Moscow – April 5, 2005
. LUXOFT, a global IT outsourcing company and Russia’s leading software developer and exporter, celebrated its fifth anniversary today with announcements that the company has achieved key milestones. The company closed fiscal year 2004 with revenues of $25 million, representing 100 percent growth over the same period 2003. Since 2000, LUXOFT has averaged 100 percent revenue growth year over year.
According to the META Group, LUXOFT is the leading provider of IT services in Russia and the Commonwealth of Independent States’ (CIS). With more than 1000 employees, LUXOFT is among Eastern Europe’s largest players in the offshore software development market.
“The past five years of hard work has enabled LUXOFT to not only survive cut-throat competition around the world but also to dramatically grow our business to become a significant global outsourcing market player,” said Dmitry Loschinin, President and CEO of LUXOFT. “The marketplace and technological demands have changed since our launch, but not our dedication to our clients. Our processes, including the LUXOFT Engagement Model, along with our brilliant programmers, are the reasons our current clients continue to assign more projects to us – and will enable LUXOFT to reach aggressive revenue goals, such as doubling revenue in fiscal 2005 and again by 2007.”
LUXOFT plans to actively develop the number of product development and maintenance outsourcing projects for independent software vendors. The company intends to open new offices in North America and Germany; new development centers in Russia and the Ukraine are designed to help attract large Russian commercial enterprises and government institutions.
New Business Strategy
LUXOFT also announced its new business strategy and client relationship model known as the LUXOFT Client Engagement Model, based on best practices identified over the past five years of successful projects. The Client Engagement Model has been rigorously tested and is being deployed for the projects for Deutsche Bank, Boeing, Dell and others. The model includes:
- Evaluation of client sourcing maturity and the identification of the most appropriate type of engagement
- Creation and description of the processes, rules, and procedures that regulate the activities and interaction of both the client and LUXOFT
- Team formation
- Establishment of key performance indicators measuring engagement effectiveness
- Use of special productivity tools
- Coordination of the above mentioned tasks by LUXOFT engagement experts
“The new business model significantly decreases potential outsourcing risks while shortening development time and ensuring the highest level of quality to large and small organizations alike. The effective knowledge transfer process and lower onsite work load help reduce hidden costs that could otherwise raise total project cost 20-25 percent,” Loschinin said.
LUXOFT’s quality management system (QMS) provides the highest level of software development professionalism. LUXOFT’s software development specialists can interact effectively with clients, consistently demonstrating the ability to solve problems of the highest complexity.
“LUXOFT’s success is grounded in the company’s strong management team and development specialists, proven production processes, and the company’s high research and development potential. IBM has been with LUXOFT since its inception in 2000. We see LUXOFT as a strong partner able to respond rapidly to our requests and having the unique resources needed to provide high quality and professional work,” said Kirill Korniliev, General Director of IBM Eastern Europe/Asia.
Supporting the Russian Market
LUXOFT actively participates in projects to construct large technology centers or “technoparks” to strengthen Russia’s technology capabilities. LUXOFT is implementing a project to launch a Russian software development center in the Moscow regional city of Dubna. The goal: to help Russia produce $2-2.5 billion of software annually, and move up in the global software development hierarchy.
Additionally, LUXOFT creates special programs for students of top Russian universities to participate in LUXOFT internship programs, with the goal of forming a professional community of highly qualified, world-class specialists.
LUXOFT, a global IT company, is Russia’s leading software developer and IT service exporter. Leveraging their unique, proven off-shore engagement model, LUXOFT provides a full range of custom software development services for IT solutions on any platform and technology. LUXOFT’s software development processes meet the highest quality standards and the company was the first in Europe to achieve SEI CMMI Level 5 certification. LUXOFT runs research and development centers in Moscow, St. Petersburg, Dubna and Omsk. 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, Citibank, and Dell. Luxoft also works closely with many mid-size growth companies. LUXOFT has offices in the USA, UK, and Russia.