Hexaware eyes Latin America and Europe GCC expansion after SMC Squared buyout

Hexaware Technologies is stepping up its global delivery center ambitions with a clear focus on Latin America and Europe following its acquisition of U.S.-based SMC Squared. The Indian IT and business process services firm is leveraging SMC Squared’s established nearshore engineering capabilities to deepen cross-border talent pipelines and respond to a surge in enterprise demand for hybrid cloud, analytics, and AI-powered digital transformation. This expansion, which follows a series of aggressive international growth moves, signals Hexaware’s intent to diversify its delivery model while building local compliance-oriented expertise.

How will Hexaware’s post-SMC Squared expansion shape its delivery presence in Latin America and Europe amid rising cross-border digital transformation demand?

The acquisition of SMC Squared provides Hexaware with an immediate nearshore base in Mexico, where engineering teams are already delivering software product development and modernization projects for U.S. clients in BFSI, healthcare, and retail sectors. According to the company’s acquisition statement, this existing delivery model will be scaled into other high-potential Latin American markets, with Bogotá, Colombia, and São Paulo, Brazil identified as key cities. By hiring bilingual engineering talent trained in automation, cloud-native frameworks, and advanced analytics, Hexaware aims to improve alignment with North American clients who require not just cost efficiency, but cultural compatibility and proximity to their operating time zones.

In Europe, Hexaware is simultaneously scouting locations for greenfield GCC (Global Capability Center) setups in Poland and Romania, which will complement its current hubs in the U.K. and Germany. This expansion is seen as a direct response to the increasing need for regulated industries, especially banking, financial services, and pharmaceuticals, to keep data and operations within EU borders. Market observers believe Hexaware’s European GCC strategy will help it combine regulatory compliance with nearshore delivery agility, enabling faster turnaround times for mission-critical projects.

The SMC Squared integration also strengthens Hexaware’s ability to deliver end-to-end digital product ownership, moving beyond conventional outsourcing models. Analysts suggest that Hexaware will be able to leverage SMC Squared’s product engineering expertise to co-innovate with Fortune 500 clients, particularly in industries where rapid digital transformation is a competitive differentiator. By aligning nearshore and offshore talent pools, Hexaware can offer full-stack services—from product conceptualization and user experience design to AI-driven testing and deployment—at scale.

Industry watchers note that this dual-region push aligns with a wider industry trend where Indian IT services providers are reshaping their delivery strategies. Based on industry estimates, cross-border GCC investments in Latin America and Central/Eastern Europe are expected to grow at a compound annual growth rate of 20–25% over the next three years. Hexaware’s move positions it to capture a meaningful share of this growth, particularly in segments like BFSI and life sciences, where compliance and security often dictate vendor choices.

Hexaware’s leadership has hinted at prioritizing mid-senior local hires to lead domain-specific projects in these regions. This suggests that the company is evolving its talent pyramid, reducing over-reliance on offshore resources for regulated markets. By incorporating regional cybersecurity experts, digital engineering specialists, and compliance officers, Hexaware can build trust with enterprises that are increasingly scrutinizing vendor risk and operational transparency.

From a strategic standpoint, this expansion is also expected to strengthen Hexaware’s branding as a global transformation partner rather than just a cost-competitive vendor. If executed effectively, the combined SMC Squared and Hexaware delivery network could emerge as a preferred choice for enterprises looking for hybrid onshore-nearshore models that balance regulatory needs with innovation speed.

Looking ahead, Hexaware’s GCC strategy in Latin America and Europe could serve as a template for similar hybrid expansions into other regulated markets, including Southeast Asia and the Middle East. The company’s success will likely depend on how quickly it can scale specialized talent pools while maintaining cost competitiveness. Market observers believe that if Hexaware sustains this momentum, it could significantly elevate its standing among top-tier IT and engineering service providers over the next 24 months.