational Unified Process and CMM Level 2 and 3. For facilitating management and engineering processes, we utilize a Lotus Notes-based application called Team Management System. All development activities are logged, so that project managers, as well as customers, can obtain information about team output on a regular basis. Such monitoring enables our projects to remain true to their predetermined budgets and provides a means of full control of the projects. Novosoft s location, as well as its strong integration into and sponsorship of the local Novosibirsk scientific community and cooperation with Novosibirsk State University ensure that the company has access to nearly inexhaustible resources of highly qualified IT specialists. Many of the company s employees hold advanced university degrees and are certified in various programming technologies including those of Microsoft, Oracle, and Lotus. Novosoft is an authorized Prometric Testing Center, allowing its employees to take tests and get various deserved programming certifications on site. Novosoft has created an outstanding infrastructure that allows the company to be a stable, reliable, competitive, and modern provider of software development services: Novosoft has 5 offices that occupy more then 3500 sq. m. (37,000 sq. ft.) Our offices are equipped with more than 500 modern work places, a medical service center, many conference and relaxation rooms, and canteens. The company has a 2- Mb Internet connection to ensure fast connection to customers around the world. Novosoft also uses a 2- Mb security radio-link backup channel for data storage. Value Proposition In today s world of intense competition, companies are forced to become more efficient and responsive than ever before through continuous improvement. Investing in efficient software programming is a critical factor to the success of every modern company in today s high-tech world. Taking this into consideration, one can easily see that investing in Novosoft s services can be one of the best choices your company could ever make! Novosoft is looking for long-term cooperation: Companies that require customization, support and implementation of their products worldwide can draw upon Novosoft's developer resources to use them for permanent support and customization of these products, at significant cost savings 2003 65

Any companies that need further development in IT spheres or integration of their business process into e-business can rely on Novosoft services, solutions and support Start-ups can utilize the cost-effective top-notch Novosoft developers for implementation their innovative ideas and creating prototypes to secure investors raise money for their very promising projects. Areas of Specialisation Content and Document Management Applications Project Management Applications Services Industry Applications Banking/Finance Applications Insurance Applications Healthcare Applications Professional Services Applications Telecommunications/Utilities Applications Customer-Relationship Management Applications Electronic Commerce Web Content Management and Publishing systems Websites (design and development) Information and Data Management Software DBMSs Database Administration Tools and Utilities Application Design and Development Tools End-User Query and Reporting Tools Knowledge Management & Data Mining Tools Networking Software Enterprise Connectivity Software Remote Software Wireless Technologies Technologies Expertise Programming Languages: Java, J2EE (EJB, JMS, JMX, JSP, JDBC, servlet), applet, JavaScript;.NET; IBM Lotus Notes, IBM Lotus QuickPlace, MS Visual C++, GNU C/C++, Borland C/C++, Borland C++ Builder; Perl, Perl CGI, PHP; ASP, ASPX; SQL, PL/SQL; Delphi; HTML, DHTML, CSS, SHTML; Flash, Lingo; XML/XSL, XML FO; MS Visual Basic, Visual Basic Application, VB Script; TCL; UML; WML; Assemblers; ColdFusion; Crystal; Reports; Rational Rose Suite; PowerBuilder; IBM Visual Age for Java, C++; Borland Jbuilder; TogetherJ; MS Visual FoxPro; Novosoft Zebra UML for Java; CVS, WinCVS, PVCS; StarTeam chairman; Novosoft CR/RM OS: Solaris, Solaris x86; Linux, Linux RT; FreeBSD; BSDi; SCO Unix; UnixWare; AIX; Mac OS; Windows; NT/2000; Windows 9x/ME/XP; Windows CE; Palm OS; Symbian; EPOC; QNX; EROS Databases: Oracle; DB2, DB2/2; MySQL; PostrgreSQL; Informix; Interbase; MS SQL; MS Access; FoxPro, FoxPro for Windows; IDB; Sybase 2003 66

NTR Lab Contact Information Address: Off. 325, 12/11, 1 st Buhvostova ul., Moscow, 105023 Russia URL: http://www.ntrlab.com/ Contact Person, position: Nick Michaylovsky, CEO E-mail: info@ntrlab.ru Telephone: +7 095 9620386 General Description Brief history NTR Lab is a compact, professional software development company, founded in 2000 by a seasoned and tightly knit team of professional software developers and software development managers with a vision of Turning ideas into software. NTR Lab software development center is located in Moscow, Russia, where the main group of experienced developers and managers work. We possess a clear vision of a future where the Internet and custom mission-critical solutions would converge. Thus we started "Turning ideas into software" to serve a developing IT market. NTR Lab was basically a software development company. Now as we have acquired two small design studios we are able to provide a complete set of web design and development services. So our motto is Turning ideas into software and web-based businesses. Our staff Our staff includes top notch programmers with strong algorithmic and mathematics background, web designers with high-flight background and experienced managers. Our highly skilled developers team with 4 15 years programming and designing experience are committed to providing you with quality service. While working on large projects we are able to bring in additional consultants from the large pool of highly qualified programming community. Industries Industries we have worked with include banking, government, healthcare, dotcom and telecommunications sectors. Our clients Large Moscow banks, finance and insurance companies; Government agencies (Russian); Small business and dotcom customers from all over the US and the world from LA, CA to NY, NY, from Italy to Australia, from Germany to Oman. Development Philosophy Like many industry experts, we believe that the future of software engineering lies in Internet-enabled and groupware applications, built from reusable components. We also believe that these applications are to be built using well-defined software development methodologies based on collaboration, knowledge sharing and personal involvement. Value Proposition Our key competitive advantages are: proven ability to successfully apply cutting edge technology to most complex real world problems and real focus on customer satisfaction, combined with great technical team Areas of Specialisation Enterprise Resource Management Applications Project Management Applications Banking/Finance Applications Healthcare Applications Customer-Relationship Management Applications Web Content Management and Publishing systems 2003 67

Websites (design and development) Information and Data Management Software Database Administration Tools and Utilities Technologies Expertise Programming Languages: MS Visual Basic, MS Visual C++, C#, MS VBA (Access, ASP), PHP, ColdFusion, Java, PL/SQL, TransactSQL, AIMBasic, Patrol Script Language (PSL) OS: MS Windows, OpenVMS, Mac OSX, Mac OS, Linux, Solaris Databases: Oracle, MS SQL Server, DB2, Cache, Access, mysql 2003 68

Oktet Ltd. Contact Information Address: Ulianovskaya 1, Peterhoff, 198504 St. Petersburg, Russia URL: http://www.oktet.ru/ Contact Person, position: Petr Lavrov, Deputy Director E-mail: info@oktet.ru Telephone: +7 812 4284389 General Description OKTET Ltd. provides services in software and hardware for embedded systems, mostly for telecommunication. The company is located in the campus of St. Petersburg State University, Russia and employs more than 30 professional engineers. The basic expertise of the staff comes from a number of designs in Telecommunication. The most valuable experience has been got from Research and Development projects with Italtel S.p.A. and Siemens ICN S.p.A in Milan, Italy. OKTET Hardware and Software engineers have implemented the ATM Service Switch supporting ATM switching and a number of network protocols. Our teams participated as subcontractors in several European and Russian projects getting experience in Network Management, DSP algorithms, IP routing, GSM and others. OKTET is a member of Russian National IPv6 Forum. Now OKTET has customers and partners in the USA, United Kingdom, Italy, Germany, Sweden, Greece. OKTET has created well-defined development process covering all project phases from High-level design to system and integration testing, supported with appropriate tools. Value Proposition OKTET offers services in: Development of integrated solutions for telecommunication systems, both software and hardware; Implementation of core functionality and communication protocols for ATM switches, IP routers, xdsl equipment. OKTET had projects like software for ATM/TDM switch; ATM switch with UNI signaling, IPOA, NHRP, RSVP. Implementation of IPv4 and IPv6 protocols stacks for variety of operating environments. OKTET has experience in implementation of full IPv4/IPv6 dual stack for proprietary customer architecture. Network management solutions based on SNMP, SNMPv2, SNMPv3. The OKTET experience includes implementation of network management agents, management applications, using Envoy from Wind River Systems, UCD SNMP library. Implementation, optimization and testing of firmware: DSP, low-level traffic processing, etc. Implementation and porting of Board Support Packages and device drivers for customer applications in different RTOS: VxWorks, Embedded Linux, RTEMS; Testing of telecommunication equipment using proprietary and third party testing tools. Areas of Specialisation Network Management Software Middleware Networking Software System-Level Software Embedded software for IP routing, ATM switching Telecommunication protocols Technologies Expertise Programming Languages: C, Tcl., Perl OS: Host OS: Linux, Target OS: VxWorks, RTEMS, Embedded Linux 2003 69

Progress-Informatics Contact Information Address: Tovarishesky per. 19, Moscow, 109004, Russia URL: http://www.progressinfo.ru Contact Person, position: Vladimir Jalovecky, CEO E-mail: pi@ns.progressinfo.ru Telephone: +7 095 9112199 General Description The Scientific-Technological Center Progress-Informatics, Ltd has been operating in the market of information technologies since 1991.The company is specialized in the development of large information systems for corporate and government customers. We are a comprehensive source of leading solutions in: 1. Development of intelligent solutions for e-business, including both B2C, B2B and B2G sectors on the basis technologies: Enterprise Data Warehousing Data mining and text mining based on natural language processing Direct and Indirect Knowledge Acquisition from the corporate sources of information and the Web Knowledge structuring guided by the interrelated ontologies of objectives and tasks, methods and tools as well Hybrid expert systems for business processes support Multi-agent technologies of knowledge management Online Analytical Processing (OLAP) of multi-dimensional data realized through Enterprise Data Warehousing and controlled by continuously replenished knowledge 2. Development of corporate information analytical systems on the basis of Client-server technologies, Internet/Intranet, and integration with online business environment. 3. Development of the IT systems for telecom networks administrators and operators based on SDH. We provide the vast array of services at all stages of project implementation: research, design, programming, application, training, consulting. Areas of Specialisation Enterprise Resource Management Applications Human Resource Management and Payroll Applications Warehouse management systems Services Industry Applications Telecommunications/Utilities Applications Electronic Commerce Information Access and Delivery Executive Information & Decision Support Systems End-User Query and Reporting Tools Packaged Data Mart/Data Warehouse Products Multidimensional, Statistics and Technical Data Analysis Tools Knowledge Management & Data Mining Tools Technologies Expertise Programming Languages: C++, Java/EJB, Servelets, JSP, J2EE, XML /XSL, TCP/IP OS: MS Windows, Solaris, Unix Databases: Oracle, Informix, MS SQL Server 2003 70

