Archive · 9 Jun 2025
Hexaware Faces Business Challenges with US Mortgage Clients
Hexaware, a tech company, is having some trouble with two of its big customers: Fannie Mae and Freddie Mac, which are like banks for buying houses.
These companies are trying to save money by cutting back on the tech help they get.
This means less work for Hexaware and could affect how much money they make.
The changes are happening because of new leaders at Fannie Mae and Freddie Mac who want to change things up.
Even with these challenges, Hexaware hopes to do well overall because it has other customers and is working on new projects.
Hexaware Technologies is facing business challenges with at least one of its top three clients due to cost-saving measures.
Fannie Mae, a major client, is reducing its IT outsourcing, impacting Hexaware's revenue.
Freddie Mac also delayed project execution as part of a vendor consolidation drive.
Changes in leadership at Fannie Mae and Freddie Mac, influenced by new government appointees, initiated the changes.
Despite these challenges, Hexaware expects a solid year due to a diversified client base and growth in other areas.
- Who
- Hexaware Technologies, Fannie Mae, Freddie Mac, and analysts.
- What
- Hexaware is facing a slowdown in business from Fannie Mae and delays from Freddie Mac, impacting revenue.
- When
- The challenges began in early 2025, following changes in leadership and cost-cutting measures.
- Where
- Primarily in the US, where Fannie Mae and Freddie Mac are based, and where Hexaware conducts most of its business.
- Why
- Fannie Mae and Freddie Mac are reducing costs and consolidating vendors after new leadership was appointed.
Analyst Perspective
Hexaware's Perspective
Company Outlook
Analyst Perspective
Analysts express short-term uncertainty and risk to revenue estimates.
Hexaware's Perspective
Expecting solid year with other clients offsetting the challenges and more deals in the pipeline.
- Hexaware's Ranking
- 10th
- 2024 Revenue
- $1.43 billion
- Major Clients Affected
- Fannie Mae and Freddie Mac
- Annual Revenue from Fannie Mae/Freddie Mac
- $150 million
- Revenue Impact
- 1%
- Revenue for three months through March 2025
- $371.5 million
- US Business Percentage
- Over 75%