After going through a series of mergers and acquisitions, Mindteck, a Bangalore-headquartered IT services company, is looking to consolidate its various businesses which will see more work being moved offshore, to locations in India.
The company has changed its sales model by moving 70 per cent of the outsourcing works to India, which was earlier being delivered in the US.
"Our sales model has changed a lot. Now, wherever we go, we try to sell 70 per cent offsore and 30 per cent onshore. So the same team which was earlier managing 10 projects in the US is now managing 20-30 projects because a lot more work is coming to India," Pankaj Agarwal, group CEO & MD, Mindteck (India), told Business Standard.
Mindteck was formed in 1999 by a group of investors from Europe, the US and West Asia. Other than Mindteck, these promoters had also invested in four other companies - Primetech Solutions, Infotech Consulting, Mindteck UK and Mindteck Singapore.
Because all these companies had common promoters and similar service offerings, in February 2007 Mindteck acquired Infotech Consulting. Then in April this year, the other three companies also merged with Mindteck to form Mindteck Inc. Post-mergers, the promoters hold close to 65 per cent in Mindteck.
After acquisitions, the company is going for a consolidation of office space by shutting down offices at some locations and bringing down its development and delivery work to select locations.
As part of its strategy to provide customers with best-shoring model, the company has almost doubled its office space in India by opening additional offices in Bangalore and Kolkata. The company has also shut down its office in Hyderabad to move the jobs to Bangalore and Delhi.
"Since each of the acquired company had offices at locations where we already had a presence, we have started rationalising our office space. We are trying to consolidate our locations which will help us bring down the overhead cost," said Agarwal.
Armed with complimentary services from the companies it acquired, and delivery capabilities in multiple locations across the globe, Mindteck is cross-selling services of the acquired entities to mutual clients.
"Before the acquisitions, Mindteck had a major footprint in India with a very small footprint in the US, whereas Infotech Consulting was present only in the US. It made so much sense to combine them and have a much bigger footprint in the US which has given a lot of opportunity for us to cross-sell," added Agarwal.
Mindteck has also begun moving a lot of backoffice work to India from its locations in the US, Europe, Singapore and West Asia.
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