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EPAM Systems - the corridor between two worlds, and what a war did to it

Founded in a New Jersey apartment and a Minsk basement in 1993; by 2022 it had 14,000 engineers in Ukraine and 18,000 in Belarus and Russia, and the founder's silence became the story.

EPAM Systems is an American software engineering services company founded in 1993 by two Belarusian schoolfriends, one in Princeton and one in Minsk, that grew into an S&P 500 constituent delivering engineering from Eastern Europe to Western clients.

The name is an abbreviation of Effective Programming for America, and the founding arrangement was exactly that: in 1993 Arkadiy Dobkin, two years out of Minsk, sold the work from his apartment in New Jersey while his schoolfriend Leo Lozner ran the engineers from the basement of his building in Minsk. The Soviet Union had trained a very large number of very good programmers and then ceased to exist; the company was built on the difference between what they cost in Belarus and what their work was worth in America, and on making that difference trustworthy across a border.

Minsk got a proper delivery centre in 1994, Budapest in 1995, and Ukraine from 2000, which became the largest engineering base of all. The company listed in New York in 2012 - the first from Belarus to do so - and became an S&P 500 constituent with more than sixty thousand people in over fifty countries. Dobkin ran it for over thirty years, one of a very small number of founders still leading an S&P 500 company; his mother had survived the Minsk ghetto.

Then the two halves of the model went to war with each other. At the start of 2022 the company had about 14,000 employees in Ukraine and 18,000 in Belarus and Russia. When Russia invaded on 24 February, the founder's public statement named neither Russia, nor Putin, nor his native Belarus, and he declined calls to put the company's infrastructure at the service of the Ukrainian side. The reaction inside and outside the company was severe. His defence, as reported, was that the company could not let its systems be used for cyberattacks and that it had to protect the people in Russia and Belarus from the political reprisals common there. Both the statement and the criticism belong in the record; what a founder owed to which of his employees that week is not a question the record settles.

What the company then did is less ambiguous: it suspended its operations in Russia and Belarus - the country it came from - and moved a large part of its workforce, with their families, out of the war's path. The Huawei and Atos entries ask where a supplier is incorporated. This one asks where its people are, and shows that a services company is a set of human beings in specific places, and that a border running through the middle of it is not an abstraction. Every buyer of offshore engineering since has had to ask which side of which line the people doing the work are on.

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