logo
Hexaware acquires two SMC Squared firms for over Rs 1,000 crore in GCC space

Hexaware acquires two SMC Squared firms for over Rs 1,000 crore in GCC space

Time of India17-07-2025
Academy
Empower your mind, elevate your skills
Mid-sized IT player Hexaware Technologies Thursday said it has acquired two SMC Squared group firms for a cumulative cash consideration of Rs 1,029.12 crore (about $120 million).The acquisition of Tech SMC Squared India and Tech SMCSquared (GCC) India is aimed at expanding Hexaware's presence in the global capability centre (GCC) space, the company said.'The acquisition is a strategic step in Hexaware's mission to deliver future-proof GCC solutions that go beyond cost efficiency, anchored in a combined human and digital agent-driven model,' Hexaware said in a regulatory filing.The recently listed IT company is the latest to join the race to help multinationals establish GCCs in India, a growing market over the past two years expected to cross $100 billion by 2030.The proposed acquisition does not require any governmental or regulatory approvals, the filing said.'Our clients are increasingly looking for GCC partners who bring more than staffing or infrastructure… This acquisition enables us to deliver long-term value to enterprises, leveraging our human and digital agent-driven model and proprietary IT delivery platforms,' said Amrinder Singh, president and head-EMEA & APAC operations, Hexaware.GCCs are offshore or nearshore hubs set up by foreign companies to deliver back-office business functions such as IT, finance, HR, analytics and research & development (R&D). Over the past few years, such centres are expanding from being cost arbitrage-driven support units to value-generating strategic centres.'Historically, we have not addressed the GCC market, and I think there are three sets of opportunities. One is to help set up new GCCs, there's quite a velocity of it happening. And with the current macros, that may accelerate new clients setting up GCCs…The second opportunity is scaling within GCCs once it is set up… the bigger opportunity is to transform with AI,' Hexaware CEO Srikrishna Ramakarthikeyan told ET recently.The third is that there is a percentage of GCCs that will exit back into outsourcing. That is also an opportunity, he added.Bengaluru-based SMC Squared has helped set up over 30 GCCs across commerce, manufacturing, financial services, health care and consumer brands. It operates through engagement models, such as managed services, build-optimise-transfer and hybrid solutions, which lower operating costs while assembling GCC teams.The GCC enabler has a total workforce of around 500 employees, with a go-to-market office in the US and two delivery centres in India—Bengaluru and Hyderabad—supporting operations across HR, infrastructure, employee well-being, finance and strategic technology consulting.'Enterprises are shifting toward outcome-based models, requiring partners who can deliver stable, scalable and high-accountability operations… SMC's proven playbook and relationships in the mid-market GCC segment will accelerate our go-to-market strategy… We will extend SMC's offerings to our broader client base, including existing Hexaware customers,' Hexaware said in its filing.By integrating SMC's GCC setup capabilities with Hexaware's strengths in AI, analytics, cloud transformation, modernisation and enterprise platforms , we can deliver end-to-end solutions for clients looking to optimise and scale their GCC operations, it added.SMC Group's turnover for calendar year 2024 stood at $22.58 million (Rs 189.15 crore at an exchange rate of Rs 83.77 per dollar).'For over a decade, we've helped shape the GCC industry, and this acquisition expands what we can deliver globally with strengthened capabilities across AI, analytics, modernisation, cloud transformation, and enterprise platforms while growing our delivery footprint with new centres in Latin America and increasing client activity in the UK and Europe,' said Patricia Connolly, CEO, SMC Squared.GCCs in India have grown at a CAGR of 11% over the past five years with one new GCC being set up per week at least on an average in 2024.As the GCC capital of the world, India is home to about 55% of global GCCs with nearly 1,800 centres, generating $68 billion in export revenue, contributing around 1.6% to the national GDP, as per latest government numbers.Further, around 32% of global GCC talent is based in India with nearly 2.16 million employed professionals in the GCC sector, which is expected to touch 2.8 million by 2030.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

CDSL Q1 results: PAT declines 24% YoY, revenue marginally up by 0.5%
CDSL Q1 results: PAT declines 24% YoY, revenue marginally up by 0.5%

