Update on Kiev, Ukraine Operations and Delivery
May, 7th, 2014. In light of the ongoing developments and news headlines, we would like to confirm, as of May 6, 2014, Luxoft’s business operations in all of its delivery centers in Ukraine - Kiev, Odessa and Dnepropetrovsk- are stable, no incidents have been reported at any of these delivery sites. There are no disruptions in transportation, telecommunication or other infrastructure and logistics. We currently continue hiring developers in all three Ukraine locations, which is also supported by specific requests from some of our clients. These include engagements with new clients and new engagements with the existing clients. As we have reported in the press release on April 15, 2014, our performance is on track with our previous guidance and we are set to deliver at least $396MM in revenues, or 26% YoY growth, for the financial year ended March 31, 2014 and 17-19% in adjusted EBITDA margins. These financial results will be released on May 14, 2014.
With respect to Luxoft’s delivery center in Odessa – the office has been unharmed during the last weekend, no internal security reports have been filed and our employees were in attendance on Monday, May 6th, according to a regular schedule. To our knowledge, there has been no military personnel involved, and we hope that this was an isolated incident in Odessa, which otherwise remains peaceful.
Luxoft Holding, Inc is a global company with 20 offices worldwide. Being a global provider of engineering solutions for large multinational and Fortune 500 companies, it is our goal to ensure smooth service to our clients at all times from all of our locations via global delivery model. As we communicated in previous weeks, we keep clients’ Business Continuity Plans and our own internal plans updated to provide for uninterrupted delivery despite possible turbulence in any given geography. In connection with a multi-year "Luxoft: Global Upgrade” program, the Company has started proactive geographic rebalancing to expand delivery locations in the EU and Asia Pacific and to limit presence of all delivery personnel in each key geography to 25% over the next 5 years.
About Luxoft Ukraine
Luxoft Ukraine is the region's leading IT outsourcing provider, delivering software development services to global and national organizations. Established in 2005 in Kiev, Luxoft Ukraine now includes more than 3400 professionals serving more than 40 global clients from its delivery locations in Kiev, Odessa and Dnepropetrovsk.
Combining the country’s engineering legacy and Luxoft’s best-in-class processes, quality, flexible engagement models and innovative approach to software delivery, Luxoft Ukraine develops high-end solutions, product engineering, R&D and embedded systems development for such industries like automotive, travel and aviation, financial, energy, telecom and technology industries.
Luxoft Ukraine Benefits
- Highly focused on the development of industry-specific expertise and technological excellence
- Over than 3400 engineers on board - one of the largest IT companies in Ukraine
- Highly educated, experienced, and dedicated workforce
- Deep R&D focus
- Best-in-class processes and highest quality standards
Luxoft Ukraine as an Attractive Outsourcing destination
- Mature IT / BPO market that continues to develop rapidly
- Ukraine ranked among the countries best suited for outsourcing*
- Talented IT specialists with in-depth knowledge and experience: well-educated and self-motivated work force with strong language skills
- Strong educational system, large number of universities, scientific schools and R&D centers
- Reasonably low labor costs: 50 -70% lower salaries compared to US or Western Europe
- Largest IT outsourcing market in Eastern Europe developing at a rapid pace of 20%-25% growth a year
- Nearshore advantage: easy travel, visa-free regime, culture proximity
- Government support of the IT sector
- Well-established business infrastructure: telecommunications, legal system and simplified tax structures
*”Outsourcing Destination of the Year”, NOA 2011