Software is often synonymous with technology and automation, but rarely with people. According to Gartner, $4.4 trillion will be spent globally on IT in 2022, but the truth is, creating software requires exceptional engineering talent, which is getting harder and harder to come by.
While not a new phenomenon for the IT industry, talent is becoming scarcer and the skills gap continues to widen. According to a report by Gartner, businesses indicate that the biggest obstacle to adopting 64 percent of new technology is a shortage of talent. In a separate survey by Skillsoft, 76 percent of IT leaders said they have skills gaps in their departments, a 145 percent increase since 2016. It’s a bit ironic that in the quest for automation, it’s still people that are valued the most.
That’s why today we’re excited to announce our $75 million investment in DataArt, a leading global software engineering firm. DataArt has been delivering high-value and high-quality digital transformation solutions to its clients for over 25 years making it a trusted partner to premier brands such as Unilever, Priceline, NASDAQ, and many other leading enterprises. DataArt is a unique asset that boasts an enviable financial position, having already achieved mature scale, growth and profitability at the time of our investment. We are grateful for the opportunity to partner with the DataArt team during this exciting phase of growth as our investment will help accelerate the company’s already strong sales performance, open new delivery centers worldwide and continue to attract the world’s leading technologists.
Over the last decade-plus, we’ve gotten to know Eugene Goland, DataArt’s founder and CEO, along with many other members of the executive team. We’ve watched the firm master next-gen technologies such as artificial intelligence, machine learning and data analytics while serving customers across a variety of industries. In an ever-evolving technology landscape, DataArt stays well ahead of the curve and brings its clients along with them.
It’s no wonder that in 2021, driven by sky-high demand for digital solutions and DataArt’s superior client retention and growth, the company’s revenue exceeded $290 million, a record 60 percent year-over-year increase from 2020. New hiring continues to be a central focus with DataArt having added more than 870 jobs thus far in 2022. Employee growth has been particularly impressive in Latin America, a key strategic market for the company, where headcount has grown by 265 percent over the past year. DataArt now employs over 6,000 people globally and has 82 clients generating over $1 million in annual revenue – a figure that’s on par with some of DataArt’s already public peers.
Even more impressive than the company’s financial performance is the deep-rooted, values-based culture the management team has cultivated over its history. Their commitment to employees is unwavering, supporting them through times of prosperity and now global disruption. With staff located in Ukraine and throughout Eastern Europe, the DataArt team acted quickly to aid its employees by relocating approximately 1,300 staff to offices in other locations. The company set up a Humanitarian Relief Fund and allocated millions of dollars to help those remaining in Ukraine and to those who must rebuild their lives elsewhere. These humanitarian efforts were made all while continuing to deliver projects on time to clients and grow their businesses. Needless to say, we have been so inspired by DataArt’s leadership, agility and resilience throughout a very challenging time.
It’s no coincidence that the company maintains a market leading 92 percent employee retention rate, and 94 percent of employees would recommend DataArt to others according to Glassdoor. All of this is a testament to the “People First” principal the team has lived by since its founding.
As our latest investment in next-generation services, DataArt joins an impressive cohort of FTV portfolio companies that includes the likes of CloudFactory, EXL (NASDAQ: EXLS), Globant (NYSE: GLOB) and Lean Solutions Group.
We are extremely excited to team up with Eugene and the entire DataArt Team as we look to help the world bring next-generation technologies to life!
Recent Insights
- Think Forward
- Why We Invested
- FTV Bylines