The software services industry is undergoing a significant shift in its pricing model due to the increasing adoption of artificial intelligence (AI). According to Venugopal Lambu, the chief executive designate of LTIMindtree, the sixth-largest outsourcing company in India, AI adoption is changing the way companies price their services. Instead of the traditional pricing model based on the number of full-time employees (FTEs), companies are now seeking multiple price points to maintain profitability. This shift is driven by the need to adapt to changing client demands and macro uncertainties.

The $280-billion-plus IT industry is experiencing vendor consolidation, with clients focusing on reducing costs and increasing efficiency. LTIMindtree’s CEO, Debashis Chatterjee, noted that the company has passed on productivity gains to its clients, resulting in revenue cannibalization. However, he emphasized that this impact is behind them, and the company is proactively working with clients to identify areas where productivity gains can be achieved.

Despite the uncertainties, LTIMindtree has not received any material requests for project cancellations or pauses. However, the demand situation remains cautious, with clients seeking to build their technology landscape while achieving cost savings. The company’s leaders believe that AI adoption will continue to drive changes in the pricing model, with a shift towards price per engagement rather than price per FTE.

LTIMindtree has laid out a five-year plan to explore new business opportunities, and its leaders are confident that the company will adapt to the changing landscape. The company’s fourth-quarter earnings were impacted by continued uncertainties and cautious client spending, but its leaders remain optimistic about the future. As the industry continues to evolve, it is likely that other software services providers will also need to adapt their pricing models to remain competitive.

Overall, the increasing adoption of AI is driving a shift in the software services industry, with companies seeking to maintain profitability through multiple price points and a focus on cost savings. As the industry continues to navigate uncertainties, it is likely that we will see further changes in the pricing model and the way companies approach client relationships. LTIMindtree’s leaders are confident that the company will remain competitive and adapt to the changing landscape, and their five-year plan is focused on exploring new business opportunities and driving growth.

LTIMindtree, a leading digital transformation and consulting firm, has strengthened its engagement with Arenco Group, a diversified conglomerate with interests in real estate, hospitality, and more. This partnership aims to modernize Arenco’s IT infrastructure by upgrading its JD Edwards 9.1 system to the latest release and hosting the JDE application on Oracle cloud infrastructure. This upgrade will improve agility, optimize costs, enhance performance, ensure compliance, and unlock new capabilities to drive business growth and innovation at Arenco.

The partnership is expected to empower Arenco’s digital transformation journey, providing access to Oracle cloud tools and services necessary for this exciting transition. Arshad Javed, Group IT Manager at Arenco Group, expressed excitement about the partnership, highlighting the benefits of the JD 9.2 upgrade and the company’s anticipation for continued collaboration.

LTIMindtree’s Executive Vice President and Chief Business Officer, Deepak Khosla, emphasized the pride in partnering with Arenco to accelerate their digital transformation journey. The company’s team will leverage their expertise and innovative solutions to help Arenco Group achieve industry-wide edge in digital maturity.

The partnership is a significant win for LTIMindtree, demonstrating their ability to deliver complex IT projects and enable businesses to stay competitive in today’s fast-paced digital landscape. With this engagement, Arenco Group can focus on its core operations, confident that their IT infrastructure is robust, efficient, and future-proof. The partnership is expected to be a key driver for Arenco’s continued growth and success.

Venu Lambu, CEO designate of LTI Mindtree, has outlined a new strategy focused on increasing agility, simplifying processes, and establishing new baseline metrics for operational costs. The plan aims to prepare the company for faster growth and increased competitiveness in a rapidly changing market.

Lambu has rejected the idea of making significant changes to the organizational structure, instead choosing to build on the company’s existing strengths. He has also emphasized the importance of infusing AI into the company’s core services, including digital engineering and enterprise apps, to increase productivity and differentiate the company from competitors.

The plan also involves the development of a dedicated business unit focused on AI services, which will enable the company to expand its addressable market. Lambu has also mentioned the need for a re-evaluation of governance control mechanisms and the potential for a convergence of industry expertise and technology expertise to solve complex problems.

The company’s current CEO, Debashis Chatterjee, has expressed his support for Lambu’s strategy, noting that it aligns with the company’s ambition to reach a revenue target of $10 billion by 2032. Chatterjee has also described the transition as “orderly” and has expressed confidence in Lambu’s ability to lead the company forward.

