Hexaware Technologies Ltd. said it will continue to focus on its legacy vertical as the software services provider aims to grow at 17-18 percent over the next five years.
Of this, 3-4 percent growth is expected to come on the back of acquisitions, the company's management told analysts at a meeting.
Technology firms have won less business from clients in legacy verticals such as banking and financial services over the last three quarters. The BFS vertical contributes nearly 40 percent to Hexaware Technologies' revenue.
Here are other takeaways from the analyst meet:
- Continue to focus on its three pillars—automate, ‘cloudify' everything and transform customer experiences.
- Intends to build automation capabilities within the company but is open to acquisitions to build on the first two pillars.
- Expects BFS to return to stronger growth in calendar year 2020. At 40 percent, the vertical remains the largest contributor to the company's revenues.
- Sees client-specific challenges and slowdown in the near term leading to delay in decisions-making.
- One of the company's top clients has been under stress due to management changes but is expected to pass by the quarter ending December 2019.
- The company and its latest acquisition Mobiquity are jointly pursuing 16 new opportunities across existing and new clients and are exploring cross-selling opportunities.
- Re-iterates that there are no plans of merger with NIIT Technologies yet.
- To focus on execution in areas like manufacturing and consumer, professional services and enterprise where growth has been weaker than the company average.
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