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Hexaware forms JV to cater BFSI segment
Monday, June 25, 2007 (Mumbai):
If banking sector is on an acquisition spree, the Information
Technology sector feels partnership is the best way forward. Atul
Nishar, Chairman of the Hexaware Technologies wants to try a
different hand to log ahead of the big IT companies.
Hexaware has partnered with Pemtrad International to form a JV
to cater specifically to the banking, finance and insurance space.
The JV will be an independent business unit within the Hexaware
fold having separate set of financials. Hexaware will hold 85 per
cent equity in the JV and will employ over 350 people in the next three years.
"In the third year RiskTech will clock $20 million in revenue. In addition Hexaware can service the
clients of risk tech like testing services and ERP that will bring additional revenue to our balance
sheet," said Atul Nishar, Chairman, Hexaware Technologies.
With Banking and Financial Services Industry (BFSI) BFSI becoming the largest play for Indian IT
companies almost 50 per cent of their revenues are coming from it. All players are focusing on the
vertical more than ever.
The largest IT company TCS recently had launched a separate business unit to cater to the BFSI
segment, even though Hexaware cannot match the muscle of TCS the management is counting on
its niche offering of risk technology with an estimated market of over $5 billion world wide.
"Big players are not dedicated to risk management as we are, we will have a separate entity for it
and a focused market strategy that will give us more scope to tap the market," said Peyman
Mestchian, CEO, RiskTech.
Hexware's management insists that working out a joint venture will bring in a huge upside instead
of taking the acquisition route, more importantly it will help e