99% of IT work being done from home: Hexaware; Revenue slows

Hexaware Q1 FY2020 Results

Hexaware, the Mumbai-based mid-size IT services company, reported a rare instance of a slip in its quarterly growth rate amid the Coronavirus lockdown, and said 99% of its IT-related work is now being done by employees from their homes.

The quantum of work being done from home is remarkably high for Hexaware, as, in most other large IT and outsourcing firms, it is closer to the 90% range.

TCS, for example, is reported to have about 90% of its employees working home during the lockdown, though their share in the overall output is not known.

Hexaware said it started moving to a work from home (WFH) mode well before the Government made it mandatory.

“As of today, 99% of our IT work and 80% of BPS [business support services] in terms of revenue is WFH. Our customers have been delighted with our high levels of productivity, engagement and commitment,” it said.

“This is also evidenced from a third-party survey, wherein more than 93% of the respondents provided positive feedback on business continuity planning, communication from Hexaware teams, employee productivity and SLA commitments,” it claimed.

It said its foremost priority continues to be to ensure the safety of its employees, followed by delivery of uninterrupted services to customers and finally, to contribute to the community.

“Once the Government mandated lockdown is lifted, we will be resuming services in our offices in a staggered and segmented approach starting with those delivering critical services for which onsite presence is required,” it said.

IMPACT ON FINANCIALS

Revenue Segments

While the company did not break out the impact of the shut-down on its quarterly performance, Hexaware did report a deceleration in its numbers for the quarter.

Revenue, denominated in dollars, fell 1.7% compared to the previous three months to 210.6 million, marking the first such instance in several consecutive quarters. However, they were still up 17% on year.

The impact was clearly visible on certain verticals such as travel and transportation and manufacturing.

Interestingly, revenue from Europe rose 0.4% on quarter, while that from the US fell 2.1% on quarter and revenue from Asia Pacific fell 2.4%.

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