Reksoft Contact Information Address: Malookhtinsky pr., 68, 195112 St. Petersburg, Russia URL: http://www.reksoft.com Contact Person, position: Svetlana Antonyuk, PR manager E-mail: info@reksoft.com Telephone: +7 812 3252100 General Description Reksoft is a technology services company specializing in software development and maintenance, systems integration, and IT consulting. Since 1991, Reksoft has successfully completed more than 50 projects for its European, North American and Russian customers. Reksoft has provided services and solutions to a wide range of markets leaders, including Alcatel, Ascom, Avaya, Gazprom, Gillette, Sberbank, Swisscom. In fact, more than 2,000 companies worldwide use our software solutions. Our strategic partnerships with best-of-breed technology vendors, including Documentum, IBM, Macromedia, Microsoft, and Vignette, give us the ability to provide you with complete industry-best solutions to your IT challenges. Reksoft is one of the few software development companies in Russia whose quality management system was ISO 9001 certified by a Western certification organization. Based in St.Petersburg, Reksoft has nearly 150 full-time employees and was named one of the one of the leading software development companies in Russia. At Reksoft, we see our strength as the ability to develop a deep understanding of our customers' needs. It is all about giving our clients a new vision to transform their businesses through recognizing their business challenges. Equipped with experience and expertise, we focus on forming close and lasting relationships with our customers. Because Reksoft is a place where technology is human. Value Proposition Reksoft differentiates itself from competitors both in Russia by over 11 years domain expertise in contracted software development, off-the-shelf product development and venture projects, proven ability to overcome cultural differences, transparent total cost of ownership and completeness of service. This gives Reksoft an advantage in both acquiring customers and attracting the best employees. Areas of Specialisation Collaborative & Messaging Applications Content and Document Management Applications Electronic Commerce Retail/Point of Sale Applications Electronic Catalog Applications Online Community Software Bill Presentment and Payment Applications Electronic Marketplaces Software Web Content Management and Publishing systems Websites (design and development) Wireless Technologies Technologies Expertise Programming Languages: C/C++, Java, JavaScript, Delphi, Visual Basic, Vbscript, Map Basic, Active Perl, SQL, XML, XSL, Tcl/Tk, HTML,DHTML,CFML, Zsh scripts OS: Windows, Unix, Linux, Sun Solaris Databases: Oracle, MS SQL Server, Sybase 2003 71

Samara Information Technologies Contact Information Address: 221 Novo-Sadovaya Str., 443011, Samara, RUSSIA URL: http://www.saminfotech.com Contact Person, position: Andrew Teterevenkov, Marketing Manager E-mail: teterev@saminfotech.com Telephone: +7 8462 703487 General Description Samara Information Technologies (SITech) is a software development company providing state-of-the-art solutions to a wide range of industries. SITech combines fundamental research activity with practical applications in software development, re-engineering, support and maintenance. SITech offers the best expertise in: Content Management solutions for global networks and Intranet Database programming around Royalty Tracking Multimedia streamed over the Web/E-Learning applications Areas of Specialisation Content and Document Management Applications Bill Presentment and Payment Applications Information and Data Management Software DBMSs Database Data Movement and Replication Tools Technologies Expertise Programming Languages: C/C++, Visual Basic, MS Office VBA, SQL, PL/SQL, JAVA, PASCAL/Delphi, Perl, Macromedia Director Lingo OS: MS Windows 9x/NT/ME/2000/XP, MacOS, Linux, Solaris Databases: Oracle, MS SQL Server, MS Access, MS Fox Pro, Interbase 2003 72

