Home / Companies / People /  ‘Mindtree-LTI synergies are already producing results’

Mindtree Ltd just reported its sixth consecutive quarter of more than 5% revenue growth in constant currency and closed the June quarter with its highest-ever total contract value (TCV) of deals which stood at $570 million. Mindtree, owned by Larsen and Toubro Ltd (L&T), is in the process of being merged with L&T Infotech (LTI) to form a separate entity ‘LTIMindtree’ which is poised to become India’s sixth largest IT services firm by revenue and fifth in terms of market capitalization. In an interview, Debashis Chatterjee, chief executive officer and managing director, Mindtree, talks about the demand environment, integration process, and hiring plans. Edited excerpts: 

 How do you see the demand environment in the coming quarters? 

We just reported our sixth consecutive quarter of more than 5% revenue growth in constant currency and even in the face of rapid business and technology shifts, closed the quarter with our highest-ever TCV to date. Digital transformation is an ongoing imperative, not a one-off project. Given this, our ability to service clients through all phases of their digital transformation journeys -- be it digitalizing and reimagining processes, or redefining business models and harnessing digital technologies to become future-ready -- provides us a competitive edge. Economic headwinds are known to inspire creative ways of freeing up dollars from pockets of inefficiency, and redeploying them on initiatives with assured RoI. As such, we continue to be cautiously optimistic about the opportunities created by the sharper client need to balance cost and digital imperatives with an eye on the future.

 Do you see any cut in client budget due to fears of an economic recession? 

There are no indications yet of any significant change in client behaviour. However, we are closely watching near-term macroeconomic developments. Organizations across sectors are today convinced about the long-term potential of digital transformation in creating competitive differentiation. With clients looking at digital transformation to improve revenues as well as optimize costs, more so through macroeconomic shifts, we expect our experience and expertise in helping them address both these objectives to continue to create opportunities for us. 

Where are you in terms of the LTI-Mindtree merger? Is the integration in process?

The two organizations are looking forward to unlocking their full potential by becoming a combined at-scale player to gain from recent industry shifts around large deals and end-to-end offerings. The stock exchanges have provided their observation letter and no objection. The merger is now awaiting other regulatory approvals. A steering committee has been set up. It meets regularly to oversee the integration plan. By combining the complementary strengths of both companies to better serve customers by unlocking scale benefits, a stronger portfolio of offerings across verticals, enhanced customer engagement, and streamlined delivery processes, LTIMindtree will be better positioned to participate in larger deals, strengthen partnerships with ecosystem players, and create a more distinctive employee value proposition. Synergies between the two companies are already producing results, as evident in a large deal with a global travel technology company that we recently won in partnership with LTI.

How many freshers do you plan to hire in FY23? What are the digital skillsets you will be training your freshers on?

We plan to onboard around 5,000-6,000 campus hires in FY23. This will be our highest-ever hiring from campuses. Around three-quarters of our hiring will be from engineering colleges, followed by arts and science colleges and B-schools. We will continue to hire from campuses primarily for software development, quality assurance, and business analyst roles. We are guided by a carefully-designed campus hiring strategy and a deep engagement-focussed recruitment model with tier-1 colleges across India. We have already revamped our training program to prepare early career talent for client projects. More than 2,500 candidates studying in the last semester of their engineering degree programme are being trained in various technology tracks and will be ready to be billed within days of joining us.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Recommended For You
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout