12 March 2024 – Analysts claim that compared to other IT businesses. The sixth-largest Indian IT company is more vulnerable to losing wallet share due to the restructuring of Citibank, one of LTIMindtree’s top two customers, and attrition at the top management of the latter.
Given that Citi Bank is a big customer, CitiBank may optimize its IT services budget during this reorganization, which might have an impact on other Indian IT services companies. In light of this, LTIM’s management turnover may put the company in greater danger of losing market share to other IT companies.
Giving integration problems some context, Jefferies also pointed out that Vinit Teredesai, the company’s CFO, just resigned, which may indicate that integration problems still exist. The dramatic resignation of the CFO comes after three to six months of senior-level departures.
Conclusion
High senior-management turnover indicates that the business is still having trouble integrating. Given that the merger has been in place for more than a year, this is cause for alarm. After Teredesai’s departure, the board named Vipul Chandra LTIMindtree’s new CFO. Additionally, it wants to see team members who have been trained internally satisfy 50% of the new position criteria.
