Bengaluru-based IT services major Mindtree is getting ready to roll out its healthcare strategy with the focus on payer and provider segment, said a top executive.
“The strategy is defined and rolling out is in progress as we speak. We have completed the hiring for healthcare business leaders in the US. From our point of view, the ball has started rolling,” said Venu Lambu, Executive Director and President, Global Markets, during the Mindtree’s Q3 FY21 earnings call on January 18.
Lambu explained that there is an opportunity for the company to support its existing customers who have synergistic approach to healthcare part of the business. “Be it tech customers who are investing in variable aspect of business related to healthcare or overlapping business we see in insurance models versus healthcare payers market,” he said.
“We have started putting across the plan comprising of leveraging our capabilities into these two segments. As we start rolling this strategy on the ground we will start looking for opportunities where we can bring synergies and capabilities together,” he added.
The company currently focuses on four industry verticals such as banking and financial services, travel and hospitality, communication, media and technology and retail, consumer products and manufacturing.
In addition to healthcare, the company is also focusing on expanding its presence in the non-US regions such as Continental Europe. The company is in the process of creating local teams and leadership in these geographies.
North America accounted for about 77.2 percent of the company revenue for the quarter ended December 2020. Close to 7.4 percent of revenues came from the Continental Europe for Q3 FY21, down from 8.3 percent for the same quarter last year.
According to analysts, foray into healthcare and non-US will help the company achieve its revenue aspiration in medium-term. Brokerage firm Motilal Oswal said in a note that, “We see the new strategy of expanded regional focus and planned expansion into healthcare as potential additions to its medium-term revenue aspiration of growing above industry growth.”
However increasing the presence in the regions would require an upfront investment and could impact the company’s profits in near term, the note added.
For the quarter ending December 2020, the company registered revenue of $274.1 million, up 5 percent sequentially and down 0.4 percent year-on-year.
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