Software Technologies Contact Information Address: 347900, 77 Chekhov st, Taganrog, Rostov Region, Russia URL: http://www.softech.ru Contact Person, position: Dmitriy Bartashevsky, Vice-President E-mail: contact@softech.ru Telephone: +7 8634 315100 General Description Software Technologies was founded in 1996 with six people who shared a common vision for creating a world-class leader in custom GIS Solutions. The team now consists of almost 40 professionals and we have extended our vision to providing high quality software solutions for a variety of industries. Yet our core competency remains GIS Solutions, where we have gained valuable skills and experience and are capable of meeting any client s GIS needs. We are constantly refining our technology to make our work more efficient and hence better satisfy our clients. Through years of hard work on challenging projects we have developed the expertise to satisfy a broad range of customer demands. Our Russian based development center enables us to offer top quality solutions for a fraction of the cost of Western European and American developers. Since we have perfected the skills of managing projects remotely, Software Technologies can ensure a smooth delivery of a solution that goes well beyond our customers expectations. Our team consists of highly trained professionals who remain current on the latest innovations and actively employ the most effective technologies for our clients success. We are professionals in object-oriented design, which saves time by reusing code and creating independent components that ensure extremely stable and scaleable systems. Software Technologies is a member of American Chamber of Commerce in Russia. Value Proposition Software Technologies is a Taganrog, Russia based software development company specializing in GIS solutions development. Software Technologies has a strong track record producing world-class software solutions. While we have considerable expertise in GIS technologies, we also have a large development team with the skills to meet a broad range of requirements. Our cost-effective solutions provide our clients with the advantage of minimizing time to market, thus increasing the profitability of their businesses. The Software Technologies team leverages vast experience to execute complex projects in a variety of areas. This expertise is also valuable for clients that choose ongoing technical support for the products that we develop. In addition to having the knowledge to effectively complete most software related projects, Software Technologies has a unique expertise in the following areas: GIS solutions development Desktop mapping Internet mapping; IMS (Internet Map Server) development ESRI ArcIMS (tm) extensions development LBS (Location Based Services) solutions Geocoding and Routing algorithms Data compression Data sets analysis and compression Custom compressed data sources E-business solutions development Wireless solutions development Voice-enabling enterprise solutions Handheld PCs software development Custom software solutions development 2003 73

Areas of Specialisation Enterprise Resource Management Applications Sales Applications Marketing Applications Desktop and internet GIS applications development Location Based Services applications development Technologies Expertise Programming Languages: C++, Java, VBScript, JavaScript OS: Win32, Unix, Palm OS, Win CE 2003 74

SPIRIT Corp. Contact Information URL: http://www.spiritcorp.com Contact Person, position: Yakusheva Alena, PR Manager E-mail: sales@spiritcorp.com Telephone: +7 095 9127103 General Description About SPIRIT Founded in 1992, SPIRIT Corp. is a prominent supplier of high-quality DSP software products, including VoIP, FoIP, speaker ID, speech processing, telephony, GPS, MP3 and more. SPIRIT's flexible licensing model includes cost efficient product customization to specific clients' needs. Clients With a strong position on the DSP software market SPIRIT has among its clients such industry giants as Atmel, Furuno, Japan Radio Company, NEC, Nortel Networks, Panasonic, Samsung, Tadiran, Texas Instruments, Toshiba, and more. In 2001 SPIRIT signed with Texas Instruments the biggest software product licensing deal a Russian software company ever made. C54CST DSP solution offers 14 expressdsp compliant algorithms from SPIRIT in on-chip ROM. TI put SPIRIT's name on C54CST chip and will pay SPIRIT a healthy royalty for each chip sold. SPIRIT has regional representatives in USA, Canada, Germany, UK, France, Israel, Taiwan, Korea, Japan Mission SPIRIT's mission is to bring advanced telecommunication DSP software products for network backbone infrastructure and mobile devices to people worldwide (via partnerships with semiconductor and telecommunication industry leaders). Experience SPIRIT has 10 years of experience in international software business. SPIRIT software is used in over 50 countries worldwide. SPIRIT employ 100 engineers 15 % of whom are holding PhD degrees and the rest master degrees. Partners SPIRIT is the largest software developer on Texas Instruments' platform in Europe. Texas Instruments is the biggest semiconductor company in DSP and analog that holds about 45% of worldwide DSP (embedded) chip market. Texas Instruments is shipping SPIRIT's software bundled with TI C54 CST processor. Value Proposition SPIRIT provides custom software development, porting and product licensing in the following areas: Telecommunication software (for DSP or PC platforms) Voice over IP / Fax over IP Speech compression Internet audio and video (MP3, MPEG, AAC, WAC) Speech processing (Noise Cancellation, Speaker Verification) GPS/GLONASS design Areas of Specialisation Speech and Natural Language Applications Telecommunications/Utilities Applications Voice Over IP 2003 75

System-Level Software Telecommunication software Speech compression software Audio & video software Technologies Expertise Programming Languages: C/C++, Assembler, Mathlab, Verilog, Vera OS: DSP platform from Texas Instruments, DSP platforms from other vendors, Windows Databases: not using 2003 76

