Thursday, March 19, 2009

MindTree to split biz into 5 units

Bangalore-based IT firm MindTree has decided to restructure its business into five independent business units under different CEOs as it looks to rapidly expand each of these segments. Effective April 1, the proposed restructuring will see the CEOs report to the group CEO, a company official said. The five units are IT services, product engineering services which include research and development (R&D) and outsource product development (OPD), testing, infrastructure management and technical support (IMTS), and a new area called knowledge services.

Currently, MindTree has two business units — IT services contributing 79% in revenues and R&D 21%. “The (restructuring) will position us better as it allows us to compete with both larger and smaller niche players. We want to be seen as a provider of summation of services,” said MindTree chief operating officer NS Parthasarathy. He has been appointed CEO of the testing and IMTS units. Other CEOs are S Janakiraman (product engineering services), Scott Staples (knowledge services) and Anjan Lahiri (IT services). All of them will report to Krishnakumar Natarajan who will take over as group CEO and MD. Mr Natarajan is now CEO of MindTree. Ashok Soota, chairman and MD, will be executive chairman. The acquisition of Aztecsoft in May 2008 helped the firm strengthen its testing and OPD services. With 2,000 employees in the testing segment, the current annual growth of this business is 30%.

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