MindTree Ltd said on Tuesday it would buy Bangalore-based Kyocera Wireless India Pvt Ltd and make an upfront payment of $6 million, while
further payments will be linked to revenue in FY11 and FY12.
The IT firm expects the acquisition to contribute about $9 million in revenues for the period Oct 2009 to March 2010, with profit after tax expected to be in the range of 13-15 percent, it said in a statement.
Agencies
Showing posts with label MindTree. Show all posts
Showing posts with label MindTree. Show all posts
Tuesday, September 29, 2009
Thursday, September 17, 2009
TCS, Wipro and HCL emerge top IT leaders
A recent rating — for global R&D service providers across India, China and Eastern Europe — by Zinnov Management Consulting identifies Wipro, TCS and HCL as market leaders in the overall rating based on components like financial strength and business models, innovation & expertise, people strength and operations.
The rating has also highlighted the impact of recession on the R&D service providers community across all key levers — like contract re-negotiation, increase in sales cycle time, bankruptcy of clients and fears of business continuity risk — which did result in many of them having to reassess and redefine their strategies.
Result of this reassessment has seen core mid-market service providers like Tata Elxsi, Tech Mahindra, Aricent, MindTree, Symphony, Sonata, Global Logic, Polaris and Aditi, moving strongly towards the top-pack and establishing themselves as leaders in specific industry verticals, said the rating.
Pari Natarajan, CEO, Zinnov Management Consulting said, the global economy has witnessed a major reset and is currently observing green shoots of recovery, with Germany, India and China among others showing signs of improvement. “This tectonic shift in the economy has led to numerous changes in the current market dynamics, but one thing that can be safely assumed is the continued growth of interlinkages between global businesses and stronger relationships between service providers and MNCs would only continue to grow in times to come.’’
Vertical specific rankings were also under taken to understand the capabilities of the various service providers in providing turnkey product engineering services in verticals like aerospace & defense, automotive, consumer electronics, healthcare, semi conductors, telecom, & software.
The rating study also found that, R&D offshoring to India, China, Russia and Central & Eastern Europe is expected to grow at 6-7% with India and China continuing to constitute close 90% of the overall market. Though large firms have neither dramatically cut down nor increased their R&D spends. Hence, R&D offshoring to India, China, Russia and CEE is expected to remain flat.
Agencies
The rating has also highlighted the impact of recession on the R&D service providers community across all key levers — like contract re-negotiation, increase in sales cycle time, bankruptcy of clients and fears of business continuity risk — which did result in many of them having to reassess and redefine their strategies.
Result of this reassessment has seen core mid-market service providers like Tata Elxsi, Tech Mahindra, Aricent, MindTree, Symphony, Sonata, Global Logic, Polaris and Aditi, moving strongly towards the top-pack and establishing themselves as leaders in specific industry verticals, said the rating.
Pari Natarajan, CEO, Zinnov Management Consulting said, the global economy has witnessed a major reset and is currently observing green shoots of recovery, with Germany, India and China among others showing signs of improvement. “This tectonic shift in the economy has led to numerous changes in the current market dynamics, but one thing that can be safely assumed is the continued growth of interlinkages between global businesses and stronger relationships between service providers and MNCs would only continue to grow in times to come.’’
Vertical specific rankings were also under taken to understand the capabilities of the various service providers in providing turnkey product engineering services in verticals like aerospace & defense, automotive, consumer electronics, healthcare, semi conductors, telecom, & software.
The rating study also found that, R&D offshoring to India, China, Russia and Central & Eastern Europe is expected to grow at 6-7% with India and China continuing to constitute close 90% of the overall market. Though large firms have neither dramatically cut down nor increased their R&D spends. Hence, R&D offshoring to India, China, Russia and CEE is expected to remain flat.
Agencies
Friday, September 11, 2009
Will MindTree foray into China shortly?
Mid-sized software services firm MindTree will be making foray into China, having bagged a significant outsourcing contract from China’s biggest telecommunications equipment maker Huawei Technologies.
