About Hexaware Technologies Limited

Business Overview

Hexaware Technologies is a global digital and technology services company with artificial intelligence (AI) at its core. The company leverages technology to drive digital transformation and optimize operations through AI-embedded solutions.

Operations are structured into six industry-focused segments: Financial Services, Healthcare & Insurance, Manufacturing & Consumer, Hi-Tech & Professional Services, Banking, and Travel & Transportation. Service offerings are categorized into Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services, powered by proprietary AI-enabled platforms like RapidX™ (digital transformation), Tensai® (AI-powered automation), and Amaze® (cloud adoption).

With a presence across the Americas, Europe, and APAC, the company serves 31 Fortune 500 enterprises and maintains a strong customer loyalty focus. The Net Promoter Score (NPS) reached 72 in 2024, marking an 18-point increase from 2023, significantly exceeding the industry median of 42. This growth reflects excellence in execution, deep industry understanding, and customer-centric service delivery. As of September 30, 2024, the company operates 39 delivery centers and 16 offices worldwide. More details are available in the Investor Relations section at Hexaware Technologies.

As of September 30, 2024, the Company had a team of 32,536 employees in 28 countries. The Bankers to the Company are The Hongkong and Shanghai Banking Corporation Limited, India, Citibank NA, DBS Bank India Limited and HDFC Bank Limited.

Industry Analysis

Gen AI and client value enhancement
Gen AI, a sophisticated branch of AI, focuses on the creation of new content by learning patterns from existing data. Its rapid ascent in the industry can be attributed to breakthroughs in deep learning algorithms, increased computational capabilities, and the proliferation of large datasets. It is also central to digital transformation initiatives for many enterprises.

IT service providers are leveraging gen AI across three key categories: products and platforms, service offerings, and internal functions. By developing AI-led platforms, service providers are delivering powerful tools tailored to specific client needs. AI-infused service offerings are enabling advanced solutions that drive efficiency and scalability. Internally, AI is enhancing operations in areas such as HR, legal, and compliance, optimizing processes and automating deal solutioning with AI-generated RFP responses. The following exhibit explores the various use cases in each of these categories.

Core AI-led services consist of services that focus on the application of AI, ML, and gen AI for tasks such as advanced analytics, predictive modeling, chatbot development, data augmentation, asset generation, among others. These services include AI and gen AI consulting, maturity assessment, model development, fine-tuning, and deployment, while ensuring governance and responsible AI.

Within core AI-led services, traditional AI algorithms mainly perform repetitive tasks such as pattern recognition, while gen AI can generate entirely new content. This has given rise to applications such as creative writing, conversational search, summarization, asset generation (synthetic data/image/video/3D), and simulated environment creation, among others.

With the rapid rise of consumer gen AI applications, coupled with advancements in enterprise AI solutions and automation technologies, the outsourced gen AI services market is projected to reach ₹7.8-8.0 trillion (US$ 93.4- 95.8 billion) by 2029. This growth is expected to be driven by technological advancements and increasing adoption across various industries, leading to a CAGR of 60-62% over the period of CY2024-29E.

Gen AI adoption is expanding across various industries, driven by its potential to enhance efficiency, innovation, and customer experiences. As seen in the following exhibit, Financial Services and Pharmaceutical together account for about half of gen AI adoption across verticals. While the data set examined does not contain the technology industry, broader evidence indicates that gen AI adoption in terms of the number of deployments is also high in this industry.

Business Strengths

1. Comprehensive Industry Solutions with Deep Domain Expertise
Delivering comprehensive services across six key industries: Financial Services, Healthcare & Insurance, Manufacturing & Consumer, Hi-Tech & Professional Services, Banking, and Travel & Transportation. Leveraging domain expertise and technological innovation to drive digital transformation strategies.

2. AI-Led Digital Platforms Driving Innovation
Proprietary AI-enabled platforms enhance service offerings: RapidX™ (digital transformation), Tensai® (AI-powered automation), and Amaze® (cloud adoption), creating value across industries.

