We’re starting to keep an eye on mid-tier India-based IT/BP services firm, Hexaware, again (see Hexaware comes into radar range) and it looks like they’ve had a pretty good quarter. Headline revenues for Q2 (to 30 June) leapt 36% yoy (+6.2% qoq) to $75m, growth that is right up there with its top tier peers. Operating margins improved a massive 9 points yoy (and over 1 point qoq) to 13.5%. All good stuff.
In terms of size, Hexaware trails MindTree (see MindTree minding its margins), but it now has a clear edge on profitability. Both these players are keen to build a real foothold in the UK. Arguably MindTree is further forward both in its own right and also through partnering (see 2e2 applies MindTree minds to SAP services), but Hexaware has a much stronger suit in ERP. But we think there’s room for both players in the UK as mid-market enterprises pick up the offshoring trend.