For the Bangalore-headquartered company, China marks new geography entry, besides already having presence in US and Europe. Confirming the development , Parthasarathy N S, CEO, testing & IMTS, MindTree, said, “We will be doing independent testing in the telecom space. This project has different phases and has potential to become large. The contract also allows us to move up the value chain as China has emerged a big growth market”.
However, he declined to name the customer as he is not allowed to do so. The contract deals with R&D and involves managing and supporting independent testing for Huawei’s different product line, where employees of MindTree will do the work at customer location, a person privy to the development said.
“Four companies were bidding for the contract, including an Indian firm and it was given to MindTree after complete evaluation of capabilities ”, the person said on conditions of anonymity. The company, which counts steel-maker Arcelor Mittal, Swedish truckmaker Volvo and insurer AIG among its top customers, will now be opening a subsidiary in China. Mr Parthasarathy said that they have sent techies from its India centres to China and will also look at option of hiring local talent there.
“China is an important market and we are evaluating to set up a development centre, but nothing will be decided till 12-18 months,” said Parthasarathy.
Economic Times
For the Bangalore-headquartered company, China marks new geography entry, besides already having presence in US and Europe. Confirming the development , Parthasarathy N S, CEO, testing & IMTS, MindTree, said, “We will be doing independent testing in the telecom space. This project has different phases and has potential to become large. The contract also allows us to move up the value chain as China has emerged a big growth market”.
However, he declined to name the customer as he is not allowed to do so. The contract deals with R&D and involves managing and supporting independent testing for Huawei’s different product line, where employees of MindTree will do the work at customer location, a person privy to the development said.
“Four companies were bidding for the contract, including an Indian firm and it was given to MindTree after complete evaluation of capabilities ”, the person said on conditions of anonymity. The company, which counts steel-maker Arcelor Mittal, Swedish truckmaker Volvo and insurer AIG among its top customers, will now be opening a subsidiary in China. Mr Parthasarathy said that they have sent techies from its India centres to China and will also look at option of hiring local talent there.
“China is an important market and we are evaluating to set up a development centre, but nothing will be decided till 12-18 months,” said Parthasarathy.
Economic Times
Friday, August 21, 2009
Will MindTree touch $1 bn revenue by 2014?
Mid-sized software services firm MindTree, which completed 10 years on Tuesday, will come up with newer strategies as it aims to achieve over $1 billion in revenues by March, 2014. The company, which counts steel-maker Arcelor Mittal and Swedish truckmaker Volvo among its top customers, will be focusing on areas like energy, defence and healthcare. The firm is also targeting newer geographies like Japan.
“We are making strategic investment in defence, working along with DRDO and focusing on areas which deal with the surveillance space. There isn’t much revenue contribution right now, but the potential in long run is great” , said S Janakiraman, president and CEO, R&D services and one of the 10 co-founders of MindTree. MindTree is also building video surveillance , analytics solutions and new telemedicine solutions for the burgeoning rural healthcare market. “We recently had a major win from an Apac telecom firm and an European consumer appliance company. The size of the contracts is worth $5-6 million”, he said.
Mr Janakiraman said that MindTree will be the fastest growing company once the recovery happens as they are making more investments for innovations. “The 15% salary cut of 200 employees out of 8,000 will be immediately restored once business picks up”. MindTree has also bagged a contract for IT services from Swift, the financial messaging provider, and has plans to tap energy sector.
“We have put the team in place and are talking to large energy companies in Europe and the US,” said Anjan Lahiri, president and CEO, IT services and one of the co-founders of MindTree.
Agencies
“We are making strategic investment in defence, working along with DRDO and focusing on areas which deal with the surveillance space. There isn’t much revenue contribution right now, but the potential in long run is great” , said S Janakiraman, president and CEO, R&D services and one of the 10 co-founders of MindTree. MindTree is also building video surveillance , analytics solutions and new telemedicine solutions for the burgeoning rural healthcare market. “We recently had a major win from an Apac telecom firm and an European consumer appliance company. The size of the contracts is worth $5-6 million”, he said.
