Epam merges to expand offshore services

Looking to compete with the top-ranking offshore outsourcers, U.S.-based software services provider Epam Systems Wednesday announced it has merged with Hungarian firm Fathom Technology.

Looking to compete with the top-ranking offshore outsourcers, U.S.-based software services provider Epam Systems Inc. Wednesday announced it has merged with Hungarian firm Fathom Technology.

The merged entity will retain the Epam name, according to Bill Gargano, senior vice president of sales and marketing for Epam, based in Lawrenceville, N.J. Gargano declined to specify terms of the deal, other than to say it is a merger, rather than an acquisition.

In the wake of the merger, Epam plans to expand its geographical reach and technical expertise, he said. Backed by the 160 people Fathom employs in Budapest, Epam will open new sales and support offices in the U.S. and Europe, Gargano said.

Though most of its staff, which up to now has numbered 600, are in Belarus and Russia, Epam has sales and support offices in the U.S.

“Our model is to put project managers and systems analysts locally, near the client, so it creates an ability to locally service larger projects, while pushing development activities offshore,” he said.

Fathom specializes in advanced EJB (Enterprise JavaBeans) and services built on Microsoft’s .Net software, Gargano noted.

“The merger gives us a size and expanded skill base that permits us to extend our services to clients looking for a more global company,” Gargano said.