Sanjay Jalona, CEO and Managing Director for L&T Infotech said that apart from digital transformation the company has also seen broad-based growth.
L&T Infotech (LTI) is confident of sustaining its growth in next fiscal on the back of huge opportunities as companies go digital and its broad-based growth, said Sanjay Jalona, CEO and Managing Director.
Speaking to Moneycontrol on May 2, Jalona said the company has seen double digit growth for the last three years. According to him, it is all about providing the customers the right offering given that there is tremendous opportunity in the market.
In a survey the company carried out in collaboration with MIT, it is found that more than 50 percent of the companies are on the journey of digital transformation. “This provides a tremendous opportunity. There is no shortage of business, but you need to have story to tell. The customers will find the money if that story is helping them transform,” he added.
Apart from digital transformation, the company has also seen broad-based growth. “The only way you can consistently drive revenue growth is by building resilience across the portfolio in terms of geography, the sectors you operate in and the customers in the sector,” he added.
The company’s verticals grew on average 10-11 percent year-on-year (YoY) baring CPG, retail and pharma and hi-tech, media and entertainment that grew close to 33 percent in the fiscal ended March 2019. Digital revenue account for about 37.9 percent, a YoY of 31 percent.
Jalona said the outlook is positive and the company intends to sustain the growth momentum. However there are issues as well.
The company's attrition rate for the quarter ended March 2019 was quite high at 17.5 percent. Jalona said, “As a company we are focusing a reducing attrition a lot.” The company has launched programmes focusing on retention right from hire to retire.
Jalona explained that the company is working towards how to retain good talent, engage them, train them and upskilling them. “There is tremendous amount of focus on how to retain talent,” he added.
H-1B is an issue as well. “We are also carrying out localisation like others and all of this are putting pressure on the system,” Jalona said. This is despite the fact that the company has the lowest onsite ratio for an IT services company, which stands at 22 percent. “Though it is low, we are focusing on how we can use technology to see if how we can work from offshore, nearshore centres and how do we carry out localization and the cross training of people onsite to do newer things,” he added.
Talking about how L&T’s takeover bid for Mindtree would affect L&T Infotech, Jalona said, “L&T has a standard strategy of increasing its investment in the services business. The same is demonstrated in the investment in LTI and L&T Technology Services. In the case of Mindtree, where they acquired 20.32 percent, they followed the same strategy.”
“As far as we are concerned, nothing changes for LTI at this point of time. We continue to focus on large accounts, open new accounts we want to open and focus on large deals,” he added.
