A survey conducted by MIT-CISR and LTI in 2018 revealed that about 75% of large enterprises are less than 50% through with their digital transformation.
The digital opportunity is huge, and we have just scratched the surface,” says Sanjay Jalona, CEO & MD, LTI, the technology consulting and digital solutions subsidiary of Larsen & Toubro. Last month, it announced its Q1 FY20 results; it delivered 12.9% YoY revenue growth in constant currency, driven by digital services that now make up 39% of its revenues. “We also won a large deal by opening a new client logo in insurance vertical with net-new TCV of $44 million,” Jalona tells Sudhir Chowdhary in a recent interview. Excerpts:
You closed FY19 on a very high note— among the best in industry. Is this momentum sustainable given external forces such as Brexit, H-1B visa?
The ongoing fiscal has started on a cautious note for the industry. However, from an industry perspective, Indian IT services has emerged stronger after every challenge. Hence, we do not anticipate these issues to have any sustained impact on this resilient industry. We remain bullish on our growth in the medium to long term.
Where do you foresee newer business opportunities coming from?
The digital opportunity is huge, and we have just scratched the surface. A survey conducted by MIT-CISR and LTI in 2018 revealed that about 75% of large enterprises are less than 50% through with their digital transformation. So, while the competition will remain intense, a well-governed company will see good sustainable growth with continuous innovation. At LTI, we believe the future of every industry is at the convergence of physical and digital worlds, and we are investing in building capabilities that our clients will require to navigate this transformation.
What is your acquisition strategy?
With so many new technologies, it is important to be an effective ecosystem player. We are always looking to augment our capabilities through right acquisitions. Syncordis and Neilson + Partners enhanced our capability on Temenos, which is vital for banking industry. Also, augmented capability on Pega through Ruletronics enables us to offer accelerated digital transformation across sectors. AugmentIQ and most recently, Lymbyc have enhanced our Mosaic ecosystem making it modular, scalable and intelligent.
Can you share more about Lymbyc?
Interestingly, Lymbyc was a partner of LTI before we acquired the company. So, in that respect, it is always great to see friends becoming family. We believe self-service capabilities for AI and advanced analytics will be the next wave of disruption in the marketplace, and Lymbyc brings this capability to our Mosaic platform. Leni by Lymbyc is an industry-agnostic platform that solves business users’ need for experience, speed, and comprehension.
What differentiates LTI in a crowded marketplace?
One of our most critical differentiators is the engineering DNA that we have inherited from the L&T Group. It has given us our ‘solver’ attitude and deep understanding of industry sectors that we operate in. We also take pride in our willingness to go the extra mile for our clients, and the investments we are making in platforms, people, and partners.
Attrition seems to be on the rise in the IT industry. Are you worried about it?
Given the fast growth nature of this sector, attrition has always been on the higher side. The growing demands of learning the exponential technologies rapidly has placed some more pressure in this regard. Our global initiative, called Mission Ubuntu embraces an approach of inclusiveness. The initiative entails mapping an employee’s journey through LTI in a nine-step process, starting from hiring to the time when she leaves, with a focus on retention through learning and growing. Mission Ubuntu aims to improve employee experience and satisfaction.
Also, this year onwards, we have done away with the bell curve as part of our performance management process and moved to continuous feedback system. Through this move, we aim to encourage a dialogue with our employees on an on-going basis and empower them with dynamic portfolios based on their interest and abilities.