Sputnik Labs Contact Information Address: Zagorievskaya st. 10/4, Moscow, 115598, Russia URL: http://www.spklabs.com/ Contact Person, position: Stanislav Markin, CTO E-mail: info@spklabs.com Telephone: +7 095 7558406 General Description Sputnik Labs is an international provider of front-office automation and integrated business solutions for the client -oriented business processes. We unite top management and industry expertise with globallydistributed, cost-effective software engineering talent. Sputnik Labs is dedicated to providing timely and innovative IT solutions to help today's enterprises realize the benefits of Front Office automation. Sputnik Labs' system integration resources allow customers to focus on their core competencies for competitive advantage. Our extensive industry expertise and technical know-how enables Sputnik Labs to provide our customers with a complete business solution based on sound technological architectures. Created by finance and IT industry executives from both the U.S. and Europe, Sputnik Labs is backed by one of Eastern Europe's largest investment groups with over ten years experience in financial management. We combine industry-leading project management methodologies with the cost-saving advantages of highly-skilled, outsourced, system integrating talent. Value Proposition Sputnik Labs is an international provider of front-office automation and integrated business solutions for the finance and telecommunications industry. We unite top management and industry expertise with globally-distributed, cost-effective software engineering talent. Sputnik Labs is dedicated to providing timely and innovative IT solutions to help today's enterprises realize the benefits of Web Services. Sputnik Labs' software engineering resources allow customers to focus on their core competencies for competitive advantage. Our extensive industry expertise and technical know-how enables Sputnik to provide our customers with a complete business solution based on sound technological architectures. Areas of Specialisation Content and Document Management Applications Enterprise Resource Management Applications Customer-Relationship Management Applications Sales Applications Marketing Applications Customer-Support and Contact-Center Software Web Content Management and Publishing systems Websites (design and development) Executive Information & Decision Support Systems Technologies Expertise Programming Languages: Java (J2EE including EJB, JSP, Servlets), C++ (including Microsoft MFC and ATL), Microsoft Visual Basic, SQL (including Oracle PL/SQL), HTML, JavaScript, XML, XSL, Perl, PHP3, VBScript OS: Sun Solaris, Windows 2000 Server, Windows NT 4.0, Linux, FreeBSD Databases: Oracle 7, 8, 8i, IBM DB2, Informix, Sybase, Microsoft SQL Server 6.5, 7.0, 2000, Borland, Interbase 2003 77

STAR Software Contact Information STAR Software Address: P.O.Box 70, St. Petersburg 197101, Russia URL: http://www.star-sw.com Contact Person, position: Michael Tsygankov, Business Development Director E-mail: info@star-sw.com Telephone: +7 812 3279900 STAR Software, Inc, USA Address: P.O. Box 1273, 29 Water Street, Newburyport, MA 01950 USA Contact Person, position: Kathleen O Donnel, VP Marketing E-mail: kod@star-sw.com Telephone: +1-978-465 1100 General Description STAR Software is Russia s leading provider of software outsourcing services to commercial markets worldwide. Founded in 1991, the company specializes in the implementation and maintenance of Flexible Offshore Development Centers (FlexODC ) for international clientele, while also working on an ad hoc project basis. STAR Software is headquartered in St. Petersburg, Russia and has offices in the USA, Germany, and Sweden. Today STAR Software employs 200+ fulltime top class specialists. In order to help our clients focus effectively on their core business, STAR has perfected a true partnership approach. We are adept at implementation as well as strategic collaboration. Working with STAR, you are free to concentrate on what you do best, while we produce software meeting your most strict requirements. We work to the highest international quality standards, with customer satisfaction always the top priority. Our company mission is to deliver high-quality tailored software on time and within budget. In the framework of Flexible Offshore Development Centers in STAR our clients address various business-crucial tasks calling for different technologies and competencies: Application Software Development. Development of logistics software, workflow automation systems, system and networking software and other custom applications under Windows, UNIX (Linux, xbsd), Novell, using C/C++, Java, Visual Basic,.Net, C#, Lotus Notes, SAS. Development of Web-enabled and ecommerce Solutions. Project experience includes G2C, B2C and ecrm solutions built with Java, ActiveX, CGI, ASP, HTML, XML/XSLT, Perl. Database design & implementation. Design and programming of datawarehouses, datamarts, and data mining tools for corporate Knowledge Management projects. Database technologies include MS SQL Server, Oracle, Sybase, MS Access. Legacy migration. Platform-independent migrations of legacy systems (including Cobol and Fortran-based) to modern web-based environments (Web services,.net, and Java). Software maintenance. Technical support and maintenance of corporate information systems and commercial software products on 24/7 basis Software localization. Target and source languages include the main European languages, plus Far & Middle East languages; integration and localized software testing provided Current and former clients include CSC Denmark, Tivoli, STAR Group, STAC Electronics/Previo (USA), Borland Together Business Unit (former TogetherSoft) (USA), Millennium Pharmaceuticals (USA), Tupperware Deutschland, Berghof (Germany), Localization Industry Standards Association (Switzerland), Contex (Denmark), Foss Electric (Denmark), Xplanation (Belgium), UN University. The end-customers for the developed software include BMW, DaimlerChrysler, Adidas, Danish Ministry of Labor, Danish Ministry of Tax and Customs, Deutsche Bahn Cargo, Hugo Boss, and many others. 2003 78

