Will take products made for Indian market abroad

Written by Rachana Khanzode | Updated: Oct 12 2010, 06:32am hrs
As fears of a double dip recession persist in the US, more and more clients are becoming cautiously optimistic, says Krishnakumar Natarajan, MD & CEO of the Bangalore-based IT products and services firm MindTree. The company will continue to focus on the products segment, which accounts for about 45% of its business. In an interaction with FE's Rachana Khanzode , Natarajan said the firm would launch set-top boxes and digital surveillance products in the coming months


In your interaction with the clients, how does the environment for IT services look like at the moment

As fears of double dip recession persist in the US, clients are being cautious. We can say it is 'cautious optimism. But, this is not, at the moment, having an impact on the decision cycles and they are on track. We are not seeing any impact on pricing, which is stable as of now.

What are clients largely looking at

Most of the projects that came up post the global financial crisis were from the mergers and acquisition in the financial services space. A part of it was also the pent up demand. We continue to see the demand going up. But now besides cost and delivery expertise, clients expect to recoup money spent on these services in 12-15 months

As a product company, how do you see the company panning out over the next few years

About 45% of our revenues come from the product portfolio and we would continue focusing on the same. The demand for the white label products is going to increase in India and we want to build products for the Indian market that could be later taken globally. So, we see a lot of value in the revenue flowing from the non-linear business.

So what is next in line for your product segment

We recently announced we would launch a smartphone based on android operating system in the US and we are currently in talks with various players to market the same. We are also looking at commercially launching a set-top box in the domestic market by next year. Currently, we are doing field testing with a known provider. The demand for the set-top boxes is expected to go up in the coming years as we see the entertainment industry picking up quick. Besides, we have entered into an agreement with a public sector unit for jointly marketing our digital surveillance product. This product will have a lot of additional technology elements like motion detection feature and we are already seeing a lot of demand.

Would you be looking at an acquisition to strengthen your product portfolio

We are not looking at it at the moment. But we would consider only if we see lack of skills vis-a-vis market opportunities that may come up.