LTIMindtree is adjusting to global tariff uncertainties with no major project cancellations, though discretionary spending remains muted. While AI is reducing deal sizes, it is simultaneously enhancing productivity by 25–40%. Venugopal Lambu, chief executive designate, in an interview with Padmini Dhruvaraj, outlined the company’s strategic priorities including sales transformation, cost optimisation, scaling AI services, and a roadmap to target $10 billion in revenue. Excerpts:
Q1 Since the tariff talk started, have you seen any changes in your clients’ budgets, especially for CY25? Any particular sectors you see being impacted?
Initially when all this started unfolding in the fourth quarter, there was an immediate reaction to go slow or ramp up cautiously, and that reflected in our fourth quarter numbers as well. But now, as things are evolving and hopefully becoming clearer, businesses are adjusting to the new normal. I don’t think they are waiting for something to happen. We haven’t seen any material requests for cancelling or delaying projects, except for the slow ramp-up in fourth quarter. Discretionary spending impacts all sectors. Sectors like automotive, especially those with export businesses, could be impacted, particularly from Europe to the US. Thankfully, we are not heavily exposed to that segment. But because discretionary spending hasn’t picked up, we don’t expect a big demand surge for transformation projects.
Q2 Are you seeing any structural differences in the large deals you’re winning, in terms of tenure, scope, pricing, because of GenAI being in the picture?
Absolutely. We are in a very favourable position for a couple of very large deals, which we might announce in a few weeks. Deals being transformed using AI are very strategic and large in size and scale. The first two themes I spoke of, consolidation and cost-saving opportunities, are significantly influenced by what AI can achieve across the IT landscape.
Q3 Are your clients asking to pass on any productivity benefits you are achieving from AI and GenAI? Are you seeing any pricing pressure because of GenAI?
We are used to those requests. But yes, AI has enhanced the productivity benchmarks. While we address those requests, we are also looking at the bigger picture as to how AI can create new business opportunities. When you look at monetisation opportunities from agentic AI, the trade-off between passing on productivity benefits and generating new business looks favourable. When it comes to AI, it’s not so much about the per-unit pricing. However, the overall deal size for the same scope of work is lower compared to what it would have been three years ago.
Q4 Can you quantify the benefits you realised from AI and GenAI initiatives for FY25?
The infusion of AI and its impact varies by service line. For example, in our development and digital engineering areas, we are looking at 30–40% effort reduction in the service development lifecycle, which is significant. Similarly, in supporting application and infrastructure landscapes, you can expect more than 25% productivity gains.
Q5 As the new CEO, what are your long-term plans?
We are making targeted interventions. First, we are transforming our sales organisation to adapt to the new playbook. Second, we are relooking at our cost base, both direct and indirect costs. Third, we are setting up a large-scale pure-play AI services organisation under Nachiket’s leadership. These three initiatives have already been set in motion over the last three months and will drive our growth in FY26. In parallel, we are working on a five-year plan that outlines a roadmap towards achieving $10 billion in revenue.