Strained revenue growth, burgeoning costs due to litigations, and regulatory compliance continued to adversely affect the profitability of capital markets firms in 2013.

Software developer Luxoft Holding Inc. (LXFT), which gets more than three-quarters of its sales from the U.S. and western Europe, raised its revenue forecast last month, saying business has been unaffected by the sanctions. The stock rallied 13 percent to $35.99 in August.

Strained revenue growth, low interest rates, rise of the digital consumers, and growing pressure of regulatory compliance continued to adversely affect the profitability of banks in 2013. This has forced global banks to rethink and reinvent their business models as well as technological priorities.

Application outsourcing is the process of arranging a wide variety of application services, including new application development and maintenance and management of packaged applications from an external provider.

This Hype Cycle focuses on a full array of application services (in-house, outsourced, cloud-sourced, crowdsourced or other hybrid models). Sourcing executives can proactively discern the maturity level, risk and user advice on the timing of adoption.

Luxoft is on a tear. Revenues rose 26% to $398 million last year mostly via organic growth and its recent efforts in Automotive today a great example of how IT services firms can ride Digital Transformation to success.

The software developer’s shares jumped 4.8 percent to $37.90 in New York yesterday, the highest level since Feb. 27. The advance pushed a three-month surge to 34 percent, the most on the Bloomberg Russia US Equity Index, which gained 0.1 percent in the same period.

China’s increasing pincer-like domination of the automobile and mobile handset markets are creating a perfect storm with the potential to spell doom for Apple’s CarPlay and Google’s Android Auto. MirrorLink and other OS-agnostic smartphone connectivity platforms will see the greatest benefit from China’s influential ascent.