48
Global Footprint
of Hexaware Technologies Limited
HTL’s operations are spread across four main geographies – Europe, North America, Asia- Pacific and Australia.The company is present in 11 countries across the globe. HTL has seven
subsidiaries globally – Hexaware Technologies Inc., Hexaware Technologies UK LTD, Hexaware Technologies Asia-Pacific Pte Ltd, Hexaware Technologies GmbH, Hexaware Technologies Canada Ltd, Caliber point Business Solutions Ltd, and Specsoft Consulting Inc that has recently been merged with Hexaware Technologies Inc. (USA).
For FY 2006, the company generated 69.3 per cent of its revenues from North America, 25.8 per cent from Europe and 4.9 per cent from rest of the world.
Hexaware Technologies
in the United States of America
Mode of Operation
HTL operates in the USA through its wholly- owned subsidiary, Hexaware Technologies Inc.
Company Background
Hexaware Technologies Limited (HTL),
incorporated in 1990, provides software services to the transportation, banking, finance and insurance, and hospitality industries.The company also provides high value services such as SAP and PeopleSoft.
Hexaware Technologies is an IT services company specializing in enterprise solutions, application management and embedded systems. Among Hexaware’s various offerings is Peoplesoft and the company is amongst the top-20 software and services exporters from India. It works on an onsite/off-shore model, which helps it to provide significant cost savings and quality services to its clients. It is a BS 7799-certified company and has also been assessed at level 5 of the SEI CMMI.
As on December 31, 2006, HTL had over 5,800 professionals. In 2006, the company’s revenue from global operations increased by 39.9 per cent to US$ 187.22 million.
HEXAWARE
TECHNOLOGIES LIMITED
North America
US Canada
Europe
UK Germany Netherland France Sweden
Asia
India Singapore Japan
Offices of Hexaware Technologies Across Different Continents
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49 functional, performance, and system stress
verification exercises.This acquisition has enabled HTL to offer a complete lifecycle of testing
services.The company expects to achieve revenues of more than US$ 100 million from this subsidiary in the next three years.
Hexaware’s major clients in the United States of America
• Princeton University
• Alliance Capital Corp.
• North West Airlines
Success Factors
Diversification through Partnerships HTL formed a technology and marketing alliance with SAS, a leading player in business intelligence (BI), to offer BI and analytical software solutions.
This was a strategic step in HTL’s attempt to deliver business value to customers by using integrated analytics.This resulted in significant gains in domain competence and delivery capabilities for the company.
Expanding Client Base
HTL has successfully managed to win new large orders and get repeat orders from its existing client base. Repeat business for 2006 stood at 88.4 per cent.The company had a total active customer base of 129 and acquired 41 new clients during 2006. In Q4, 2006, Hexaware also increased its million dollar-client additions from 30 to 41, of which five are in US$ 5-10 million category while four billed more than US$ 10 million each.
Future Plans
Expansion Plans
HTL has entered into an agreement with General Atlantic LLC. According to the agreement, the latter would invest US$ 67.6 million through a preferential allotment. HTL plans to utilise the USA, which is headquartered in New Jersey. It also
has 12 sales offices spread across ten locations in the US.
Overview
HTL began its operations in the USA in 1995.
Currently, the company has six major offices in the USA – Atlanta, Jamesburg, Chicago, Boston, San Jose, and Toronto. It manages operations at all locations through these offices.
Specsoft Consulting Inc., USA
In 1996, HTL established a subsidiary in San Jose, California, – Specsoft Consulting Inc., USA (Specsoft). Specsoft operates in the VLSI design and embedded software domains. In January 2006, Specsoft was merged with Hexaware Technologies Inc., USA. HTL expects the merger to bring the administrative cost down considerably. Specsoft generated revenues of US$ 3.5 million in 2005.
FocusFrame Inc.
In 2006, the company completed the acquisition of FocusFrame Inc., a US-based firm specialising in automated testing of ERP and custom applications for US$ 34.3 million. FocusFrame has strong expertise in automated testing which complements Hexaware’s manual testing capability.
FocusFrame offers systems verification, quality strategy and IT governance solutions, and various
Source: Annual Report 2005-06, Hexaware
Hexaware Technologies' Revenue from the US: 2005-06
2003 2004 2005
0 1000 2000 3000 4000 5000 6000
Year
US$ million
2,364
3.903
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50
proceeds of the allotment for creating
infrastructural assets, enabling suitable acquisitions and meeting working capital needs of the company.
This will facilitate the company in sustaining growth in the long term and also help it in realising new growth opportunities in the USA.
Capitalise on Growing Trend of Outsourcing HTL is planning to capitalise on the growing trend of IT/BPO and IT/RFID integrated solutions.
The company aims to become a leading player in the field of integrated business technology outsourcing by leveraging the expertise of its BPO arm. It is targeting larger projects in the ERP space based on the work done in the ERP sector during 2005.The ongoing upscaling of the company’s infrastructure is expected to enhance its chances of winning large orders.
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