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This is why Luxoft sees Malaysia as key to APAC expansion: interview

AvantiKumar | Oct. 25, 2017
Listed on the New York stock exchange, Luxoft’s Dmitry Kushnir and Patrick Corcoran told Computerworld Malaysia that MDEC was one of the attractors for the company.

businessman-software (Storyblocks)

Credit: Storyblocks


  Listed on the New York stock exchange, software development and IT services company Luxoft has ramped up its expansion plans into the Asia Pacific region this year with a new base in Penang, Malaysia, as one of its major moves.

Already serving a global client base across core industries such as financial services, automotive, and telecommunications, Luxoft now has three existing offices in APAC - Singapore, Sydney, and Ho Chi Minh City.

When asked why Malaysia has been chosen as a key base, Dmitry Kushnir (pic below), vice president for Global Delivery, and  Patrick Corcoran, global director of External Affairs at Luxoft, told Computerworld Malaysia that MDEC (national ICT agency Malaysia Digital Economy Corporation) has been one of the positive reasons for the company's decision.

Dmitry Kushnir - Luxoft

Luxoft has now been granted Multimedia Super Corridor (MSC) Malaysia status from MDEC, which opens up a wide range of incentives for the company, including fast tracking of expatriate relocations, tax incentives and operational support.

"We are pleased to be granted MSC Malaysia status," Kushnir had commented. "Penang has an excellent combination of infrastructure, educational systems, government support and a desirable climate that appeals to our senior European engineers," he said.

"Malaysia offers a strong local talent pool that we believe will blend well into our recruitment process and ensure smooth onboarding process of new hires into the global Luxoft delivery system via our proprietary training programmes," he added.

The Penang office launch in APAC expands Luxoft's total office count to 42, spread across 21 countries in multiple regions. The Company will continue adding global offices to support new business opportunities and to grow existing strong client relationships.

The Penang base also allows nearshore access to its senior IT talent for clients in this region along with the benefit of using the entire ecosystem of the company's global delivery.

In a Computerworld Malaysia 'rapidfire' interview, Dmitry Kushnir and Patrick Corcoran (pic below) offer up more of the story behind the Luxoft's APAC vision.

Patrick Corcoran - Luxoft

Their responses have been condensed into the following QA format.

Why was the Penang office set up?
Basically, Luxoft is expanding its presence in the Asia Pacific region and the new Malaysia office complements the presence the company has already established in Singapore and Vietnam, as well as in India more recently.

The Multimedia Super Corridor (MSC) Malaysia status accredited to us by MDEC certainly has provided the incentives and operational support, which then catapulted Penang ahead of its competition.

This has allowed us to provide nearshore resources to organisations in Asia Pacific countries, which is ultimately why we opened the Penang office in the first place.
What excites you about your plans (short and long term) for Malaysia and also this region?
 The short term delivery opportunities in the automotive, finance and telecommunications sectors are hard to ignore.
 We can now more easily access our clients operating in APAC, and offer the same standard of service as we do in Europe and America.
 However, what's particularly exciting about Malaysia is its strong talent pool. This will help us strengthen our presence in the region and allows us to offer the standard of service our clients expect.
 What challenges are you eyeing this year?
As a company moving into a new jurisdiction, the main challenge we've had is with our brand recognition on the ground.

Attracting the top talent in Malaysia is important as we want to offer a premium service.

A little over two years ago, we experienced a similar situation when opening a new centre in Guadalajara, Mexico. However, within a year we were ranked 2nd on the Mexico IT and Telecoms list of great places to work and we're top in the latest rankings.

 So we're now are looking to leverage the same, strong employer branding techniques deployed in Mexico and developed in Europe, to the Malaysian job market.
What local success stories can you can share?

As a company, Luxoft has been quietly successful in Southeast Asia for some time. We have two established delivery centres in Vietnam and Singapore - both have been operational for more than five years each and employ hundreds of local people.

We're basically transferring what we've done in these countries, locally, to Penang.
What are your immediate plans?
Luxoft is expanding its operations in Asia, using the same delivery model that we offer to clients in Central and Eastern Europe.

Our recent acquisition of a Singapore based financial services company - DerivIT - allowed us to add several new delivery centres in areas such as India, the UAE and another in Singapore as well as providing a platform for us to explore opportunities in Australia and Hong-Kong.

There is real demand for packaged software in the APAC region across many industries and we are in a strong position to take advantage of this.

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