Luxoft
Luxoft is a global software engineering and digital transformation firm specializing in bespoke technology solutions for enterprise clients, founded in 2000 and headquartered in Zug, Switzerland.[1][2] Acquired by DXC Technology in June 2019 for approximately $2 billion, it operates as a subsidiary with over 17,000 employees across 21 countries, delivering services including application development, product engineering, cloud modernization, data analytics, and intelligent automation tailored to mission-critical processes in industries such as automotive, financial services, telecommunications, and healthcare.[3][4][5] The company emphasizes engineering excellence and industry-specific expertise to drive business outcomes, with a focus on scalable, outcome-based software for digital innovation and legacy system upgrades.[1][6]Overview
Corporate Profile and Ownership
Luxoft is a global software engineering and digital transformation company that provides IT services, including data analytics, advanced testing, automation, and industry-specific solutions to enhance operational efficiency and innovation.[7] Founded in 2000, the company employs over 17,000 professionals, with more than 60% of its engineers holding master's, doctoral, or PhD degrees, and operates 61 offices across 29 countries while serving clients in 75 countries.[1] [8] Its workforce focuses on distributed Agile teams to deliver scalable, outcome-based software solutions for sectors such as automotive, finance, and telecommunications.[1] Luxoft functions as a wholly owned subsidiary of DXC Technology, following DXC's acquisition of the company on June 14, 2019, for approximately $2 billion in an all-cash transaction valued at $59 per share.[3] [4] The acquisition allowed Luxoft to retain its brand identity and operational leadership under CEO Dmitry Loschinin, integrating its digital capabilities into DXC's broader portfolio of mission-critical IT services.[4] Prior to the buyout, Luxoft was publicly traded on the New York Stock Exchange under the ticker LXFT.[9] Headquartered in Zug, Switzerland, Luxoft maintains strategic autonomy in its service delivery model post-acquisition.[10]Services and Core Competencies
Luxoft specializes in providing bespoke software engineering and digital transformation services, focusing on scalable, outcome-based solutions for mission-critical processes across industries such as automotive, financial services, and telecommunications.[1] Its core competencies include advanced engineering practices, leveraging distributed Agile teams with digital-native processes developed over two decades, and deploying industry-specific accelerators to accelerate time-to-market.[1] Over 60% of its engineering teams hold master's degrees, doctorates, or PhDs, enabling high expertise in complex software development.[1] Key services encompass a broad spectrum of enterprise technology offerings, from legacy IT modernization—boasting a 100% success rate in mainframe projects—to intelligent automation that reduces costs and enhances revenue strategies.[5] Engineering services align technical solutions with business objectives, while QA automation shortens regression cycles, lowers expenses, and increases test capacity.[5] Cloud services emphasize stability, scalability, and cost control, including specialized competencies like AWS Automotive Competency for transforming automakers' operating models.[5][11] Additional competencies include data analytics to derive actionable insights from data, human-centered design for creating user-focused digital experiences, and innovation strategy services drawing on 20+ years of cross-industry experience.[5] Luxoft's Agile and DevOps capabilities support digital transformation initiatives, often integrated with emerging technologies like blockchain and connected vehicle solutions.[5] These offerings are delivered through co-development models that prioritize client collaboration and operational efficiency.[1]History
Founding and Early Expansion (2000–2012)
Luxoft was founded in March 2000 in Moscow, Russia, by Dmitry Loschinin as a spin-off from IBS Group, evolving from an earlier development center established by IBS in 1995.[12][13] Initially comprising a small team of approximately 20 software engineers, the company specialized in custom software development and IT services, targeting sectors such as financial services, automotive, and telecommunications, with a focus on nearshore delivery from Eastern Europe to Western clients.[14] This structure leveraged cost-effective engineering talent while serving demanding international projects, enabling early revenue growth through contracts with European and U.S. firms.[15] By 2006, Luxoft had expanded to over 1,000 employees and achieved annual revenue exceeding $50 million, reflecting robust demand for its application development and product engineering expertise.[15] The company established delivery centers primarily in Russia and began international expansion, opening offices in key markets including the United States, United Kingdom, and Germany to facilitate client proximity and sales operations.