• Net headcount addition of 1,115 employees in 2010 takes the global headcount to 6,252 at the end of August 2010;
• Project ramp-up proceeding smoothly and along expected lines in the large deal worth $ 110 m signed in Q2 2010; New IT initiatives / new project kick-offs with several existing clients observed;
• Unveils the latest State-of-the-Art Global Delivery Centre in Bengaluru, India;
• Revenue Guidance for Q3 2010 upgraded to $ 60m, Q-o-Q growth of 9.2%
Hexaware Technologies Limited., a leading global provider of IT, BPO and consulting services, today announced that the Company has exceeded its headcount estimate provided for December 2010 by the end of August 2010.
• Exceeds its annual headcount addition estimate of 1,000 by August 2010;
• Establishes a new Global Delivery center in Bengaluru, India; 7th center across the world;
• Revenue for Q3 2010 is likely to be $ 60m; up from $ 58m to $ 59m guided earlier.
“With the enhanced revenue visibility on account of the large deals secured in Q2 2010 and the improving quality of the deal pipeline, we have surpassed the annual guidance of net addition of 1,000 employees in just 8 months. We are also upgrading our revenue guidance for Q3 2010 to a sequential Q-o-Q revenue growth of 9.2%. This follows an achievement of 13% Q-o-Q revenue growth in Q2 2010,” said Atul Nishar, Chairman, Hexaware Technologies Limited.
During the course of 2010, the Company’s headcount increased by 1,115 employees, taking its global headcount to 6,252 compared to 5,137 as on 1st January 2010.
Hexaware had estimated an addition of 1,000 employees during the year 2010. This headcount growth was expected through a combination of 500 fresh campus recruits and 500 lateral hires. With the increase in the business volumes from the existing clients, the strategy of continuous strengthening the execution/ delivery team remains intact.
Over the last three quarters, Hexaware has been steadily inducting fresh graduate engineers from the campuses in a planned and phase-wise manner. For instance, the trend in the fresh campus recruitment has been 125 in Q1 2010, 135 in Q2 2010 and the Company is on target to induct 150 fresh graduate engineers in Q3 2010. Further, the plan to induct fresh campus recruits continues for the forthcoming quarters too.
This healthy employee addition is being carried out to enable Hexaware deliver the orders at hand and facilitate the company’s participation in the demand uptake seen in the market – particularly in the Americas region.
New Global Delivery Centre (GDC) at Bengaluru
Recently, Hexaware established its latest GDC in the Southern Indian metropolis of Bengaluru (earlier known as Bangalore). As a first phase, the initial capacity of the GDC is 250 seats. This GDC marks the successful entry of Hexaware into the 5th city in India following Mumbai, Chennai, Pune and Nagpur. At Bengaluru, the state of the art GDC is located in the heart of the city. The location’s advantage has enabled Hexaware to ramp-up its employee strength swiftly to attain the current occupancy of 125 employees in a short span of time.
“The latest GDC creates tremendous strategic opportunities for us – both from a sourcing as well as client servicing perspective. Bengaluru, as a city, is home to the largest technology cluster in the entire Asia Pacific region and by having a GDC there would enable greater access to human capital and would facilitate stronger rapport and a deeper relationship with the clients”, said R V Ramanan, President & Head – Global Delivery, Hexaware Technologies Limited.
While Hexaware services an active client roster of 156 customers, the opportunity to operate in Bengaluru creates a new avenue to drive business growth further. This latest GDC would address two segments of prospective clients based in Bengaluru – Domestic companies as well as the captive centres of overseas-based corporations.
As on August 31, 2010, Hexaware employs 6,252 employees and its delivery operations are based out of Mumbai, Chennai, Pune, Nagpur and Bengaluru in India. Hexaware has also established near shore delivery center in Saltillo, Mexico and a proximity delivery center in New Jersey, USA. To facilitate further expansion, Hexaware owns 25 acres in Hinjewadi Phase III SEZ, Pune, 20 acres in Nagpur SEZ and operates out of 27 acres of SEZ campus in Siruseri, Chennai.
Q3 2010 Guidance Revision
Considering the improving business climate, Revenue for Q3 2010 is now estimated to be $ 60.0m compared with the earlier issued revenue guidance of $ 58.0m to $ 59.0m (exchange rate assumptions remain the same at 1 GBP =1.55 USD and 1 EUR = 1.30 USD)
Hexaware (hexaware.com) is a leading global provider of IT & BPO services and consulting. The Company focuses on key domains such as Banking, Financial Services, Insurance, Travel, Transportation, Hospitality, Logistics, Life Sciences and Healthcare. Our business philosophy, “Your Success is Our Focus”, is demonstrated through the success we ensure for our clients. Hexaware focuses on delivering business results and leveraging technology solutions by specializing in Enterprise Applications, Quality Assurance and Testing, Business Intelligence & Analytics, Remote Infrastructure Management Services and Legacy Modernization. Founded in 1990, Hexaware has a well-established global delivery model armed with proven proprietary tools and methodologies, skilled human capital and SEI CMMI-Level 5 certification.
Safe Harbor Statement
Certain statements on this press note concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Hexaware has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry.
Issued on behalf of Hexaware Technologies Limited by:
Sushmita Sarkar, Adfactors PR Pvt Ltd.
T: +91 98206 61186 / E: sushmita.sarkar[.]adfactorspr.com.