Resource retention

Challenges in retaining top talent and talent with niche skills. Increased attrition can cause a hit on overall cost of operations as well as goodwill.

• Structured retention programs at organization and individual business unit level
• Competitive compensation grid for niche skills
• Manager excellence through M-Power, manager enablement sessions

Resource fulfilment

Fulfilling demand with shorter lead time results into higher cost of resources impacting profitability. Delayed fulfilment can result in loss of revenue.

• Demand forecast to be provided by business to plan the supply proactively
• Leverage Hire-Train-Deploy model for high volume and new age skills demand
• Reskilling / upskilling of employees

Risk in operating model

Back to office

Business dynamics are changing rapidly in context to flexible working model, remote working and change in workplace design. These drivers will require changes in our operating model balancing the needs of clients / employees.

Operating in the new model will come with its own set of risks like information security for remote operations and employee engagement related concerns.

Operating in the new model will come with its own set of risks like information security for remote operations and employee engagement related concerns.

Localization

Reduced availability of work visas or stringent eligibility criteria or costs could lead to project delays and increased costs.

Back to office

• Various programs have been initiated to make the organization ready to the changing business dynamics and hybrid work model

Employee communication and training

• Employee communication and change management is an ongoing process

System, process, and policy readiness

• Relevant policies are revised to suite the changing business and work model. Systems and processes are in place

Localization

• Reduction in dependency on work visas through increased hiring of local talent.
• Reskilling / upskilling of employees at on- shore locations to effectively contain additional sourcing demand

Cyber security

Lack of appropriate controls in cyber security may open vulnerabilities leading to

• Unauthorized access and cyber attacks
• Non-Compliance to contractual obligations
• Critical business data loss
• Embargo and reputational damage

• Embrace cybersecurity in the Enterprise Risk Management framework
• A cyber security strategy along with enterprise security controls across assets – Endpoints, Servers, Clouds, and Infrastructure
• Resilience planning such as data backup, capacity planning, retainers for services and proactive drills and assessments
• Patching of vulnerabilities and deployment of security patches across enterprise systems
• Mandatory trainings and adequate awareness measures across employee life cycle

Data privacy

Non-compliance to privacy laws can attract heavy financial penalties including loss of reputation.

• A comprehensive global data privacy framework aligned with ISO27701 has been deployed
• External consultancy for detailed assessments of various functions and improvisation of policies and procedures

Operational resiliency

Organization’s lapse in Business Continuity Management System (BCMS) capabilities can put resiliency of operations in peril and in turn can put customer deliverables at risk.

• BCMS ISO 22301 certification completed
• Regular connect with business continuity touch points to ensure compliance at ground level
• Monthly reporting to Account/BU/BEU leadership team

Foreign exchange

With majority of the business being export driven, the company is exposed to foreign exchange risk.

• The organization has an approved Financial Risk Management Policy, which provides a framework for managing the foreign exchange risk emanating out of the business. The policy enables implementing a layered hedging program at the Company level.

International mobility

Risk of legal liabilities and reputational loss due to non-compliances to

• Client documentation processes
• Country specific wage regulations
• Work location as against the petition

Implement tool-based control to introduce stringent controls on

• Client documents and its accountability
• Payment of wages per local regulations
• Work location change / intercity movement request as against the employee work location

Regulatory compliances

Non-compliances towards changing regulations across multiple jurisdictions could result in penalties, business loss, debarment, reputational damage, and criminal prosecution.

Following mitigation measures are implemented to ensure compliances on regulations:

• Implementation of compliance monitoring system to effectively monitor the compliances across various jurisdictions globally
• Constitution of Internal Compliance Committee for governance on compliances globally
• Engagement with external consultancy firms for timely updation of the Compliance Obligation Registers in line with changing laws

ESG

ESG and its associated risks / opportunities are becoming more and more relevant, with heightened demand from investors, customers and increasing pressure from regulatory bodies. Non-compliance to the same can impact the brand image of the organization.

Environment

• Target to become carbon and water neutral for India operations by 2030. Initiatives include ‘energy consumption optimization, increase green energy, reduce water consumption, green buildings, etc.

Social

• CSR projects on Women Empowerment and Persons with Disabilities (PwD) by skilling, employing, educating, providing market linkages support as well as enabling beneficiaries for micro entrepreneurship

Governance

• Transparent reporting feeding into Annual Reports
• Governance on the required regulations including Payroll and Social Security law, Employee Health and Safety, Financial Reporting, Bribery and Corruption

Execution

Impact of new normal style of working on critical deliveries and milestones.

• All delivery parameters are reviewed and monitored through digitized governance process
• High risks projects are monitored by Leadership through regular review processes

Integration

Integration of two erstwhile entities into LTIMindtree can bring its own risks, broadly from the following spaces:

Integration of two entities is a complex process and a framework has been built around the number of activities and processes that need to be harmonized.

• A detailed integration plan has been created to identify risks and ensure appropriate treatment across multiple tracks
• Multiple communication channels have been used to communicate merger benefits and synergies to all stakeholders
• All regulatory approvals have been obtained on time

The LTIMindtree Integration Management Office is tracking the risks and working with identified track owners to monitor treatment plans. Detailed reports are being provided to executive management and the Board.

Macroeconomic and geopolitical

Geopolitical disruptions such as the Russia- Ukraine conflict and resultant volatility in the global economy may adversely affect the outlook, cause inflation. This in turn can result in reduced revenue growth opportunities that can impact client spend as well increased cost of doing business.

• Geopolitical developments like trade wars, sanctions, export controls and border conflicts which may impact supply chains, lead to loss of new opportunities, and harm the IT sector’s global business environment are monitored closely
• Macro-economic parameters, such as GDP growth, interest rate and inflation, are tracked to identify uncertainties in economic conditions which may impact the countries in which LTIMindtree operates
• A diversified revenue mix across different geographies and domains helps to mitigate this risk

Revenue concentration with top clients

A big chunk of our revenue is from few of our major customers. IT spend budget/strategy of these customers as well as relations with them can have great bearing on our top-line as well as bottom-line

• Given the increased size of LTIMindtree post integration, business concentration with top customers has reduced. LTIMindtree is diversifying the revenue profile by targeting the next set of customers. Focused efforts are being made to ensure growth of the next set of top clients. Detailed monitoring of deliverables by senior management has led to very good client satisfaction scores. A high level of executive connect has ensured very healthy relationship levels with client leadership