Mr Janakiraman said that MindTree will be the fastest growing company once the recovery happens as they are making more investments for innovations. “The 15% salary cut of 200 employees out of 8,000 will be immediately restored once business picks up”. MindTree has also bagged a contract for IT services from Swift, the financial messaging provider, and has plans to tap energy sector.
“We have put the team in place and are talking to large energy companies in Europe and the US,” said Anjan Lahiri, president and CEO, IT services and one of the co-founders of MindTree.
Agencies
Monday, May 11, 2009
Do Indian IT firms vie for $11.4-billion domestic market?
With the IT clients in the U.S., Europe and Japan tightening their purse strings, Indian IT companies are scrambling to raise their share of the Indian software and IT services market, which industry body Nasscom values at around Rs 57,200 crore ($11.4 billion), reported Mint.
Mumbai-based TCS and Bangalore-based Infosys, India's largest and second largest IT service exporters, respectively, have set themselves the target of earning $1 billion, or around Rs.5,000 crore, in revenue from the domestic market in the next three to four years. Wipro wants to raise its India focus, as does mid-sized firm MindTree. In March, Employees' State Insurance Corporation, a government of India agency that provides health insurance to 10 million workers, had awarded a Rs.1,182 crore information-technology (IT) project to Wipro, which outbid other biggies like Infosys and Wipro to clinch this deal.
Adding allure to the domestic market is the plans by the sectors like government, energy and utilities, telecom, banking and finance to step up their IT spending. Customers in the US and Europe have traditionally made up as much as 80% of revenue earned by Indian exporters of software and related services.
A late 2008 report by research firm Gartner says that the Indian IT software and services segment, excluding business process outsourcing, is expected to grow at an annual pace of almost 20 percent to touch $13.2 billion by 2012.
TCS earns around $500 million (Rs2,500 crore), or nearly 8 percent of its total revenue, from Indian clients. "We have a base of key clients and solutions portfolio. We have made investments and have people, business and clients. We will accelerate all of this," a TCS spokesperson said.
However, the worry at TCS is that "India, like other emerging markets, is volatile and most business is project-based and not annuity based and hence there is a certain element of uncertainty," the spokesperson added.
Meanwhile, Infosys earns less than 2 percent of its revenue (or less than Rs400 crore) from the domestic market. "The market is very large, and has matured over a period of time," said Binod HR, head of the India business unit of Infosys. He said a "big challenge" is that Indian customers are very price-sensitive.
Wipro is one of the largest system integrators in India and, according to Springboard Research, has the second largest share of the domestic market after IBM.
P.K. Gopalkrishnan, Senior Vice-President and India business head IT services of Bangalore-based MindTree said the company earns up to 5 percent of its revenue from India and aims to double it by 2014.
Increasing the domestic market share would, however, not be easy. It entails competing with global technology firms such as IBM which, according to a late 2008 report by research firm IDC, commands a 10 percent share of the Indian market. IBM is the market leader and earns revenue of around Rs 5,700 crore from the Indian market.
Agencies
Mumbai-based TCS and Bangalore-based Infosys, India's largest and second largest IT service exporters, respectively, have set themselves the target of earning $1 billion, or around Rs.5,000 crore, in revenue from the domestic market in the next three to four years. Wipro wants to raise its India focus, as does mid-sized firm MindTree. In March, Employees' State Insurance Corporation, a government of India agency that provides health insurance to 10 million workers, had awarded a Rs.1,182 crore information-technology (IT) project to Wipro, which outbid other biggies like Infosys and Wipro to clinch this deal.
Adding allure to the domestic market is the plans by the sectors like government, energy and utilities, telecom, banking and finance to step up their IT spending. Customers in the US and Europe have traditionally made up as much as 80% of revenue earned by Indian exporters of software and related services.
