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    Hexaware Review

    Uploaded by

    Shrinivas Puli
    The document analyzes the business impact of COVID-19 on Hexaware's key customers in Europe. It aims to: 1) Build financial models to forecast COVID's impact on revenues, profits, and IT spending. 2) Forecast potential industry recovery models based on past recessions. 3) Create industry-specific models for banking, insurance, manufacturing, and other verticals. 4) Recommend marketing strategies to ensure Hexaware grows and remains relevant for customers. The analysis will use a 4-step methodology to understand revenue declines and perform scenario-based IT spend forecasting. Opportunities will also be analyzed to determine the optimal product mix.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Hexaware Review

    Uploaded by

    Shrinivas Puli
    55 views9 pages
    The document analyzes the business impact of COVID-19 on Hexaware's key customers in Europe. It aims to: 1) Build financial models to forecast COVID's impact on revenues, profits, and IT spending. 2) Forecast potential industry recovery models based on past recessions. 3) Create industry-specific models for banking, insurance, manufacturing, and other verticals. 4) Recommend marketing strategies to ensure Hexaware grows and remains relevant for customers. The analysis will use a 4-step methodology to understand revenue declines and perform scenario-based IT spend forecasting. Opportunities will also be analyzed to determine the optimal product mix.

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    The document analyzes the business impact of COVID-19 on Hexaware's key customers in Europe. It aims to: 1) Build financial models to forecast COVID's impact on revenues, profits, and IT spending. 2) Forecast potential industry recovery models based on past recessions. 3) Create industry-specific models for banking, insurance, manufacturing, and other verticals. 4) Recommend marketing strategies to ensure Hexaware grows and remains relevant for customers. The analysis will use a 4-step methodology to understand revenue declines and perform scenario-based IT spend forecasting. Opportunities will also be analyzed to determine the optimal product mix.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    55 views9 pages

    Hexaware Review

    Uploaded by

    Shrinivas Puli
    The document analyzes the business impact of COVID-19 on Hexaware's key customers in Europe. It aims to: 1) Build financial models to forecast COVID's impact on revenues, profits, and IT spending. 2) Forecast potential industry recovery models based on past recessions. 3) Create industry-specific models for banking, insurance, manufacturing, and other verticals. 4) Recommend marketing strategies to ensure Hexaware grows and remains relevant for customers. The analysis will use a 4-step methodology to understand revenue declines and perform scenario-based IT spend forecasting. Opportunities will also be analyzed to determine the optimal product mix.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    COVID-19 Business Impact analysis

    OBJECTIVES

    • Identifying scale of impact of COVID-19 pandemic on key Hexaware customers in Europe 


    ​
    • Building a financial model to drive forecast of COVID impact on Firm Revenues, profits and IT
    spends​

    • Forecast potential recovery models based on existing recovery models and inferences ​

    • Create industry specific models for BFS, H&I, GTT and M&C verticals ​

    • Perform opportunity analysis for selected customers in Europe to validate relevance of


    opportunity pipeline post Covid ​

    • Recommend 2Q-4Q marketing mix to ensure Hexaware successfully grows and stays relevant for
    customers  ​

    2
    ANALYSIS METHODOLOGY
    4 Steps to understand Y-O-Y revenue hit

    Firm Recession Recovery Industry COVID-19 Impact


    Trace recovery time period and post
    recession y-o-y growth 4 1 Understand pandemic impact on
    sector and recovery potential

    Revenue Forecast
    Firm Recession Impact Industry Recession history
    Quantify step 2 impact on firm
    revenue and profitability 3 2 Identify similar recession phases in
    industry timeline

