Hexaware's Revenues Hit as Fannie Mae Trims Tech Spend

IT services firm to lose 1% revenue as the US client cuts vendor base in consolidation push

- Jas Bardia

Hexaware Technologies Ltd is facing challenges in one of its top three accounts, which will knock off at least 1% of the company's incremental revenue because of the client's cost-saving efforts.

The country's tenth-largest information technology (IT) services firm, which ended 2024 with $1.43 billion in revenue, counts Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corp. (Freddie Mac) among its five largest customers. Both these companies collectively bring the IT outsourcer about $150 million in revenue annually.

Chief executive Srikrishna Ramakarthikeyan maintained that slower business from one of these clients will impact 1% of the revenue during the company's post-earnings analyst call on 29 April. This implies a ramp down from the business in the current year by $14.3 million.