Mindtree sees tougher race for digital deals

Mid-tier IT services firm Mindtree is seeing increased competition for digital projects owing to bigger deals on average that have led to longer sales cycles with clients.

“Unlike earlier times, when we used to win one in every two opportunities, today we would win about one in every four opportunities. The competition intensity for digital deals has increased,” Mindtree chairman Krishnakumar Natarajan told ET.

“The maturity of digital (work) is changing where you are (now) looking at $5-10 million projects.” In the past few years, Indian IT services firms saw clients tightening their budgets for traditional outsourcing projects and instead looking to invest in emerging areas such as digital and cloud. In the process, clients spent $100,000-200,000 on pilot digital projects, learning how the solution works for their organisation and once they were convinced of its benefits, they began expanding their budgets.