CENTER FOR INFORMATION TECHNOLOGY (CIT)
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recognized supplier of advanced IT services in Armenia goes off-shore. CIT offers
a business development port in USA for the smart "plug and work" buildings in Yerevan. Marketing software development inwards takes Armenian skills to the global IT marketplace. Company: Centre for Information Technologies Amount: $340,000 Tenor/Terms: 40% equity in the US Subsidiary and 30% equity in CIT Use of Funds: The funds will be used to finance the establishment and initial operation of CIT representative office in the US (Boston), and marketing of CIT products and services. Part of the funds will be used to co-finance the expansion of the business in Armenia. Legal Status: Limited Liability Company Strategic Partners/ Clients: Epson Electronics (Oracle based projects) Lowermybills.com (Java, XML). Current Operations CIT develops custom-made software on demand, and own software products. Main specialization is in JAVA, ORACLE, C/C++, PHP. CIT primarily cooperates with US companies (direct clients for custom-made software development and/or intermediaries) as USA is its main market. Special assignments are carried out for European and Asian Markets (marketing of CIT software products, comprehensive management and maintenance tools for utility operators, Oracle). Small portion of work is done for domestic clients (www.export.am). The company employs 25 programmers and managers, as well as 9 interns. Sales and Marketing Plan: Achieve target sales of $500,000 in 2001 (expected sales according to existing contracts are $300,000-400,000), $735,000 in 2002, $1.4m in 2003, $1.9 m in 2004, and $2.3 in 2005 from its main market - USA. Marketing will be done through the Boston subsidiary. Direct marketing (10% of the revenue) is envisioned: meetings, presentations, mail, publications, articles, strategic location, etc. Business Plan: A staffing scheme of 1 US manager - 2 Local Managers, 5 Local Senior-Programmers and 15 Programmers is envisioned. Hourly average rates US$ 9, 10, 15, 15, 16 for number of employees (conservative plan) - 26, 34, 46, 58, and 69 respectively for 2001 through 2005. Initially one office will be established in Boston, USA (in process), and a second office will be established in 2003. CIT has invested considerably in building of appropriate infrastructure in Armenia: equipped offices, firmware, comprehensive management information system, IT capacities in terms of servers, communication networks/lines and reliable power supply, as well as in-house training center. CIT is a licensed internet provider, and a training center. The CIT business plan incorporates: • A vision to partner for success in the new economy. • The goal to be a leading software development company in the region by satisfying the demand of international and domestic clients in world class and exceptional quality services and products. • The value of staff employed (25 programmers and managers currently). By providing timely and innovative solutions and support, CIT proactively helps clients to create and realize value. It meets the highest demand and challenges of the global marketplace by virtue of the best cadres employed both in Armenia and internationally. CIT believes in people being the best corporate asset, and depends upon its team culture and spirit in building up corporate competitiveness. • Past success based on the experience, knowledge and proven skills of managers, engineers, programmers, professional designers and technicians. CIT pays special attention to the development of next generation specialists and provides best on-the-job training to employees and young interns. Its success is proven by references from clients in US, Asia, Europe, and Armenia, and by the track record of 9 years of uninterrupted growth. Competition: Both domestic and international competition exists. Domestically CIT competes for best cadres of employees. CIT offers an employee share option scheme as corporate incentives to retain its best cadres and ensure high level of motivation. Internationally CIT competes with former Soviet Union software development companies (mostly Russian). As CIT grows it expects competition with India, Ireland, Israel and other countries heavily investing in the development of IT sector and software development in particular. The strategy is to meet international challenges in delivering excellent quality products and services, supported with aggressive and cost- conscious marketing, and the feasible specializations in activities. Investment, Capital Cost and Financing Structure Proposed: Investment - 30% participation in the company, and 40% participation in the US Subsidiary. Points of Contact: Mr. Gagik Yeghiazarian KPartners cjsc, Chairman and CEO 12/6 Markarian nrb., 375036 Yerevan Tel/Fax: 374-1-34 51 11 E-mail: gy@kpartners.am Mr. Gagik Karapetyan, President, Center for Information Technology Abelian St. 6/1, Yerevan Tel: 374-1 35 03 90 Fax: (8852) 350251 E-mail: gagik@cit.am |