MANAGEMENT DISCUSSION AND ANALYSIS IT & TECHNOLOGY SERVICES ANNUAL REPORT 2019-20

IT &
TECHNOLOGY
SERVICES

LTI’s Delivery Center in Warsaw, Poland

• Consumer packaged goods (CPG), Retail and

L&T INFOTECH Pharma
• Hi-Tech, Media and Entertainment
Overview:
To further augment its digital capabilities, LTI
L&T Infotech (LTI) is a global technology consulting announced two acquisitions in FY 2019-20. In
and digital solutions company helping more than July 2019, it acquired Lymbyc, a specialist in AI,
420 clients succeed in a converging world. With machine learning and advanced analytics. The
operations in 32 countries, the business goes that Lymbyc acquisition adds to LTI’s Mosaic platform
extra mile for its clients and accelerates their digital offering. In October 2019, it acquired Powerup,
transformation with its Mosaic platform – enabling a born-in-cloud company, with cloud consulting
their mobile, social, analytics, IoT and cloud capabilities across all three leading cloud platforms
journeys. Founded in 1997 as a subsidiary of – AWS, Microsoft Azure and Google cloud. In
Larsen & Toubro Limited, its unique heritage gives addition to cloud-consulting capabilities, Powerup
it an unrivalled real-world expertise to solve the also adds 2 AI products to LTI’s powerful suite of
most complex challenges of enterprises across all offerings.
industries. Each day, the team of more than 30,000
LTItes enables clients to improve the effectiveness
of their business and technology operations and Business Environment
deliver value to their customers, employees and
shareholders. The global Information Technology-Business Process
Management (IT-BPM) market, excluding hardware and
The business has a strong presence in each of the Engineering, Research & Development (ER&D), grew
following verticals: 5.6% over the last year and stood at USD 1.5 trillion in
2019. Indian IT-BPM industry revenues including hardware
• Banking and Financial Services and ER&D spend stood at USD 191 billion in FY20. The
industry added ~USD 14 billion in incremental revenues
• Insurance
last year, representing year-on-year growth of ~ 7.7%
• Manufacturing in USD terms. IT-BPM export revenues for the industry
for FY 2019-20 are expected to reach USD 147 billion, a
• Energy and Utilities growth of 8.1% over the past year.

260
LTI Headquarters, Powai, Mumbai

The share of digital in industry revenues has jumped from b) Insurance: Cost optimization and legacy systems’
~20% last year to a range of 26%-28%. Nine digital modernization are the key drivers of growth, and
technology areas will emerge as the fastest-growing and many insurers are shifting from the product-centric
highest-impacting, with the combined potential to deliver to a customer-centric business model, so insurance
one-third of the USD 100 trillion. The nine areas include companies are open to form partnerships with
three foundational technologies – Big Data and Analytics, ‘InsurTechs’ which will help them cut costs and improve
Cloud Computing, and Cybersecurity – and six advanced business process efficiencies, as well as provide a better
technologies – Artificial Intelligence, Internet of Things, 3D customer experience.
Printing, Robotics, Blockchain, and Immersive Media.
c) Manufacturing: This sector includes Industrial
The strong digital foundation that Indian technology has Manufacturing, Automotive & Aerospace. The
built over the last decade underpinned the remarkable automotive industry has been facing an unprecedented
agility and resilience in responding to the COVID-19 crisis; technology and business model transformation, driven
ensuring business continuity for all global clients while mainly by Connected, Autonomous, Shared and Electric
prioritizing the safety of its professionals. mobility (CASE). These trends will continue to drive
The vertical specific key trends observed are as follows: the industry evolution going forward. The industrial
manufacturing sector is witnessing the importance
a) Banking and Financial Services: With the Banking of the Digital Twin in maintaining operations within
industry being a fast adopter of advanced data analytics the manufacturing ecosystem, and the emerging and
and AI-based strategies, as customer data segmentation expanding role of collaborative robots, remote work
and enhanced decision support become key priorities, and the ‘virtual shift’ in the manufacturing sectors.
this sector saw an increase in spend on digital
technologies. COVID-19 has the potential to change the d) Energy and Utilities: Cloud migration has helped
way people bank, forever marking a clear shift towards companies leverage solutions for automated adaptive
planning and scheduling of production, logistics
digital and cloud. It is expected that most routine
and service processes, which in turn will enhance
operations would move to the cloud as cloud-native
operational efficiency by reducing human interventions.
technologies can enhance customer experience while
reducing costs at the same time.
e) CPG, Retail and Pharma: Competition from
Direct-to-consumer companies is changing business

