Dear Fellow Shareholders,
We founded Mindtree in 1999 to focus on delivering business benefits with technology and to become trusted partners to our clients. Enterprises of ‘ tomorrow are sharply focused on using Digital technologies to serve their customers better and to be more agile and efficient in their operations. Our heritage of being ‘Born Digital’, being consulting-led, and successfully building long-term relationships with our clients positions us well for the next phase of disruption and growth in our industry. Beyond customers, we have embedded partnerships as a way of running our business and today we have several partners whose capabilities we leverage to serve our customers better.
Our clients see their customers demanding more from them and their markets are being disrupted faster than ever. Digital Transformation is a strategic imperative for CxOs, many of whom are driving this as a personal priority. They want partners like Mindtree to help uncover new sources of business value and to drive growth and operational agility.
Our focus on Digital and our record of delivering business outcomes is earning us a leadership position in these engagements. Some of the largest global enterprises see us as their ‘Digital Anchor Partner’, helping them get to a clear vision and roadmap for the business while delivering results in a complex multi-technology, multi-product environment.
We are making strategic investments in capabilities and partnerships that are critical for leadership in this space. You know of Magnet 360, our US-based subsidiary and a Salesforce Platinum Partner, who have industry-leading skills and a deep, collaborative relationship with Salesforce. This year, we used their expertise in engagements across all our verticals. We have also launched a Salesforce Center of Excellence at our European Hub in Munich to address the rapidly growing demand in the European market. Our European Hub is also home to consultants from Bluefin Solutions, our UK based subsidiary whose deep expertise in SAP HANA gives us strength in Big Data & Analytics, as well as the next generation of SAP’s products.
These, along with the offerings of our Relational Solutions Inc. subsidiary and our other digital frameworks and solutions, enable us to offer our clients best-in-class solutions for customer engagement and commerce, and employee and partner collaboration.
Doing more with less is an urgent need for our clients and hence for us. We have consistently driven greater automation and efficiency across our engagements, from our MWatch Platform to the Robotic Process Automation driven brand marketing platform for one of the largest global consumer brand companies, to CAPE, our Integrated Services Platform which was launched this year and which is already being adopted by our clients. We’re also seeing greater adoption of chatbots to drive customer and employee interaction and service, where our partnerships with Microsoft and Conversable are helping us deliver solutions with business impact.
As the next wave of automation driven by Artificial Intelligence technologies enters the enterprise, our early successes as well as our specialist teams in these areas will help maintain our position as Digital partner of choice for our clients. We do not see Automation as eliminating jobs done by humans. Automation helps reduce costs as well improve quality and reliability for our clients, and allows our people to focus on more value-added activities because machines now do the mundane tasks. Thus, we are making both sides win. We see Automation creating many more jobs, which are more value added and enriching.
Great Place to Work
We have always strived to make Mindtree a great place to work. A collaborative and stimulating environment where all of us draw energy, inspiration and joy from each other enables us to deliver excellence to our clients.
Increasing diversity and inclusivity at Mindtree has been a key focus for us. We are happy to share that 49% of our graduates at our Global Learning Center this year were women, the highest percentage yet. This year also saw us launch policies such as enhanced maternity leave and an app to enable Mindtree Minds on maternity leave to stay connected to Mindtree and facilitate their return to work. While there is a lot more to do, our recognitions show we are moving in the right direction - we were cited in the inaugural ‘Working Mother and AVTAR 2016 Top 10 Best Companies for Women in India’ list, included in NASSCOM’s ‘Top 20 IT-BPM Employers in India in 2016’ and were finalists at the ‘Women in IT’ awards in the UK. Diversity also means diversity of cultures and viewpoints and the Mindtree Minds now hailing from more than 40 nationalities all help make us a stronger organization.
Making our societies flourish
At Mindtree, we have always been mindful of our mission to make our societies flourish, and the spread of digital technologies is helping us do much more to serve the disadvantaged in society. Mindtree Foundation’s work has gone from strength to strength, as has our ‘I Got Garbage’ initiative, which is making a measurable impact in areas as diverse as recycling, supporting projects to raise rural incomes and improving school infrastructure. The number of Mindtree Minds who contribute their personal time and skills to the activities of Mindtree Foundation is a healthy sign, as Mindtree Foundation does more and more. This year, we made an impact in the lives of 58,930 individuals, a substantial increase over the 2015-16 figure of 34,908, across our focus areas of promoting education, benefiting persons with disabilities and creating sustainable livelihoods.
Partnering for Success
Key to our success is our ecosystem of partners and the trusted relationships with industry leaders as well as smaller innovators. Our partnerships with Microsoft (particularly Azure), SAP and Salesforce are deep and focused on delivering the cloud and digital solutions that clients are looking for. We are also collaborating with startups and new players such as Conversable, Datastax and ThingWorx, helping our clients make sense of the dizzying array of technologies and solutions out there. You can read more about our partnerships and our focus on these in the Spotlight section of this annual report.
In financial year 2016-17, we achieved revenues of $780 million, with revenue growth of 9.4% over FY 2015-16, among the leaders in our industry. The year also saw other notable landmarks - the largest single win in Mindtree’s history with a client in the BFSI sector, our largest independent software testing deal with a leading airline and crosse $100mn in annual revenues with our largest client. In addition, our Customer Experience Survey for this year saw the highest scores since 2013, with higher than industry average ratings on both satisfaction and value for money. All of these metrics tell us that we continue to deliver demonstrable value to our clients.
As technological change is disrupting industries across the board, it is also disrupting technology providers. Clients are adopting new technologies and solutions faster than in any previous wave of change, with significantly higher impact to their businesses, at lower costs than before. This wave of disruption is a significant opportunity for a younger, more agile player in the industry such as Mindtree. Our expertise in Digital technologies and Agile methodologies, and our focus on automation-driven managed services models puts us in the ideal position for where the market is moving; that we are seeing Mindtree compete successfully and credibly in large opportunities is validation of our strategy.
Mindtree 1.0 was about creating the foundation with a focus on business outcomes, on people and on a winning culture, culminating in our successful IPO in 2007. Mindtree 2.0 has seen us grow rapidly and establish ourselves as a global leader. Mindtree 3.0 is our next phase of evolution, as we differentiate ourselves with our leadership in Digital, with Automation, Agile and newer technologies driving this change. We are more excited than ever to work every single day with our 17,000 Mindtree Minds as we passionately believe that the best of Mindtree is yet to come!
We would like to end this by thanking the ~17,000 Mindtree Minds across the globe for their collaborative spirit, unrelenting dedication and expert thinking. We are also deeply grateful to the families of Mindtree Minds, because our achievements would not have been possible without the sacrifices and immense support we get from our families.
We also want to thank you, all our shareholders, for your continuing support, your confidence and above all your trust. Please be rest assured that we are fully committed to creating value for all our stakeholders and upholding the highest standards of governance.
Welcome to possible
With warm regards,
Rostow Ravanan Krishnakumar Natarajan
CEO, Managing Director Executive Chairman