Mindtree remains confident of meeting Nasscom’s growth projections in 2015-16, even as it continues to face client issues in Europe. On the sidelines of the Nasscom summit, Krishnakumar Natarajan, the chief executive and managing director, tells Sheetal Agarwal about plans to reduce attrition and grow in the digital space. Excerpts:
What is the Mindtree’s strategy for Europe, given the uncertainties there?
This year will continue to see investments in Europe, primarily in client-facing teams. There are uncertainties in Europe but we believe these are blips. The internal goal is to get Europe back into the growth mode. We do not see a challenge in the UK from the demand or client perspective. Germany seems attractive. In fact, we are winning some logos there, such as Espirit. There are issues with a large client in the Netherlands, likewise in the Nordic region with a large customer. Overall, we believe continental Europe will be far more challenging to grow.
What indications are you getting from your clients on budgets?
We actively engage with our top-30 customers because they form about 72 per cent of our revenues. There are no negative tones at all.
While North American customers are positive, Europe has some client specific issues.
Do you expect to meet the Nasscom forecast for 2015-16?
We see strong demand in our key segments of retail consumer products, travel and hospitality. Our high-tech segment is seeing strong demand in the consumer devices business, but the semiconductor and telecom equipment businesses are flat with a downward bias. Overall, the high-tech segment should grow fast. There is a lot of compliance spending in the BFSI space and the complexity is driving them to do a lot of those internally. We anticipate BFSI might be flat next year. The insurance segment though continues to witness strong momentum. Overall, BFSI will witness low teen growth. Mindtree will certainly meet the Nasscom guidance of 12-14 per cent growth in 2015-16.