Value Proposition STAR Software helps its clients to redirect their resources toward their highest value creating activities - their core competencies. We help to achieve better operational effectiveness and better return on investment. We bring innovation to our clients and allow them to transform their business to reposition for competitive advantages. STAR Software offers a unique source of leverage in the value chain. STAR Software is stable, matured and security-aware company, having world-class premises and capable to deliver high-quality software solutions on time and within budget. Today STAR Software is: Stability. For many potential clients vendor's stability is among primary concerns. STAR Software, with its diversified client portfolio, and financial stability backed-up by the STAR Group as well as continuously positive cash flows - offers stable, risk-free collaboration. Ultimate Quality. Our CMM-based software development process guarantees highest quality of all delivered software. Flawless track record. More than 80 completed projects for 12 years, sizing from 5 to 600 person-months, without a single fault. Solid and secured infrastructure. Top-class premises (3 offices, with a total size of 3000 sq. m. in the center of St-Petersburg), 6Mbit Internet connection for each office, secured by firewalls and antiviral software. Areas of Specialisation Healthcare Applications Warehouse management systems Information and Data Management Software Database Data Movement and Replication Tools Information Access and Delivery Software Localization Knowledge Management & Data Mining Tools Natural Language Applications Middleware Data Storage Software System-Level Software Technologies Expertise Programming Languages: C, C++, C#, Java, JavaScript, Perl, XML/XSL, Visual Basic, Vbscript, Map Basic, SQL, XML, XSL, HTML, DHTML, Cobol. OS: Windows 9x/ME/NT/2000, UNIX, OS/2, Novell Netware, OS/390 Databases: SQL (MS, Oracle, Sybase, DB2) 2003 79

Telma Ltd. Contact Information Address: 95/2 Osharskaya st., Nizhny Novgorod, Russia, 603600 URL: http://www.telma.ru Contact Person, position: Vladimir Zheleztsov, Senior Marketing Manager E-mail: sales@telma.ru Telephone: +7 8312 677 496, +7 8312 788 139, + 7 8312 788 161 General Description Year of establishment: 1991 Quality Certification: SEI CMM level 4 Staff: 200+ engineers with average in IT of 8 years. Industry partners: Motorola Inc. (approx. 70 projects since 1992), Microsoft (registered vendor), Psion, Magic4. TELMA is an information and communication solutions provider that assists businesses in obtaining competitive advantage through technological innovations. We ve performed dozens of outsourcing projects for various kinds of clients, but our strengths lie mostly in a telecom industry field. Out of the whole spectrum of telecom solutions we major in cellular and wireless applications for wide range of mobile equipment, like one-way and two-way pagers and cellular phones, wireless Internet, communication protocols, digital signal processing, embedded and real-time systems, client-side applications for mobile devices, PDAs, smart cards and PCs, as well as server-side systems for both wireline and wireless access. Solutions we ve been developing for over a decade range from games to multi-tier applications providing access to corporate network resources, from chip-embedded solutions to enterprise-wide systems. We possess years of experience with all wireless protocols and applicable tools and languages. So the services we specialize at include analysis and consulting, application development and system integration, with further field support and onsite assistance. The quality of the products we delivered to our clients created instances of solely testing to be outsourced to us, therefore now the range of services we provide also include quality assurance consisting of both automated and manual testing. Years of historical test data and metrics-based process make testing projects perfectly manageable in terms of final product quality and budget. Yet another area of our expertise is maintenance and support of existing applications and legacy systems. Outsourcing to TELMA s experts proficient in these fields will allow you to concentrate on your core competencies and allocate you enterprise resources the most efficient way. Transparency and quantitative control are major features of TELMA s development cycle. All our processes adhere to CMM Level 4 requirements, so they can be measured, analyzed and adjusted accordingly at any moment during any project phase. Now we re targeting for CMM Level 5 certification in March of 2003. Services we provide include: Analysis and consulting Application development and integration System maintenance and support Quality assurance and testing Areas of Specialisation Collaborative & Messaging Applications Networking Software Wireless Technologies 2003 80

Technologies Expertise Programming Languages: Assembler, C, C++, C#, Pascal, Object Pascal, Java, Visual Basic, Perl, SQL, JavaScript, VB Script, PHP; HTML, XML, WML, ASP, Macromedia Flash OS: Windows NT/2000, Unix, Linux, Solaris, Windows CE/Pocket PC, Symbian, Palm OS, Wisdom OS, Java 2 ME, Microsoft.NET, Microsoft.NET CF, Personal Java, SIM Toolkit Communication Protocols: GSM/GPRS, CDMA, TDMA UMTS; FLEX, ReFLEX, POCSAG; WAP, HTTP; TCP/IP, UDP Databases: Oracle, Microsoft SQL Server, FoxPro 2003 81

