Vendor Analysis
published on Jun 21, 2021
Report Overview:
This NelsonHall vendor assessment analyzes LTI's offerings and capabilities in Low Code Application Services
Who is this Report for:
NelsonHall’s Low Code Application Services Vendor Assessment for LTI is a comprehensive assessment of LTI’s low code application services offerings and capabilities designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for low code application services
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the experience consulting services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of LTI’s low code application 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 including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s strengths, weaknesses and outlook.
Key Findings & Highlights:
LTI is the new brand of L&T Infotech. LTI is an IT services and solutions vendor headquartered in Mumbai, India. The company is a subsidiary of Larsen & Toubro Group, an India headquartered engineering, manufacturing, and financial services firm founded by two Danish engineers.
The company had revenues in FY21 (the year ending March 31, 2021) of $1,670m. LTI's headcount was ~36.0k at the end of FY21. LTI primarily services U.S. clients (North America accounted for ~68% of its FY21 revenues); its other geographic segments are Europe (16%), India (8%), and RoW (8%).
LTI strategy drives the client's digital transformation journeys, enabling new business models, focusing on business outcomes, and developing platforms (industry-specific, functional, IaaS & PaaS, and capability-based). This is all underpinned by AI, data & analytics, automation, cloud, and IoT capabilities.
In January 2019, LTI acquired Ruletronics, a Pega consulting and implementation company, to expand its low code application service capabilities. Ruletronics has offices in India, U.K., and the U.S. and provides BPM and CRM solutions through Pega, specifically across BFSI, healthcare, and retail industry verticals. Key offerings include KYC Bulk Remediation, Disability Claims management, and Insurance-specific applications.
While LTI includes Salesforce and Oracle Cloud offerings within its low code application offerings, we have primarily focused on other platforms. NelsonHall looks at these as part of dedicated research projects.
NelsonHall estimates that LTI had revenues of ~$1,633m in CY 2020. NelsonHall estimates that application service offering revenues account for ~58% of these revenues (~$950m).
NelsonHall estimates that ~14% of LTI's ADM revenues are associated with low code application services, or ~$130m.
LTI has focused on aligning its low code platform offerings to the key drivers of clients' low code platform adoption. Much of this is driven by the legacy application landscapes that clients possess, leading to transformational needs such as improved agility, reducing technical debt, simplifying legacy systems, and improving processes. These challenges drive clients with business objectives such as improved and consistent experiences, increasing the speed of change, reducing costs and effort, improved compliance, and implementing new business models.
These objectives are challenges that LTI has used to identify the low code application platforms it employs. It has identified ~21 parameters on which to evaluate platforms that ensure their ability to meet client needs. These parameters include technical components (pre-built apps, metadata catalogs, integrations, and microservices), ease of use (standard templates and multiuser development), viability (commercial viability, platform-based), and adaptability (cross-domain, configurability, interoperability).
LTI has ~36k employees globally, including ~2.4k possessing low code application skills, ~65% of which possess certifications.
LTI is placing significant corporate focus on what it is calling, enabling the breakaway enterprise. This strategy involves modernizing the application landscape through improved visibility to data, transforming the experience, and digitizing core applications and processes. A key tenet of this strategy is the expanded adoption of low code applications, which has driven a focused investment in building capabilities that support these technologies. This has driven a mixed strategy of both building a broad portfolio of low code applications and investing in LTI's proprietary .Studio offering. A consultative software selection approach to align business requirements and the specific capabilities of the chosen low code platform and this broad-based approach ensures that LTI can meet client demand, regardless of the specific requirements.
The downside of this approach is that LTI's experience is relatively nascent in several of these platforms. While these capabilities will mature, and it will build tailored assets over time, its current capabilities are primarily focused on a subset of commercially available platforms and its proprietary platform.
Another area of increasing importance where LTI recognizes a growth opportunity is the enablement of citizen developers within its clients. The broader skills required to help clients in this journey, including governance, training, organizational strategy, are still being built by LTI. The company recognizes the growing importance of this offering and is positioning itself to support its clients as they embark on this strategy going forward.