Time of India

time8 minutes ago

  • Time of India

CDSL Q1 results: PAT declines 24% YoY, revenue marginally up by 0.5%

CDSL's Q1 FY26 results reveal a 23.7% YoY decline in consolidated net profit, reaching Rs 102.40 crore, while revenue from operations saw a marginal increase of 0.55% to Rs 258.81 crore. Depository activity revenue increased, but data entry and storage revenue decreased. Total expenses surged by 27.35% YoY to Rs 143.60 crore. Tired of too many ads? Remove Ads Here is the segment-wise revenue for Q1 FY26: Tired of too many ads? Remove Ads Depository Activity contributed Rs 221.85 crore, up from Rs 197.89 crore in Q1 FY25. Data Entry and Storage revenue stood at Rs 36.94 crore, down from Rs 58.87 crore in Q1 FY25. Repository services brought in Rs 85.23 lakh, compared to Rs 69.47 lakh in Q4 FY25 and Rs 67.69 lakh in Q1 FY25. The Central Depository Services (India) Ltd ( CDSL ) on Saturday reported its results for the first quarter ended June 2025, posting a decline of 23.7% year-on-year (YOY) in its consolidated net profit at Rs 102.40 crore, against Rs 134.16 crore in the year-ago period. The revenue from operations, meanwhile, rose marginally by 0.55% revenue from operations was reported at Rs 258.81 crore for the said quarter, against Rs 257.38 crore reported in the same period of the previous financial the company's PAT rose 2%, up from Rs 100.39 crore in the March reported a total revenue of Rs 259.64 crore for the quarter ended June 30, 2025 (Q1 FY26), compared to Rs 224.74 crore in the previous quarter (Q4 FY25) and Rs 257.43 crore in the same quarter last year (Q1 FY25).On the expense front, CDSL's total expenses rose to Rs 143.60 crore, up from Rs 112.76 crore reported in the corresponding quarter of the previous year. This denotes a surge of 27.35% Friday, the shares of CDSL closed 3.8% lower at Rs 1,616 on the NSE.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

CDSL Q1 results: PAT declines 24% YoY, revenue marginally up by 0.5%
CDSL Q1 results: PAT declines 24% YoY, revenue marginally up by 0.5%

Economic Times

time8 minutes ago

  • Economic Times

CDSL Q1 results: PAT declines 24% YoY, revenue marginally up by 0.5%

CDSL's Q1 FY26 results reveal a 23.7% YoY decline in consolidated net profit, reaching Rs 102.40 crore, while revenue from operations saw a marginal increase of 0.55% to Rs 258.81 crore. Depository activity revenue increased, but data entry and storage revenue decreased. Total expenses surged by 27.35% YoY to Rs 143.60 crore. Tired of too many ads? Remove Ads Here is the segment-wise revenue for Q1 FY26: Tired of too many ads? Remove Ads Depository Activity contributed Rs 221.85 crore, up from Rs 197.89 crore in Q1 FY25. Data Entry and Storage revenue stood at Rs 36.94 crore, down from Rs 58.87 crore in Q1 FY25. Repository services brought in Rs 85.23 lakh, compared to Rs 69.47 lakh in Q4 FY25 and Rs 67.69 lakh in Q1 FY25. The Central Depository Services (India) Ltd ( CDSL ) on Saturday reported its results for the first quarter ended June 2025, posting a decline of 23.7% year-on-year (YOY) in its consolidated net profit at Rs 102.40 crore, against Rs 134.16 crore in the year-ago period. The revenue from operations, meanwhile, rose marginally by 0.55% revenue from operations was reported at Rs 258.81 crore for the said quarter, against Rs 257.38 crore reported in the same period of the previous financial the company's PAT rose 2%, up from Rs 100.39 crore in the March reported a total revenue of Rs 259.64 crore for the quarter ended June 30, 2025 (Q1 FY26), compared to Rs 224.74 crore in the previous quarter (Q4 FY25) and Rs 257.43 crore in the same quarter last year (Q1 FY25).On the expense front, CDSL's total expenses rose to Rs 143.60 crore, up from Rs 112.76 crore reported in the corresponding quarter of the previous year. This denotes a surge of 27.35% Friday, the shares of CDSL closed 3.8% lower at Rs 1,616 on the NSE.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Rs 437 crore tax collection: For crypto traders, evading income tax is getting difficult as Tax Dept uses AI, data analytics tools
Rs 437 crore tax collection: For crypto traders, evading income tax is getting difficult as Tax Dept uses AI, data analytics tools

Economic Times

time8 minutes ago

  • Economic Times

Rs 437 crore tax collection: For crypto traders, evading income tax is getting difficult as Tax Dept uses AI, data analytics tools

