OREANDA-NEWS. May 6, 2010. CROC recorded total revenue of RUR 20.009 billion (USD 631 million) in 2009—a 6.4 percent decline in Russian rubles from 2008. However, it should be noted that CROC expanded its customer base by 32 percent during the year, with 270 of our customers being among Russia’s top 500 companies.

CROC worked on more than 1,800 projects during 2009, including over 650 major implementations for large corporate clients. Sixty percent of revenue was derived from federal projects, with the remaining 40 percent coming from regional projects throughout Russia (primarily in the Central, Privolzhsky, Siberian, Ural, and Southern districts). Key customers include Russian and international financial and credit institutions, telecom providers, oil and gas companies, energy and manufacturing enterprises, retail chains as well as government authorities; the number of projects with energy companies and geographically-distributed retail chains increased during 2009.

CROC had an average employee headcount of 1,603 during 2009. Our certified employees have a combined total of more than 2,850 professional certificates—an increase of 800 over 2008.

Last year, CROC dramatically cut costs via business process automation and online management of projects, efficiency, costs, resources, and subcontractors. We also managed to reduce internal costs, with office lease expenses declining to zero as all CROC employees moved to our new office at the beginning of 2009. In addition, travel costs were minimized thanks to video conferencing solutions and our new telepresence room. However, there were no cuts in social welfare spending (medical insurance, training and sport programs).

"The recessionary year turned out for the best for CROC: we have already changed a lot and will continue to do so in order to increase business efficiency," said Boris Bobrovnikov, Director General, CROC. "We have become more energetic and the projects proceed rather actively. Indeed, we are in the process of becoming a new company. We offer solutions focused on today’s business objectives such as greater business mobility, optimized production expenses, and improved business process manageability."

During 2009, all market players focused on increasing efficiency, cutting costs, and improving business controls—a development which resulted in increased demand for analysis, forecasting, planning, budgeting, and control tools. Major projects in 2009 included: automation of planning and money transfer analysis for the World Trade Center Moscow; and a joint CROC and Lanit implementation of an enterprise corporate reporting system for Integra Group (Oracle’s “Project of the Year” in the Financial Consolidation category). Rising demand for data visualization (particularly among geographically distributed companies) is resulting in growing interest in integration of business applications and Geographic Information Systems (GIS).

The struggle for net cost reduction in the real production sector is resulting in an increase in demand for Manufacturing Execution Systems (MES) which help reduce electricity bills, optimize hardware load and control production funds. During 2009, CROC created a technological information collection and storage center for TGK-6 in order to monitor, control, and manage the quality and quantity of generated thermal energy.

Increased focus on cost optimization resulted in greater interest in Business Process Management (BPM) solutions, an area in which CROC expanded its competence during 2009. Today, CROC is the only Russian company offering solutions from all major BPM vendors: IBM, Documentum, Oracle, Lombardi, TIBCO, Sonic, Intalio, and Metastorm.

CROC increased its competence in corporate information integration during 2009. Growing pressure to cut costs resulted in an increased demand for Master Data Management (MDM) solutions which help keep information up-to-date and accurate.

The growing focus on efficient collaboration between employees, suppliers, and contractors is resulting in an increase in demand for collaboration solutions, particularly corporate portals. CROC implemented a corporate portal for FESCO Group which united employee operations within this geographically distributed organization.

In 2009, attention shifted from computer and telecom infrastructure installation to the optimization, support, and efficiency enhancement of existing IT systems, with CROC’s computer, telecom, engineering, and software service and support division growing by 20 percent last year.

Enterprise customers are increasing their focus on risk management and comprehensive data center outsourcing. In response, CROC is actively developing its IT infrastructure monitoring and management business line, which grew by more than 40 percent during 2009 (with banking institutions being the key customers). Another popular business line was CROC’s outsourcing data center which was launched at the beginning of 2009 and offers a variety of services from hardware collocation to information services outsourcing.

