In a rapidly evolving tech landscape, AI-assisted coding is becoming an integral part of recruiting strategies, particularly for entry-level positions. Venugopal Lambu, CEO of LTIMindtree, emphasizes the importance of foundational skills and learning abilities in fresh graduates, which can be further honed through company training and learning methods.
“So those assessments will always improvise it…Whenever we hire people, we take all those aspects, whether it is related to coding roles, cloud roles, infrastructure roles, or data roles,” stated Lambu, highlighting the multi-faceted approach to recruitment.
Fresh Talent and AI Integration
The sixth-largest Indian IT firm, LTIMindtree, is significantly incorporating AI-assisted coding in its assessment process for fresh graduates. This approach aligns with the broader industry trend where the correlation between revenue growth and headcount is becoming less linear. Lambu revealed, “We added 1,600 freshers this quarter and plan to continue this momentum throughout the year. AI-assisted coding is the way to go about it.”
Non-linearity in Growth
With AI technology permeating various functions, the IT industry is witnessing a shift. As Lambu noted, “Over the last few quarters, when we added revenue, the headcount has not necessarily increased. So, there is a correlation or a non-linearity, but it is too early to call out to what extent it will happen.”
This shift is further evident in LTIMindtree’s recent financial performance. Following the merger of L&T Infotech and Mindtree in November 2022, the company reported a 5.2% year-on-year growth in the first quarter revenue of fiscal year 2026, reaching $1.15 billion. The growth was bolstered by robust performance in Europe and among consumer or retail clients.
Strategic Deals and Market Positioning
Lambu, who took over as CEO on May 31, announced the company’s largest deal with a US-based client valued at $450 million during the first quarter. “We are on the verge of signing a couple of deals, and one of them will actually beat our own record. That gives me the confidence that we will move towards double-digit growth at some point in the second half of the year,” Lambu stated optimistically.
Despite the IT industry’s struggle with low single-digit to flat business growth over recent years, LTIMindtree is positioning itself for a stronger future. As tariff-led macro uncertainties and AI-driven efficiencies exert cost pressures, the demand from top clients is contracting. However, Lambu remains upbeat about AI’s potential to enhance both revenue and margin growth.
Evolving Client Portfolio
The company’s strategy also involves diversifying its client portfolio. “Our contribution of top clients’ revenue decreased as it has moved to the other categories. For example, we added two new $50 million-plus accounts on a year-on-year basis…The portfolio mix also is changing as we start building larger deals,” explained Lambu.
AI as a Growth Catalyst
Betting big on AI, Lambu forecasts it will be a net positive for revenue and margin growth. The company anticipates margins to climb to around 16% in the coming quarters from 14.3% in the June quarter.
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Note: This article is inspired by content from https://economictimes.indiatimes.com/tech/information-tech/ai-assisted-coding-is-the-way-to-go-when-hiring-graduates-ltimindtree-ceo/articleshow/122800269.cms . It has been rephrased for originality. Images are credited to the original source.