261
 MANAGEMENT DISCUSSION AND ANALYSIS IT & TECHNOLOGY SERVICES ANNUAL REPORT 2019-20

Mosaic Experience Centre

models for CPG players. Companies are investing in with Pega and ‘Premier’ partnership with MuleSoft
customer-centric digital technologies, such as Virtual reaffirms the resolve of the business to remain relevant to
Shelves, Digital Kiosks, Self-Checkout, Digital Reality, clients.
etc. As pharma companies generate a huge amount of
health data, linking them to new technologies to build During the year, LTI’s long-term rating has been upgraded
digital platforms is the way forward to transform their by CRISIL to AAA/Stable from AA+/Positive. The National
businesses. Emerging technologies, such as mHealth, Stock Exchange of India Ltd. (NSE) has included LTI in its
Robotic Surgeries and 3D Printing, are paving their way Nifty Next 50 Index.
in the Life Sciences industry.
Large Deal Wins
f) Hi-Tech, Media and Entertainment: Direct-to- a) A US based insurance company, a new logo has
Consumer is a strong theme emerging from the selected LTI for a multi-year, multi-million-dollar
necessity to understand customer preferences managed services deal for its IT infrastructure and IT
and behaviour. In the Media and Entertainment security operations
sector, content creation and prediction, along with
personalization, are the keys to providing a seamless b) A US based utility company, a new logo has selected LTI
user experience. In Hi-Tech, 5G technology is slated to for multi-year, multi-million-dollar deal to provide Cloud
drive the market for the next several years and open and Infrastructure Managed services
opportunities in Over-the-top (OTT) and E-commerce.
c) Won a multi-year, multi-million-dollar managed services
FY 2019-20 marks the fourth consecutive year of engagement with a European financial institution, a
industry-leading double-digit growth from LTI in new logo
constant currency terms.
d) A leading power generation company chose LTI as
its partner for a greenfield and organization-wide
Major Achievements implementation of SAP S/4 HANA
In FY 2019-20, LTI further strengthened its partnership and
alliances ecosystem. LTI received the AWS SAP Competency e) A multi-year, multi-million-dollar deal for transforming
partner certification, positioning it on an exclusive list of the global application operations of a global auto
AWS global partners. Elevation of LTI to ‘Gold’ partnership ancillary manufacturer

262
LTI’s state-of-the-art Delivery Center in Johannesburg, South Africa

f) An apex government body selected LTI to create d) LTI featured as a Major Contender in Everest Group
a conceptual framework on Data Management, Talent Readiness for Next-generation IT Services PEAK
integrating and harmonizing the available data sets in Matrix™ Assessment 2020
various key sectors through a single-window system for
better governance e) LTI positioned as a Major Contender and Star Performer
in Everest Group Application and Digital Services in
g) A multi-year, multi-million-dollar deal for complete Banking – Services PEAK Matrix™ Assessment 2020
digital transformation, enhancing productivity and
quality of service of a key government ministry by f) Won the SAP Pinnacle Award for Industry Innovation
implementing new microservices-based applications and Partner of the Year 2020
building a data and analytics platform
g) LTI is now a constituent of the FTSE4Good Index Series
h) A large energy retail company selected LTI for an following the June 2019 index review
end-to-end managed services deal for its IT applications
and infrastructure operations h) LTI has been felicitated with the ZEE Business National
CSR Leadership Award 2019 for Innovation in CSR
Awards and Recognition practices
a) LTI ranked as a Leader in AI-based Automation
Capability in Software Testing Services: AI and Digital Significant Initiatives
Next-Gen Testing NelsonHall NEAT report 2019 The advent of newer and efficient technologies is driving
extraordinary changes across different industry verticals
b) LTI’s Digital Transformative Agribusiness case study all over the world. During these tumultuous shifts, there
recognized in ISG’s Global Digital Excellence: 25 are early signs of winners who would outgrow their
Winning Partnerships Book competitors and establish themselves as Breakaway
Enterprises. The common thread across these companies
c) LTI ranked as HFS Top 10 IoT Service Providers 2019 is they are fast adopters of technology and are reshaping
their organisation at a pace and agility that has not been
witnessed in the past.

263
 MANAGEMENT DISCUSSION AND ANALYSIS IT & TECHNOLOGY SERVICES ANNUAL REPORT 2019-20

LTI Welcome Center in Powai

At LTI, we believe enterprises need to master four essential That’s what the xFH model is all about: helping
plays to be a breakaway leader: organizations make sense of their own WFH model,
understand the layers that comprise it, then drive
• Operate to transform – leveraging automation in meaningful and impactful interventions at each of those
everyday operations and solving for the unstated needs layers – and across all layers – to ensure optimal business
outcomes.
• Data driven Organization – harnessing the power of
analytics At LTI, the WFH is broken down into five layers, each
with a specific set of interventions, tools, governance and
• Experience Transformation for their customers and outcomes – these layers traverse foundational needs to
employees include both team and individual requirements.
• Digitize the Core by leveraging real-world know-how of LTI has demonstrated agility and nimbleness to adapt to
the client’s industry domain the challenges posed by COVID-19. This, combined with its
LTI’s go-to-market strategy that is believed to help strategy to help customers become Breakaway Enterprises,
enterprises to be breakaway leaders continues to be the is enabling LTI stand out in the marketplace.
same as last year. It is continuously working towards
‘strengthening to solve’ along these four plays by Human Resources
investing in people and sharpening capabilities. LTI’s LTI crossed the 30,000-employee mark in FY 2019-20. The
programmatic capability building focuses on hiring and LTI culture is one of inclusivity and transparency. A gender-
re-skilling employees in digital technologies, developing inclusive workforce is a natural result of this outlook, which
vertical-centric platforms, augmenting key partnerships and is deeply woven into its ways of working. As of March 31,
acquiring unique capabilities. 2020, 31% of its workforce comprises women. LTI’s unique
recruitment programme ‘Revive with LTI’ provides return-
xFH – LTI Design for Thriving in the WFH to-work opportunities to experienced women professionals,
Future who are currently on sabbatical, under which they receive
For the foreseeable future, WFH is the new global norm. on-the-job training, mentorship from senior leaders and the
As with any competitive landscape, some organizations opportunity to work on trending technologies in LTI.
will find ways to adapt and thrive under a fully distributed In the area of talent management and digital skilling, the
model, while others will, unfortunately, flounder.
business has launched an AI-based solution that will help