The trend towards increased resource optimization resulted in rising demand for virtualization, data storage, and backup solutions during 2009. CROC reorganized RussBank’s data storage system and implemented: a fault-tolerant database management system for ECOPROMBANK; a united technological platform for six International Industrial Bank branches; a backup system for the United Industrial Corporation (OPK); and a virtualized data storage network for Aviadvigatel OJSC. In addition, CROC also actively expanded its cloud computing expertise during 2009.

The need to improve information protection and comply with the FZ 152 Personal Data Protection law resulted in an increased demand for Data Loss Prevention (DLP) solutions and information security services during 2009. CROC created personal data protection systems for several organizations and certified them to FSTEC requirements, implemented a DLP solution for the Novaya Perevozochnaya Company, and provided an investment company with IT infrastructure security at CROC’s outsourcing data center.

The need for new expenditure and budgeting approaches stimulated demand for consulting services during 2009. In addition, business continuity requirements from the Central Bank of Russia (Central Bank provision of March 5, 2009 on business continuity and backup system availability) also fuelled demand in this area. In order to ensure business continuity, CROC developed a Disaster Recovery Plan (DRP) and implemented a backup data center for Delta Credit Commercial Bank and engineered individual DRPs for the MTS head office in Moscow and its regional branches in major Russian cities.

In response to increasing emphasis on business agility and investment protection in the case of expensive long-term projects, customers were reviewing the performance of their data centers. In order to design data centers that comply with international standards, CROC engineers underwent training and received certificates in recognition of their enhanced understanding and practical knowledge of the Tier Classification System (I-IV). As a result, CROC now boasts the highest level of competence in this area within one company in Russia. CROC's data center business line grew by 12 percent during 2009, with projects in this area including the implementation of data center engineering infrastructure for Rostpromstroybank and the installation of a complex industrial life-support system for Alfa-Bank’s backup data center.

IT budget deficits complicated enterprise network modernization programs during 2009 and compelled customers to look for telecom solutions that offer greater cost-effectiveness, reliability, and performance. In response, in 2009 CROC became a 3Com Exclusive Partner for H3C telecommunications solutions in the Russian market. CROC also expanded its competence in congress systems, video and voice communications solutions, decision-making centers, and digital signage systems during 2009. Demand for distance learning and telemedicine systems continued to increase—one such system was implemented by CROC in the Ammosov Yakutsk State University.

CROC maintained its relationships with key partners during 2009: IBM awarded CROC ‘IBM Platinum Business Partner in Russia’ and ‘Breakthrough of the Year (Hardware Solutions)’ awards. EMC recognized CROC as its Platinum Partner in Business Volume 2009; Financial and Insurance Sector Partner of the Year 2009; Power and Energy Sector Partner of the Year 2009, and also recognized CROC’s Solution Center as the ‘Best EMC Solution Center in Central Europe.’ CROC is HP Gold Partner (awards: ‘Contribution to HP Tape Storage Promotion’, ‘Contribution to HP Virtual Connect Virtualization Technologies Promotion’, and ‘Achievement in Training Specialists Certified in HP Technology Solutions Department Products’); Polycom Platinum Partner and Polycom ‘Best Reseller in EMEA’; and Microsoft Gold Partner in 11 competencies. CROC also confirmed its Gold Partner authorization with Cisco and Platinum Business Partner status with Avaya and TANBERG.

“I am pleased that we continued to lead the market last year. According to the 2009 IDC report, CROC is the leader in the Russian IT services market (excluding offshore services) and, for the eighth time, the number one IT service provider in the systems integration segment. CROC was ranked as the largest IT provider for banks and was recognized as being Russia’s leader in contact center deployment by CNews Analytics. CROC is listed as one of Russia’s Top 200 Private Companies by FORBES Magazine; Top 400 Largest Companies by the Expert Rating Agency; Top 10 Largest Companies in the Russian Information and Communication Technology Market by the Expert Rating Agency; Russia's Top 10 Strongest IT Companies by Astera; Top 100 Largest IT Companies in Russia by CNews100; and Top 10 Largest IT Service Providers for the Public/Government Sector and Telecom Carriers by CNews Analytics,” said Veronika Taraba, Deputy Director General, CROC.