Mid-tier IT services company Mindtree is betting big on the growing opportunity in the digital space. In order to tap the market, the Bengaluru-based company has charted a new strategy termed as Mindtree 3.0 wherein it will choose a few technology domain and platform and will provide specialised solutions to the clients. “We want to create a larger leadership role in digital space. In today’s digital services era, clients are looking at a specialised player who can become their partner in growth. We will choose some technologies and will develop expertise in it. Our broader view is to become globally number one or two digital services provider for clients,” said Rostow Ravanan, CEO and managing director, Mindtree. The company’s new strategy announcement follows its Mindtree 2.0 where it had announced its plan of becoming expertise led strategy and account mining which had helped it to mine its existing client base. As on September 30, 2017, Mindtree’s digital business accounted for 40% of its overall business. For the second quarter ended September 30, 2017, Mindtree reported a revenue of Rs 1,391.4 crore and net profit at Rs 124.7 crore.
In the digital business, the size of the contracts are smaller against a traditional deals. As per experts, the median contract for a digital deal is between $5-10 million. For many players, the initial contract may look small but has the potential to grow to a big one. “The digital business is growing much faster than the company’s average and we believe that it to continue a significant portion of the overall revenue. In the digital projects, the ticket size is small but with an immense potential to grow,” said Ravanan. However, he didn’t disclose the company’s expectation from the digital contribution. To catalyse the growth in the digital space, the company is planning to look at a consulting-led business model. “We need to reinvigorate that consulting heritage of Mindtree. We didn’t prioritise consulting because the times were different. We are now rediscovering that it’s an important focus area for us for the future,” he said. Mindtree has already trained its workforce to address the changes in the business model and has equipped with digital and consulting skills. Apart from this, Mindtree has also partnered with start-ups to form an alliance. In India, it has partnered with four start-ups to take their solution embedded with the services from the company and take it to customers.