Vendor Analysis
published on Sep 16, 2014
Report Overview:
Mindtree is a Bangalore and Warren, NJ, co-headquartered IT and product engineering services (PES, which Mindtree calls high tech services) vendor. It was formed in 1999 as a consulting-led internet application development and R&D services/product engineering services company.
Who is this Report for:
NelsonHall's Software Testing Vendor Assessment for Mindtree is a comprehensive assessment of Mindtree's software testing offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for software testing services
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the software testing sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Mindtree's software testing offerings, capabilities, and market and financial strength, including:
- Analysis of the company's offerings and key service components
- Revenue estimates
- Identification of the company's strategy, emphasis and new developments
- Analysis of the profile of the company's customer base including the company's targeting strategy and examples of current contracts
- Analysis of the company's strengths, weaknesses and outlook.
Key Findings & Highlights:
The company has enjoyed high growth, with a FY 2008-2012 CAGR of 22%.
In 2008, Mindtree acquired Aztecsoft, a specialist in software product engineering and independent testing services.
Aztecsoft had developed expertise around portals and web technologies, mobility solutions, .Net, J2EE and open source technologies. In its FY 2008 (the year ending March 31), the company reported revenues of $61m, a growth of 3%, and an operating margin of 7%. Aztecsoft's headcount at the end of FY 2008 was 2,130. With the acquisition of Aztecsoft, Mindtree doubled its testing personnel to ~2k personnel.
Over time, Mindtree has expanded its product testing services for the high-tech industry to BFSI; this has been the fastest-growing vertical of Mindtree's testing practice.
The company has ~3k full-time testing specialists, representing ~23% of its total headcount.
The largest client of Mindtree's testing practice is Microsoft. In FY 2015 Mindtree has won a major contract extension with a U.K. headquartered media company. The contract will require up to ~200 personnel at peak time and is one of Mindtree's largest testing contracts outside of the U.S.
Other key testing clients are:
- Technology: Tom Tom
- Travel and transportation: SITA and Southwest Airlines, and a large auto rental company with headquarters in the U.S.