Hexaware Technologies

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Hexaware Technologies Limited
Public
Traded as BSE532129
NSEHEXT
Industry IT services
Founded 1990
Founder Atul Chandra Nishar
Headquarters Navi Mumbai, Maharashtra, India
Area served
Worldwide
Key people
R.Srikrishna
Services Information Technology and Business Process Outsourcing
Profit Increase 35,349 million (US$530 million) (2016)[1]
Number of employees
12,115 (Q4 2016)
Website www.hexaware.com

Hexaware Technologies Limited (HTL) (BSE532129, NSEHEXT) is an information technology and business process outsourcing service provider company based in Navi Mumbai, India. Founded in 1990. The company provides software services in Banking and Financial services, Health care and Insurance, Travel and Transportation and Manufacturing and consumer.[2] The company specializes in an array of areas encompassing Application Transformation Management, Enterprise Solutions, Business Intelligence & Analytics, Digital Assurance, Infrastructure Management Services, Digital and Business Process Services.

On 28 July 2014 Hexaware Technologiesannounced the appointment of R Srikrishna as the Chief Executive officer. The company has its headquarters in Mumbai and has offices across US, Mexico and Canada in North America, Brazil in South America, Sydney in Australia, Singapore, Japan, India, China and UAE in Asia and UK, Germany, Bucharest and Netherlands in Europe.

Current employee strength is above 12,115 with over 219 clients.[2] After starting facilities in Chennai,[2] the company started its third development center in Pune in 2006.[2] In a separate survey of 2006, it was rated the sixth Best IT Employers from India.[3] The company is presently listed amongst the top 20 IT services providing firms (NASSCOM). Hexaware has been recognized as the fastest growing outsourcing provider by Asia Outsourcing Congress for the year 2015-2016.[4] The company is listed among Asia's 200 best under a Billion on Forbes.[5]

History[edit]

Origin of Hexaware[edit]

Hexaware is a spin-off of the erstwhile Apple Industries, the IT arm of the reputed computer training company Aptech.[6] Aptech was founded by Atul Nishar in 1984. Aptech grew to be the leading global training outfit with over 2400 centres across 52 countries. Later the company started providing business solutions, which functioned for nearly a decade.

Hexaware is Founded[edit]

In 2001, Aptech was renamed as "Hexaware Technologies Limited". The training division activities were demerged into Aptech and business solutions were made part of Hexaware Technologies ltd. In 2002, Aptech was sold to SSI.[7] Even as Atul Nishar exited Aptech, he continued to be on the board of the company till 2003.

Early Years of Hexaware[edit]

Another important aspect to note is that, during the 90's Hexaware has come a long way with its revenue shooting up from $50 million to $250 million, within a decade. In 2004, a European Development Center was unveiled in Germany and an independent BPO firm – Caliber Point was launched.[2] On 9 December 2013, Hexaware Technologies announced that its directors in the board meeting have approved the merger of the wholly owned subsidiary company, Caliber Point Business Solutions (a BPO service provider) with the company. The company also acquired a software testing company called Focus Frame in 2006 for 34.3 million USD.[5]

Major Financial Setbacks in 2003[edit]

Hexaware was working on a "Build, Operate, and Transfer" (BOT) deal with PeopleSoft in 2003. The company was one of the top five vendors for PeopleSoft Inc globally and the number one vendor from India. The PeopleSoft practice of Hexaware accounted for nearly one third of its revenues in the first half of 2004. But later in 2005, Hexaware faced a big financial challenge when PeopleSoft was acquired by Oracle. The company's revenue was brought down by 14%.[6]

Strengthening Leadership Team[edit]

In August 2004, Hexaware promoted Rusi Brij as Vice Chairman and Chief Executive Officer (CEO).[8] The company was very successful and experienced high level growth, as per its annual reports and other media news. Hexaware became one of the fastest growing software services companies among the Top 20 software exporters from India.The leadership team is further strengthened. In June 2008, Hexaware appoints P.R Chandrasekar as CEO and Vice Chairman and he joins Hexaware from Wipro. P.R.Chandrasekhar replaces Brij.