264
LTI‘s Delivery Center at Pune LTI’s Delivery Center in Bengaluru, India

contextualize and speed up hiring, skilling – specifically ranking is on account of LTI’s focused talent development
focused on digital – and deployment. It provides accurate efforts across the entire data value chain of data storage
ways of matching the right talent with the relevant job at and management, data gathering, and data analytics.
speeds that significantly cut down on sourcing and hiring
times. Besides providing a business-context based skill In response to the COVID-19 outbreak, LTI has swiftly
map-gap analysis, it also ensures an improved employee as enabled the work-from-home option for almost all of
well as candidate experience. its employees, ensuring the safety and well-being of its
employees, while maintaining continuity of operations.
A key goal for the business in FY 2019-20 has been to A global helpline and email address have been set up to
focus on continuous reduction in attrition. Towards this, answer questions about COVID-19. Regular updates and
LTI launched the ‘iLead’ series to help first-time managers information to employees through emails, Intranet and
develop their leadership skills and help in talent retention. other communication channels have been ensured. An
internal portal has been set up which acts as a one-stop
To tap the vast talent pool in colleges, LTI flagged off destination for accurate information and guidelines about
the ‘Brand Icon’ initiative – a strategic programme COVID-19.
designed to engage with selected colleges, not just for
branding but from a 360-degree-development perspective For India-based employees, LTI SafeRadius - a GDPR-
between academia and corporates. Student development compliant return-to-work app-based solution was launched
programmes like webinars and workshops were conducted to track and monitor an employee’s health and safety, and
by the LTI industry experts. for issuing regional alerts from the HR and Admin teams.
The global sales leadership incubation programme – ‘iRise’ Risks and Concerns
– has won recognition at the ‘2019 Stevie Awards for Great Client relationships are at the core of the business. LTI
Employers’. Currently in its 3rd batch, iRise is a 12-month enjoys a history of high client retention and continues
onboarding programme aimed at building the global sales to derive a significant proportion of revenue from repeat
leaders of tomorrow. In its recent report “Talent Readiness business built on the successful execution of prior
for Next-generation IT Services PEAK Matrix™ Assessment engagements. Also, efforts are on to expand the client
2020: Closing the Demand-Supply Gap”, the Everest base and geographies, as well as increase the value-add of
Group has ranked LTI as the leading service provider for deliverables.
talent readiness for next-generation data services skills. This

265
 MANAGEMENT DISCUSSION AND ANALYSIS IT & TECHNOLOGY SERVICES ANNUAL REPORT 2019-20

Mindtree West Campus, Bengaluru

The major risks faced by the business include failure to

align the services portfolio with newer and in-demand MINDTREE
technologies, leading to lower operating revenue. A
technology architecture group has been created to ensure
continuous skill alignment with market needs. Evolving Overview:
geo- political and economic conditions may affect the During the year, subsequent to acquisition of
client’s business and LTI’s delivery, which is mitigated by control, Mindtree was consolidated as a subsidiary
regular monitoring. Changes in immigration policies of in the L&T Group, from the second quarter of the
countries where LTI has significant business may affect its financial year.
ability to position consultants at client locations.
Mindtree is a global technology consulting and
With a majority of the revenue being foreign currency services company, helping Global 2000 corporations
denominated, the business carries translation and marry scale with agility to achieve a competitive
transaction foreign exchange risks. However, expenses in advantage. ‘Born digital’ in 1999, more than 340
respective currencies provide a natural hedge. enterprise clients rely on the entity’s deep domain
knowledge to break down silos, make sense
Employees are the real assets for the IT industry. In order of digital complexity and bring new initiatives
to compete effectively, the ability of the business to attract to market faster. Mindtree enables IT to move
and retain qualified employees is critical. Attrition of at the speed of business, leveraging emerging
experienced and talented employees impacts organizational technologies and the efficiencies of continuous
knowledge and relationships. LTI has launched programmes delivery to spur business innovation.
for employee engagement and has a framework in place to
reward high-potential employees. Mindtree offers an extensive range of technology-
driven customized solutions. Mindtree’s digital
Outlook strategy is pivoted on multiple solutions, IPs, and
The risks emanating from the global pandemic continue frameworks cutting across several service offerings,
to evolve. With sustained investments in capabilities and covering areas such as real-time recommendations,
clients concurring with a xFH approach in response to social media intelligence, workforce productivity,
COVID-19, the business is confident of a robust, resilient customer analytics, and sales enablement. The
and sustainable business model. entity’s expertise in digital solutions span across

