Mid-tier IT firm MindTree has bagged two infrastructure management services (IMS) deals in the second quarter. The deals, stretched across a few years, could be worth $5 million each at the end of the contract period, an executive said.
IMS is one of the fastest growing businesses for MindTree and contributed 4% to its FY2010 revenues of Rs 1,296 crore. The firm expects the service to contribute about 6% to the revenue pie by this year-end, as Fortune 1,000 companies end large multi-year contracts awarded to single vendors in the past and beak-up projects among multiple vendors.
MindTree?s senior VP and head of Infrastructure Management and Tech Support Ram Mohan C said the firm has started bagging multi-year deals since the fourth quarter of FY10. ?Today, there are a lot of enquiries. We have about three to four multi-year multi-million dollar deals in the pipeline now,? he said.
MindTree had acquired Chennai-based 7Strata earlier this year and while the integration is on, the second quarter has seen two deals as a result of the acquisition. ?One deal from a India-based customer required 25-30 people. The second one has 10-15 people. The deals are for remote desktop support and critical server management,? Mohan said. 7Strata offers end-to-end remote IT monitoring and management services and the acquisition opened up the India market and remote desktop support services for MindTree. The firm?s IMS division currently has 750 people and is looking to close the year with about 900 people.
Nasscom recently announced that the remote infrastructure management sector had export revenues of $4.3 billion in FY2010, a growth of 11%.