Mindtree to leverage IP strategy to push revenues

Circuit EC/Bangalore

Bangalore-based Mindtree Technologies, the tech arm of Mindtree Consulting, is all set to embark on a complete ‘product realisation service’ strategy for its engineering services arm which will see the company taking the client through all aspects of product development right from product engineering, hardware capabilities and components.

As per company estimates, the revenues from services based on indigenously developed IP are likely to exceed targets this year. Mindtree has estimated that by 2005, 40 percent of its revenues will come from services around IP.

According to Vinod P Deshmukh, senior vice president, Mindtree Technologies, the company was keen to use its IP strategy to generate service revenues. With clients expecting immediate solutions with minimal downtime, the strategy to devise solutions in a set timeframe based on readymade blocks was paying off in tough times like these, he added.

Mindtree Consulting currently has two key areas under IT-e-services and engineering (technology) services (under which the regular and services around IP function), with engineering services accounting for one-third of total Mindtree revenues.

On the product realisation services, he said that it was more than just focusing on building IP. “Mindtree currently has close to 14 customers being handled in the engineering services division. We don’t want to be in the IP licensing game, but want to offer value addition using our IP as building blocks. So the focus quite really is in what we can build with the IP,” Deshmukh said.

Interestingly, Mindtree has already set the ball rolling with a number of new product development initiatives. The company has developed a PDA for a US-based customer for a World Bank-funded project and has tied up with a Japanese giant and handset maker to integrate a Bluetooth stack into the GSM/GPRS handset and also collaborate on the research front.

The company is all set for a big push in the 3G wireless segment as part of its plan to get onto an IP building and skill training exercise with an eye on future business opportunities. In line with this, the company has formed a core team of 35 people who will exclusively work in the 3G technology segment with focus on four key areas-algorithms, protocols, platforms and wireless applications. The company has also entered into an umbrella agreement with Intel for offering its technology services to the global major. The main area of collaboration is expected to be in the wireless technology area. The deal signed in Q3 this fiscal is a long-term relationship.