February
2007
Hexaware announces full year 2006 results; net profit doubles in 2006.
Hexaware was nominated amongst the top 25 Companies for ‘National Award for Excellence in Corporate Governance – 2006’ by ICSI
Hexaware won the Indiatimes Employer Branding Award 2007 for ‘Innovation in Career Development’ and was also nominated for the ‘Talent Management’ award.
Hexaware also won the IT People Award 2007 for Excellence in Management.
BusinessWeek ranked Hexaware as the hottest growth company in India, and among the Top 25 in all of Asia.
 
Home BMS    Key Trends

1. What do you think are the current trends in the BFS space?

Banking and Financial Services (BFS) has the highest share of IT spend in the industry. Mergers and acquisitions seem to be a dominant trend. In my opinion, the other current trends in the BFS space are:

  • End-to-end automation of non-equity asset classes
  • Back office infrastructure change
  • Growth of cross-border investment
  • Consolidation of stock exchanges
  • Migration of Core Banking Systems
  • Efficiency and Straight trough Process in Securities Processing
  • Using Compliance as a Catalyst for change: SEPA and MiFID
  • SWIFT standardization
  • Service-oriented architecture (SOA) into the mainstream technology
  • Growth of hedge fund industry by offering vastly different offerings from traditional mutual funds.
  • Investment in Treasury Management, as most treasuries need to maintain more than one banking relationship. This results in multiple bank connections, which usually require unique communication, security and format, making the set-up and maintenance expensive

2. What is the business mix between the various sub practices under Hexaware’s BFS Practice? What is the strategy that you plan to adopt to rework that mix?

The Hexaware BFS practice contributes 35% to the company’s Revenues. The revenue for 2006 from BFS was $ 64.75 MM. We currently have over 1800 resources and about 35 big BFS clients. The key sub verticals in our BFS practice are Asset Management, Retail Banking, Investment & Corporate Banking and Financial Services, with their respective key focus areas.

Hexaware is strategizing on increasing its presence in Europe and APAC regions and maintaining a CARG of 35-40%. To achieve these goals, we are strengthening our delivery capabilities and building product competencies in areas of Asset management as well as in Investment & Corporate Banking. Hexaware has 92% of repeat business from its existing clients. We will be targeting existing customers for quick wins.
 

3. Hexaware has such a strong foothold in the global BFS space. What are the immediate plans for 2007?

For 2007, we have set a target revenue of $ 88 MM along with a growth rate of 35%. Recently, we have acquired FocusFrame and are looking forward to more expansion of business. On the business front, we want to focus on Investment Banks, Asset Management firms, Hedge funds & Derivatives Market and further strengthen our competencies like Charles River, Murex, Calypso, and MiFID. There will be more attention on the European and APAC regions.

We would like to strengthen the delivery competencies to take up the challenge of meeting demands of bigger opportunities. Hexaware has increased its resources from 1100 to 1800 and has more plans to recruit domain experts from banks, asset firms & investment firms. Hexaware provides certification training on both the technology and domain side to build strong delivery teams in domains such as Auditing, Testing, Banking Information Systems, Derivatives, Fixed Income, etc and various technologies like J2EE, Oracle, PeopleSoft, Sun Microsystems, etc. Hexaware has established the Borland Centre of Excellence in partnership with Borland to strengthen the IT governance tools and metrics.

In terms of Quality, Hexaware has recently reassessed BS7799 and has implemented BS 7788/ISO 27001:2005. Hexaware is in the process of achieving the certifications of SAS 70 Type 1 and Balanced Scorecard –PCMM.

 

4. What are Hexaware’s key differentiators?

Hexaware is a right-sized, responsive and result-oriented company and such organization traits make us a sought after company and a very strong contender in the BFS market. We have about 1500+ skilled and experienced consultants and domain experts with over a decade of experience in BFS industry. We have a very robust backbone with world class infrastructure, delivery processes, SEI CMM Level 5 quality processes. We manage core, mission-critical applications offshore for more than 20 clients, experiencing in managing multi-year and multi technology engagements. Our main organizational focus is to build, nurture and enhance lasting relationships with all our clients, most of them being Fortune 500 companies.

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5. As Chief Software Architect of India’s fastest growing company, what is your vision for 2010 for the BFS practice?

My vision for the BFS practice for 2010 is a revenue target of $ 210 MM and an average growth rate of 35-40% per year. We aim to add atleast 40 new clients by then. 2007 has truly begun as a wonderful new year for Hexaware. The ink has not even dried since BusinessWeek listed Hexaware as the hottest firm from India and we have already won a few more accolades. Hexaware’s innate ability to understand and cater to our clients’ needs, our responsiveness to current trends and market dynamics and the commitment of each and every member of our team will definitely aid in turning our vision into reality .


 
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