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Hexaware inks $177 mn deal with US client

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CIOL Bureau
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HexawareMUMBAI, INDIA: Hexaware Technologies Limited, a global IT and BPO services provider, today said that it has signed a major deal worth $177 million with an existing multinational client based in the US to offer IT and BPO services over a five-year period.

According to Atul Nishar, Hexaware Technologies chairman and founder, under the agreement, the company has an existing contract of $77 million with the client and has a potential of $100 million worth incremental business over the five-year period. However, it did not name the client.

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This agreement is part of a multi-vendor contract, where Hexaware will continue to offer services from 15 global locations to its client in the areas of enterprise solutions (ERP), business intelligence/ business analytics (BI/BA), quality assurance and testing services (QATS), business process outsourcing (BPO) and application management services.

Initially, Hexaware will provide knowledge base followed by IT and BPO services to the client and it's an existing client of Caliber Point, the company's BPO arm.

Hexaware to recruit 600

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“For this contract, the company expect to ramp up its workforce by adding around 600 plus IT staffs and in the later stage it will add BPO staffs during the course of 4-6 quarters,” Nishar said.

“This is the fifth deal announcement in the last 12 months and also the third deal in last three months. It is a validation of Hexaware's strategy and its execution, which illustrates the quality of its client roster and depth of those relationships,” he stressed.

Further, Nishar commented that from $110 million deal last year to $177 million now, showed how the mid-sized company Hexaware is capable of taking and executing deals over 100 million size.

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The addition of staffs will be part of the hiring guidance of around 1500 people in the fiscal 2011-12, which includes 700 freshers.

“Under this contract, Hexaware is expected to ramp up the team to a peak size of 600 plus personnel operating under Dedicated Global Delivery Centers. It is envisaged that Hexaware will offer Information Technology (IT) and BPO services from 15 locations spread globally,” said Rajiv Pant, Hexaware Technologies 's president and head — America Operations.

The company expects the ramp-up of the execution team to happen over the next four to six quarters. Given the size of the agreement and the innate complexities of the tasks assigned, Hexaware has designed a road map to enable a smooth transition of activities in a phased manner over the next two years.

“This is our third large deal signed in the past three months. A deal of this magnitude was won on the back of our dominant position in multiple technology platforms, an exemplary execution track record and a partnership approach to ensure maximum value accretion for the client,” said P R Chandrasekar, Hexaware Technologies' CEO and vice chairman.

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