Key Findings & Highlights:

Mindtree had revenues of $1,089m, the year ending March 31, 2020. The company had a headcount of 22.0k at the end of June 30, 2020. Mindtree is a 61% subsidiary of Larsen and Toubro, which also is a majority shareholder of IT services specialist LTI/L&T Infotech and engineering and R&D services vendor L&T Technology Services.

The company has a specific profile among India-headquartered IT services vendors: it has a client base that is more centric to communication, media, and technology (~50% of revenues in Q2 FY21) than its peers. BFSI and retail/CPG/manufacturing account each for ~20% of the revenues of the company. Finally, Mindtree also derives ~8% of revenues from travel & transportation.

Mindtree launched its SAP services practice in 2002, delivering its first SAP ERP ECC implementation in 2005. It followed this by implementing SAP internally at Mindtree in 2006. In 2011, it launched its SAP HANA practice, and in 2014, it passed a total SAP-skilled workforce of 1k.

In 2015, Mindtree acquired Bluefin Solutions; a U.K. headquartered SAP consultancy primarily focused on SAP HANA. It brought to Mindtree SAP skilled employees across locations in the U.K., Malaysia, Singapore, and the U.S.

In 2020, it completed its internal transformation by going live with SAP S/4HANA on Azure and now has ~2k SAP-skilled employees and estimates its annual SAP revenues are ~$100m.

NelsonHall estimates that CY 2019 revenues for Mindtree were ~$1,072m. NelsonHall estimates that ~9% (~$100m) of these revenues are associated with SAP services, and ~12% of these revenues are associated with SAP ERP cloud migration capabilities ($12m).

Mindtree has built its offerings to merge its cloud adoption with S/4HANA migration capabilities. These offerings are supported by a set of tools and assets to accelerate and de-risk the migration.

As of June 30, 2020, Mindtree has a total of ~22k employees globally. NelsonHall estimates that Mindtree has an SAP-skilled workforce of ~2k. Other workforces that support the delivery of SAP ERP cloud services include ~5.8k testers and ~1.5k cloud professionals.

Mindtree has focused on developing frameworks and assets that simplify and accelerate the adoption of an SAP environment in the cloud, regardless of the path pursued. Building out an automated toolset for adoption paths that span from migrating legacy ECC to greenfield S/4HANA cloud implementations positions it to support clients regardless of migration path taken.

While it possesses capabilities and experience in adopting S/4HANA and Central Finance and a broad cloud adoption framework, it has limited experience to date in migrating SAP environments to the cloud, with much of its experience either internally focused or occurring in 2020. However, as Mindtree continues to build its expertise, combined with its capabilities, it will become better positioned to support clients going forward.