A period of steady growth[edit]

In 2010,the company has also established a new global delivery center in Bengaluru, India. In 2013, the company inaugurated its latest Global Delivery Centre (GDC) at Frisco, near Dallas in the state of Texas, USA. Hexaware has its third Global Delivery Center (GDC) in Saltillo, Mexico. In 2013, the company started its Global Delivery Center in Texas, USA and in the same year, a new center was opened in Singapore.

Baring buys Hexaware Tech for $465 mn[edit]

On 23 August 2013, Singapore-based Baring Private Equity Asia had announced its decision to buy a 70% stake in Hexaware, including the stake of Hexaware's founder-chairman Atul Nishar and that of private equity firm General Atlantic, for Rs.1,687 crore.[9] Atul Nishar remains as a non-executive chairman of Hexaware and P.R.Chandrasekar as the Chief Executive Officer (CEO) of the company.

Current[edit]

June 2014, Hexaware ropes in HCL Technologies' R Srikrishna as CEO.[10] Srikrishna was the president of infrastructure and life sciences businesses at HCL.

A Major Brand Revitalization- "Shrink IT Grow Digital" initiative[edit]

In 2015, the firm embarked on revitalizing its brand positioning through its two-pronged strategy Shrink IT Grow Digital.[11] The company's focus is on "Shrinking IT" while "Growing Digital". The company's renewed focus will be on helping customers transform from using more traditionally based technologies and services to implementing critical building blocks to create digital enterprises that can leverage capabilities such as cloud, analytics, mobile and social. In 2015, the company reported attractive growth by eliminating the ‘Watermelon effect'[12] that has been challenging the industry.

This approach uses distinctive elements like Robotic Process Automation, Hyperconverged technology, Design Thinking and systems of differentiation. The company creates competencies around future growth areas like Artificial Intelligence, Robotic Process Automation, IoT, Big Data, SMAC and digital technologies.

Financial Health[edit]

Hexaware has gone through a Management Change in 2013 as a major stake of its shares from Mr Atul Nishar were purchased by Baring Private Equity Asia.[9] After Baring came in, Hexaware's consolidated revenues grew from Rs 2,285 crore in 2013 to Rs 3,123.5 crore in 2015.[13]

According to its 2015 annual report, Hexaware has reported a 12% revenue CAGR in USD terms and 21% CAGR in INR terms in the five years leading to 2015. The report also states that the company has added USD 120 million in fresh business signed in 2015.

The company outgrew a NASSCOM sectoral revenue guidance and revenue grew 14.9% to US$ 485.4 million in the year 2015. Hexaware is targeting to grow higher than industry (NASSCOM: 10 -12%) in CY16.[14]

The company's strategy, "Shrink IT, Grow Digital" is targeted at large clients and has seen early signs of success around IMS, BPO and Testing in its recent wins. Management indicated effort savings of 30-50% in IMS and BPO can be achieved. As per its latest financial report, the company is focused on improving operational efficiencies and realigned itself vertically from its earlier horizontal sales-based approach. Analyzing the company's recent initiatives and its healthy cash position, it is well poised to explore inorganic growth opportunities as well.[15]

  • Revenue, at USD135.2mn (up 4.3% QoQ), was higher than Street's estimate of 4.1% growth.INR Revenue grew 4.0%QoQ to INR9.0bn. Revenue growth in CC was 4.8% QoQ.[15]
  • Gross profit grew 7.3% QoQ to INR3.3bn, while gross margin expanded 110bit/s QoQ to 36.2%. EBITDA (net of ESOP cost), at INR1.58bn, was up 16.5% QoQ. EBITDA margin expanded 190bit/s QoQ to 17.4%.[15]
  • Net profit, at INR1,114mn, was higher than Street's estimate of INR,1070mn. Net profit margin expanded 80bit/s to 12.3% (11.5% in previous quarter).[15]
  • Client additions: Hexaware added 7 new clients during the quarter (6 clients in Q2CY16). Active clientele stood at 222 (226 in previous quarter).[15]

