Strengths & opportunities
1. Customer-focused Growth Strategies
We have continued to pursue our customer-focused “account mining” strategy which has yielded good results this year too, with our top 10 customers emerging as our major growth engines. Our top 10 customers have grown at over 19% in FY14, compared to the company growth of 15% in the same period. We will continue investing in our account management teams to extend our farming successes beyond our top 10 customers.
During FY14, $5 million customers increased by 4 to 24; $10 million customers increased by 4 to 13; $20 million customers increased by 1 to 6. 97% of our revenues in FY 14 have come from repeat business (existing customers). Revenue per customer has been on the rise, signaling our success in mining focus accounts.
One of the most promising indicators of our customer-focused growth approach is the fact that our customers have rated us better than last year on all key parameters (satisfaction, loyalty and advocacy), as part of our annual customer experience survey. Over 83% of our customers participated in this survey.
2. Superior corporate leadership and governance
Our senior management comprises of some of the most seasoned global leaders in the industry from diverse backgrounds, geographies and with different areas of specialization in the IT industry. Their leadership and governance helped us deliver an all-round performance which was recognized by media and our other stakeholders. Some of the significant recognitions are as follows:
Mindtree was named as the “Most Promising Company of the Year” by CNBC-TV18 in its India Business Leadership Awards, 2013. Development Dimensions International (DDI) and the CNBC-TV18 research team, assess candidates across a wide range of criteria, including financial performance, leadership, creativity, innovation and social responsibility. Other evaluation factors include the ability of candidates to create short-term advantage, long-term value, a competitive edge and the demonstration of leadership in the business community.
Similarly we received the #1 ranking for the ‘Best Managed IT/Software/Technology Company in Asia’ and the ‘Best Managed Company in India’ for 2013 by Euromoney’s Annual Asia Company Ranking. Mindtree emerged as the leader amongst 214 companies from various industry sectors, across Asia. The ranking was based on a survey of market analysts from top banks and research institutes in Asia. The judging criteria covered various aspects, including most convincing and coherent strategy, best system of corporate governance; most accessible senior management; most transparent financial accounts; best for shareholder value; most useful and informative website and most improved performance.
Mindtree has again been selected as a leader in the product engineering services space by Zinnov, a leading globalization and market expansion advisory firm, in its recently released report, ‘Global Service Provider Ratings- 2013.’ In the overall rankings, Mindtree is placed in the top leadership quartile for its services and capabilities. Mindtree’s expertise is highlighted in multiple sub-verticals including automotive, consumer electronics, semiconductor, enterprise software, computer peripherals and storage. Most notably, Mindtree was listed in Zinnov’s ‘leadership zone’ in the telecommunications and consumer software sectors. This reflects Mindtree’s ability to execute end-to-end lifecycle services from product concept to product development, testing and deployment and forging ‘Go-to-Market’ partnerships
3. Robust sales organization
As the industry is going through a phase of moderate growth, the success of an organization is critically dependent upon the efficiency of its sales engine - ability to win new business and mine the existing clients. Over the last one year, following initiatives were undertaken in these two areas:
- Creation of a dedicated team to focus on account planning and governance.
- Significant strengthening of sales team.
- Creation of separate hunting and farming teams to leverage the sales team capabilities efficiently.
- Renewed focus to get strong good quality new logos to enable stronger growth. This is part of our must win list provided by vertical heads to the sales team.
- Deployment of new CRM system.
These initiatives have helped improve collaboration between Mindtree verticals and service lines. The results include a healthy sales pipeline, growth of revenues from new business and improved quality of new logos doing business with us.
4. Domain expertise and technical excellence
- Mindtree has been selected by Microsoft Corporation as a Windows Azure Circle Partner. This elite program is reserved for Microsoft’s partners who have achieved success in delivering Windows Azure based solutions. Windows Azure Circle partners are high achievers in commitment and focus to cloud computing, particularly influencing the adoption, performing services and developing applications on the Microsoft Windows Azure platform.
- Mindtree won the “Best International Business Award” for its substantial achievements and contributions to the Gainesville community over the past year. The award was presented in November 2013 at the Gainesville Area Chamber of Commerce. Mindtree won the award for its focus and expertise in key practice areas, such as Agile and Digital Business. Mindtree Gainesville Delivery Center’s deep domain expertise, superior technology capabilities focused on custom development and short delivery cycles coupled with Mindtree’s ability to design and deliver right-sourcing options has proven to be significant for its clients.
- Mindtree is named as a “Major Contender” in Everest Group’s report IT Outsourcing in Insurance – Service Provider Landscape with PEAK Matrix™ Assessment 2013. The report is part of Everest Group’s “BFSI IT Outsourcing” research. The 2013 PEAK Matrix for Insurance AO is based on more than 400 large multi-year insurance AO contracts signed by 25+ global service providers. The PEAK Matrix is a framework to assess the relative market success and capability of service providers.
- Mindtree’s BlueLitE Bluetooth® Intellectual Property (IP) enabled wireless communication LSI - ML7105 chip from LAPIS Semiconductor, is under mass production. Mindtree provided the silicon and software IP for Bluetooth® Smart. Additionally, Mindtree collaborated with LAPIS during the entire development cycle making key feature enhancements to help LAPIS deliver ML7105 - industry’s lowest power Bluetooth Smart solution. The ML7105 series from LAPIS Semiconductor is designed for a new range of devices to enable the Internet of Things - Smart watches, health & fitness wearable accessories such as heart rate monitors, pedometers and sleep trackers. The ML7105 has already been adopted by a global Japanese player in their smart watches which is a testimony for the maturity of Mindtree’s solutions.
- Mindtree unveiled two solutions created to drive consumer engagement and commerce - Integrated Insights and Omni-Channel Service Orchestration. The solutions made their debut at the National Retail Federation’s 103 Annual Convention & EXPO. These two solutions leverage advanced analytics, mobile and digital technology allowing retailers and brand organizations to meet growing consumer needs across multiple channels.
- Two solutions from Mindtree won the SAP® 2013 Industry Mobile App Challenges at the SAP TechEd conference held in Las Vegas from October 21-25. Mindtree was the winner of the SAP 2013 Transport and Logistics Mobile App Challenge and SAP 2013 Retail Mobile App Challenge.
5. People focus and high performance culture
Our biggest strength is our people, we call ourselves Mindtree Minds. As at march 31, 2014 we have 12,926 Mindtree Minds. We ensure that we offer the best workplace to our minds where they can perform to the best of their abilities. Our initiatives in the field of performance management, employee engagement, workplace sustainability, diversity and inclusivity have been strengthened throughout FY14.
The company is forthcoming in recognizing and rewarding high performers. Growth and development of such star performers is done through initiatives like Mindtree Pillars program which has been carried out through Fy14.
Company recognizes the fact that leadership is a critical component of its organizational strategy. Hence it is focused on developing leadership across organizational levels and helps leaders to transition seamlessly from one level to another. In FY14, we continued to provide a comprehensive suite of leadership programs to all levels of career transitions. It included executive coaching, 360 degree feedback, one to one mentoring and specialized classroom training tailored to new or experienced leaders.