Finance sector a concern: LTIMindtree CEO

BENGALURU: LTIMindtree CEO & MD Debashis Chatterjee says despite general concerns around slowing global demand, the only trouble he sees in his business right now is from the freeze in client spending in the banking and financial services sector. Even this, he says, will likely return to normal by the second quarter of this fiscal.
He says the company is getting a lot of deals that are focused on bringing efficiency, rather than digital transformation projects that yield quicker revenue inflows. “Clients do not want to stoptransformation projects. They are just saving to do it later,” Chatterjee told TOI.
LTIMindtree was in the news recently for putting Mindtree candidates through a training process before being onboarded, after delaying the onboarding for a year. Chatterjee said this rule was adopted by LTIMindtree during the process of integrating Larsen and Toubro Infotech (LTI) and Mindtree.
“The Ignite programme (of training freshers prior to onboarding) was introduced two years back by LTI. The objective was for these freshers to get some experience before being onboarded. While integrating the two entities, we picked up the best practices of both and decided to introduce it to Mindtree candidates also,” he said. The combined entity’s headcount dropped in the final quarter of 2022-23 by around 2,000 on a sequential basis because of a hiring freeze. The company did not hire as there were delays in deals materialising. In the current financial year (2023-24), the firm wants to utilise its bench and avoid hiring laterals. The company’s employee utilisation dropped from nearly 83% in the December quarter to 81. 7% in the March quarter.
The company plans to shut down certain offices as part of a move to cut costs. Chatterjee did not mention specifically which offices would be closed.

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