LTIMindtree Counts on Vendor Consolidation for Growth

Cost optimisation deals, technology modernisation initiatives by clients, focus on global capability centres, and LTIMindtree's unique positioning as a mid-tier information technology (IT) services company will help steer it in the current uncertain macroeconomic environment, according to the company.

- AVIK DAS

IT service providers are banking on mid-sized and large cost-take-out and efficiency improvement deals at a time when discretionary spending budgets by clients are frozen amid the threat of a tariff war and its eventual fallout. Customers are saving the last dollar rather than spending more on new-age technologies.

Mid-tier companies stand to gain in this environment because they are often more aggressive in chasing deals at margins which are difficult for large IT companies to manage. "A lot of the clients are reimagining their vendor landscape and that gives us a vendor consolidation opportunity, especially where we are in terms of our size, scale, and capability sweet spot. We tend to gain more than we lose," Chief Executive Officer (CEO)-designate Venu Lambu told Business Standard.