There are more than 1,000 software companies in India but only six earn annual revenues in excess of $1 billion each. The industry is littered with companies that started with great promise but could never get past the $500 million mark. Mastek, Sonata, NIIT,
A Spot under the Sun
The last guy who scaled the billion-dollar mark thinks MindTree’s plan needs some sprucing up. “MindTree is a good company but the problem is that it does not have a clear positioning,” says Lakshmi Narayanan, vice chairman of Cognizant. Narayanan credits Cognizant’s success to a clear position — Cognizant would be among the top five companies in the world in financial services and healthcare — and relentless execution. Even today, 55 percent of Cognizant’s revenue comes from these two segments. “I am unable to associate MindTree with anything. It seems to be too many things at this point in time,” says Narayanan. In the last ten years, MindTree has gone through three different changes in strategy — from consulting to access, agility and attention and now to this “collection of niches” strategy.
(This story appears in the 14 August, 2009 issue of Forbes India. To visit our Archives, click here.)
It is better to be lean but not mean rather than fat and furious.The chairman views value more than the balance sheet. Innovation rather than the size would yield result.
on Oct 2, 2009MindTree is not aggressive enough to get the deals. As an insider I see it lacks the gut to go for a big fight. There was spurt of growth till it reached $ 200 million. This resulted in growth for few leaders who are trying to sustain at this position. To grow to next level MindTree needs new leaders and some trimming in the middle. As long as middle level cannot cope up anything else will help.
on Sep 12, 2009Cognizant's Narayanan got it dead right - MindTree just does not have a clear positioning in the market. The human side of their story (values, DNA, social responsibility) comes out strongly, but you cannot convince a hard nosed customer with just that. My advice to MindTree management is to play down the sentimental stuff and focus on establishing clear technical niches.
on Aug 10, 2009'Trojan Horse Strategy' - this is "strategic vocabulary" at its best! There's absolutely nothing to stop MindTree - they will cross the finish line in this mega-marathon race with plenty of time to spare.
on Aug 10, 2009I have learnt to admire MindTree a lot. Its values are found not just adorning the walls, but are actually practised. I am sure this alone will help it gain an edge in the marketplace.
on Aug 6, 2009A Great company with a great vision.... Waiting to See how it is growing... Have heard about it from some employees....These people value character more than money.... Surprising considering what many companies do in the industry....
on Aug 5, 2009