MindTree ups focus on manufacturing vertical

IT and R&D services company MindTree has launched a Spend Analysis Solution targeting the manufacturing industry, the largest vertical in terms of revenue contribution for the company’s IT services business. The Bangalore-based company said the solution will offer enhanced control and optimisation of the procurement costs for companies in the manufacturing space.

Sourcing accounts for up to 75 per cent of the total cost base in a typical manufacturing organisation. Extracting the required intelligence out of the spend data will directly contribute to cost savings and provide inputs for budgeting, planning and product strategies, the company added.

“With this solution, we hope to help our customers save costs via spend volume aggregation, supplier rationalisation, improved contract compliance and ‘requisition to pay’ process improvements,” said Vikram Amaranath, vice president and head, Manufacturing Industry Group, MindTree.

“We believe our solution is well-placed to help companies deal with the issue of controlling costs, which has become a strategic priority in the current economic environment,” he added.

MindTree’s Manufacturing Industry Group offers consulting and IT services to automotive, discrete manufacturing, consumer products and process industries. Presently, 27 per cent of MindTree’s IT services revenue comes from manufacturing sector.

In the third quarter ended 31st December, 2008, MindTree posted a 95 per cent fall in net profit at Rs 94 lakh from Rs 20.81 crore posted in the corresponding quarter of the previous fiscal, in the wake of declining demand from key BFSI and telecom clients in US and Europe.

The company however says that they continue to see good growth from manufacturing which contributes close to 20 per cent to the company's IT services revenue.

The company derives close to 75 per cent of their revenue from IT services whereas the rest comes from R&D services.