LTIMindtree passing on AI productivity gains to clients to bag more business: CEO
LTIMindtree, India's sixth largest IT service provider at $4.4 billion revenues, is transferring artificial intelligence (AI)-driven productivity gains to clients in order to get more business as the technology becomes more pervasive across deals and clients, its top executive told ET.
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«AI is becoming real or rather has become real. We want to infuse AI very aggressively. That is somewhere we have passed on some productivity benefits to the top client. We are proactively going and talking to our clients on how we can offer the benefits to them,» said Debashis Chatterjee, chief executive officer and managing director at LTIMindtree, in an interview with ET. And then there will be more work coming our way, which would be even as a result of consolidation. So, we have to cannibalise our own revenue to get more revenues, Chatterjee explained.
In Q3, this largely impacted its hi-tech vertical which declined 5.7% sequentially due to transfer of AI-driven productivity gains to its top client but there will be more revenues coming from the client over a period of time. «The only thing which is happening with respect to the top client is passing on some of the productivity gains. We called out that this will probably extend into the next quarter as well. But there are more market opportunities also that we are creating, not just losing revenues,» Chatterjee said.