[15] In July 2008, Luxoft acquired ITC Networks, a Bucharest-based software outsourcing firm, marking its entry into Romania and enhancing capabilities in telecommunications software.[16][17] This move strengthened its Central and Eastern European footprint, adding specialized engineering resources amid growing EU-oriented projects. Further growth through 2012 saw workforce expansion to 4,273 personnel by March 2011, driven by organic hiring in engineering hubs like Kiev and Odessa in Ukraine, alongside Russian operations.[12] In 2010, Luxoft opened its first office in Krakow, Poland, capitalizing on the region's skilled labor pool and proximity to Western European clients.[18] These developments positioned Luxoft as a key player in global software outsourcing, with a majority stake retained by IBS Group until its pre-IPO carve-out, emphasizing scalable delivery models over fragmented local markets.[12]Public Listing and Growth Phase (2013–2018)
Luxoft Holding, Inc. completed its initial public offering on June 26, 2013, listing on the New York Stock Exchange under the ticker symbol LXFT.[19] The IPO was priced at $17 per share, with the company and its parent entity, IBS Group Holding Ltd., each offering 2.05 million Class A ordinary shares, raising approximately $69.7 million in net proceeds before underwriting discounts.[20][21] Underwriters, including UBS Investment Bank, Credit Suisse, and J.P. Morgan, were granted a 30-day option to purchase up to 613,810 additional shares to cover over-allotments.[20] Shares opened strongly, reflecting investor interest in Luxoft's position as a provider of IT services leveraging talent from Central and Eastern Europe.[22] Post-listing, Luxoft pursued aggressive expansion, with revenues growing from approximately $320 million in the fiscal year ended March 31, 2013, to $906.8 million in the fiscal year ended March 31, 2018, driven by organic growth and client diversification.[12][23] Key sectors fueling this included financial services, which contributed steady double-digit increases, and automotive/transport, which saw accelerated demand for software engineering in connected and autonomous technologies.[24] By fiscal 2018, adjusted EBITDA margins remained robust amid this expansion, though the company noted challenges from client concentration in top accounts.[23] Strategic initiatives supported this phase, including workforce scaling to over 10,000 employees globally by September 2015 and establishment of new delivery centers, such as in Seattle, Washington, to enhance proximity to North American clients.[25] Luxoft also pursued inorganic growth through targeted acquisitions, completing multiple deals in 2016 and 2017 to bolster capabilities in software development and industry-specific solutions.[26] In 2018, it acquired Objective Software GmbH in August to strengthen expertise in autonomous driving and connected mobility, and Smashing Ideas in June to expand digital design and innovation services.[27][28] These moves aligned with Luxoft's aim to diversify beyond traditional outsourcing toward high-value engineering, particularly in automotive, targeting significant revenue contributions from the sector by fiscal 2020.[29]Acquisition by DXC Technology (2019)
On January 7, 2019, DXC Technology announced a definitive agreement to acquire Luxoft Holding, Inc., a global provider of digital strategy and software engineering services, in an all-cash transaction for $59 per share, valuing the deal at approximately $2 billion and representing a 48% premium to Luxoft's unaffected closing stock price on the prior trading day.[30][31] The acquisition targeted integration of Luxoft's specialized capabilities in areas such as agile software development, cloud engineering, and industry-specific solutions for sectors including automotive, financial services, and healthcare, aiming to enhance DXC's end-to-end digital transformation portfolio and expand its talent base of over 13,000 Luxoft employees across 40+ locations.[30][4] The transaction required customary closing conditions, including shareholder approval from Luxoft's holders and regulatory clearances from antitrust authorities in multiple jurisdictions.[30] DXC anticipated closure by June 2019, subject to these approvals, with no major reported obstacles during the process.[31] Final regulatory approval was secured on June 11, 2019, following reviews that confirmed compliance with competition requirements.[3][32] DXC completed the acquisition on June 14, 2019, with Luxoft becoming a wholly owned subsidiary while retaining its brand and operational focus on digital innovation.[3][33] The deal was financed through DXC's cash reserves and debt, aligning with its strategy to prioritize high-growth digital services amid a shifting IT services market.[31] Post-acquisition, Luxoft's leadership emphasized continuity in client delivery and talent retention to support DXC's expanded offerings.[3]Post-Acquisition Developments (2020–Present)
