MindTree R&D services eye growth via ODCs

Bangalore-based MindTree Consulting, which provides Information Technology (IT) and Research and Development (R&D) services, is eyeing offshore development centre (ODC) model to drive business in the R&D services division.

The company's R&D services division, which generated revenues of Rs 41 crore during the second quarter of the current financial year, operates 16 ODCs for various customers.

In the last two quarters, the company set up three new ODCs. While ODCs contribute about 60 per cent of the R&D service division's revenues, the rest comes from individual projects.

"Our target is to take the revenues from existing 60 per cent to 75 per cent. The ODCs will give us predictability of business apart from adding stability to the revenues growth. We prefer ODCs over individual projects though the latter gives an opportunity to work on cutting edge technology. We intend to set up at least 3-4 ODCs every year," said MindTree Consulting President and CEO (R&D Services) S Janakiraman.

The company's largest ODC has 180 people working on various projects for a particular customer. "Talks are on with various customers to set up ODCs. They are in the pipeline," he added.

MindTree's R&D services, which employs 1500 people in Bangalore and Chennai, has expertise in communication infrastructure, storage, consumer appliances, automotive, industrial systems and medical systems.