LTIMindtree is navigating the complexities of global tariffs without canceling significant projects, even as discretionary spending remains subdued. The integration of artificial intelligence (AI) is reshaping the landscape, reducing deal sizes while simultaneously boosting productivity by 25-40%. In a recent conversation with Padmini Dhruvaraj, Venugopal Lambu, the incoming chief executive, shared insights into the company’s strategic focus, which includes transforming sales, optimizing costs, expanding AI services, and setting a bold target of $10 billion in revenue.

Adapting to Global Tariff Challenges

As the discussions around tariffs began in Q4, LTIMindtree observed an initial cautious response from clients, reflected in their quarterly numbers. However, as conditions evolve and clarity emerges, businesses are adapting to this new environment.

• No major project cancellations have been reported.
• Discretionary spending continues to be a concern across all sectors.
• The automotive industry, particularly those engaged in exports from Europe to the US, may face challenges, but LTIMindtree is minimally affected in this area.

Lambu noted that while there isn’t a surge in demand for transformation projects, businesses are not delaying or canceling existing initiatives.

Transforming Deals with AI

The influence of Generative AI is evident in LTIMindtree’s larger deals. Lambu highlighted that the company is positioned to announce significant deals shortly, with AI playing a crucial role in their strategic direction.

• Large deals are now more strategic, focusing on cost-saving and consolidation.
• AI is reshaping the pricing and scope of these deals.

Productivity Gains from AI Initiatives

Clients are increasingly interested in the productivity improvements driven by AI. The enhancements in productivity benchmarks are notable, but Lambu emphasized the importance of viewing the bigger picture.

• AI is opening new business avenues, balancing the trade-off between passing on productivity benefits and generating revenue.
• While individual deal sizes are smaller than three years ago, the overall impact of AI is positive.

Quantifying AI’s Impact for FY25

Lambu shared that the benefits realized from AI initiatives vary across service lines. For example:

• Development and digital engineering services are seeing a 30-40% reduction in effort throughout the service development lifecycle.
• Application and infrastructure services are expected to achieve more than 25% productivity gains.

Strategic Vision as New CEO

As he steps into his role, Lambu has outlined a comprehensive strategy for growth. His immediate focus includes:

• Revamping the sales organization to better align with current market dynamics.
• Reevaluating both direct and indirect costs for optimization.
• Establishing a dedicated AI services organization led by Nachiket.

These initiatives, set in motion over the past three months, are designed to fuel growth ahead of FY26. Additionally, a five-year plan is underway, aimed at guiding LTIMindtree toward its ambitious goal of $10 billion in revenue.

In conclusion, LTIMindtree is proactively addressing the challenges posed by global tariffs and evolving market conditions. Through strategic transformations and the integration of AI, the company is well-positioned for future growth.