Hexaware Technologies to offer Enterprise Risk Management (ERM) solutions through a Joint Venture

Hexaware Technologies Ltd, on June 25, 2007 has announced that it has entered into a Joint Venture Agreement with Pemtrad International Ltd to launch Risk Technology International (RiskTech). The new entity will focus exclusively on offering a comprehensive suite of technology-intensive solutions in the domain of enterprise risk and compliance management, primarily for financial institutions worldwide. RiskTech will have offices in UK, USA and India.

The Company is a leading software service provider in the Banking Financial Services and Insurance (BFSI) vertical, with over 30 customer relationships and over 40% of revenues coming from this space. The Company has gained market leadership in niche areas like Asset Management and Wealth Management. With an investment of 85% in the Joint Venture, the Company will be able to strengthen and leverage its scope of operations by offering diversified solutions in the field of enterprise risk and treasury risk management applications.

The global market for risk technology is estimated to be worth $ 5.5bn (external expenditure only) in 2007. It is growing rapidly than the growth rates witnessed in the IT spends globally.

"After Asset Management and Wealth Management, we have now entered the Risk management space through this venture. With this, Hexaware will strengthen its BFSI practice by adding a third sub-vertical of ERM. We expect to achieve revenue of $20mn+ in the third year in RiskTech coupled with a high downstream revenue potential for Hexaware," stated Atul Nishar, Executive Chairman of the Company on the launch of the Company.

Peyman Mestchian has been appointed as the Chief Executive Officer of Risktech. Peyman will manage the business from UK.

RiskTech will be able to leverage the Company's International reach especially in USA, Europe and Asia-Pacific. RiskTech will benefit from the Company's Business intelligence & Analytics group which comprises of more than 300 professionals.

"RiskTech will provide a new line of business and also new customer relationship for the entire Hexaware organization. We expect RiskTech to add at least half a dozen new clients in the next six months. Peyman's rich industry knowledge and business network in this space would be invaluable in giving RiskTech the business momentum." said Rusi Brij, Vice Chairman and CEO of Hexaware Technologies Ltd.

The Company will offer a suite of technology-focused solutions for implementation and support in the areas of Value-based Enterprise Risk Management (ERM) including Basel II and Pillar III based services, Regulatory Compliance, and Treasury Risk Management. In addition to the above offerings, RiskTech will also provide MIFID related services.

Risktech will leverage several existing Company's capabilities including partnerships with leading risk technology vendors, offshore delivery capabilities, and the growing number of client relationships in the larger BFSI space.

Source : Equity Bulls

Keywords