- Focus on offshore labor: EPAM's reliance on offshore labor, particularly in emerging markets, has raised concerns about quality control and the potential for cultural and communication barriers.
- Competition from other IT companies: EPAM faces increasing competition from other IT services companies, both domestic and international. This is making it more difficult for EPAM to maintain its profitability.
- Lack of demand in EU and USA markets: It is difficult for EPAM in these regions to find opportunities/new clients due to high cost/inflation. As a result, some companies are turning to outsourcing to India and Latin America to meet their IT needs.
- Employee retention and satisfaction: EPAM's focus on cost optimization could lead to concerns about employee retention and satisfaction.
- Integration and collaboration challenges: Managing and collaborating effectively with offshore teams can be a significant challenge.