Mid-size IT services company Mindtree is expanding in Tier-II and Tier-III cities by setting up offices there in order to make the growth more inclusive.
In an interaction with TNIE, Debashis Chatterjee, CEO and MD, Mindtree, said, "Scaling up and diversifying our talent pool is critical to supporting our broad-based growth. We are setting up offices in cities such as Coimbatore and Warangal as part of our 'Work of the Future' talent strategy. The idea is to take work to talent instead of bringing talent to work."
According to him, these cities have a vibrant educational ecosystem and are great reservoirs of talent. "The response from talent in these cities looking to associate with us without having to relocate has been overwhelming," he said.
Mindtree expects its hiring momentum from campuses to increase by 40 to 50% through FY23. Its focus continues to be on complementing external hiring with internal talent development. It onboarded over 4,500 employees in the third quarter and its global headcount is over 31,900.
The Bengaluru-based company reported a 34% increase in its net profit at Rs 437 crore for the third quarter and its revenue was Rs 2,750 crore. In 2020, Mindtree outlined a 4X4X4 strategy-focusing on four industry groups, four services lines and four geographies.
"The aim of our 4X4X4 strategy is to drive broad-based profitable growth across all industries, service lines, and geographies that we focus on. It continues to resonate very well with our clients and is also enabling us to rapidly broaden our value proposition by expanding our capabilities and strategic partnerships," Chatterjee said.
He added that customers in the BFSI sector are turning to the company to re-align technology portfolios, accelerate adoption of future technologies, modernise legacy infrastructure, and re-imagine channel strategies.
"In our Retail, CPG and Manufacturing (RCM) business that grew 51.7% Y-o-Y, we are seeing good traction in consumer experience, core modernisation, supply chain transformation, smart factory solutions, and intelligent enterprise resource planning. Revenues from our Travel, Transport & Hospitality (TTH) business, up 56.4% Y-o-Y, have returned to pre-pandemic levels," he said.
The company has capitalised on opportunities in North America and has doubled down on expanding its footprint, capabilities and strategic partnerships in Europe and Asia-Pacific as well. North America contributed 73%, Continental Europe, UK and Ireland contributed 18.6%, and APAC and the Middle East contributed 8.4% to its revenue during the third quarter.
Talking about deals, he said that the company is seeing an increasing number of deals evolve into larger strategic engagements. “While our top client grew 17% Y-o-Y, our top 2-10 clients grew 30.5% Y-o-Y and top 2-20 clients grew 41.4% Y-o-Y,” he added.