266
Immersive Aurora Experience Center

Adobe, Salesforce, and Sitecore. It services clients Automation

in diverse industries such as Retail, CPG and
At Mindtree, automation strategy is platform
Manufacturing, Travel & Hospitality, Banking,
and technology agonistic. Niche technologies like
Financial Services & Insurance, High-Technology and
Machine Learning and RPA are used to automate
Media.
repeatable and reusable tasks. At present, 764 BOTs
Mindtree is a Digital Next company with the are employed along with Mindtree Minds to provide
main emphasis on the digital transformation of top-notch client deliverables.
its clients to make them a better suited for future
disruptions. Mindtree has grown as a trusted service Application Managed Services
provider for its clients and has repeatedly proven its
Mindtree has developed unique end-to-end
technological expertise and domain capabilities.
workflow-driven Application Managed Services that
Digital Next Intelligent Enterprise for take complete lifecycle ownership of client enterprise
applications. Through the AMS practice, Mindtree
Future Possibilities has grown to become a strategic partner for clients’
Mindtree plays the foremost role in its clients’ business growth. The wide range of services provided
digital transformation and customer experience to clients through this practice includes:
development. Mindtree’s clients’ businesses are
highly influenced by their customer experience and • Transition and planning management – Performing
the ease of use of all provided services. Emerging system audit and creating a tailored plan for IT
technologies are defining businesses even more transformation completely aligned to business
than before. Therefore, companies have to be more objectives and relevant KPIs
aggressive in their uptake of new offerings, before • DevOps – Automation of all possible IT services and
they disrupt their business models. transforming existing business into an agile and
Mindtree develops innovative solutions and lean IT system
platforms around such unique customer and • Test Automation capabilities – For complete
cross-sector requirements. software test automation of client application with
reduced time to production

267
 MANAGEMENT DISCUSSION AND ANALYSIS IT & TECHNOLOGY SERVICES ANNUAL REPORT 2019-20

Kalinga Campus, Bhubaneswar

• End-to-end Managed Services – Providing • SAP: Mindtree is the world’s only integrated service
omnichannel support and business aligned KPIs provider with expertise on the SAP HANA platform
• Application Modernization – To identify and • Amazon Web Services: Advanced Consulting
eliminate redundancies in client systems, thereby Partner in the Amazon Partner Network (APN) for
enhancing customer experience through increased AWS
speed of operation, new features and add-ons
• Adobe: Business Partner within the Adobe Solution
Expert Thinking Partner Programme, which brings together a full
suite of customer experience transformation services
Mindtree helps its clients re-imagine their business, and Adobe Experience Cloud solutions to accelerate
providing unique solutions and digital transformation the digital transformation journey
by leveraging next-generation and emerging
technologies, including Blockchain, Machine Learning Business Environment
and Artificial Intelligence, Internet of Things and
Cloud. Services ranging from ideation to customized The IT BPM sector in India grew at the rate of 6.1%
solution building and implementation are carried out year-on-year. The IT and ITES industry grew from USD 170
across the entire digital value chain. billion in FY19 to USD 181 billion in FY20. India’s IT industry
contributed around 7.7% of the country’s GDP. India has
become the largest digital capabilities hub in the world
Alliance and Partnerships with about 75% of the global digital talent being present
• Microsoft: Gold Cloud Partner, through which here.
access to all Microsoft resources is available,
delivering the best possible solutions to its The COVID-19 pandemic has had an unprecedented impact
customers at different levels viz. health and safety risks for Mindtree
Minds, impact on clients which may lead to reduction in
• Salesforce partner ecosystem: A Platinum customer discretionary IT spends, delivery disruptions as
partner, specialising in Salesforce implementation well as increase in financial, compliance and operational
strategies to drive digital growth through client risks. Mindtree set up a War Room consisting of senior
engagement leaders from different functions to co-ordinate response to
COVID-19.

268
Digital Pumpkin, London Digital Pumpkin, Bengaluru

Significant Initiatives • Received several awards from The ISG Provider Lens™
Customer satisfaction is one of the key performance Report viz. Leader for providing Professional Services for
indicators in Mindtree. Customer feedback is regularly Salesforce Sales and Service Cloud in USA, Leader for
gathered through quarterly Project Feedback Survey (PFS) Private/Hybrid Cloud – Data Center Services & Solutions,
and annual Customer Experience Survey (CES) which helps Rising Star in Service Operation and Delivery (US), Global
in monitoring account health and interest. Leader for Next-gen ADM services
• Conferred South Asian Federation of Accountants
Awards (SAFA) best-presented accounts award for its strong
The entity has been recognized on multiple fronts for ethics, excellence in financial reporting and corporate
its capabilities in a wide range of offerings including governance
Digital, Cloud, Automation and other next generation
• Best Compliance Framework award by UBS Forums
developments. A few highlights include:
• Mindtree has been placed on ‘The Best of The Global Environment, Health and Safety
Outsourcing 100®’ list by the International Association The entity is determined to reduce its carbon footprint
of Outsourcing Professionals (IAOP) through initiatives to conserve energy and water. It
continuously strives to improve energy efficiency, increase
• Zinnov positions Mindtree in the Leadership Zone in
the use of renewable energy, enhance water sustainability
Overall Digital Services and across Six Categories in the
and reduce waste to landfills.
Zinnov Zones for Digital Services 2019 Report
• Mindtree named Overall Winner of the 2019 ISG Star of The entity has installed a turbo core chiller, resulting in
Excellence Awards™️ for Core Technology Services an average annualized reduction of power consumption.
Installation of LED fixtures across locations, UPS
• Mindtree won at the 2019 Paragon Awards™ in the
optimization, AC retrofit activity, shift rationalization
Excellence Category for Outstanding Service Delivery for
through Routematic Application, a common bus system
a Global Airline
and so on led to reduced carbon emissions. In order to
• Mindtree recognized as an Innovator in Avasant’s reduce freshwater consumption and to make its Pune
Intelligent Automation Services RadarView™ Report facility a zero-discharge facility, its sewage treatment
2019 - 2020 plant was upgraded to a newer technology. At Bengaluru,