In the years immediately following its acquisition by DXC Technology on June 14, 2019, Luxoft underwent integration into DXC's broader portfolio, particularly enhancing the company's Global Business Services (GBS) segment focused on digital engineering and transformation. By fiscal year 2020, Luxoft's contributions drove a 5.3% year-over-year increase in GBS revenues, as reported in DXC's fourth-quarter results, reflecting synergies in software development and IT modernization services.[34] This integration preserved Luxoft's operational autonomy under the "Luxoft, a DXC Technology Company" branding, allowing it to maintain specialized offerings in automotive, financial services, and telecommunications while leveraging DXC's scale for client delivery.[7] A key early development was the April 9, 2020, acquisition of CMORE Automotive, an independent provider of data-driven services for autonomous driving and advanced driver-assistance systems (ADAS). This deal, finalized after regulatory approval on March 24, 2020, bolstered Luxoft's expertise in validation and testing for Level 3 to Level 5 autonomy, aligning with growing demand in the automotive sector.[35] The acquisition expanded Luxoft's engineering talent and tools for simulation-based development, enabling deeper integration of AI and sensor data processing into DXC's offerings.[36] Subsequent strategic partnerships underscored Luxoft's role in high-growth areas. On May 24, 2022, Luxoft partnered with CARIAD, Volkswagen Group's software arm, to develop scalable platforms for in-vehicle software across VW brands, emphasizing unified architecture for infotainment, connectivity, and electrification.[37] This collaboration extended into ongoing projects showcased at CES 2025, where DXC Luxoft highlighted advancements in vehicle software testing and integration for CARIAD.[38] In June 2024, Luxoft announced a tie-up with ECARX, combining ECARX's digital cockpit and ADAS hardware with Luxoft's domain knowledge to accelerate OEM transitions to software-defined vehicles and subscription-based models.[39] These initiatives positioned Luxoft as a core driver of DXC's automotive digital transformation, focusing on end-to-end engineering from concept to deployment. As of 2025, Luxoft operates with over 17,000 employees across 21 countries, headquartered in Zug, Switzerland, and continues to emphasize agile methodologies and cloud-native solutions within DXC's ecosystem.[7] No major divestitures or structural overhauls have been reported, with Luxoft's digital focus mitigating some of DXC's broader IT services challenges amid market shifts toward specialized engineering.[34]Operations
Industries Served and Key Clients
Luxoft delivers software engineering, digital transformation, and consulting services across a diverse array of industries, leveraging domain-specific expertise to address complex technological challenges. Primary sectors include automotive, where the company specializes in software-defined vehicles, autonomous driving systems, connected mobility, and user experience design for digital cockpits; financial services, encompassing banking, capital markets, and insurance with solutions for core banking modernization, risk management, regulatory compliance, and client lifecycle management; and healthcare and life sciences, focusing on digital medical devices, AI-driven predictive maintenance, patient experience enhancement, and revenue cycle optimization through technologies like blockchain.[40][41][42][43] Additional industries served encompass telecommunications for network automation and new business models; energy and utilities, including oil and gas, for infrastructure software and sustainability solutions; manufacturing for productivity-enhancing applications; retail and e-commerce for scalable digital platforms; travel, hospitality, transportation, and logistics for strategy and engineering in sustainable operations; media for consumer-centric entertainment tech; networking and technology for enhanced capabilities; and consumer goods for innovation-driven redefinition. The company's work in these areas draws on over 17,000 employees globally, with specialized teams such as 7,300 financial IT experts and 500+ healthcare engineers, supporting more than 350 active financial clients and 200+ healthcare projects.[40][42][43] Notable key clients include automotive firms like Ford and Harman for vehicle software platforms; financial institutions such as Deutsche Bank, UBS, and 17 of the top 20 global banks for trading, treasury, and compliance systems; aerospace leader Boeing for engineering partnerships; and travel technology provider Sabre. Other engagements involve Alstom in transportation, Avaya in communications, and retail jeweler Blue Nile for UX redesigns, alongside unnamed top-30 banks and Swiss institutions in case studies demonstrating data platforms, CLM transformations, and urban mobility solutions. These relationships, often long-term, highlight Luxoft's role in mission-critical projects, though client concentration risks were noted pre-acquisition, as with Deutsche Bank's retrenchment impacting revenue.[10][42][44][45]Global Presence and Workforce
