Update on Kiev, Ukraine Operations and Delivery
In light of the ongoing developments and news headlines, we would like to confirm that Luxoft’s business operations in all of its delivery centers in Ukraine - Kiev, Odessa and Dnepropetrovsk- are stable, no incidents have been reported in any of these cities. There are no disruptions in transportation, telecommunication or other infrastructure and logistics. We have recently confirmed, once again, that our company’s 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. Our financial results will be released on May 14th, 2014. Going forward, we plan to continue operating on business as usual basis as a global company, including in our offices in Ukraine, and will continue posting timely status updates.
Please note that all of the actions and dialogues are focused around the cities in the east of Ukraine, while our delivery centers are located in central and western Ukraine – hundreds of kilometers away from the geographies mentioned in the current headlines. For example, Kiev - our largest location in Ukraine, with delivery centers accommodating most of our engineering force in this country, is located around 700 km away from the eastern part of the country, such as Donetsk. On April 17th the first major round of negotiations between the U.S., EU, Russia and Ukraine officials took place with some encouraging outcomes for all parties. Some concrete steps were outlined for all countries to follow on the pre-agreed timeline. We hope that this will be the beginning of the deescalation of this crisis.
That said, 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’ BCPs and our own internal plans updated to provide an uninterrupted delivery despite possible turbulence in any given geography.
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