Ilya Kashtankin, SimbirSoft: The main criterion when choosing the client – his aspiration to digitalization

Ilya Kashtankin: Our company works since 2001, and during this time we saved up very extensive examination in the different industries. We cooperate with foreign clients, banks, the IT companies long ago. In recent years we selected for ourselves a certain pool of the industries, market niches on which we decided to concentrate. The main selection term is aspiration of players to digitalization, desire of the companies to compete among themselves at the expense of IT solutions which create value added for products. We are able to deliver result very quickly, reducing product output time for the market. In it universality of our approach to solving of tasks of business in the different industries.

Ilya Kashtankin: We – service company which renders services in software development. And to compete in this niche, it is necessary to have the certain practices, examination and specialized solutions useful to our clients. Yes, these software products concern first of all interaction of business with his end users. Among our solutions interfaces, mobile applications for access to different services, services – for example, to systems remote banking (RBS). The second big direction is analytics which allows heads to estimate results of work of their companies. We release software for accomplishment of different analytical tasks, business-related and its automation. It is some kind of unique BI- solutions for obtaining information. For example, we did applications which help to reduce analytics on marketing activities at different offices of the large, geographically distributed company.

Ilya Kashtankin: If to speak about our industry, then it grows, and growth is observed both in Russia, and in the world. In the next three years, by Gartner estimates, the market of development of program services, i.e. SaaS, will grow more than by 50%, to 143 billion dollars. Despite it, rivalry of businesses very high, and it it is possible to characterize as perfect competition. There are also large players, and it is a lot of little-known market participants. Among key factors of success – scale effect that allows IT contractors to execute large orders. For example, to banks, complex services are required for large players. They select vendor, proceeding from its industry expertize and technological capabilities that these opportunities covered all set of needs of the customer. One more factor – existence of unique examination. For example, we did projects on data analysis, prepared different algorithms and helped the companies to reach using this analysis additional benefits for their business. Working with such tasks, we receive unique examination which ensures a victory in competitive struggle.

Ilya Kashtankin: We try to diversify the business that any of segments of the market at which we work did not prevail in our revenue. For years of existence of the company we observed raising of these or those industries, peak demands on defined the solution and services, and then there were crises, attenuation. Therefore it is important for us that in each timepoint each segment brought us no more than 20% in total sales. For example, banks in our portfolio of clients make 17%, it is the most fast-growing segment – fourfold increase in recent years. Telecommunication companies bring us 17% too, but this niche passed a phase of rapid growth. We see, as vendors which are focused at work with telecommunication companies reduced activity, and the needs of the telecom for writing of software decrease. The state order in this or that form – about 30%, medicine – 19%, all the rest – fudtech and other industries.

Ilya Kashtankin: Indirectly. We work with different partners within consortia, alliances, taking part in government contracts as contractors of large vendors.

Ilya Kashtankin: In banking sector we are guided first of all by so-called neobanks which service clients by means of software solutions, without visit of offices. This niche, by our estimates, will actively grow in the nearest future and will double. In the food sphere which in professional circles it is accepted to call fudtech we see great interest to the investment attraction – this trend is observed both in Russia, and in Europe. Startups on a joint of a fudtech and agriculture are born. Thus, we see, as this segment develops. There were such platformers as Yandex. Food, is a lot of growing niche startups and businesses. If to take other spheres, then one more noticeable trend – telemedicine development. This trend is inherent in both the European countries, and America. The medical market grows, the companies carry out expansion worldwide. Here appropriate to tell about national specifics not only Russia, but also other countries. For example, in Great Britain municipal medical institutions are overloaded, people for months stand in huge queues. And there the segment of paramedical consultations very actively develops, many businesses appeared in this sphere.

Ilya Kashtankin: Really, in Russia the population not really actively buys insurance products, except specialized, obligatory – for example, a CMTPL/COMPREHENSIVE INSURANCE. Respectively, the insurance segment in Russia is still far from explosive growth, including in terms of readiness to be engaged in active digitalization of services. If to tell it about players of this market at whom everything is good with digitalization are AlphaInsurance, Ingosstrakh, Soglasie. Other companies are at the beginning of the 2000th years in the development plan for IT services, IT infrastructures, methods of digital customer interaction so far. Nevertheless, there is a certain trend which gives hope for change of provision: insurance the company enter the consortia, big projects, general with banks, use the RBS systems for integration of own products. There is still a trend of development of a microinsurance. Anyway, in my opinion, insurance companies in Russia in aspect of digitalization with someone will be integrated – either with banks, or with other platformers.

Ilya Kashtankin: Three years ago the trend on primary use of mobile platforms as main channel of customer interaction – mobile first was traced. Mobile applications reached exclusive provision and often become the only way of customer interaction – mobile only. All solutions are under construction around mobile platforms, devices, and web solutions which duplicate functions of mobile interactions cease to earn. It is the general trend for all industries. And if to speak about specific industry realities, then it is obvious that with the first boom of digitalization banks began to think more of zashchitepersonalny data, different politicians, algorithms who foresee behavior of users to secure their money use. At me blocked the card recently during the travel because the bank considered my behavior atypical in respect of the made purchases. Also there was a call from bank to make sure that I shop. It was unexpected, but it is pleasant that the algorithm allowed bank to reveal certain deviations in use of my bank card and to warn me.