Services[edit]

Service Category Services
Application Transformation and Management Services Agile Devops, Application Development, Cloud Services, Enterprise Architecture, SOA and Integration
Business Intelligence and Analytics Analytics, Platforms, Platforms, Services and Data Science Community
Digital Assurance Quality Engineering, Digi-test, Managed Services, Test Advisory and Consulting
Enterprise Solutions Human Capital Management, Finance Transformation, Supply Chain Transformation, SAP Services, Oracle E-business suite services, oracle cloud application services,
Digital Customer Digital Consulting and Advisory Services, Customer Engagement and Experience Design, Application Transformation Services, Service Enablement and Integration Services, Data Management and Insight Services
Business Process Services Customer Service, Telecom BPO Services, Healthcare Payer Services, Intelligent Provider
Infrastructure Management services Cyber Security Resilience Services, Digital Workplace, Hybrid Cloud, Integrated Run, Digital Operations, Applications Operations, Service Management, RAISE IT platform

Below are few major proprietary platforms:

  • RAISE IT – Intelligence grid to enable automation [2][16]
  • H2O Platform- Service management using scalable and configurable interface[2]
  • DOCK IT : One-stop-shop for all IT needs
  • Orchestrate IT: Cloud Brokerage and workload orchestration capabilities
  • iD2E - Integrated Design2Execution framework[17]

Operations[edit]

Chennai Campus - One of the best eco-friendly "green campus".

Hexaware's global offices are located in New Jersey, California, Boston, Washington and Georgia in USA; Mexico and Canada in North America; Brazil in South America; Germany, United Kingdom, Netherlands in Europe; Singapore, Japan, China and United Arab Emirates in Asia-Pacific; Sydney and Melbourne offices in Australia; a Russian office and offices across India in strategic locations like Mumbai, Chennai, Bangalore, Coimbatore, Nagpur, Noida and Pune.[18]

In October 2016, the company has expanded its delivery presence in the European region by announcing the opening of its latest Global Delivery Centre (GDC)[19] in Bucharest, Romania. In September 2016, Hexaware had 226 active clients across the world, with 11,300 employees.

The company's 2014 director report[20] states that the company has invested Rs. 604 million in 2014 for expanding its physical and technical (IT) infrastructure globally. The company is creating new Special Economic Zone facilities in its Siruseri, Chennai office and in Pune office. As per their 2015 annual report, the seating capacity in their Chennai development centre is expanded to 5,586 seats in Phase I. The Company has started with construction of Phase 2 with around 3,300 seats.

The company has a 27-acre campus in Chennai. It is one of their largest development center with around 4,295 employees. This office is one of the best ergonomic, eco-friendly "green campus" with norms and regulations like optimal use of solar energy, eco-friendly building materials and a judicious spread of landscaped spaces across seating facilities, across various levels.

Corporate Responsibility and Sustainability[edit]

Hexaware supports a variety of corporate responsibility initiatives like rehabilitation of children of victims of social and domestic violence, renovation of dilapidated municipality schools and setting up of palliative care units for cancer patients.