269
 MANAGEMENT DISCUSSION AND ANALYSIS IT & TECHNOLOGY SERVICES ANNUAL REPORT 2019-20

Digital Pumpkin, New Jersey

various water conservation programmes, such as organization. The onboarding programme for new
installation of advanced aerators and reuse of RO reject Mindtree Minds and Mindtree Kalinga – The Global
water, resulted in saving of fresh water. Learning Center was designed to create Engineers of
Tomorrow. The homegrown, cloud-based learning
Gladius IoT, a full-fledged building IoT solution which platform – Yorbit – has over 2400 courses that cover 900+
integrates all aspects of building management systems skills. More than 87,000 courses have been completed on
with the IT systems, is operational at Mindtree Kalinga Yorbit in the current FY. The entity also has an Enterprise
and Bengaluru West campus. The system monitors energy Leadership Programme for leaders identified from a
consumption in the building, across the floors and prevents combination of Talent Review and Leadership nominations
avoidable energy losses. to ensure a diverse group across functions (sales, delivery,
enabling functions) and geographies. SpotOn – Mindtree’s
The entity is committed to providing a safe and healthy Rewards and Recognition tool – has been built to
workplace to employees. The aim is to make it a zero- strengthen the ways by which Mindtree Minds can
incident campus. Post COVID-19, the entity is closely recognize each other, and provides People Manager and
following WHO guidelines for health and safety. It has set Peer Awards that focus on instantaneous recognition.
up a 24-hour medical hotline for all employees to report
any COVID-19 concerns, including diagnoses. Top priority Risks and Concerns
has been given to safeguarding the health and safety of
As a global enterprise, Mindtree is exposed to a range of
employees, while also ensuring the continuity of customer
external as well as internal risks that have a significant
deliverables.
impact on its performance. In order to efficiently manage
these, a strong risk management architecture has been
Human Resources built. The entity identifies, assesses, manages and reports
Mindtree creates a work environment where Mindtree on the principal risks that could affect its ability to
Minds feel recognized for their efforts and contribution, implement strategies and deliver commitments. Its robust
thus creating an organization nurturing high performance, enterprise risk management programme propels a culture
innovation and execution excellence. Through its focus of informed and responsible risk handling to achieve the
on diversity and inclusion, women-centric leadership desired growth.
programmes cover more lady minds throughout the

270
Network Operations Center, Bengaluru LTTS prototype of the Battery Management System used in Electric Vehicles

The business faces the risk of revenue concentration with clients worldwide. Looking ahead in 2020-21, the business
top clients. Changes in immigration policies of countries anticipates a drop in demand, curtailment of discretionary
like the US, which is tightening its visa norms, where spends and cost-optimization pressure within clients’
Mindtree has significant business, may affect its ability to business. At the same time, the business also expects
position consultants at client locations. It could face margin demand from clients for digital and transformational
pressures due to competitive pricing, tactical movements services as they invest into data, cloud-enabled solutions,
by competitors to gain market share, or escalating customer-centric and end user experience businesses.
costs. With a majority of the revenue being foreign
currency denominated, the business carries translation Focus would be on signing multi-year annuity deals,
and transaction foreign exchange risks. A formal Board- rationalizing tail-accounts and going deeper into the limited
approved hedging strategy is reviewed periodically. set of strategic clients. The business will continue co-selling
with long-standing strategic partners.
Cyber Risk has emerged as a top risk across industries as
The business will continue to drive operational efficiencies
organizations are moving to newer areas of engagement
for margin-expansion and continue the profitable growth
such as social, mobile computing and cloud computing.
journey.
The entity has leveraged leading industry standards to
develop cyber security frameworks. In the knowledge
industry, attracting and retaining people with the right L&T TECHNOLOGY SERVICES
skills is imperative for long-term success. Employee-friendly
policies, learning plans and career growth options have
ensured that attrition remains at tolerable limits. Overview:
L&T Technology Services Limited (LTTS) is a
Outlook leading global pure-play Engineering Research &
The COVID-19 outbreak has been creating an Development (ER&D) services company. It offers
design and development solutions throughout the
unprecedented level of uncertainty with major economies
product development chain and provides services
virtually coming to a halt. The business is well equipped to and solutions in the areas of mechanical and
handle the global crisis based on the business continuity manufacturing engineering, embedded systems,
plan that has been successfully implemented to ensure engineering analytics and plant engineering. LTTS’
the health and safety of employees while fully supporting customer base includes 69 Fortune 500 companies

271
 MANAGEMENT DISCUSSION AND ANALYSIS IT & TECHNOLOGY SERVICES ANNUAL REPORT 2019-20

Headquartered at Knowledge City, Vadodara, L&T Technology Services helps clients gain the competitive edge by building smart products, enabling smart
manufacturing and offering smart services.

