EPAM Merges With Local Firm

Michael Zaitsev, CEO of DataArt, comments on the merger of two Eastern European outsourcing companies for St. Petersburg Times, the leading Russian business daily. He reviews its likely benefits, including geographic diversification, and analyzes the risks involved in the merger: "There are estimates by leading management consulting firms that about 70 percent of mergers do not bring the expected benefits. Among large-scale outsourcing giants in India, benefits of "outsourcing" mergers mostly reside on the marketing and distribution side rather than in efficiency of delivery platforms," Zaitsev said.

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