Community Initiatives[edit]

  • Udaan: Hexaware undertook the program Udaan to prevent the intergenerational cycle of prostitution among the daughters (ages 5–18 years) of women in brothels, through its implementation partner - Apne Aap Women's Collective (AAWC). The company provided day care and night shelter at the Udaan centre.[21]
  • Municipal school empowerment program: Hexaware teamed with ESI (Environmental Sanitation Institute), a non-governmental organization, in improving the infrastructure of five municipal schools in Vapi, Gujarat.
  • Support holistic development of underprivileged children: Hexaware promoted education and reduced social inequality for children through the India Sponsorship Committee's Antar Bharti Balgram Yojna, by supporting its Sadan in Lonavala. The program provided education, health (nutrition and medical care), sanitation facilities and internal campus road was laid.[21]

Environmental Initiatives[edit]

  • Global movement against marine debris: On 17 September 2016, Hexaware joined hands with Earth5R in a massive coastal clean-up drive, along the shorelines of Mumbai,[22] Chennai & Pune's river.[23]
  • Reviving aquatic life: On July 23, 2016, Hexaware along with Environmentalist Foundation of India (EFI) set in cleaning Adambakkam Lake, with the objective of improving groundwater table and in preventing flooding in nearby areas.

Awards[edit]

  • In 2016, the company had won the prestigious "Best Process Improvement Project Award" at Golden Star Six Sigma Awards[24]
  • In 2016 Hexaware was awarded for "Brand Revitalization" and "Brand Excellence in IT/ITES Sector" at the 7th CMO Asia Awards for Branding & Marketing[25]
  • In 2016 the company was awarded the "Best Outsourcing Service Provider-Telecom Industry" & "Telecom Outsourcing Project of the Year" at the National Awards for Excellence 2016
  • In 2016, the company was awarded the "Excellence in Customer Service" at the Golden Globe Tiger Awards 2016[26]
  • In 2016, the company bagged 5 awards at the Asia Outsourcing Congress Awards for providing excellence in the areas of customer service, health insurance and non-voice BPO services [26]
  • In 2015, the company was awarded the coveted "Golden Peacock Award for Excellence in Corporate Governance"[27]
  • In 2015, the company won the ICAI award for Excellence in Reporting[26]
  • In 2014, the company was named as a silver winner of PeopleSoft category at UK Oracle User Group Partner of the Year award[26]
  • The company received the INDY's award for ‘Excellence in Corporate Social Responsibility Practice’[28]
  • In 2014, the company received the "CISO Hall Of Fame" award from CISO Platform (India) for its excellence in the deployment and sustenance of Information security within the Organization in the year 2014[29]

Recognition[edit]

  • In 2016, Hexaware announced that it had been named a Top 15 Sourcing Standout by Information Services Group(ISG)[30]
  • In 2016, the company was honored as the "Outsourcing Organization of the Year" at the Golden Globe Tiger Awards [31]
  • In 2016, the company was recognized as the "Fastest Growing Outsourcing Company" by the Asia Outsourcing Congress[32]
  • In 2016, the company was positioned as a Leader in NelsonHall's NEAT Vendor Evaluation for Wealth & Asset Management BPS[33]
  • In 2015, Hexaware leadership was recognized in the 100 most Talented Global HR leaders by CHRO ASIA at the World HRD Congress Summit[26]
  • In 2014, the company was named silver winner of PeopleSoft category at UK Oracle User Group Partner of the year awards[34]
  • In 2014, the company was recognized as the Best Finance & Accounts Outsourcing Team 2014 at the National Awards for Excellence in Outsourcing & BPO[35]
  • In 2013, the company was recognized as a ‘Top 100 Innovative Service Providers’ by Global Services 100 listing[36]
  • In 2013, the company was ranked amongst Forbes’ Asia's 200 Under a Billion companies[37]

See also[edit]

References[edit]

