hSenid is positioned for growth by focusing on expanding in the APAC and African regions and continuously improving its HR technology solutions to help its clientele drive employee productivity.
Listed technology company hSenid Business Solutions reported a strong performance during the second quarter of the financial year 2022/23, with revenue growing 89% year-on-year in LKR terms and 27% in USD on a constant currency basis.
The Sri Lanka-based tech company specializing in HR solutions is on track to fulfil its growth objectives and transformation as a global player. During the September 2022 quarter, the company saw a 49% increase in new deals, with PeoplesHR Cloud accounting for 59% of them. hSenid’s expansion into Bangladesh is on track, and the second phase of the Ugandan Government project will also take off during the second half of the current financial year. Furthermore, PeoplesHR Turbo continued to gain traction in India. hSenid Business Solutions’ Chief Strategy Officer Nilendra Weerasinghe shares insights into driving growth amidst global challenges and uncertainties.
What has hSenidBiz been working on during the current year?
Currently, we are focusing on two areas; one is the development of our channel partner network, and the second is product development. Expanding our channel partner network is critical to accelerating our journey to becoming a tech company with a global footprint. Ideally, we would like to have a good mix of reseller partner relationships and also implementation partners, giving us much more scalability as a software company to grow in overseas markets. On the other hand, you need to focus on product development which is crucial for any software product company, to reinvent itself and improve its product to stay on top of constantly evolving trends and remain relevant globally. So these are two areas that continue to occupy our bandwidth.
At present, we have offices in Singapore, Australia, India, and the African region and added Bangladesh earlier this year, partially as a sign of commitment to that market and also to set up an offshore development centre that would complement the centre of excellence in Colombo.
As an HR tech company, our focus is on being one of the leading HR software players in APAC and the African region, and the more we move away from our turf, having dependable partners is very important. We have a network of about 50 partners which is almost double from last year. We believe our success will depend on how fast we can work with these partners to establish our presence in those markets, upskilling them so that they can do more for us. If you look at our revenue mix, our Sri Lankan clientele accounts for 50% of our revenue, with overseas clients accounting for the rest. Around 90% of our overseas revenue comes from the APAC and African markets, where we will continue to focus on driving growth.
What was the biggest challenge faced by hSenid and its global clientele in 2022?
I think the biggest challenge is the acquisition and retention of talent. Staff turnover is always a big issue, more so in Sri Lanka, because of factors beyond our control, and I think that is the case for most organizations. What is encouraging for us as an HR technology company is that we have the technology solutions for companies to better engage with their people and retain them with learning and development programmes to upskill them, thereby deepening their affinity with the company. Our technology also gives companies grappling with high staff turnover a superior means of reaching out to the talent pool and recruiting the best people.
How is hSenid helping businesses worldwide to reimagine themselves in an ever-changing world?
We have implemented a co-producing development model to sharpen our product development. Gone are the days when a product company could decide what clients need, develop it, and go through a long development cycle. Given the rapid upheavals in technology and market trends, by the time a product goes through this long-drawn development cycle, it may be outdated before it is market ready. To avoid this problem, we have adopted a co-producing development model where we work with clients to identify their problems and see if we can get their input at the product development stage, minimizing the possibility of deviating from what our clients want.
That is one aspect, and the second is that a software company may not be the best at doing everything. For example, innovative technological solutions are emerging in the Application Tracking Systems space, AI tools to evaluate recruitments and innovative training and development apps. Through our PeoplesHR Marketplace, we are onboarding these third-party product vendors, integrating them into our HR information system, and offering them as value-added products to our clients. So now, while being a Peoples HR Marketplace customer, a business can enjoy the benefits of our platform and access third-party cutting-edge technology as value additions from across the world.
We also see immense potential in the SME segment. As a Sri Lankan-based company, we are sitting at the doorstep of what would potentially be the largest SME market in the world, India. Cognizant of this opportunity, we launched a tailor-made product for the Indian market called PeoplesHR Turbo.
What is your outlook for the year ahead, and what are your plans for growth?
The world is certainly going through recessionary fears, and 2023 will be challenging financially for businesses anywhere in the world. However, we have focused our overseas efforts on markets which are less likely to be affected by the macro headwinds. So we are confident about our prospects and hope to emerge stronger once the dust settles; The APAC and African regions have so much untapped potential and are showing encouraging economic growth.
hSenid is poised to capture those growth opportunities through our strategic presence and partner network expansions, for which some of the funds from our successful IPO will drive inorganic growth in these markets.