MOSL: HEXAWARE TECHNOLOGIES (Neutral)-Aggressive cannibalization-supported by a clean slate in IMS and BPO
​Hexaware Technologies: Aggressive cannibalization; supported by a clean slate in IMS and BPO
(HEXW IN, Mkt Cap USD1.2b, CMP INR250, TP INR250, 0% Upside, Neutral)
We attended Hexaware Technologies’ (HEXW) analyst meet, where the company provided details of the progress on its strategy execution so far, and outlined its roadmap to capitalize on opportunities and scale up. Key takeaways:
Outperforming peers: Over the past three years, HEXW’s revenue growth has outperformed that of peers on an organic basis, led by its ‘Shrink IT, Grow Digital’ strategy, which makes up for 80% of its work. The proof point lies in the CAGR for BPO and IMS, which stands at 28.8% and 24.7%, respectively, as against the company average of 10.7%. Apart from its positioning, it has been able to stand on the winning side of a large number of deals because of its focus on customers that are beyond the top 50/100 of larger peers.
Shrink IT, Grow Digital: The approach toward automation-led savings in traditional IT has been adopted with an idea to pass on the benefits to customers, and thus, gain share. It has aligned its strategy, offerings and culture to aggressively take on renewal deals and first-time outsourcers with its Shrink IT proposition. On the other hand, larger players take a more calibrated approach with an intention to protect legacy. Digital too offers a multi-year opportunity, and HEXW’s participation is toward helping its customers transform the way they communicate with end-customers while also digitizing back-ends.
Hexaware is a global provider of IT and Process outsourcing services. Co. focuses on maximizing client returns from outsourcing and off-shoring. Co. manages IT applications in real time as well as providing high value services around packaged enterprise applications such as SAP and PeopleSoft. Co. maintains operations in business process outsourcing arena. Co.'s solutions aim to provide value by optimising cost of ownership of technology investments for customers. Co. maintains a client base comprising several Global 1000 organizations. Co.'s global operations are located in North America, Europe and Asia Pacific.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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