EU, APAC getting bigger pie for Mindtree

Bengaluru: Mid-sized IT services firm Mindtree has core leadership at place in its focused geographies to drive its next phase of growth and its appointment of top leaders in key regions including Europe and APAC has already started to show results.

"Three quarters back, we had a plan of doubling down for Europe and Asia-Pacific (APAC) region. Now, we have hired for Germany, Nordics (in Europe) and APAC region. Some of those leaders are seasoned leaders from large organisations. As the business grows, we have to continuously hire leadership. The core leadership is at place and is aligned to company's growth strategies," said Mindtree's CEO & MD, Debashis Chatterjee told Bizz Bizz.

Last month, the Bengaluru-headquartered firm has appointed Klaus Seifert as Head of Strategy for Europe and Chief Business Officer for Germany, Austria, and Switzerland (DACH). Further, Erik Julius Larsen has joined the company as Chief Business Officer for Nordics and Benelux.

Dominic Del Giudice has been appointed as Chief Business Officer for Asia-Pacific, and will be based in Melbourne, Australia. With these key appointments, the company is confident of growing its Europe and APAC business in coming quarters.

In the quarter ended September, Mindtree drew 72.8 per cent revenue from North America, 8.7 per cent from Continental Europe, 10.9 per cent from UK & Ireland and 7.6 per cent from APAC and Middle East region.

"Our 4*4*4 strategy is playing out very well. We are ready to compete with any player. Our focus is on increasing our market share," said Chatterjee. The company is also focusing on client mining for boosting its growth prospects. "We have to strategically focus on client mining. Within our portfolio, we have identified 100 accounts and our focus is to how to grow those accounts, how to cross-sell and up-sale those accounts. That is giving us very good results. The top 20 clients excluding the top client, that grew 19 per cent quarter on quarter. Our strategy of account mining is playing out fairly well," he said.

The total number of active clients stood at 263 at the end of the quarter, with a total addition of 30 new clients, of which 5 were in the $10 million category, and three over $5million. While the top 10 clients contributed 45.1 per cent to Mindtree's Q2 revenue as compared to 47.5 per cent in previous quarter; the share of top 20 clients stood at 59 per cent in September quarter against 60.2 per cent in Q1 of FY22.

Total contract value of the company stood at $360 million in Q2 of FY22 as compared to $504 million in the first quarter of this fiscal year. During the September quarter, offshoring also improved for the mid-tier IT firm to 85 per cent from 83.5 per cent reported during the first quarter.