While we all focus on China and India, we risk missing strong new competitors rising up from other regions.  Originally a Russian outsourcing firm, Luxoft has been rapidly growing its business.  Two recent announcements clearly demonstrate the company’s global ambitions.  This week, Luxoft acquired ITC Networks (Romania).  Earlier this year, they established a new venture in Vietnam.  Luxoft may be setting up to do an end run around all of us.

With the ITC acquisition, Luxoft will have over 3000 employees, more than a dozen globally distributed development centers and a revenue run rate greater than $150M.  This scale would easily put them very near the top of the tier 1 Chinese vendors.

Both Luxoft and ITC Networks have made tentative moves towards establishing development centers in China, but they don’t seem to have found the right opportunity, yet.  I wouldn’t be at all surprised to see some progress on this front in the near future, however.

Luxoft is a member of Russia’s IBS Group, a collection that also includes IBS (Information Business Systems) Company and DEPO Computers.  The group provides a range of services and products to the global IT industry, with a special focus on Russia’s rapidly growing business infrastructure.

Keep an eye on this organization.  They are smart, aggressive and could leave us all in the dust.

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