The combined company, which will operate under the EPAM Systems name, will employ over 2,200 software engineers across eight countries and exceed US$70 million in revenue.

By combining the operations of the companies, EPAM expects to become stronger in both client-facing and delivery capabilities, as well as in senior management capacity across North America, Europe, and the countries of the former Soviet Union.

Recently, EPAM has received the highest rank among software engineering outsourcing service providers with delivery centers in Central and Eastern Europe, including Russia, Hungary, Ukraine and Belarus. The rank was awarded by Brown-Wilson Group, a nonprofit outsourcing management consulting firm, for the second consequent year.

Arkadiy Dobkin, EPAM's chairman, chief executive officer (CEO) and cofounder will continue leading the company. Anatoly Gaverdovsky, Vested Development's CEO, will head EPAM's operations in Russia.

The company management sees this merger as an attempt "to offer the strongest alternative to the current mainstream outsourcing destinations."