Overall, Lambu’s strategy appears to be focused on building on the company’s strengths, increasing agility, and leveraging AI to drive growth and competitiveness. The approach is designed to position LTI Mindtree for long-term success and growth, rather than making significant changes to the organizational structure.

LTiMindtree Limited has received an order from the Department of Goods and Service Tax, Office of the Deputy Commissioner of State Tax, Mumbai, under Section 73 of the Maharashtra Goods & Service Tax or CGST Act, 2017. The order was received on February 21, 2025, and it entails a total demand of INR 461 million, comprising a penalty of INR 26 million and interest as applicable, for the fiscal year 2020-21.

The specific issue raised by the authorities is related to the denial of zero-rated supply, which led to the proportional reversal of input tax credits. However, LTiMindtree Limited disputes the GST demand, including the penalty and interest, and believes that the order is unjustified based on its assessment of the facts and the prevailing law.

The company plans to take an appropriate legal course against the said order, consulting with its advisors. This development may result in further legal proceedings and negotiations with the authorities to resolve the matter. The company will likely engage in a thorough analysis of the order and gather evidence to support its position, seeking to have the demand set aside or reduced, or possibly appeal the order up to the highest court if necessary. As the matter unfolds, the company will provide updates on any new developments, though the current situation appears to be challenging and contentious.

At a recent meeting in Mumbai, LTiMindtree’s CEO-designate Venu Lambu addressed over 50 senior leaders, outlining his priorities, including focusing on growth and amplifying the company’s artificial intelligence (AI) strategy. This comes as a backdrop of two senior executive departures – Rohit Kedia, Chief Business Officer, and Vikash Gaur, Chief Delivery Officer, who opted to explore other opportunities. Both executives played critical roles in their respective tenures, with Kedia overseeing various service lines and implementing strategic initiatives, and Gaur advancing from EVP to Chief Delivery Officer in five years. Lambu’s town hall meetings in Mumbai and Bengaluru marked the beginning of his transition to the CEO role, with assurance of a smooth transition from the current CEO Debashis Chatterjee. Lambu and Chatterjee will meet with clients in the US and Europe over the coming weeks. Prior to taking office, Lambu plans to meet with employees at multiple locations, including Hyderabad, Chennai, and Pune, aiming to get to know the teams and set a clear direction for the company.

LTIMindtree, a global technology consulting and digital solutions company, is currently hiring for the position of “prompt engineer”. This role involves developing, testing, and refining AI-generated text prompts to ensure optimal performance. The ideal candidate should have expertise in prompt engineering, with experience working on GPT-4 and other variants of the GPT model. The successful candidate will collaborate with content, product, and data teams to align prompts with user needs and drive continuous improvements in prompt quality and performance.

The company is committed to leveraging AI to improve productivity and achieve superior outcomes for its clients. In an exclusive interview, COO Nachiket Deshpande discussed LTIMindtree’s approach to AI, which is built on three pillars: AI in everything, everything for AI, and AI for everyone. He emphasized the importance of integrating AI seamlessly into users’ existing workflows, making it a “co-pilot” that complements their daily tasks.

The rise of prompt engineering is attributed to the popularity of AI tools like Cursor, Claude, and GitHub Copilot. The latter, in particular, has the ability to understand Indian languages, including Hindi and Kannada, while writing code. This highlights the need for individuals to upskill and adapt to new opportunities to remain competitive in the job market.

According to LinkedIn, the demand for AI engineers has increased, with roles like machine learning engineer, data analyst, and Python developer being common pathways into this field. With remote and hybrid work options available, the job market is evolving to incorporate more AI-driven roles.

LTIMindtree, a global technology consulting and digital solutions company, has been positioned as a Visionary in the 2024 Gartner Magic Quadrant for Cloud ERP Services. This recognition acknowledges the company’s commitment to delivering innovative and effective cloud ERP solutions that drive business transformation. LTIMindtree’s three-layer architecture for cloud ERP ensures clients can standardize, extend for industry needs, and maintain an agile and extensible platform. The company’s Timeless Enterprise concept emphasizes creating adaptable, industry-specific solutions that evolve with the business. LTIMindtree’s expertise in cloud ERP services drives business transformation and operational efficiency. The company’s focus on client success and satisfaction has led to significant improvements in client business processes and outcomes. The Gartner Magic Quadrant evaluates providers on their ability to execute and completeness of vision. This recognition highlights LTIMindtree’s innovative approach and robust service offerings, which have been pivotal in receiving this recognition.

