Vendor Analysis
published on May 29, 2018
Report Overview:
This NelsonHall vendor assessment analyzes Luxoft's offerings and capabilities in Cloud Advisory, Assessment, and Migration Services.
Who is this Report for:
NelsonHall’s Cloud Advisory, Assessment and Migration Services Vendor Assessment for Luxoft is a comprehensive assessment of Luxoft’s cloud advisory, assessment and migration services offerings and capabilities designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for cloud consulting services
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in cloud consulting services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Luxoft’s cloud advisory, assessment and migration service offerings, capabilities and market and financial strength, including:
- Analysis of the company’s offerings and key service components
- Revenue estimates
- Identification of the company’s strategy, emphasis and new developments
- Analysis of the profile of the company’s customer base and examples of current contracts
- Analysis of the company’s strengths and weaknesses.
Key Findings & Highlights:
Luxoft was formed in 2000 as a spin-off from Russian engineering firm IBS. It went public in June 2013; at this time, it was heavily centered on Eastern European delivery, with ~80% of its delivery pool located in the Ukraine and Russia. As it has grown and expanded, its delivery capability has also grown, and only ~31% of its delivery was in Ukraine as of March 31, 2016.
Its largest client footprint is in financial services, with its two largest clients Deutsche Bank, a relationship which began with a 30 FTE team in Moscow in 2003; and UBS, which started as a 60 FTE engagement in 2006.
With a focus on implementing digital solutions and product engineering, as well as aggressive growth plans, Luxoft has undertaken approximately ten tuck-in acquisitions to expand its capabilities, offerings, and focus industries in the last few years.
Luxoft's cloud capabilities are primarily positioned to support its broader digital transformation capabilities such as implementing IoT, big data, and blockchain. Of its acquisitions, the following have enhanced its cloud capabilities:
- Radius: in October 2014. Radius brought 150 resources in Seattle and became the basis of Luxoft's IoT and big data capabilities. This team also formed the foundation of Luxoft's cloud consulting capabilities
- Insys: in July 2016. This acquisition expands Luxoft's consulting capabilities targeting healthcare, telecom, and pharma, as well as increasing its North American footprint with 400 FTEs in the New York/New Jersey metro area
- IntroPro: in February 2017. This acquisition expands Luxoft's telco, media, and technology-focused offerings including enterprise and embedded software such as cloud-enabled set-top boxes.
In 2017, Luxoft re-organized to combine specific centers of excellence with R&D into the associated technologies. With this reorganization, Luxoft believes its CoEs can take a longer view on how emerging technologies can be incorporated in its services.
