Press Release

MindTree sets up offshore centre for CIT
BusinessLine June 27, 2007

Bangalore June 26 MindTree Consulting has set up an offshore development centre (ODC) for CIT Group Inc, a global provider of commercial and consumer finance solutions. The ODC will initially employ 75 consultants and later over 100 as the $80-billion CIT continues to invest in technology for its global operations.

As the primary application development partner, MindTree will service CIT's speciality finance, sales, collaboration and corporate IT systems.

The ODC would act as an extended IT team of CIT and develop platforms for CIT's e-commerce, loan origination services and client servicing.

MindTree shares closed marginally higher at Rs 774.75 on the BSE on Tuesday after touching an intraday high of Rs 792.40.

Mr Michael Baresich, CIT's chief information officer, said, "We decided to outsource our requirements to a vendor who's highest in quality and not in size, so that we get the right attention."

President and CEO of MindTree's IT Services business, Mr Krishna Kumar Natarajan said, "The CIT partnership revalidates our position as the best mid-size company." Revenues from the CIT deal were expected to accrue from the current quarter, he added.

Further, Mr Baresich said CIT plans to enter the lending and leasing market in India, but did not disclose details. "India is of great importance to us, not only from an outsourcing perspective, but also as a market," he said.

CIT would also consider moving its business process outsourcing (BPO) and knowledge process outsourcing (KPO) activities to India, Mr Baresich said, without elaborating on the timeline.

MindTree Chairman and managing director, Mr Ashok Soota said the company would foray into KPO services later in the year, but was prepared to offer the services as and when clients demand.