and 53 of the world’s top ER&D companies across Industrial Products: LTTS helps its OEM customers
industrial products, transportation, telecom & across building automation, home and office
hi-tech, medical devices and plant engineering. The products, energy, process control and machinery
business also provides digital engineering advisory backed by its deep domain expertise across
services to some of the world’s leading enterprises. software, electronics, connectivity, mechanical
The key differentiators for LTTS’ business are its engineering, industrial networking protocols, User
customer-centric industry innovations, domain Interface/User Experience (UI/UX), test frameworks
expertise, and multi-vertical presence spanning and enterprise control solutions.
major industry segments.
Telecom & Hi-tech: LTTS’ Telecom and Hi-tech
Transportation: LTTS offers the complete gamut vertical provides engineering services and
of engineering services and solutions for its global solutions that cater to five key sectors: Telecom,
customers in the transportation industry, including Consumer Electronics, Semiconductor, ISV, and
OEMs and Tier 1 suppliers in the Automotive, Trucks Media & Entertainment. For the Telecom sector,
& Off-Highway Vehicles and Aerospace sectors. the services provided include product variant
In the automotive sector, LTTS helps its customers design & development, maintenance, testing,
through best-in-class platforms and solutions in support, optimization, system integration and
areas such as Advanced Driver Assistance System professional services (pre-deployment, deployment
(ADAS), Autonomous Drive (AD) and Electrical & post-deployment). For the Semiconductors
Vehicles (EV). In the Aerospace sector, LTTS’ industry, LTTS provides turnkey design services, IC
offerings encompass a wide spectrum, including design services, hardware system design, platform
aero engine, aero structure & systems, avionics, air software, modem services, verification & validation,
traffic management and new-age disruptive digital multimedia, connectivity, storage, mechanical
transformation solutions, which cater to all phases engineering, and customer engineering support.
of the Aircraft Lifecycle – design, manufacturing, For the Consumer Electronics segment, it provides
and aftermarket services. LTTS has over a decade services in the areas of product conceptualization,
of domain expertise in the Trucks and Off-highway design & development, platform software, testing
segment, and offers services across industries like & certification, manufacturing support, product
Construction & Mining, Cranes & Material Handlers, maintenance, and product launch support. For the
Commercial Vehicles, Agricultural & Gardening Media & Entertainment industry, it provides services
Equipment, Powersports and Polymer. in product engineering, product conceptualization,

272
The IoT Innovation Hub in Bengaluru is where IoT solutions come to life - from connected workers to smart fuel dispensers

design & development, testing & certification, in in-vitro diagnostics, patient mobility services,
manufacturing support, product maintenance, and musculoskeletal services, surgical services,
value engineering. And in ISV, LTTS undertakes cardiovascular, home healthcare and general
application engineering, VLSI, cloud engineering, medical. LTTS also provides pre-compliance
product uplift, platform development & migration, testing and validation support, including product/
product support, testing and certification. compliance remediation, complaint management,
and regulatory documentation support.
Plant Engineering: As an engineering,
procurement, and construction management Business Environment
(EPCM) specialist, LTTS supports every phase of a
plant’s lifecycle, from concept to commissioning. According to NASSCOM, India’s ER&D services sector
The business enables its customers to address (comprising embedded systems, ER&D and product
all their engineering requirements to streamline engineering services) is the fastest growing sector within
their processes, resolve downtime issues, and the Indian technology space – estimated to grow at 11
adhere to statutory, human safety, machine safety, percent Y-o-Y to reach USD 32.7 billion in FY20. NASSCOM
regulatory compliance as well as local and global reports that, over the last 5-6 years, India’s ER&D services
standards. LTTS provides end-to-end solutions in sector has been a story of consistent double-digit growth,
the areas of plant design, process engineering, even as the overall IT industry has grown in single digits.
project management, construction management,
MOC (management of change), and handover The global ER&D spend remained strong at USD 1.5
of operations to its customers in the Chemical, trillion in the calendar year 2019 (growth of 5.3%
Consumer Packaged Goods (CPG), and Oil & Gas Y-o-Y), driven by increasingly software-led engineering
sectors. and digital technologies (like IoT and analytics). Digital
Engineering is going to be the focus area for enterprises
Medical Devices: LTTS helps medical device OEMs
address various industry challenges, including with growing requirements for a better user experience and
acceleration of the product development cycle, personalization, greater adoption of platforms and cloud,
reduction of time-to-market, value engineering, and consolidation to build full-stack capabilities.
and product launches in various geographies Zinnov reiterates this fact by observing that the global
in compliance with the regional regulatory
ER&D spend is resilient and has witnessed growth despite
requirements. It focuses on delivering solutions
the slowdown and geo-political factors. Zinnov also
forecasts that enterprises will continue to invest in Digital
273
 MANAGEMENT DISCUSSION AND ANALYSIS IT & TECHNOLOGY SERVICES ANNUAL REPORT 2019-20

LTTS’ Motor Dyne system conducts troubleshooting of power electronics LTTS’ Hardware & Test Equipment covers sectors like avionics,
communication, and security systems

