Hexaware Technologies

Hexaware Technologies
Public
Traded as BSE: 532129
NSE: HEXT
Founded 1990
Founder Atul Chandra Nishar
Headquarters Navi Mumbai
Number of locations
 Mumbai, Bangalore, Chennai, Pune and Mexico
Key people
 PR.Chandrasekar[1]
(Vice Chairman)
R.Srikrishna[1]
(CEO) ,
Services Information technology and Business Process Outsourcing
Increase ₹25814 million (US$380 million) (2014)[2]
Number of employees
 11600+ (2016)
Website www.hexaware.com

Hexaware Technologies Limited (HTL) (BSE: 532129, NSE: HEXT) is an information technology and business process outsourcing service provider company based in Navi Mumbai, India. Founded in 1990.

The company's core activity spans development support, integration, implementation and testing services across all major enterprise software systems such as PeopleSoft, Workday, Oracle, SAP and Microsoft.

The company provides software services in airlines, banking and financial services, health care & insurance sectors.[3] The company is currently assessed as a CMMI level 5 company and since 2005, NASSCOM has ranked Hexaware in the list of top 20[4][5][6]

On 28 July 2014 Hexaware Technologies announced the appointment of R Srikrishna as the Chief Executive officer. Hexaware has thirty five offices worldwide and eight development centres in New Jersey, Mexico, Mumbai, Chennai, Pune and Bengaluru. Current employee strength is above 11600 with over 219 clients.[7]

After starting facilities in Chennai,[8] the company started its third development center in Pune in 2006.[3] In a separate survey of 2006, it was rated the sixth Best IT Employers from India.[9]

History

Atul Nishar, the founder of Hexaware, started Aptech computer education in 1984, which went on to become a noted Indian IT education provider.[10] Later the company started providing business solutions and made into a separate IT division of Apple Industries. In 1990 it was spun into a new company which functioned for nearly a decade. In 2002 major restructuring happened as all the training activities were demerged into Aptech and business solutions were made part of Hexaware Technologies Ltd. Aptech was later sold to SSI the same year.[10] Also same year, Hexaware's fully owned subsidiary Caliber Point Business Solutions was started with an investment of INR 50 million Business Process Outsourcing (BPO) operations. Caliber Point Business Solutions Ltd. a wholly owned subsidiary of Hexaware Technologies won "Award for Operational Excellence & Quality at The BPO Excellence Awards 2010- 2011. Caliber Point mainly focuses on the global healthcare industry with specialty in claims processing services.[8]

Current

In 2005, Hexaware faced problems after PeopleSoft, a key client, was acquired by Oracle Corporation. Hexaware was amongst the top five vendors of PeopleSoft and had set up operations under a Build-Operate-Transfer (BOT) agreement. However, after Peoplesoft's acquisition, this center was transferred to Oracle; along with some section of its employees. With loss of 14 percent of Hexaware's revenue, which came from this center, company had faced a major financial challenge.[9]

In November 2006, Hexaware acquired the US-based software testing company, FocusFrame for $34.3 million.[11]

In 2007, Hexaware announced that it discovered around 11 unauthorised foreign exchange deals had been made on the company's behalf by one of the employee working in treasury department. The employee had made these deals without the knowledge of top management and had cost the company around $25 millions in loss. The employee was suspended immediately with official probe being initiated.[12] The company was hit by the rising rupee value in 2007 but not as much as other Indian IT giants. This was because, even though Hexaware gets 70 percent of its revenues from North America and almost 24 percent come from Europe. It is one of the few Indian IT companies to have a larger percentage of European revenues.[13]

In the third quarter of 2008, the company announced plans to reduce staff strength by up to 2300 people or 14.5% by the end of the year through a combination of layoffs and attrition.[14]

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.

On 23 August 2013, Hexaware Announces Agreement for Baring Private Equity Asia to acquire a 41.8% stake in Hexaware from Promoter Entities.[15] They signed definitive agreements to purchase approximately 125 million Hexaware shares, from Promoter Entities, led by Atul Nishar (which hold 27.7% of currently outstanding share capital), and GA Global Investments Ltd. (which holds 14.1% of currently outstanding share capital), an affiliate of General Atlantic ("GA"), in aggregate representing 41.8% shareholding in Hexaware.

Financial Health

Hexaware derives ~65% of revenues from the US and ~27% revenues from Europe.Hexaware currently has a client base of over 219 organizations including over 50 Fortune 500 companies. Fifty five of these clients contributed over one million USD each in 2012.

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. This would change the Board structure and more to be seen by Nov/Dec 2013.

Operations

Locations

[16]

References

  1. 1 2 "19th annual report" (PDF). hexaware technologies. Retrieved 2012-10-11.
  2. ↑ "2014 Profit".
  3. 1 2 "Hexaware: Now in Pune". www.indiaprwire.com. 21 April 2006. Retrieved 2008-06-28.
  4. ↑ "Milestones". www.hexaware.com. Retrieved 2008-06-26.
  5. ↑ "Tata Consultancy Top Indian Software Exporter Again". Reuters 2006. www.nasscom.in. 5 July 2006. Retrieved 2008-06-28.
  6. ↑ "Indian IT Software and Services Revenues to reach US $50bn mark in FY 07-08". www.nasscom.in. 3 July 2007. Retrieved 2008-06-28.
  7. ↑ http://hexaware.com/news/q2-2013-profit-after-tax-increases-by-23-q-o-q-to-rs-97-9-crores-3/
  8. 1 2 "Company History". www.sharekhan.com. Retrieved 2008-06-28.
  9. 1 2 Bagchi, Sohini. "Guarding the Turf". www.thesmarttechie.com. Retrieved 2008-06-28.
  10. 1 2 "CIOL : Slide Show : 50 Years : Atul Nishar". www.ciol.com. Retrieved 2008-06-28.
  11. ↑ "Hexaware acquires US-based FocusFrame in $34m deal". economictimes.indiatimes.com. 7 November 2006. Retrieved 2008-06-28.
  12. ↑ "Plans $25-million provision to cover any exposure". www.thehindubusinessline.com. 27 November 2007. Retrieved 2008-06-28.
  13. ↑ Shivapriya, N (11 July 2007). "Rising rupee may hit IT cos' profit". economictimes.indiatimes.com. Retrieved 2008-06-28.
  14. ↑ "Hexaware to cut 300 employees". 2 August 2008.
  15. ↑ "New Agreement with Baring Private Equity Asia". Hexaware technologies. Retrieved 2013-08-23.
  16. ↑ "Global Delivery center".
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