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and software product companies.The core focus areas of the company in IT services include travel and leisure, manufacturing, banking and financial services. Under R&D services, the company provides product realisation services to product companies in the technology field.
IT services contribute around two-thirds of the company's total revenues, followed by R&D services, which contributes around one-third of the revenues. It had a revenue of US$ 102 million in 2005-06, thus representing an increase of 85 per cent over last year, when the revenue stood at US$ 55 million. Currently (June 2006), it has employee strength of 3400 people.
MindTree is the world's youngest company to be assessed at Level 5 in both CMMi and P-CMM.
“Moving to UK worked out quite well from all angles. Local business environment is good, access to Europe is easy and settling down after coming from outside is easy. But one of my most revealing positive experiences has been my dealings with the UK Government – they really want you to expand your business and succeed - including the people in Immigration.They genuinely are there to help you..Quite refreshing”.
- Anjan Lahiri,Executive Vice President and Head, Europe Operations, MindTree Consulting
Company Background
MindTree Consulting is a mid-sized information technology company. Co-headquartered in Somerset, New Jersey and Bangalore, India, the company was started in 1999 by 10 industry professionals who came from Cambridge Technology Partners, Lucent Technologies and Wipro.The initial capital was provided by three venture capitalists - Walden International, Global Technology Ventures and the Capital Group.
Franklin Templeton, an investment company, also provided capital to start the company. Currently, venture capitalists hold around 40 per cent of the equity stake in the company.The company is planning to come out with an initial public offer.
The company has two major segments, viz. IT services and R&D services.The IT services mainly provide services by development centres in India and the USA.These centres design, develop and maintain enterprise solutions for the enterprises
MINDTREE
CONSULTING
!USA !Europe
!Asia-Pacific
MindTree Consulting Revenue break-up by Geography: 2005
65%
22%
13%
Source:The Economist Intelligence Unit Limited
23 Some of the reasons cited by the company for its
entry into the UK market are as under:
• Client requirements: Some of the company's clients based in USA were planning to enter/expand their operations in the UK and therefore, required IT consulting support
• Global expansion: UK not only has a good client base but also is an excellent place to reach out to other European destinations.
Currently, UK accounts for approximately 14 per cent of the company’s revenue.
Some of the projects undertaken include building an enterprise data warehouse for a UK bank, architecting enterprise framework for a global travel and hospitality company, providing product development and customer support for a customer relationship management company and developing a data warehouse for a Fortune 50 company.
It has offices in California, Illinois,Virginia and Colorado in the USA, the UK, Germany, Singapore, Japan and the Middle East.
One of the recent acquisitions in 2005, by the company is a small IT services company, Linc software service.
MindTree Consulting In the UK
MindTree entered the UK in the year 2001.The company operates through a branch office in the UK. It has two divisions in the UK:
• IT services:This division works on enterprise solutions with the Chief Information Officer of large companies.
• R&D services:This division provides product realisation services and typically works with the Chief Technology Officers of technology
companies.
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Future Plans
Make UK a Hub for Other European Destinations
The company plans to increase its presence in Europe.With availability of four airports around London, the company intends to make UK a hub for supporting its operations in other neighbouring countries such as France, Germany and Belgium, and thus, expand its business. It also plans to increase its employee strength in the UK.
Knowledge Enhancement Plans
MindTree plans to continue its ongoing association with the UK Trade & Investment body to further understand the UK market. It intends to leverage its extensive knowledge of the UK market to build a network of important contacts in the coming years that will facilitate the company to increase its business.
Factors for Success
Co-operation from the UK Government and Trade Bodies
The UK government has been a facilitator in terms of providing favourable conditions to set up and do business in the UK. Further, the UK Trade &
Investment has been helpful to MindTree. It assisted the company in understanding the market
and business opportunities present in the UK.
Assistance from the government and trade bodies helped the company in taking important decisions.
Global Presence
MindTree has established operations in India and the USA.This provides the company with skilled employees and global expertise required to serve clients in the UK.Therefore, the company had relocated some employees from India to the UK to enhance its workforce there.