TerraLink Contact Information Address: 57 Profsoyuznaya ul., 8th floor, office 800, Moscow, 117420, Russia URL: http://www.terralink.ru Contact Person, position: Tatyana Firsanova, Marketing Manager E-mail: info@terralink.ru Telephone: +7 095 721 1721 General Description For over eleven years, corporate and government clients have been trusting TerraLink to design, project manage, implement and support advanced local and wide area networks with mission-critical applications. Started in Canada in 1989, today TerraLink has offices in Moscow, Almaty and Toronto with about 100 employees. Our largest outside investor is Esther Dyson, a well known computer industry figure who is listed as one of the 50 most influential people in IT, is chair of the Electronic Frontier Foundation, sits on the board of Perot Systems, and serves on American Vice President Al Gore's Information Superhighway Committee as chief advisor on privacy and security issues. She has been profiled in The Economist, Forbes, The New York Times, Vanity Fair, The Washington Post, Wired, and The New York Times Magazine. In addition, she's a regular speaker at the World Economic Forum in Davos, Switzerland. TerraLink's clients are organizations which rely on their information technology to accomplish their core business processes. Because information technology is so critical to their success, they rely on us to ensure the success of their IT projects and day-to-day operations. Areas of Specialisation Collaborative & Messaging Applications Content and Document Management Applications Technologies Expertise OS: Windows Databases: Oracle, MS SQL 2003 82

V6 Technologies Contact Information Address: 30-1, Chasovaya St., Moscow, Russia, 125315 URL: http://www.v6group.com; http://www.v6.ru Contact Person, position: Olga Sladkova, PR-manager E-mail: olga.sladkova@v6.ru Telephone: +7 095 3630140 General Description V6 is a dynamic and innovative company, the developer of the award-winning People-to-People technology and an employer of some of the brightest minds in the Russian IT industry. Incorporated in 1996, the company has a wealth of experience in enterprise application development and deployment. V6 successfully operates across a wide spectrum of geographical and cultural markets, offering products and solutions for human resource and knowledge management, sales force automation, business processes automation, and enterprise information portals. V6 headquarters and R&D center are based in Russia. Since 1999, the company has been working with international customers from UK, France, US, Israel and Austria. The majority shareholder in V6, a private company, is IT holding company Vesta Solutions, incorporated in Holland. Value Proposition During half a decade in business we have accumulated invaluable knowledge regarding best business practices and technological approaches that allow us to craft robust and efficient software solutions for your business. Our key areas of expertise are: Industries: IT & Telecom Wholesale & Retail Networks Local & National Government Finance & Banking Natural Resource Mining & Processing Oil & Gas Solutions: Horizontal & Vertical internet portals B2C and B2B e-commerce EAI and business processes automation FMCG wholesale and retail networks automation E-government: citizen relationship management HR: skills & knowledge management CRM: intelligent consumer & partner profiling Based on pre-made software modules and thanks to ISO-9001 certified project management system, we guarantee fast delivery of robust and high-performance systems carefully designed according to the needs of your business. Areas of Specialisation Content and Document Management Applications Human Resource Management and Payroll Applications Retail Applications Wholesale Distribution Applications Sales Applications Electronic Commerce Electronic Catalog Applications Online Community Software Web Content Management and Publishing systems 2003 83

Websites (design and development) Executive Information & Decision Support Systems End-User Query and Reporting Tools Knowledge Management & Data Mining Tools Technologies Expertise Programming Languages: C/C++, Java, Javascript, Visual Basic, Vbscript, Map Basic, Active Perl, SQL, XML, XSL, HTML,DHTML,CFML OS: Windows, Unix, Linux Databases: Oracle, Sybase, Adaptive Server, Microsoft SQL Server, Interbase, Postgre SQL, Jboss 2003 84

Vested Development, Inc. Contact Information Address: 1a proezd Kolomenskiy, Moscow, Russia URL: http://www.vdiweb.com Contact Person, position: Tatiana Sikorskaya, Marketing Manager E-mail: TatianaS@moscow.vdiweb.com Telephone: +7 095 3632639 General Description Year of foundation 1998, number of employees 240+. Headquartered in Burlington, MA VDI also has Representation (Development Center) in Moscow, Russia Products&Services: Outsourcing software development, IT consulting and training. Besides, VDI can provide customers with dedicated development centers. Vested Development, Inc. (VDI) is a provider of leading edge software development services that transform ideas into products. By providing a cost-effective way to extend an organization's internal R&D staff, VDI helps companies worldwide overcome staffing and resource challenges. VDI's global software development teams have an impressive track record for developing software applications that meet the critical needs of Fortune 500 companies. VDI has extensive knowledge of distributed and Web-based application development environments and its software development center in Moscow has received ISO 9001 certification. Its long-term practical experience allows VDI to create unique project methodology that guarantees delivery of product on-time and within even the strictest budget. VDI helps Western corporations set up Global Outsourcing or Dedicated Offshore Development Centers in Russia. VDI having successful experience in building outstanding infrastructure for developing offshore outsourced projects, having proprietary training center, utilizing all advantages from onsite/offsite software development model and possessing good connections and relationships with local government institution and authorities can bring significant value and save time and money for those companies decided outsource their development facilities to Russia. Areas of Specialisation Content and Document Management Applications Office Applications Human Resource Management and Payroll Applications Project Management Applications Banking/Finance Applications Insurance Applications Healthcare Applications Professional Services Applications Product Supply Chain Applications Customer-Relationship Management Applications Sales Applications Marketing Applications Customer-Support and Contact-Center Software Web Content Management and Publishing systems Antiviral Software Technologies Expertise Programming Languages: Java2, C/C++, OS: SUN Solaris, Unix, Linux, AIX, HP UX, Palm Databases: Oracle, MS SQL, DB2,My SQL, Berkley DB 2003 85