Luxoft operates 61 offices across 29 countries, enabling a global delivery model that combines onshore, nearshore, and offshore capabilities for flexible staffing and business continuity.[1] Its footprint spans North America, Europe, Asia, the Middle East and Africa, and South America, with major hubs supporting software engineering, digital transformation, and client proximity.[46] Headquartered in Zug, Switzerland, the company maintains significant presence in key markets such as the United States (offices in New York, Bellevue, and Farmington Hills), Canada (Toronto), and Mexico (Guadalajara) for North American operations.[46] In Europe, Luxoft has extensive delivery centers, including large facilities in Eastern Europe like Kyiv, Ukraine (over 4,000 employees), Belgrade, Serbia, Sofia, Bulgaria, and Bucharest, Romania, alongside Western European sites in Germany (Stuttgart, Berlin, Munich), the United Kingdom (London), the Netherlands (Eindhoven), and Italy (Turin).[46] Asia-Pacific operations include prominent centers in India (Bangalore with over 2,300 employees, plus Chennai, Noida, and Pune), China (Shanghai), Singapore, Australia (Macquarie Park near Sydney), Vietnam (Ho Chi Minh City), and South Korea (Seoul).[46] Additional locations cover the Middle East (Doha, Qatar; Cairo, Egypt; Istanbul, Turkey) and South America (Buenos Aires, Argentina; Sao Bernardo do Campo, Brazil).[46] The workforce exceeds 17,000 employees globally, with over 60% holding advanced degrees such as master's or PhDs, emphasizing engineering expertise in software development and analytics.[1] This distributed model leverages location diversity to optimize cost, talent access, and time-zone alignment, though it has faced challenges from geopolitical events affecting sites like Ukraine.[46] Post-acquisition by DXC Technology in 2019, Luxoft's operations have integrated while retaining brand-specific global agility.[1]Technological Focus Areas
Luxoft's technological focus encompasses software engineering for digital transformation, emphasizing scalable solutions in cloud-native architectures, DevOps practices, and agile development methodologies to modernize legacy systems and enable enterprise-wide innovation.[7][1] The company integrates emerging technologies such as artificial intelligence (AI), machine learning (ML), Internet of Things (IoT), and blockchain to address mission-critical processes, with reported expertise in analytics and user experience design supporting outcome-based implementations.[47][48] In the automotive sector, Luxoft specializes in embedded systems, advanced driver-assistance systems (ADAS), connected car platforms, and autonomous driving software, collaborating on software-defined vehicles and vehicle-to-everything (V2X) communications through partnerships like those with Continental and ECARX.[49][39] These efforts include test and integration for software in safety-critical environments, leveraging domain-specific knowledge in graphics, AI/ML for perception, and full-stack digital cockpits.[50] Financial services form a core domain, where Luxoft delivers core banking modernization—such as upgrades to platforms like Temenos Transact—alongside capital markets technologies for trading, settlement, treasury, liquidity management, and regulatory reporting.[51][52] Solutions here incorporate data analytics platforms (e.g., Dataiku with Cloudera storage and Tableau visualization) and automation to enhance efficiency and compliance.[53] Telecommunications and networking expertise centers on 5G core networks, radio access network (RAN) services, mobile core automation, data center orchestration, unified communications, and software-defined connectivity, enabling cloud-native applications and deep packet inspection for service providers.[54] Across industries, Luxoft applies these capabilities to solve operational challenges, such as implementing data-fueled organizations in mobility trends and hybrid cloud integrations for mainframes.[55][56]Acquisitions and Strategic Expansions
Pre-Acquisition Acquisitions
Luxoft engaged in multiple acquisitions between 2008 and 2018 to expand its engineering expertise, geographic footprint, and industry verticals, particularly in automotive software, financial services technology, telecommunications, and digital innovation. These moves supported the company's growth strategy following its 2013 IPO, enabling it to integrate specialized talent and intellectual property while targeting high-growth areas like connected mobility and wealth management systems.[57] In 2008, Luxoft acquired ITC Networks, a Bucharest-based provider of software engineering services for the telecommunications sector, marking its initial expansion into Romania and strengthening telecom capabilities amid Eastern European market growth.[16] The period from 2016 to 2018 saw accelerated activity, with Luxoft completing seven notable deals:| Year | Acquired Company | Location | Strategic Focus |