A late 2008 report by research firm Gartner says that the Indian IT software and services segment, excluding business process outsourcing, is expected to grow at an annual pace of almost 20 percent to touch $13.2 billion by 2012.
TCS earns around $500 million (Rs2,500 crore), or nearly 8 percent of its total revenue, from Indian clients. "We have a base of key clients and solutions portfolio. We have made investments and have people, business and clients. We will accelerate all of this," a TCS spokesperson said.
However, the worry at TCS is that "India, like other emerging markets, is volatile and most business is project-based and not annuity based and hence there is a certain element of uncertainty," the spokesperson added.
Meanwhile, Infosys earns less than 2 percent of its revenue (or less than Rs400 crore) from the domestic market. "The market is very large, and has matured over a period of time," said Binod HR, head of the India business unit of Infosys. He said a "big challenge" is that Indian customers are very price-sensitive.
Wipro is one of the largest system integrators in India and, according to Springboard Research, has the second largest share of the domestic market after IBM.
P.K. Gopalkrishnan, Senior Vice-President and India business head IT services of Bangalore-based MindTree said the company earns up to 5 percent of its revenue from India and aims to double it by 2014.
Increasing the domestic market share would, however, not be easy. It entails competing with global technology firms such as IBM which, according to a late 2008 report by research firm IDC, commands a 10 percent share of the Indian market. IBM is the market leader and earns revenue of around Rs 5,700 crore from the Indian market.
Agencies
Monday, April 13, 2009
No Layoff Of 'Minds' At MindTree
Unlike IT majors TCS, Infosys, and Wipro, MindTree Ltd, a global IT and R&D services company, will not layoff even a single employee (minds), said COO N. S. Parthasarathy.
IT companies are currently among the largest sectors impacted by the global recession resulting in layoffs and salary cuts over the last few months.
Talking to CXOtoday at 'Awaaz', an event of the Amrita School of Business (ASB), Parthasarathy said, "Till date we have not sacked any staff in the history of MindTree despite having seen some impact due to the recession." The recession has hurt MindTree especially during the fourth quarter of the last fiscal. "We have felt the impact of the slowdown in the form of pricing pressure with companies now asking for a price reduction. Also, many companies are now offshoring their jobs to cut costs," said Parthasarathy.
The closest MindTree came to layoffs was in 2001, when the company was only two years old and had a manpower of only 400 employees. "There were 35 non-performers who were listed to be sacked, but our leadership team took the decision of a pay cut rather then layoff then," said Parthasarathy.
Since then the company came out with a policy not to layoff any 'minds', as MindTree terms their staff instead of manpower or employees.
The company has grown over the years and currently has over 8,000 'minds' with the acquisition of Aztecsoft in May 2008.
MindTree is hopeful of seeing the economic slowdown improve during quarter two and three this financial year.
CXOtoday.com
IT companies are currently among the largest sectors impacted by the global recession resulting in layoffs and salary cuts over the last few months.
Talking to CXOtoday at 'Awaaz', an event of the Amrita School of Business (ASB), Parthasarathy said, "Till date we have not sacked any staff in the history of MindTree despite having seen some impact due to the recession." The recession has hurt MindTree especially during the fourth quarter of the last fiscal. "We have felt the impact of the slowdown in the form of pricing pressure with companies now asking for a price reduction. Also, many companies are now offshoring their jobs to cut costs," said Parthasarathy.
The closest MindTree came to layoffs was in 2001, when the company was only two years old and had a manpower of only 400 employees. "There were 35 non-performers who were listed to be sacked, but our leadership team took the decision of a pay cut rather then layoff then," said Parthasarathy.
Since then the company came out with a policy not to layoff any 'minds', as MindTree terms their staff instead of manpower or employees.
The company has grown over the years and currently has over 8,000 'minds' with the acquisition of Aztecsoft in May 2008.
MindTree is hopeful of seeing the economic slowdown improve during quarter two and three this financial year.
CXOtoday.com
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