Outsourcing: Alexei Miller, Executive Vice President Of DataArt (Part 1)

By Sramana Mitra and guest author Sudhindra Chada

Our outsourcing series, begun last year by Tony Scott, continues this year with Sudhindra Chada. Tony’s objective was to examine, through interviews with executives of outsourcing companies in all industries, determine how the very idea of outsourcing has changed, understand the major trends in outsourcing and how they will shape business, and find out what people think about the idea of truly international companies and international workforces and how they help their workforces to develop the mindset and skills to compete on a global scale. Sudhi takes on Tony’s mission to bring to our readers useful insights from thought leaders.

About DataArt
DataArt is a custom software development firm that builds advanced solutions for the financial services, healthcare, hospitality, and other industries. Combining domain knowledge with offshore cost advantages and resource flexibility, DataArt develops applications that help clients optimize time-to-market and minimize software development risks in mission-critical systems. It has software engineers in New York, London, Russia, and Ukraine.

About Alexei Miller
Alexei Miller is a veteran of the IT industry and a recognized expert on IT outsourcing. Alexei joined DataArt as a project manager at the company’s inception in 1997, was elected to the board of directors in 2002 and relocated to New York headquarters the same year.

In 2004, he and Alexander Makeyenkov launched DataArt’s financial technology practice. In his current role as executive vice president, Alexei oversees company-wide customer relations and project management activities.

Prior to joining DataArt, Alexei was a project manager at Tercom, a software development company in St. Petersburg, Russia, where he led several development projects for the Italian telecommunications giant Italtel. He graduated cum laude from St. Petersburg State University with a master’s in mathematics. He is a frequent speaker at international industry events.

Sramana Mitra: Hi, Alexei. Welcome to our Outsourcing series. Would  you give us a little background on what you do and what was the genesis DataArt? >>>

Building A Nearshore Outsourcing Company In Ann Arbor, Michigan: Systems In Motion CEO Neeraj Gupta (Part 7)

Sramana: What financing strategy have you followed to build Systems In Motion?

Neeraj Gupta: When we started, we knew this was not a business that bootstrapping could facilitate. We needed a leadership team that could engage with senior-level management. We needed a legitimate delivery center in order to solicit work. >>>

Building A Nearshore Outsourcing Company In Ann Arbor, Michigan: Systems In Motion CEO Neeraj Gupta (Part 6)

Sramana: In the nearshore industry, what dynamics are you seeing and who are your primary competitors?

Neeraj Gupta: Clearly, companies are still trying to figure out what to do. They are cognizant of [what is going on in] Argentina and what is going on in Mexico. We have seen most of the Indian service providers establish U.S.-based centers. >>>

Building A Nearshore Outsourcing Company In Ann Arbor, Michigan: Systems In Motion CEO Neeraj Gupta (Part 5)

Sramana: Are you finding future workers while they are still students at local universities and colleges?

Neeraj Gupta: We are doing lateral hires in the market; we hire directly from the University of Michigan’s bachelors and graduate programs, from Eastern Michigan University’s bachelors and associate programs; and we are also getting candidates from the masters CS programs who are foreign students. >>>

Building A Nearshore Outsourcing Company In Ann Arbor, Michigan: Systems In Motion CEO Neeraj Gupta (Part 4)

Sramana: Latin America, Eastern Europe, and the nearshore U.S. are all options that are coming up a lot now. What is the risk to India?

Neeraj Gupta: India is the only place where software development works at scale. There has been a lot of investment in India, and I think it is here to stay. The biggest challenge companies face today is determining how much more money to put in India. >>>

Building A Nearshore Outsourcing Company In Ann Arbor, Michigan: Systems In Motion CEO Neeraj Gupta (Part 3)

Sramana: When the three of you came together to found Systems In Motion, you had a set of analysis about the dysfunctions and gaps in the outsourcing industry. I have a piece that addresses this titled The Coming Death Of Indian Outsourcing.

Neeraj Gupta: That was a great piece that you wrote, and we echo the same sentiment. I had been on the sales side of selling offshoring for the previous four years. >>>

Building A Nearshore Outsourcing Company In Ann Arbor, Michigan: Systems In Motion CEO Neeraj Gupta (Part 2)

Sramana: Where in the Midwest did you establish operations, and how did you know Colin Chapman?

Neeraj Gupta: When we decided to explore the low-cost domestic sourcing model, we spent three months looking at different locations in the U.S. We talked with various state governments. In 2009 there was a lot of debate about job creation. We talked with folks in Austin, Texas, and in Columbus, Ohio before we ended up in Michigan. >>>

Building A Nearshore Outsourcing Company In Ann Arbor, Michigan: Systems In Motion CEO Neeraj Gupta (Part 1)

Neeraj Gupta is the CEO and co-founder of Systems In Motion, a nearshore outsourcing company in Ann Arbor, Michigan. Previously, Neeraj was a member of the executive team at Patni, a $700 million Indian IT services company, and founder/CEO of Cymbal, a services company focused on the telecom sector. He is an investor in and board member of various technology startups.

Sramana: What is the background story of the three founders of Systems In Motion? How did you meet?

Neeraj Gupta: The genesis of the organization came from all three founders, each of whom had experience working in global services. >>>