LTIMindtree, India’s sixth-largest technology services company, is reportedly focusing on larger clients and leveraging artificial intelligence (AI) to secure significant market share. A company executive told Economic Times that LTIMindtree recently won its largest deal ever, a result of its AI-centric approach.
The strategic shift in approach
Nachiket Deshpande, the company’s chief operating officer, stated that AI is being integrated into all services.This strategic shift has led to a surge in large deals, including the record-breaking manufacturing contract. “We are now embedding AI into each of our service, reimagining with AI… Bulk of our large deals that we announced this quarter came because of that differentiated AI offering. This is one of our largest deals in the history of the company, that we signed with a manufacturing client,” said Deshpande in an interaction with ET.
In the second quarter of fiscal year 2025, LTIMindtree secured several multi-year projects, including a $200 million deal from a U.S.-based manufacturer. Despite a slight decline in quarterly revenue, the company’s large deal pipeline remains robust at over $5 billion.
Deshpande explained that the AI-focused approach has enabled LTIMindtree to consolidate multiple vendors into a single provider. Additionally, the company is carefully evaluating smaller clients and may reduce its involvement if strategic improvements are not achieved.
While cost reduction remains a significant driver of growth, Deshpande emphasized the company’s focus on winning larger market share with existing clients.
Positive but remains cautious
LTIMindtree, formed in 2022 from the merger of L&T Infotech and Mindtree, reported a 3.2% quarter-over-quarter revenue growth in the second quarter. Despite this positive trend, the company remains cautious about the outlook due to seasonal factors and potential macroeconomic challenges.
The company’s margin target of 17-18% may be delayed due to factors such as wage hikes and geopolitical tensions. Deshpande acknowledged these challenges but expressed confidence in the company’s long-term growth prospects.