|---|---|---|---|
| 2016 | INSYS Group | United States | IT management and consulting for healthcare, pharmaceuticals, and biotech industries, enhancing North American presence and domain-specific advisory services.[58] |
| 2016 | Pelagicore AB | Sweden | Software platforms for in-vehicle infotainment and automotive systems, bolstering embedded software and open-source solutions for connected vehicles.[57] |
| 2017 | IntroPro | Ukraine | Telecommunications and technology engineering, expanding embedded systems and enterprise solutions in Eastern Europe.[59] |
| 2017 | derivIT | Singapore | Financial services technology consulting, including Murex implementations, to deepen APAC footprint and capital markets expertise.[60] |
| 2017 | UNAFORTIS AG | Switzerland | Wealth management consulting and Avaloq platform implementations, supporting European financial services growth.[61] |
| 2018 | Smashing Ideas | United States (Seattle) | Digital design and innovation consulting, adding user experience and product strategy capabilities for fintech and other sectors.[62] |
| 2018 | Objective Software GmbH | Germany | Autonomous driving, ADAS, and connected mobility software, integrating IP for scaling automotive engineering practices.[27] |
Post-Acquisition Integrations
Following the completion of DXC Technology's acquisition of Luxoft on June 14, 2019, for approximately $2 billion, integration efforts focused on leveraging Luxoft's digital engineering expertise to enhance DXC's portfolio without immediate full operational merger. DXC outlined a standard integration planning process to align systems, processes, and talent, emphasizing synergies in high-growth verticals such as automotive, financial services, and software engineering, where Luxoft's 13,000 employees and global delivery centers added scale to DXC's offerings.[65][31] In the short term, Luxoft operated as an independent unit under the "Luxoft, a DXC Technology Company" branding, retaining its operational model, client relationships, and brand identity to preserve its specialized digital innovation capabilities and mitigate risks of talent attrition in a competitive engineering talent market.[66] Post-acquisition integration costs were recognized separately and expensed, reflecting expenses for aligning financial reporting, compliance, and shared services, while goodwill from the deal—attributed to anticipated revenue synergies and cost efficiencies from combining DXC's infrastructure strengths with Luxoft's agile development—was recorded at $1.1 billion.[67] This approach allowed DXC to address its pre-acquisition challenges in digital services growth by accessing Luxoft's vertical depth, though it required diverting management resources from core operations, potentially straining execution amid broader market pressures.[68][69] By maintaining Luxoft's autonomy, DXC avoided deep cultural clashes but limited rapid full-scale synergies, as evidenced by continued separate reporting of Luxoft's contributions to DXC's digital revenue streams. Under DXC's ownership, Luxoft pursued strategic expansions that integrated new capabilities into the parent entity's ecosystem, including the acquisition of CMORE Automotive on April 9, 2020, which bolstered expertise in embedded systems and human-machine interfaces for the automotive sector.[70] This move exemplified post-acquisition integration by folding CMORE's specialized services into Luxoft's offerings, enhancing DXC's end-to-end digital transformation capabilities for clients in connected vehicle technologies.[71] Additionally, Luxoft formed alliances, such as with Fenergo in September 2019, to accelerate platform implementations in financial services, demonstrating how integration enabled cross-pollination of DXC's mission-critical IT with Luxoft's software engineering to realize client-facing synergies without full structural overhaul.[72] By 2025, this model persisted, with "DXC Luxoft" branding in events like CES, indicating sustained semi-independent operations focused on innovation hubs rather than complete assimilation.[38]Financial Performance
Revenue and Growth Metrics Pre-2019
Luxoft Holding, Inc. achieved sustained revenue expansion in the period preceding its 2019 acquisition by DXC Technology, with annual sales of services rising from $314.6 million in the fiscal year ended March 31, 2013, to $906.8 million in the fiscal year ended March 31, 2018.[15][23] This trajectory reflected the company's focus on software development outsourcing, particularly in financial services and automotive sectors, amid global demand for digital transformation services.[15] The following table details Luxoft's reported revenue and year-over-year growth rates for fiscal years 2013 through 2018, based on U.S. GAAP figures from SEC filings and company disclosures:| Fiscal Year Ended March 31 | Revenue ($ millions) | YoY Growth (%) |
|---|---|---|
| 2013 | 314.6 | - |
| 2014 | 398.3 | 26.6 |
| 2015 | 520.5 | 30.7 |
| 2016 | 650.8 | 25.0 |
| 2017 | 785.6 | 20.7 |
| 2018 | 906.8 | 15.4 |