Vendor Analysis
published on May 23, 2018
Report Overview:
This NelsonHall vendor assessment analyzes EPAM's offerings and capabilities in Cloud Advisory, Assessment, and Migration Services.
Who is this Report for:
NelsonHall’s Cloud Advisory, Assessment and Migration Services Vendor Assessment for EPAM is a comprehensive assessment of EPAM’s cloud advisory, assessment and migration services offerings and capabilities designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for cloud consulting services
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in cloud consulting services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of EPAM’s cloud advisory, assessment and migration service offerings, capabilities and market and financial strength, including:
- Analysis of the company’s offerings and key service components
- Revenue estimates
- Identification of the company’s strategy, emphasis and new developments
- Analysis of the profile of the company’s customer base and examples of current contracts
- Analysis of the company’s strengths and weaknesses.
Key Findings & Highlights:
EPAM Systems (EPAM) is headquartered in Newtown, PA (U.S.), It was founded in 1993 in New Jersey, with its first offshore development center located in Minsk, Belarus. In 1995, EPAM began targeting technology vendors and ISVs in a product engineering role, initially working for SAP and ISVs including Hyperion, Oracle and Brio Software. This product engineering heritage evolved to include offering technology services and software.
EPAM now has ~22k FTEs across 25 countries and is aiming to maintain its 20%-25% growth rate, in part fueled by acquisitions; since 2012, it has completed 11 acquisitions. None of these are considered major acquisitions and have not had a significant direct impact on revenues; they are tuck-in acquisitions to fill out gaps in capabilities, which has driven EPAM's ability to create new offerings and enter new markets.
Its 2015 $50m acquisition of Alliance Global Services provided it with an India based delivery function, initially of ~1.1k resources, which has helped EPAM to expand beyond its Central and Eastern European delivery heritage.
EPAM's cloud services act as the foundation for its broader digital transformation services and the implementation of DevOps capabilities. As EPAM has seen the focus of buyers shift, it has expanded its focus on cloud consulting and enterprise migration services. It projects ~45% growth in its cloud and DevOps group through 2018.
EPAM offers five cloud service areas, with two of them focused on the advisory and migration of applications to cloud environments. These services include:
- Cloud consulting and migration
- Cloud engineering
- 24x7 cloud orchestration
- Cyber security
- DevOps and automation.
EPAM's cloud and DevOps services team has ~1.9k employees. Approximately 50% of this team deliver cloud operations services with the remainder focused on cloud migration, enablement and consulting.
Additionally, this team is supported by ~10k application developers with Java and .Net skills to support refactoring and re-platforming applications to operate in the cloud.
EPAM has ~150 cloud consultants, with ~40% of this team acting as cloud architects located in client-proximate locations and the remainder located in delivery centers.