Engineering initiatives to stay relevant. The global spend of key programmes in Advanced Driving Assistance Systems
Digital Engineering is expected to grow at a CAGR of 19 (ADAS) and Automated Driving (AD) domains
percent, from USD 403 billion in 2019 to reach USD 1153
billion by 2025. • A leading Swedish Automotive OEM has awarded LTTS
a multi-year programme to set up a SCRUM team to
LTTS’ service portfolios have well-defined offerings in the develop and manage the software components in Brakes,
ER&D sector. Through its services and solutions in the Steering, Suspension and Climate Control Domains
areas of Core Engineering, Digital Engineering and Digital
Advisory Practice combined with its Innovation Engine, the • A leading auto parts maker has awarded LTTS a multi-
entity is well- positioned to provide customers with business year programme for design and development of their
value propositions throughout their value chain needs Engine Control Unit (ECU) for enhanced fuel efficiency
across domains and industries. This is further corroborated for a new range of powertrains for their vehicles
through its positioning as an established technology
leader by industry experts such as Zinnov, ISG, ARC, IDC, • A global automotive manufacturer has chosen LTTS
NelsonHall, and Frost & Sullivan. for the development of their AUTOSAR platform and
integration of 5G telematics modules
Major Achievements
LTTS had a healthy inflow of projects across all its verticals. • LTTS was selected as strategic partner by a European
Several multi-million-dollar deals were won across the automotive manufacturer for its electric Powertrain
globe. (ePowertrain) practice

Order Wins Industrial Products

Transportation • For an industrial automation company, LTTS won an
• Airbus India selected LTTS to manage their Avionics order to develop IoT firmware for next-generation motor
Software Development, V&V (Validation & Verification) drives and controllers
and Data Analytics • LTTS is setting up a development and design centre
in India for a European manufacturer to provide
• A European components supplier for autonomous engineering projects across Embedded, Mechanical and
vehicles has selected LTTS as its engineering partner for Connectivity domains

274
Engineers develop and test microscopy software in LTTS’ Microscopy LTTS’ automation frameworks for 5G rollout will enable clients to get first mover
Lab advantage

• A global manufacturer of Drinking Water Management • LTTS has been awarded a programme by a global media
solutions has chosen LTTS to be their sole engineering firm to design and develop a next-generation chipset for
services partner to support various advanced digital broad-band and video security
programmes including NPD and sensorization
Medical Devices
• A major industrial automation company has awarded
• For a leading medical device manufacturer, LTTS is
LTTS a multi-year contract to develop an electrical power
executing a complete Design History File (DHF) and
module using end-to-end engineering protocols
European Union (EU) Medical Device Regulation &
Telecom and Hi-Tech Remediation project in the Newborn Care and Neurology
markets
• LTTS won a contract from a global technology
conglomerate for VLSI engineering services spanning its • LTTS has secured the next phase of development of a
product suite of AR and VR enabled solutions digital health programme for one of the top life sciences
companies in the US
• One of the world’s leading technology firms has awarded
LTTS a multi-year deal involving an engineering analytics • A global medical devices OEM awarded LTTS a contract
program for next-generation wireless laptops and to develop a new IoT platform to remotely monitor their
processors life sciences products installed globally

• The world’s leading datacentre solutions provider has • For a global healthcare company, LTTS was chosen to
awarded LTTS a programme to validate their family be their engineering partner to set up a CoE that will
of high-speed platforms and to set up a Centre of provide support investigating and analysing reporting of
complaints for regulatory filing in the US and Europe
Excellence (CoE)
• LTTS secured an order from a medical equipment
• LTTS will deploy its intelligent buildings framework
manufacturer for the design and development of a new
i-BEMS to help a multinational technology company
bedside patient-monitoring device
optimize energy conservation, implement analytics and
enhance UX Plant Engineering
• A European media and communications conglomerate • A leading German chemical company has awarded LTTS a
awarded LTTS a contract to develop next-generation programme to offer end-to-end services for a brownfield
Hybrid Boxes that support 4K resolution plant expansion

275
 MANAGEMENT DISCUSSION AND ANALYSIS IT & TECHNOLOGY SERVICES ANNUAL REPORT 2019-20

5G Test Solutions are vital in the deployment and success of evolving 5G networks LTTS’ Transport Instrument Cluster takes signals from various
sensors and conveys them to the driver

• LTTS won a large deal to implement over 600 Awards and Recognition
engineering applications for a leading US-based EPC • The Confederation of Indian Industry (CII) conferred
company LTTS with the CII Industrial Innovation Award, 2019
• One of the largest beverage companies in the world and recognized it as one of the most innovative Indian
has selected LTTS for an Engineering, Procurement and companies in the Services category in the ‘Large
Construction Management Programme (EPCM) to replace Enterprises’ segment
the age-old wastewater treatment system at one of its • LTTS was awarded recognition for ‘High Growth in
key manufacturing plants Women Employment’ and ‘Highest Exporter-IT (Mysuru
• LTTS was awarded a project to set up an Engineering Region)’ by the Software Technology Parks of India (STPI)
Value Centre (EVC) by a multinational brewery company • LTTS was rated as an ‘Expansive and Established Leader’
for execution of site-based projects across 10 verticals by Zinnov

