Vendor Analysis
published on Jun 22, 2018
Report Overview:
This NelsonHall assessment analyzes LTI's offerings and capabilities in Cloud Advisory, Assessment and Migration Services.
Who is this Report for:
NelsonHall’s Cloud Advisory, Assessment and Migration Services Vendor Assessment for LTI is a comprehensive assessment of LTI’s cloud advisory, assessment and migration services offerings and capabilities designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for cloud consulting services
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in cloud consulting services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of LIT’s cloud advisory, assessment and migration service offerings, capabilities and market and financial strength, including:
- Analysis of the company’s offerings and key service components
- Revenue estimates
- Identification of the company’s strategy, emphasis and new developments
- Analysis of the profile of the company’s customer base and examples of current contracts
- Analysis of the company’s strengths and weaknesses.
Key Findings & Highlights:
Larsen & Toubro Infotech (LTI) is an IT services and solutions vendor headquartered in Mumbai, India. It had headcount as of December 31, 2017, of 23,394.
LTI is a subsidiary of Larsen & Toubro, an India-headquartered engineering, manufacturing, financial services, and technology firm founded by two Danish engineers. LTI primarily services U.S. clients (North America accounted for 69% of its FY17 revenues); its other geographic segments are Europe (17%) and RoW (14%).
As part of its focus on digital transformation services, LTI has a dedicated cloud service offering since ~2014. As it is seeing an increase in clients looking at their entire application landscape as candidates to migrate to the cloud rather than isolated business areas, LTI sees a rise in a need for advisory and migration services. This rise has led to a focused effort to expand its automated capabilities to support these services.
For CY 2017, NelsonHall estimates that LTI had total revenues of ~$1.1bn and total cloud revenues of ~ $86m. NelsonHall estimates that LTI's cloud advisory, assessment and migration services revenues accounted for ~ 29% of total cloud revenues or $ $25m.
LTI's cloud services are based on four distinct service pillars. The pillars have been designed to reflect LTI's perspective that where clients previously targeted IaaS, SaaS or PaaS, they are now looking holistically at creating an enterprise cloud. Three are primarily focused on the consulting and implementation services to stand-up and migrate to a cloud environment while the fourth manages and maintains cloud ecosystems.
LTI has ~200 cloud advisory and migration employees globally. ~85 of these are focused on advisory, while the remainder focus on migration. Each team have ~80% of their resources located in India.
LTI's key India delivery location is in Mumbai. Its onshore resources are primarily located at client sites, but it has a North American delivery center in Toronto, Canada.
Its European cloud delivery is concentrated in client delivery centers in Paris, France and Stockholm, Sweden.
LTI is targeting significant growth in its cloud business as clients expand the role of the cloud as a foundation for broader digital transformation. To achieve this growth, it has invested in developing automated tools to support each phase of the cloud lifecycle. The cognitive intelligence platform, its planned integrated offering to support end to end services, provides it a potentially differentiating asset in a market populated by disparate solutions. Adding a cognitive layer to accelerate the assessment and migration of common workloads and having a set of demonstrable completed engagements would only add to the value clients can realize.
Increased automation also helps address LTI's challenge of a relatively limited onshore cloud consulting footprint. Where clients are looking to an enterprise cloud migration and then digital transformation, an onshore consulting team to meet face to face and help guide the journey is of increasing importance. While automated tools offset some of the tasks completed by this team, building client relationships remain at the core of playing that end to end cloud partner role.