Exigen Services merges with StarSoft

05.02.2007
Two outsourcing providers, Exigen Services and StarSoft Development Labs Inc., have merged to form "a new generation application outsourcing services provider in Central and Eastern Europe."

Exigen Inc. started operating in 1992. Its headquarters are located in San Francisco, California, and Riga, Latvia. The company also has facilities in St. Petersburg, Russia, and Odessa, Ukraine. Privately held Exigen makes US$50-60 million in revenues annually with more that 800 employees. Its founders Greg Shenkman and Alec Miloslavsky earlier created another company, Genesys Telecommunications Laboratories, a developer of call centre software now owned by Alcatel-Lucent SA.

Exigen specializes in high-level business process outsourcing for banking, insurance, telecom, media and government sectors. Among its customers there are AIG, Citigroup, Mastercard, Prudential, SAP, Universal, VISA and Warner Bros.

Outsourcing software developer StarSoft with annual turnover of $20-30 million was founded in 1991 and now employs more than 600 people. Its headquarters are located in Cambridge, Massachusetts, and it has development facilities in St. Petersburg, Moscow and Kazan in Russia, and in Dnepropetrovsk, Ukraine. StarSoft serves such companies as CSC, IBM, T-Mobile and "the world's largest computer chipmaker" (the actual company name could not be disclosed under the contract terms).

The first contacts between StarSoft and Exigen date back to 1999. But at that time neither company was ready for the merger. Despite the fact that StarSoft is still smaller that Exigen its chief executive officer Nick Puntikov claims that the merger is not a means of selling the company and quitting the business. After the merger Puntikov was appointed Exigen president for Eastern Europe.

According to him, his main target was finding a US-based partner which would complement StarSoft's capabilities. At the same time Exigen that has the largest software development facilities in the Baltics began to feel constraints of the local labor market but entering Russia turned out to be not so easy as it might have seemed.