3. Diversified Blue-Chip Customer Base with Long-Term Engagement
Serving 31 Fortune 500 companies, with 62% of revenue from customers exceeding $5 billion in annual revenue and 83% from those above $1 billion. A strong presence across Americas, Europe, APAC, Middle East, Africa, and Latin America ensures broad market reach.

4. Strategic Go-to-Market Approach for Growth
Customer acquisition and expansion strategies involve New Customer Acquisition, Account Management, Hybrid Sales, and Overlay Sales teams, driving business growth across key global markets.

5. Global, Scalable, and Flexible Delivery Model
Operating with an efficient onshore-offshore service mix, ensuring cost-effectiveness, innovation, and responsiveness to customer needs through a skilled and certified talent pool.

6. Experienced Leadership with a People-First Culture
A seasoned leadership team led by CEO Srikrishna Ramakarthikeyan (30+ years of experience), CFO Vikash Jain (20+ years), and COO Vinod Chandran (since 2015). Over 70% of senior management has a tenure of more than five years, ensuring stability and strategic direction.

7. Strong Growth and Cash Generation Track Record
Revenue in FY 2023 reached ₹103,803 million ($1,256.4 million), growing at a CAGR of 13.7% (USD terms), significantly outpacing the global outsourced IT-BP industry CAGR of 7.3%. A diversified revenue base across geographies and industries provides resilience against market fluctuations

Business Strategies

1. Comprehensive Industry Solutions
Expertise spans Financial Services, Healthcare & Insurance, Manufacturing & Consumer, Hi-Tech & Professional Services, Banking, and Travel & Transportation, delivering tailored digital transformation strategies.

2. AI-Driven Digital Platforms
Proprietary AI-enabled platforms—RapidX™ for digital transformation, Tensai® for AI-powered automation, and Amaze® for cloud adoption—enhance service capabilities.

3. Diverse Blue-Chip Customer Base
Serving 31 Fortune 500 companies, with 62% of revenue from customers exceeding $5 billion in revenue. Presence across the Americas, Europe, APAC, and multiple industries ensures stability and growth.

4. Strategic Customer Acquisition and Expansion
A structured go-to-market approach combines new customer acquisition, account management, and hybrid sales strategies to strengthen market penetration.

5. Scalable and Flexible Delivery Model
A global delivery network, leveraging an onshore-offshore service mix, ensures cost efficiency, innovation, and timely response to evolving client needs.

6. Experienced Leadership and Strong Culture
A seasoned management team, with over 70% having tenure exceeding five years, fosters organizational stability and growth. Leadership expertise spans technology, risk management, finance, and talent development.

7. Consistent Growth and Strong Cash Generation
A revenue CAGR of 13.7% (FY21-FY23), outpacing the industry average of 7.3%, driven by a diversified revenue base across geographies and sectors

Business Risk Factors and Concerns

1. Geographic Revenue Concentration
A significant portion of revenue is derived from the Americas (73.4% in 2024, 71.5% in 2023) and Europe (20.5% in 2024, 22.1% in 2023). Any adverse economic conditions in these regions could negatively impact business operations and financial performance.

2. Rising Employee and Subcontracting Costs
Employee benefits and subcontracting expenses accounted for 83.7% of total expenses in 2024 and 84.5% in 2023. Increased costs due to regulatory changes may reduce profitability and competitiveness.

3. Risks Associated with Artificial Intelligence (AI)
The integration of AI, including generative AI, presents operational, regulatory, and reputational risks. AI adoption by customers may reduce reliance on external services, while data security and privacy concerns pose additional challenges.

4. Regulatory and Compliance Risks
Operations are subject to international laws, including U.S. export restrictions, economic sanctions, and anti-bribery regulations like the Foreign Corrupt Practices Act (FCPA). Non-compliance may result in penalties and legal consequences.

5. Intellectual Property Risks
Legal disputes over intellectual property rights, including patents, copyrights, and trademarks, could be costly and time-consuming. Failure to defend against claims may lead to loss of critical intellectual property and business disruptions.