LTIMindtree, a global technology consulting and services company, has been positioned as a Visionary in the 2024 Gartner Magic Quadrant for Cloud ERP Services. The Gartner Magic Quadrant report assesses vendors’ completeness of vision and ability to execute, recognizing those that are well-equipped to address emerging market trends. The recognition positions LTIMindtree as one of the leaders in the Cloud ERP Services space. Gartner evaluates vendors on criteria such as cloud-first capabilities, business user experiences, analytics and integration capabilities, and sustainability and scalability.

This achievement solidifies LTIMindtree’s reputation as a trusted partner for clients seeking digital transformation and ERP implementation. As a Visionary in the 2024 Magic Quadrant, LTIMindtree has demonstrated its commitment to delivering innovative solutions, driving digital disruption, and shaping the future of ERP.

LTIMindtree, a global technology consulting and digital solutions company, has been positioned as a Visionary in the 2024 Gartner Magic Quadrant for Cloud ERP Services. This recognition acknowledges LTIMindtree’s commitment to delivering innovative and effective cloud ERP solutions that drive business transformation. The company’s comprehensive suite of AI tools and accelerators boosts implementation efficiency, while its three-layer architecture for cloud ERP ensures clients can standardize, extend, and maintain an agile platform. LTIMindtree’s Timeless Enterprise concept emphasizes creating adaptable, industry-specific solutions that evolve with the business. The company’s focus on client success and satisfaction has led to significant improvements in client business processes and outcomes. The recognition highlights LTIMindtree’s expertise in providing comprehensive cloud ERP services that drive business transformation and operational efficiency. The company believes its innovative approach and robust service offerings have been pivotal in receiving this recognition.

LTIMindtree, a global technology consulting and digital solutions company, has launched the Integrated Village Development Programme (IVDP) in Balarampur, West Bengal, in partnership with EAGL Livelihood Foundation. The initiative aims to enhance the development and well-being of the local community through education, health, and livelihood opportunities. The IVDP is a comprehensive program that focuses on creating a positive impact in aspirational blocks identified by Niti Aayog, with Balarampur being one of them. As part of the program, Anganwadi Centres were renovated, STEM labs were set up in two high schools, and free coaching centers were established for students preparing for board examinations. The program also includes the revitalization of five Anganwadi Centres and five schools, the establishment of two free coaching centers, and provisions for 22,500 cubic meters of storage capacity for farm ponds to assist local farmers. Paneesh Rao, Chief Sustainability Officer at LTIMindtree, said that the program aims to empower the residents of Balarampur and create lasting change. The initiative is part of LTIMindtree’s Corporate Social Responsibility (CSR) efforts.

Nachiket Deshpande, COO of LTIMindtree, discusses the company’s approach to artificial intelligence (AI). He emphasizes the importance of integrating AI solutions into existing workflows, using the “co-pilot approach” to ensure seamless adoption. LTIMindtree has decided not to build its own generative AI solutions, instead focusing on adopting and integrating existing technologies. Deshpande believes that building in-house AI products would be costly and obsolete, citing the company’s 30-35% R&D allocation compared to 80% for product companies. Instead, LTIMindtree aims to reimagine its services with AI, rolling out solutions to thousands of agents and creating new revenue opportunities. The company has already seen success with AI-driven projects, including a platform called Canvas, which integrates with existing AI investments. Deshpande predicts that every dollar of revenue will have a generative AI component embedded. He notes that Indian IT companies like Mphasis and Persistent Systems are also focusing on agentic AI, and that the key to productivity gains lies in persona-centric AI solutions.

LTTHMindtree, India’s sixth largest IT services company, has launched a 100-seater AI-driven Cyber Defense Resiliency Center (CDRC) in Bengaluru. The center will provide cyber threat intelligence and incident response services to clients, using predictive analytics and natural language processing to identify potential threats. This will help clients reduce risks, improve efficiency, and focus on their core business. The CDRC will also serve as a Center of Excellence for global network of cybersecurity specialists focused on cyber operations. LTIMindtree has already helped clients in over 30 countries build custom security roadmaps. A report by the US Agency for International Development predicts a significant rise in cybercrime, with global losses projected to reach $23.84 trillion by 2027. In India, there were 600 reported cyberattacks in the first half of 2024, with the education, government, and technology sectors being primary targets. The CDRC aims to help clients stay ahead of the looming threat, with LTIMindtree’s expertise in cybersecurity and AI technology.

