New York and Moscow, April 16, 2007 – Luxoft, Russia’s largest provider of high-end IT outsourcing services to clients such as Boeing, Deutsche Bank, IBM, UBS, T-Mobile and Dell, today announced strong performance for its 2006 Fiscal Year ending March 31, 2007.
Strong Fiscal Performance
Luxoft again posted aggressive growth with revenues up 54 percent over the previous year based exclusively on organic growth. Revenues came in at $68M USD including consulting business, up from $45M USD for the previous fiscal year. Luxoft estimates revenues to reach $110M USD in FY 2007 from organic growth and continues looking for strategic acquisitions.
North American & Global Expansion
Over the past four quarters, Luxoft added 18 new clients with multi-year contracts to its roster, several of them coming from the Fortune 500 list, including UBS and T-Mobile.
Luxoft also expanded its global reach and talent pool, growing to 2,200 employees worldwide.
With continuing focus on efficiency and ease of communications for US clients, Luxoft strengthened its North American onsite capabilities by growing its US organization to 150 people. In addition, to meet the nearshore needs of US clients, Luxoft opened an office in Vancouver, British Columbia, specializing in rapid software development enabled by the Agile methodology.
On a global resource front, Luxoft opened a delivery location in Odessa, Ukraine, providing development expertise in embedded software and hardware systems, micro processing, and real-time computing. Luxoft also tripled its UK operations to accommodate rapid growth in its nearshore European business.
A European Surge
During the past fiscal year, Luxoft’s European client base doubled, accounting for 47 percent of the company’s total revenues with more than 25 percent of that growth coming from the financial services sector.
Luxoft expects Europe’s revenue share to continue to rise as European companies further capitalize on the benefits of nearshore delivery for complex IT Outsourcing engagements.
Key Growth Drivers & CRM Success Draws Market Attention
Luxoft’s industry knowledge, nearshore footprint, efficiency in complex outsourcing engagements, and strong employee retention rates were all major drivers of company growth. In addition, the growing recognition of Russia as a key destination for high-end IT outsourcing worked as a supporting factor.
In FY 2006 Luxoft blew away industry-standard retention rates by achieving 94 percent employee retention. In comparison, India’s IT-services sector attrition rate has run as high as 30 percent and China’s outsourcing industry attrition is estimated at 23 percent (Sources: NASSCOM-Hewitt and Hewitt studies.)
As a demonstration of Luxoft’s deep vertical industry knowledge, more then a third of Luxoft’s global business this year came from the financial services sector. Financial clients, which include several of the top US and European banks among others, enjoy Luxoft’s high level of domain expertise.
Last month’s CeBIT 2007, Luxoft announced that the award-winning CRM system it developed for Deutsche Bank will continue to be expanded and enhanced by the joint Deutsche Bank/Luxoft team. Deutsche Bank plans to market this solution to other companies as well, a strong testament to the value that Luxoft brings its clients.
Furthermore, the company was able to capitalize on growing demand for product engineering and embedded systems design and programming by leveraging its specialized knowledge and experienced talent pool in these areas.
Luxoft’s commitment to delivering excellence in complex outsourcing engagements led to a number of prestigious industry and influencer recognitions in FY 2006.
In addition to taking the #1 IT Outsourcing Product Engineering vendor spot in the 2006 Black Book of Outsourcing, Luxoft won the Financial Outsourcing Project of the Year from the National Outsourcing Association (NOA). The company also ranked high in the 35 Rising Stars on the 2006 IAOP Global Outsourcing 100 list and was called out by BusinessWeek as one of the top vendors to watch in Central and Eastern Europe. Finally the company received the “Russia's Best Employer 2006” award in IT given jointly by the Russian Chamber of Commerce and other leading employment and business agencies.
“We’re very pleased with the growth and momentum we’ve seen across many aspects of our business this year and have our top-notch employees and world-class clients to thank,” said Dmitry Loschinin, CEO and President of Luxoft. “Luxoft and Russian IT outsourcing is well positioned in the current multi-sourcing environment. We look forward to another great year while we continue to bring the value of high-end IT outsourcing to companies worldwide.”
Luxoft, founded in 2000, is Russia’s largest provider of high-end IT out¬sourcing services with operations in the US, Canada, UK, Ukraine and the world’s largest delivery capabilities in Russia and CIS.
Luxoft works with global enterprises and independent software vendors (ISVs) enjoying long-term relationships with industry leaders such as Boeing, Deutsche Bank, IBM, UBS, T-Mobile and Dell.
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 development centers in Moscow, St. Petersburg, Dubna and Omsk in Russia as well as centers in Kiev and Odessa, Ukraine and Vancouver, Canada.
Luxoft was named the world's #1 IT Outsourcing Product Engineering vendor in the 2006 Black Book of Outsourcing and won the National Outsourcing Association's "Financial Outsourcing Project of the Year 2006" award. The company has also been recently recognized by BusinessWeek as the top emerging outsourcing provider in Russia and Eastern Europe and was the only IT Company to be recognized with a Russia's Best Employer 2006 awards given by the Russian Chamber of Commerce and other leading Russian employment and business agencies.