Hexaware Technologies

Origin of Hexaware

Hexaware is a spin-off of the erstwhile Apple Industries, the IT arm of the reputed computer training company Aptech. 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

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. Even as Atul Nishar exited Aptech, he continued to be on the board of the company till 2003.

Early Years of Hexaware

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. 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.

Major Financial Setbacks in 2003

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%.

Strengthening Leadership Team

In August 2004, Hexaware promoted Rusi Brij as Vice Chairman and Chief Executive Officer (CEO). 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

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

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. Atul Nishar remains as a non-executive chairman of Hexaware and P.R.Chandrasekar as the Chief Executive Officer (CEO) of the company.

Current

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

A Major Brand Revitalization- "Shrink IT Grow Digital" initiative

In 2015, the firm embarked on revitalizing its brand positioning through its two-pronged strategy Shrink IT Grow Digital. 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' 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

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. After Baring came in, Hexaware's consolidated revenues grew from Rs 2,285 crore in 2013 to Rs 3,123.5 crore in 2015.

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.

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.

Services

Below are few major proprietary platforms:

Operations

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.

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) in Bucharest, Romania. In September 2016, Hexaware had 226 active clients across the world, with 11,300 employees.

The company's 2014 director report 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

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

Environmental Initiatives

Awards

Recognition