As the new year approaches, many IT companies, like individuals, set goals, though they’re referred to as “aspirations” rather than “resolutions.” LTIMindtree, in particular, has announced its “aspirational target” for the next fiscal year. The company aims to more than double its revenue to $10 billion by FY32, either organically or through acquisitions. This ambitious goal is similar to that of its sister company, L&T Technology Services, which plans to nearly double its revenue to $2 billion. These targets indicate a strong growth trajectory for both companies, which are likely to continue their upward momentum in the coming years.

The article discusses LTIMindtree’s ambitious target of reaching a valuation of USD 10 billion in the next 3-4 years and cautions investors against betting too much on this aspiration. The company’s market capitalization is currently around USD 7.5 billion. While LTIMindtree has a strong track record of growth and has successfully navigated the COVID-19 pandemic, there are concerns about its ability to reach this valuation milestone. The article points out that the company’s valuation multiples are already at a premium to its peers, making it vulnerable to downward revisions. Additionally, the Indian IT sector faces structural challenges, including talent availability and attrition, and increased competition from newer players. Furthermore, LTIMindtree’s exposure to legacy contracts and reliance on a few large clients pose risks. The article advises investors to be cautious and not bet too much on LTIMindtree’s valuation aspiration, recommending a more conservative approach.

LTIMindtree, a global technology consulting and digital solutions company, has announced a partnership with next-generation startup Voicing.AI, which includes a strategic investment. The partnership aligns with LTIMindtree’s strategy of incorporating AI into everything, making everything AI-enabled, and making AI accessible to everyone. Voicing.AI’s technology offers human-like voice capabilities across 20+ languages and is designed to mimic human conversation, context, and emotion. LTIMindtree aims to transform business processes by leveraging AI-led platforms, enabling clients to reduce costs, enhance user experience, and upsell opportunities. The partnership will also see LTIMindtree integrate Voicing.AI’s technology with its clients’ custom tools, CRM systems, and leading call management platforms. The Agentic AI technology complies with industry-standard security protocols. Quotes from LTIMindtree’s CEO, Debashis Chatterjee, and Voicing.AI’s Co-Founder, Abhi Kumar, highlight the partnership’s potential to revolutionize customer engagement and drive growth. The partnership will see LTIMindtree and Voicing.AI working together to meet the growing demand for AI-powered platform operations.

LTIMindtree, a global IT consulting and outsourcing company, has announced a partnership and strategic investment in Voicing.AI, an agentic AI solution for customer engagement processes. The partnership aims to leverage Voicing.AI’s capabilities to enhance customer experience and automate customer service processes. Voicing.AI’s solution uses artificial intelligence to simulate human-like conversations, allowing companies to create personalized interactions with customers. The partnership will enable LTIMindtree to offer its clients a cutting-edge solution for customer engagement, improving customer satisfaction and loyalty. With this investment, LTIMindtree will be able to expand its portfolio of digital transformation services, placing it at the forefront of providing innovative solutions to its clients. The partnership will also help Voicing.AI to expand its global footprint and deliver its solutions to a broader audience. Both companies will work together to develop new solutions, with the goal of revolutionizing the customer service landscape.

Indian startups ZFunds, WickedGud, and Voicing.AI have secured early-stage funding. ZFunds, a Gurugram-based wealth-tech company, has raised ₹25 crore (about $3 million) in seed funding led by Elevation Capital and Policybazaar co-founder Yashish Dahiya. ZFunds aims to improve the mutual fund investment experience and outcomes for investors, and the fresh funds will be used to enhance services for end consumers.

Shilpa Shetty-backed WickedGud, a Mumbai-based food brand, has secured ₹20 crore (about $2.4 million) in funding led by Orios Venture Partners and Asiana Fund, among others. WickedGud, which positions itself as a “better-for-you” indulgent food brand, plans to use the funds to expand its distribution network, increase branding and marketing efforts, and strengthen its core team.

Voicing.AI, a Mumbai-based autonomous company, has also secured funding. LTIMindtree’s US subsidiary has signed a definitive agreement to invest $6 million in Voicing.AI, which specializes in voice AI autonomous agents for customer calls and related tasks. The funding will enable LTIMindtree to leverage Voicing.AI’s offerings and deliver advanced solutions to potential customers.