Customer Recognition • LTTS was recognized as a ‘Leader’ in Product Engineering

and Manufacturing Services in the Automotive &
• LTTS launched the ‘Smartest Office Campus in the World’
Aerospace sectors by ISG
in Israel for a leading technology conglomerate, which
runs on its proprietary smart building platform i-BEMS • NelsonHall rated LTTS as an overall leader in Digital
Manufacturing Services
• Agappe Diagnostics, a diagnostics reagents and
equipment manufacturer, launched the first indigenously • LTTS was rated as ‘Leader’ in Worldwide Business and
developed blood cell counter in partnership with LTTS. Industrial IoT Engineering and Managed Services 2020 by
The blood cell counter provides accurate diagnostics for IDC
critical ailments such as dengue fever, rat fever, allergic
• Everest Group recognized L&T Technology Services as
conditions, leukaemia, typhoid, and anaemia
‘Leader’ in Automotive Engineering Services
• LTTS was conferred with the ‘Performance Excellence
Award’ by a leading global OEM for exceeding Significant Initiatives
performance standards including quality, cost and service LTTS believes in incremental efforts to enhance its
technology and service footprint across the industry

276
LTTS’ Creative Think Studio showcases design aspects of the product to create delightful customer experiences

sectors that it caters to globally, and has launched various is constantly undertaking various initiatives in the areas of
initiatives that enable it to realize its vision and demonstrate water and energy conservation as well as efforts to reduce
its commitment towards excellence. the carbon footprint.

• LTTS inaugurated an Aerospace and Defence Engineering From water-cooled chillers, occupancy sensors, LED
Design Centre in Rockford, Illinois, to cater to the new- lighting, and elevator operation optimization to pressmatic
age digital requirements of the aerospace and defence taps, wastewater treatment and usage of technology to
markets reduce travel and logistics, LTTS ensures optimal measures
to safeguard the environment. LTTS also follows and
• LTTS developed the world’s first cost-effective Robotic implements all the industry standards, protocols, and
Endo-training Kit in association with GITA and best practices to ensure the workplace health, safety, and
Department of Science and Technology (DST). This kit well-being of its workforce of over 16,000+ employees.
is a futuristic surgical training robot that gives a high-
definition observation of the patient’s anatomy and the
instruments. The research and development for the kit
Human Resources
has been a joint effort between India and the Republic of LTTS’ HR policies have strongly focussed on creating a
Korea culture of excellence and achievement. Abiding by the
People, Process, and Portals parameters, the entity is
• LTTS’ new framework unveiled a line-up of Digital striving towards making employees at all levels an integral
Manufacturing Solutions that can unlock value-based part of the decision-making system. LTTS launched multiple
digital transformation and help global manufacturers new employee support and welfare initiatives this year.
scale-up their digital initiatives
A few of these are:
Environment, Health and Safety
Global Engineering Academy (GEA): The GEA provides an
LTTS has aligned its sustainability goals with that of invaluable opportunity for LTTS employees to reskill and
its parent, L&T, with the objective of contributing to reboot their domain knowledge. There are 15 technology
the creation of a sustainable world by minimizing tracks that employees can select from to advance their
environmental impact, maximizing social outreach and digital skillsets and be eligible for new opportunities across
offering sustainable solutions. As part of this roadmap, LTTS technology domains.

277
 MANAGEMENT DISCUSSION AND ANALYSIS IT & TECHNOLOGY SERVICES ANNUAL REPORT 2019-20

At LTTS’ Imaging Lab, engineers develop various Innovative AI-based imaging The Tear Down Lab is where engineers disassemble products for
solutions detailed analysis

DIGICIANDOS: This programme helps employees gain infrastructure to meet those needs, thereby enabling
proficiency in the latest technologies. With over 400 customers to gain a market share and the technology edge.
attendees, 3 sessions have successfully trained participants
on AI and Mobility. An additional USP, byte-sized learning Current circumstances have presented a unique opportunity
modules that can be accessed through handheld devices for providing unwavering support to the customers at a
will be launched soon, enabling employees to learn difficult time. LTTS has identified areas where it can support
on-the-go. customers to see through the current challenges as well as
help them come out stronger. It has launched services for
Risks and Concerns the manufacturing industry to address the shift in demand
with its Manufacturing Line Expansion/Re-Design/Transfer
The economic slowdown in key geographies or cyclical
services, achieve business continuity with its AGILE Sourcing
downturns in key segments could materially affect
and Supply Chain services and plan healthcare for their
revenue growth and profitability. The inability to innovate
machines with the Remote Asset Care services.
and develop new services and solutions to keep up with
customer expectations and evolving technologies could
Furthermore, based on conversations with the customers
result in lower growth traction. Changing immigration
and industry experts, to address the RoI disparity in the
laws and policies can impact the entity’s ability to provide
implementation of the digital initiatives, the business has
services to customers. Exchange rate fluctuations could
carved out a Digital Advisory Practice (DAP). The practice
materially impact the results of operations.
goes beyond selling solutions and services and helps
companies to architect and execute their digital roadmap
Outlook with LTTS as a consulting partner.
According to NASSCOM, the Indian ER&D landscape has
been growing at a healthy rate of 11 percent y-o-y. As The industry outlook points to a steady demand for ER&D-
an ER&D leader in the industry, this bodes well for LTTS. led innovation in the form of cutting-edge technology
The entity’s strategic approach is to assess the changing solutions that will help transform customer experiences.
business needs of customers and build innovation LTTS aspires to be the transformation agent that customers
can bank upon to realize their vision and aspirations.

278