Montvale, NJ, Dec., 2005 – Luxoft, Inc., Russia’s leading software developer and IT services exporter, today announces its new service offering – a Client Engagement Framework, LUXguide, that takes the guesswork out of IT outsourcing by generating client-specific engagement roadmap and detailing the most efficient engagement parameters every step of the way.

Based on years of outsourcing experience, LUXguide’s innovative and flexible approach accelerates project start up and enables customers to avoid typical mistakes, eliminate surprises and unnecessary expenses such as “hidden costs” while ensuring high quality, industrial-strength software applications and tools. The service offering is designed for LUXOFT’s broad customer base: from global large enterprises to smaller ISVs and startups, whether or not they have previous outsourcing experience.

Already in use with current Luxoft clients, LUXguide is a four-staged process – consisting of proposal, contract preparation, launch and operation – that tailors the rules, processes, and methodologies to suit each client’s specific requirements, strategy and previous outsourcing experience. And because LUXguide is an ongoing iterative process, customers have the opportunity to update and optimize their sourcing requirements “on the fly” as a quick response to changing external circumstances and improving efficiencies.

“Luxoft’s Client Engagement Framework works effectively. That’s a testimony to the level of quality that Luxoft has been able to build into the requirement and into the company,” says Daniel Marovitz, CIO Global Banking Division, Deutsche Bank.

The proposal phase is regarded by Luxoft as the most important because it sets the foundation for the rest of the relationship. It starts with the Client Engagement Team that determines key details such as how the software will be engineered, the agreed-upon communication and escalation channels, how project milestones will be measured and the necessary reporting mechanisms. Using decision matrixes, LUXguide then determines the road ahead: how the relationships will develop, what milestones they must pass through, what results each side should expect and how challenges should be addressed. Once strategy is aligned, LUXguide is used to develop the right tactics to reach the desired objectives, build the infrastructure, train staff and to implement the first pilot projects. These initial projects test the agreed-upon processes to see if they need to be improved.

“When companies decide to outsource IT development, they want to hand off the project to focus on core activities. They’re always interested in cost savings, access to expertise, and increased time to market, but what customers really want is peace of mind when they’re outsourcing. With LUXguide, we create a solid basis for long-term customer relationships – one of the reasons we have a 90 percent customer retention rate,” says Dmitry Loschinin, President and CEO, Luxoft. “We keep a laser focus on the Return on Outsourcing (ROO) goals of each client so projects remain in sync with business and technical targets.”

LUXguide is Luxoft’s latest service offering. In October, the company launched the Luxoft Product Development & Maintenance (PDM), a new service aimed at accelerating time-to-market for independent software vendors (ISVs) by offering a wealth of functional capabilities such as product specifications and prototypes, design, engineering, product enhancement, product maintenance, and product support.

Luxoft’s expertise has been recognized by key associations. In October, Luxoft was named a finalist for Offshoring Operation of the Year at the National Outsourcing Awards, held in London, sponsored by the NOA, a not for profit trade association. And in November, Luxoft was the only Russian company selected as a finalist for three out of four best of class categories: in Innovation, Vendor/Client Collaboration and Solutions Delivery at the Gartner Global Sourcing Summit 2005.

About Luxoft

Luxoft, a global IT company, is Russia’s leading software developer and IT services exporter. The company, which was founded in 2000 and is a member of the IBS Group, has operations in the US, UK, Russia and Ukraine. Leveraging a unique, proven offshore engagement model, Luxoft provides a full range of custom software development services for IT solutions on various platforms and technologies. Luxoft’s software development processes meet the highest quality standards and the company was the first in Europe to achieve Level 5 CMMI quality certification. Luxoft runs research and offshore development centers in Moscow, St. Petersburg, Dubna, Omsk and Kiev. Luxoft enjoys long-term business relationships with clients across IT, Manufacturing, Energy, Aviation, Finance and Government sectors including some of the best-known global Fortune 500 corporations such as Boeing, Deutsche Bank, IBM, Citigroup, and Dell. Luxoft also works closely with many mid-size growth companies.