Ilya Kashtankin: It is difficult to tell that new and that old: an eye "is a little hackneyed", and sometimes it seems that everything already anyway met. Nevertheless, in banks there is a war for microbusinesses, for clients from the sphere of a small entrepreneurship and for self-employed. Develop a lot of software for automation of work in these directions. The user can work with all services via that device which is convenient to it, without distracting from the business. One more trend – chat-bots, i.e. smart virtual assistants which are integrated practically everywhere for the purpose of the personified work with end customers. Chat-bots allow the young companies to win in fight against competitors. Here the artificial intelligence, data analysis, the analysis of behavior of users is actively used.

Ilya Kashtankin: Yes, it is one more important direction of digitalization. We watch this trend, but we still actively do not participate. At the same time, we monitor different initiatives in this direction in regional and federal government circles. We see that there are already attempts something to implement, but mainly the common understanding in what part the city can is developed so far and should become smart. Purchase of video cameras and hanging out on columns of great value in themselves does not bear them, it is impossible to call it the digital city. There is a finding solutions which really would help the city to optimize its work, to reduce costs of municipal authorities.

One more strong trend in a number of the industries which it would be desirable to note, – application of flexible Agile-methodologies for the purpose of decrease in time to market of new products and services (time to market). The companies not only apply digital, software products, but also transfer to classical business of a technique, software developments used in the world. They learn to work with it and, according to our clients, use of flexible approaches really helps them to become more effective.

Ilya Kashtankin: The last three years the company grows, growth rates of revenue – about 50% annually, including 2018.

Ilya Kashtankin: If to speak about key implementations, I cannot but mention about development of mobile application, joint with LANIT company, for one large sports championship. For us it was the sign, image project because we represented the works within the global such grandiose event. We coordinated work of several contractors and we are proud of the fact that at us all turned out that Users managed to create the beautiful and functional application it was pleasant, we received good marks and comments. In the technology relation the project with Rosbank within which we were engaged in performance improvement of certain internal systems of bank was sign – this project for May, 2019 still proceeds. It is also possible to select a series of projects on automation of work of collectors.

Ilya Kashtankin: Release a product in a short time, especially in banking, it is impossible without close interaction with the client. Our colleagues from special design bureau very competently counted a business model, thought up at the expense of what they will earn money, to attract clients. Our software product was a consequence of in details worked business model which the customer brilliantly implemented. As for product output speed on the market – we have a wide experience of the organization of work of dispersed teams. We are rather strong in project management and during the work with special design bureau connected all our experience, involved many specialists. In such projects there can sometimes be certain problems in respect of the organization of joint work, but it is not our case. Internal processes of our company are ISO-certified 9001, they are ground on quickly to issue a product. The first result our clients see within the first month of work, and it not just a certain description of future solution, and a working prototype of a system which can already be tested. So to put the application on the market in 100 days – for us it is not a certain unique case.

Ilya Kashtankin: For May, 2019 in the company of 570 employees, from them about 470 – developers, testers, architects, about 25 analysts and produktolog, the others – heads of different levels, marketing specialists, a client service.

Ilya Kashtankin: At one time in the market there was a keen interest in Big Data and the analysis. Many began to think that it is the second oil derrick using which it is possible to extort magic money literally from nowhere. Actually, those large players for whom they are available seriously are fond of Big Data. First of all it is telecommunication companies, large banks and retailers. Thus, it is rather narrow niche. Besides, the companies and banks almost always do data analysis by own forces and very reluctantly let external contractors. It is natural as both algorithms, and Big Data are their competitive advantage which is carefully preserved and protected. In this plan there are some difficulties in cooperation with large players in this direction.

Ilya Kashtankin: Yes, we work. Emergence of such segments as the analysis of Big Data, generated a number of projects, tasks of their collecting and processing. And we have contracts on data preparation and providing all infrastructure for this purpose of the big, confidential, carefully protected process. I cannot tell that this direction provides a considerable share of our income, but such projects are, and, I am sure, will appear still. For example, we did the project with one foreign insurance company which calculates what insurance schemes to apply to this or that patient, proceeding from his clinical record and data analysis. So available certain predicative function. In fact, the scoring system analyzes the clinical record of the patient and with a certain share of probability predicts, than he will be ill still and what insurance package he can offer.

Ilya Kashtankin: In our portfolio foreign projects give about 30% of revenue. This direction grows though the last years six we are focused in the Russian market, and growth rates of our Russian business are much higher. In the long term we would like to achieve balance 50/50 between income from foreign and Russian clients. But not braking growth of the Russian segment, and due to increase in growth rates of foreign business.

Ilya Kashtankin: We do not do products in classical understanding – drawing. We provide services in development of software products for those directions of business about which we spoke above. Respectively, we will continue to be focused on the designated industries, to be engaged in business digitalization, to be improved in it. Perhaps, in the future this strategy will undergo changes, but not in the next one or two years.