ET Online Crypto tax In India, avoiding taxes on bitcoin, cryptocurrencies, and other virtual digital assets is becoming increasingly difficult. The Income Tax Department is increasing its efforts to monitor transactions related to the virtual digital assets (VDAs) made by individuals. This is being done through the use of artificial intelligence (AI), machine learning, and other data analytics tools. According to the government's reply in the Parliament, the government has collected Rs 437 crore in taxes for FY 2022-23 from VDA-related income. The government implemented income tax rules for crypto and other VDAs from FY 2022- 23. In FY 2022-23, the government collected Rs 269.09 crore in taxes from VDA income. Also read: Indian Railways has deactivated 2.5 crore IRCTC user IDs: Has yours also been deactivated? Check now Members of Parliament asked several questions regarding tax collection, potential revenue loss due to under-reporting/mis-reporting from VDAs' income and the technological tools being used to monitor crypto activity. ET Wealth Online breaks down the government's responses on the use of data tools, centralised systems for matching crypto tax data, and ongoing training programs for tax officers. Questions on income tax collection from VDAs, cryptocurrency Parliamentarians Lavu Sri Krishna Devarayalu and G M Harish Balayogi, Members of Parliament, Lok Sabha, asked the following questions and the government's response in the Parliament. a) The total revenue collected from income tax on VDA/cryptocurrency-related income during the last three years, year-wise; The government in the Parliament replied: The tax on income from transfer of Virtual Digital Assets (VDA), under section 115BBH of the Income Tax Act, 1961, was introduced from FY 2022-23. The collection of tax on income from VDA, for last three years is as under:Table (b) whether any estimates have been made by the Government regarding the projected revenue loss due to under-reporting/misreporting of income from VDA/cryptocurrency transactions; The government in Parliament replied: No such estimates have been made. (c) Whether the government is using AI/ML/data analytics tools to identify tax evasion in VDA transactions, if so, details thereof; The government in Parliament replied: The government is utilising data analytics tools to trace and detect tax evasion from VDA-related transactions. The analysis includes the use of Non-Filer Monitoring System (NMS), project insight and internal databases of the Income Tax department, to correlate available information on VDA transactions with the transactions disclosed in the return of income by the taxpayer.(d) Whether a centralised system has been established by the Government for real-time matching of VDA-related ITR filings with TDS returns filed by Virtual Asset Service Providers (VASPs), if so, the status of its implementation; andThe government in Parliament replied: Real time matching of VDA related transactions, filed in income tax returns, with information filed by Virtual Asset Service Providers (VASPs) is not being carried out. However, TDS returns filed by VASPs and income tax returns filed by the taxpayers are analysed to identify discrepancies in reported VDA transactions. The Central Board of Direct Taxes has initiated the NUDGE (Non-Intrusive Use of Data to Guide and Enable) campaign to identify such discrepancies for further action. Under NUDGE campaign suitable communications, to review and update their income tax returns, were issued to all taxpayers who did not report VDA-related transactions in their income tax returns, despite tax being deducted at source for such transactions by VASPs, where the quantum of such discrepancy was more than Rs 1 lakh. (e) Whether the Government has undertaken any capacity-building initiatives to equip tax officials for effective compliance monitoring and investigation in the VDA/cryptocurrency ecosystem, if so, the details thereof and if not, the reasons therefor?The government in the Parliament replied: Several capacity-building initiatives are being undertaken by the Government to equip officers for effective compliance monitoring and investigation of VDA related transactions. Training programs, specialized workshops, Chintan Shivirs and hands-on workshops are regularly conducted by various training institutes under the Income Tax Department. At local level, field offices conduct training sessions and webinars on digital forensics, blockchain analysis, legal frameworks, and handling of digital evidence. The officers and officials are also imparted short term training on digital forensics, in partnership with National Forensic Science University (NFSU), Goa, which empower them to identify and trace VDA related transactions from data captured during intrusive actions. Penalty for not disclosing crypto earnings According to a report in The Economic Times, the Income Tax Department has sent bulk notices to taxpayers who have either not paid the correct income tax amount or failed to report income from cryptocurrency in their tax returns. Also Read | Didn't report your crypto earnings? Income tax dept sending tax notices, conducting search undefined know your options If an individual taxpayer fails to report crypto transactions, they may be liable to pay a penalty under Section 270A of the Income Tax Act, 1961. Under this section, a taxpayer is liable to pay a sum equal to fifty per cent of the amount of tax payable on under-reported income. If the under-reported income is in consequence of any misreporting of income, then it is equal to two hundred per cent of the amount of tax payable on the under-reported income. N.R. Narayana Murthy Founder, Infosys Watch Now Harsh Mariwala Chairman & Founder, Marico Watch Now Adar Poonawalla CEO, Serum Institute of India Watch Now Ronnie Screwvala Chairperson & Co-founder, upGrad Watch Now Puneet Dalmia Managing Director, Dalmia Bharat group Watch Now Martin Schwenk Former President & CEO, Mercedes-Benz, Thailand Watch Now Nadir Godrej Managing Director, of Godrej Industries Watch Now Manu Jain Former- Global Vice President, Xiaomi Watch Now Nithin Kamath Founder, CEO, Zerodha Watch Now Anil Agarwal Executive Chairman, Vedanta Resources Watch Now Dr. Prathap C. Reddy Founder Chairman, Apollo Hospitals Watch Now Vikram Kirloskar Former Vice Chairman, Toyota Kirloskar Motor Watch Now Kiran Mazumdar Shaw Executive Chairperson, Biocon Limited Watch Now Shashi Kiran Shetty Chairman of Allcargo Logistics, ECU Worldwide and Gati Ltd Watch Now Samir K Modi Managing Director, Modi Enterprises Watch Now R Gopalakrishnan Former Director Tata Sons, Former Vice Chairman, HUL Watch Now Sanjiv Mehta Former Chairman / CEO, Hindustan Unilever Watch Now Dr Ajai Chowdhry Co-Founder, HCL, Chairman EPIC Foundation, Author, Just Aspire Watch Now Shiv Khera Author, Business Consultant, Motivational Speaker Watch Now Nakul Anand Executive Director, ITC Limited Watch Now RS Sodhi Former MD, Amul & President, Indian Dairy Association Watch Now Anil Rai Gupta Managing Director & Chairman, Havells Watch Now Zia Mody Co-Founder & Managing Partner, AZB & Partners Watch Now Arundhati Bhattacharya Chairperson & CEO, Salesforce India Watch Now

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store