Hexaware Technologies

Hexaware Technologies Limited (HTL) (BSE: 532129, NSE: HEXT) is an information technology and business process outsourcing service provider company based in Mumbai, India. The company provides software services in airlines, banking and financial services and health care insurance sectors.^[1] The company is currently assessed as a CMMI level 5 company and since 2005, NASSCOM has ranked Hexaware as India's 11th IT company in list of top 20^[2][3][4] Current employee strength is above 8000 with over 175 clients.^[5] Company operates from multiple offices in countries like Japan, USA, Canada, Singapore, Netherlands, Belgium and Germany apart from India.^[1][2] After starting facilities in Chennai,^[6] the company started its third development center in Pune in 2006.^[1] In a separate survey of 2006, it was rated the sixth Best IT Employers from India.^[7]

History

Atul Nishar, the founder of Hexaware, started Aptech computer education in 1984, which went on to become a noted Indian IT education provider.^[8] 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.^[8] Also same year, Hexaware's fully owned subsidiary Caliber Point Business Solutions was started with an investment of INR 5 crore Business Process Outsourcing (BPO) operations. Caliber Point mainly focuses on the global healthcare industry with specialty in claims processing services.^[6]

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. ^[7]

In November 2006, Hexaware acquired the US-based software testing company, FocusFrame for $34.3 million in an all-cash deal. Deal helped Hexaware to offer capability in both — manual testing and automated testing to its clients.^[9]

In 2007, Hexaware announced that it discovered around 11 unauthorized 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.^[10] 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.^[11]

On June 2008, the company named P. R. Chandrasekar, an ex-Wipro Technologies top brass, as its new Chief Executive Officer, Mr Aggarwal as its new CFO.^[12]

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.^[13]

During the course of 2010, the company’s headcount increased by 1,115 employees, taking its global headcount to 6,252. The company also announced in Q2,2010 two large wins of $110 million and $ 60 million each.

In 2010,the company has also established a new global delivery center in Bengaluru, India, which is its 7th delivery center across the world.

References