Contributors and Sponsors www.outsourcing-russia.com the leading resource for companies considering the outsourcing of software development to Russia. Featuring guides and checklists, experts support and examples relating to various aspects of the outsourcing process. Provides statistical figures, news and analysis on the software development industry in Russia as well as information on legal and business conditions in Russia. Visit us at www.outsouricng-russia.com or email at info@outsourcing-russia.com. BEITEN BURKHARDT GOERDELER Rechtsanwaltsgesellschaft mbh www.bblaw.de The evolution of a global market has redefined the role of the corporate law firm. Clients expect prompt, commercial and technically excellent legal advice from their lawyers, wherever their business takes them around the world. BEITEN BURKHARDT GOERDELER Rechtsanwaltsgesellschaft mbh is one of the major German law firms with more than 280 lawyers at 15 locations in 7 countries. The firm cooperates closely with the global network of Legal International, which comprises more than 3000 lawyers in 65 countries. Department of Information Technology / Telecommunication / New Media BEITEN BURKHARDT GOERDELER offers comprehensive legal advice with regard to all questions pertaining to the law of information technology, telecommunication and New Media. We cover the whole spectrum including advisory services in connection with the negotiation and conclusion of agreements and the client's legal representation. Our Firm renders services, in particular with regard to the preparation and the negotiation of license agreements and distribution agreements of any kind as well as the handling of mandates in the field of outsourcing, network agreements, joint ventures and M&A in the New Media. Furthermore, all services are rendered in connection with the establishment of new companies. Because of its specialization this Department can deal with all legal questions pertaining to industrial property rights, software licenses, unfair competition, as well as anti-trust law and copyright law. Brooke Nicole Consultancy, Inc. www.brookenicole.com Brooke Nicole Consultancy, Inc. is an international privately held Tennessee corporation striving to provide today s businesses with a risk-free, dependable centralized point-of-control for managing the access to and relationships with pre-screened, pre-qualified cutting-edge offshore development companies. Founded in 2001, Brooke Nicole takes the guesswork out of finding capable and trustworthy offshore service providers by proactively creating partnerships with select talented and reputable offshore software development and services companies from various countries. This gives customers safe, convenient and streamlined access to a highly scalable technology resource pool with business solution expertise across multiple domains. 2003 86

INFORUS www.inforus.org INFORUS is a consortium of Russian leading companies in the field of IT. United efforts under the guidance of INFORUS give us the possibility to offer our clients an excellent range of services on the basis of up-to-date achievements of Russian science in the field of high technologies. INFORUS employs more than 2000 high-qualified software engineers all over Russia. All of them are graduates of the best Russian universities. Some of them have grades in math and computer science. Efficiently collaborating with the leading Russian universities INFORUS has got an access to their scientific and human resources. INFORUS specializes in offshore programming and developing innovatory software products for western markets. STAR Software www.star-sw.com STAR Software is Russia s leading provider of software outsourcing services to commercial markets worldwide. Founded in 1991, the company specializes in the implementation and maintenance of Flexible Offshore Development Centers (FlexODC ) for international clientele, while also working on an ad hoc project basis. STAR Software is headquartered in St. Petersburg, Russia and has offices in the USA, Germany, and Sweden. Today STAR Software employs 200+ fulltime top class specialists. In a STAR FlexODC, our clients benefit from the design and development of custom software applications; complete reengineering and platform-independent migrations of legacy systems; implementation of Webenabled and ecommerce solutions; technology research; and multilingual software localization. Current and former clients include CSC Denmark, Tivoli, STAR Group, STAC Electronics/Previo (USA), Borland Together Business Unit (former TogetherSoft) (USA), Millennium Pharmaceuticals (USA), Tupperware Deutschland, Berghof (Germany), Localization Industry Standards Association (Switzerland), Contex (Denmark), Foss Electric (Denmark), Xplanation (Belgium), UN University. 2003 87

www.outsourcing-russia.com info@outsourcing-russia.com 2003 88