LUXOFT, the leading provider of Russian software development services, has become the first company in the world to achieve CMM and CMMI Level 5 certifications simultaneously, as well as the first company in Europe to achieve CMMI Level 5. LUXOFT now joins the elite club of companies that have attained the highest ratings from the Software Engineering Institute (SEI) of Carnegie Melon University.

The SEI ratings of CMM and CMMI assure process maturity and assist customers in selecting reliable and low-risk suppliers of software products and services. SEI’s maturity ratings are earned through an exhaustive independent evaluation involving the analysis and review of a company’s software development processes. SEI-authorized Lead Appraiser, Jacques Jourbert from ALSTOM Transport, conducted the comprehensive appraisal at LUXOFT’s facility and headquarters in Moscow, Russia. “Witnessing the LUXOFT journey towards CMM and CMMI Level 5 was a professional pleasure,” Mr. Joubert commented. “Their achievement is an ideal example of commitment and the ability to acquire success. Few companies have demonstrated such a strong commitment in my experience. The processes and systems are well managed internally and provide a strong foundation for continuous company growth.”

Top SEI Appraisal Will Translate into More Contracts Worldwide

LUXOFT management values the appraisal as a means of expanding business opportunities around the world, and especially in the US. “SEI’s top certification achievement has validated LUXOFT as offering world class software development sourcing capabilities,” said Ilya Billig, Vice President of LUXOFT. “With a Level 5 rating, LUXOFT will be able to lower general expenses on software development by 20% and decrease repetitive work by 18%, thereby greatly improving our appeal to our clients.”

The Level 5 rating sets LUXOFT apart from all competitive companies in Europe. “We are proud to be the first company in Europe to achieve CMMI Level 5,” said Simon Milman, Quality Director of LUXOFT. “LUXOFT’s example sets the standard and issues a challenge to all software development companies in Russia. The CMM and CMMI Level 5 ratings indicate our commitment to deliver the highest value and quality to our customers, and distinguish LUXOFT as an organization dedicated to the successful, on-time and on-budget delivery of information technology to address the strategic business needs of our clients.”

Outsourcing to Russia Expected to Increase Dramatically

LUXOFT takes a partnership approach with systems integrators (SI) and independent software vendors (ISV) in the role of an outsourcer. Many SIs and ISVs experience the increasing price pressure from the companies that already have outsourcing partners. Luxoft CEO Dmitry Loschinin is proposing a solution to these companies in the US and Europe, “We are not going to compete with US and European system integrators and ISVs. We see our role as a company that can quickly and professionally set up the Offshore Dedicated Center for our partners. This is a very scalable (easily scaling up or down) and efficient model and one we know how to implement well.” Outsourcing software programming and engineering services to contractors or wholly-owned facilities in foreign countries — also known as Offshore Software Development or OSD — is increasingly common and is usually motivated by the need to lower IT cost while increasing the number and complexity of IT projects in the organizations. Outsourcing can also be a way of gaining access to specific technical skills not otherwise available. Companies in Russia are making a strong bid for a major share of the outsourcing market, foremost among them being LUXOFT.

According to Analyst Vladimir Kroa of IDC Research, “In 2003, outsourcing companies in Russia intensified their efforts to break into new markets and to expand their share in this growing global business. Russia is particularly well positioned to benefit from the demand for custom development services and maintenance services. Russian companies are more assertive in capturing a slice of the offshore component of the global IT services market. They are seeking to become a provider of intellectual capital, producing specialists able to create sophisticated algorithms and solve problems to differentiate itself from Indian competition.”

With its simultaneous attainment of Level 5 in both CMM and CMMI, LUXOFT is now poised to exert a dominant position in the OSD market worldwide. “We are excited and challenged by the mounting opportunities now facing us,” said LUXOFT Vice President Ilya Billig. “We are eager and ready to serve a cadre of new customers from around the globe.”

About Outsourcing to Russia

For four consecutive years Russia has enjoyed a stable economic growth. With a significant R&D heritage, one of the world’s best educational systems, and the largest pool of highly qualified software engineers and researchers, the country is the ideal destination for outsourcing of complex software engineering and R&D projects. The country is regarded as a key outsourcing provider by major U.S and European companies, such as Boeing, Intel, Motorola, IBM, Sun Microsystems and many others running and expanding their innovative R&D centers in Russia. The true evidence of the country’s success is in the recent achievement of investment grade status by independent Moody’s Investment Services. Russia is also premiered as one of the world’s 10 most attractive countries for direct foreign investments.

LUXOFT ( is the leading provider of software development and R&D services in Russia and has built a reputation for creative problem solving and for delivery of complex solutions. LUXOFT’s work with multinational IT, manufacturing, energy, financial services, and aerospace companies give the company a solid base of knowledge from which to grow its vertical industry expertise. With offices in Washington, Atlanta, England, Germany, as well as several development centers across Russia and CIS, LUXOFT serves the world’s leading companies, such as Boeing, IBM, Dell, and Deutsche Bank. Luxoft is a member of the IBS Group, Russia’s largest and most successful IT enterprise established in 1992, which now has over 3,000 employees that provide solutions to Russian, European and US customers. Shell, British Petroleum, JP Morgan, Ford, Mars, and the US Department of Energy are some of the major customers noted in the IBS roster.