  1. ^ "2016 Profit". 
  2. ^ a b c d e f g "Annual Report" (PDF). Hexaware. 
  3. ^ "Facebook". 
  4. ^ "Asia Outsourcing Congress and Awards". asiaoutsourcingcongress.org. Retrieved 2016-11-22. 
  5. ^ a b "Milestones". www.hexaware.com. Retrieved 2008-06-26. 
  6. ^ a b "Hexaware Story - Profile, CEO, Founder, History | Technology Companies | SuccessStory". successstory.com. Retrieved 2016-11-22. 
  7. ^ "The Hindu Business Line : SSI-Aptech deal: Will it strike the right key?". www.thehindubusinessline.com. Retrieved 2016-11-22. 
  8. ^ "Economic Times". 
  9. ^ a b "Baring Private Equity completes Hexaware deal - NDTV". Retrieved 2016-11-22. 
  10. ^ "Livemint". 
  11. ^ "Shrink IT strategy, Shrink IT Expenditure - Hexaware Technologies". hexaware.com. Retrieved 2016-11-18. 
  12. ^ "Current state of outsourcing: the watermelon effect - raconteur.net". Raconteur. Retrieved 2016-11-18. 
  13. ^ Srivastava, Moulishree (2016-08-01). "Baring Asia not in hurry to exit Hexaware Tech". Business Standard India. Retrieved 2016-11-24. 
  14. ^ "Money Control" (PDF). 
  15. ^ a b c d e "Hexaware Q3 2016 - Financials" (PDF). 
  16. ^ HexawareVideos (2016-06-03), Hexaware's RAISE IT platform, retrieved 2016-11-24 
  17. ^ HexawareVideos (2016-05-11), Integrated Design2Execution(iD2E) Automation solution, retrieved 2016-11-24 
  18. ^ Ltd, Hexaware Technologies. "Hexaware Launches New Campus in Pune". www.prnewswire.com. Retrieved 2017-01-17. 
  19. ^ "Hexaware opens Global Delivery Centre in Bucharest -". 2016-10-05. Retrieved 2016-11-24. 
  20. ^ "Hexaware Technologies Ltd.". Business Standard India. Retrieved 2016-11-24. 
  21. ^ a b "Hexaaware - Annual Report - 2015" (PDF). 
  22. ^ Earth5R (2016-10-10), Juhu Beach Cleanup by Hexaware- World Coastal Cleanup Day 2016, retrieved 2016-11-24 
  23. ^ Earth5R (2016-10-01), World Coastal Cleanup Day 2016 - River Cleanup by Hexaware Technologies, Pune, retrieved 2016-11-24 
  24. ^ "Awards and Recognition | Hexaware Technologies". hexaware.com. Retrieved 2016-11-24. 
  25. ^ "CMO ASIA". www.cmoasia.org. Retrieved 2016-11-24. 
  26. ^ a b c d e "Hexaware - Q2 2016" (PDF). 
  27. ^ webmasteradmin. "Excellence in Corporate Governance (GPAECG)". www.goldenpeacockawards.com. Retrieved 2016-11-24. 
  28. ^ "Hexaware Annual Report 2014". Scribd. Retrieved 2016-11-24. 
  29. ^ "Hexaware Technologies Directors Report | Hexaware Technologies Ltd Directors Report". economictimes.indiatimes.com. Retrieved 2016-11-24. 
  30. ^ Technologies, Hexaware. "Hexaware Technologies Named a Top 15 Sourcing Service Provider by ISG". www.prnewswire.com. Retrieved 2016-11-24. 
  31. ^ "The Golden Globe Tigers Summit Awards". goldenglobetigers.org. Retrieved 2016-11-24. 
  32. ^ "Asia Outsourcing Congress and Awards". asiaoutsourcingcongress.org. Retrieved 2016-11-24. 
  33. ^ Technologies, Hexaware. "Hexaware Identified as a Leader in NelsonHall's NEAT Vendor Evaluation for Wealth & Asset Management BPS". www.prnewswire.com. Retrieved 2016-11-24. 
  34. ^ "Factsheet - Q3 2014" (PDF). 
  35. ^ "Factsheet - Q1 2016" (PDF). 
  36. ^ "Factsheet - Q3 2013" (PDF). 
  37. ^ "Hexaware Technologies on the Forbes Asia's 200 Best Under A Billion List". Forbes. Retrieved 2016-11-24.