Cautious on Engineering Heritage as Headwinds Cloud the Setup; Initiate NEUTRAL

研报英文原文证据摘录

Cautious on Engineering Heritage as Headwinds Cloud the Setup; Initiate NEUTRAL

er vertical specialization, and more established North American distribution.

Experience Design & Consulting leverages the company's EPAM Continuum acquisition (2018) to

deliver business, experience, and tech consulting. The practice spans physical experience design,

CX strategy and design, marketing/AI personalization, and workforce experience transformation.

This vertical operates on a systems thinking approach with integrated teams spanning business,

experience, tech, and data consulting working together instead of operating in functional silos.

Recent projects include digital commerce platform redesigns for global retailers, AI-assisted

customer service buildouts for banks, and human-centered design systems for healthcare software.

We note that client budgets for traditional CX/digital platform work show signs of being

redirected to AI-native projects, which could weigh on this segment's growth trajectory.

Cybersecurity remains engrained in EPAM's practice with its "Cybersecurity by Design" philosophy.

The approach is separated into four pillars: Cyber Strategy, Cyber Foundation, Cyber Defense,

and Offensive Security. EPAM has also built a proprietary Agile Security Platform for continuous

Penetration Testing as a Service, addressing gaps between traditional periodic pen tests and the

need for continuous security validation in high-frequency agile delivery environments. While its

cyber portfolio is impressive, cybersecurity remains a relatively small share of revenue, and we

view it as a steady contributor rather than a near-term growth driver.

AI Services TAM Large, But Conversion to EPAM Revenue is the Open Question