    4
    COVID-19 IMPACT SNAPSHOT-EU
    BFS
    • Insurance : Delay in premium payments due to paucity of money
    • Banking : Lower transaction income due to trade shortage, reduced loan
    offtake due to cautious consumer outlook, reduced NIMs due to low
    interest rates
    • Auto-Leasing : Limited new leasing activity due to auto-production
    slowdown and potential change in consumer spending habits
    M&C
    • Retail (Essentials) : Demand shock due to overstocking, increased
    pressure on supply chains to deliver under lockdown conditions
    • Retail (Non-Essentials) : Markets could crash due to low demand, risk on
    product shelf life, overdependence on imports.
    H&I
    • Pharmaceuticals : Bottleneck in production volumes due to low labour
    output and physical distancing. 70% drug import dependence on china
    GTT
    • Aviation : IATA revenue loss for passenger business is between $ 63B
    (11%) and $ 114B(19%) due to travel restrictions.
    Professional Services
    • IT services : Digital gets push with remote working and firms exploring
    digital channel, highlighting importance of investment in cloud, data,
    automation self-service capabilities.
    • Telecom : Increased broadband usage(>10% as-is) and bottleneck in
    customer operations to meet growing demand.
    Market volatility index 2008 financial crisis vs 2020 COVID- 3
    source : Mckinsey & Company Industry Impact Report 19 source : Wall Street journal, 19th March
    IT SPEND MODELLING
    Scenario based forecasting for firm’s Y-O-Y tech budget

    3 scenario analysis to assess possible IT spend delta


    3 scenarios considered for firms, 2020 Q1 onwards 1200

    Growth : Firm’s expected growth profitability based on developments


    1000
    introduced in sector viz new technology, better supply chains, digital
    transformation. Projections are modelled based on industry reports Indicated
    800
    by green trajectory.

    600
    Business as usual : Firm’s expected revenues if business continued as usual
    with no enhancements or recession. Projections are modelled using linear
    regression of firm’s historic revenues. 400

    Indicated by orange trajectory.


    200

    Recession : Firms expected revenues if impacted by COVID-19. Projections


    are modelled based on historic %decline in revenue growth y-o-y. 0
    Indicated by red trajectory. 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
    20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20

    Projected Revenues are mapped to Sector-wise IT budget(% revenues) to Revenues($m) As-is Revenue forecast
    forecast respective IT spend. Recession induced Revenue forecast Revenue Growth forecast

    IT spend = Revenue for the year * %profit margin * % Annual IT budget


    5
    HEXAWARE REVENUES

    Hexaware share of IT spend = Average revenue from Account/ Average IT spend of the firm

    Hexaware Account revenues = Firm Revenues * IT spend(% of revenues) * Hexaware share of IT spend

    Direction >>>> Accuracy

    7
    OPPORTUNITY ANALYSIS
    Determining Product mix

    7
    WAY FORWARD

    Week 1 Week 2 Week 3 Week 5 Week 6 Week 7 & Week 8

    1. MVP of Week 1 output for 2 Expand MVP to +15


    companies across parameters. companies
    Submit impact outcomes across Portfolio analysis for W3
    revenues, IT spend and business companies
    views Interim review/check point
    2. Initiate conversation for presentation
    opportunity analysis and
    portfolio analysis with account
    teams and Marketing

    1. Create a Europe wide view 1. Create a Europe wide view of


    of impact, portfolio impact, portfolio analysis,
    Expand MVP to +5 companies
    Table of Contents ,Analysis analysis, opportunity and opportunity and marketing
    Portfolio analysis for W3
    Frameworks, Parameters for marketing mix mix
    companies Interim review/check
    Analysis and Models 2. Finalise the Model for 2. Finalise the Model for impact
    point presentation
    impact analysis and analysis and opportunity
    opportunity analysis analysis
    References

    Revenue reports :
    • Companyhouse.gov.uk, individual firm media reports

    Industry and firm impact :


    • Mckinsey & Company : COVID-19 Implications for Business, April 2020 Business Briefing
    • Mckinsey & Company : Briefing Materials, April 3rd, 2020
    • Roland Berger CaaS business overview, 2020
    • Roland Berger Aviation industry COVID-19 POV report,2020
    • COVID-19 : Managing Supply Chain disruption, Oliver Wyman 2020
    • The impact of COVID-19 on share prices in the UK – Institute for fiscal studies
    • COVID-19 and the new leadership agenda, Boston Consulting Group 2020
    • PWC : Considering potential business impact COVID-19

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