Updated February 13th, 2024 at 11:18 IST
LTIMindtree eyes internal candidate for CEO role as Chatterjee's term nears end
This development comes amid broader leadership changes in the Indian IT industry, driven by sluggish client demand and economic uncertainties.
- 2 min read
LTIMindtree CEO succession: India's sixth-largest information technology provider LTIMindtree is reportedly grooming two internal candidates to succeed current CEO Debashis Chatterjee, whose term expires in late 2025. The board prefers an insider to take the helm, and Chief Operating Officer Nachiket Deshpande and President Sudhir Chaturvedi are seen as the frontrunners, news agency Reuters reported quoting a source.
This development comes amid broader leadership changes in the Indian IT industry, driven by sluggish client demand and economic uncertainties. LTIMindtree itself emerged from the November 2022 merger of Larsen & Toubro Infotech and Mindtree, with Chatterjee, known as "DC," appointed CEO.
Internal frontrunners emerge
Nachiket Deshpande, often considered Chatterjee's protege since their Cognizant days, is seen as the likely successor. Sources mentioned in the report claim he's been "CEO-in-waiting" for some time, and his recent increase in responsibilities fuels speculation of an imminent handover. Sudhir Chaturvedi, the other contender, has also assumed additional duties, suggesting the board is actively evaluating both candidates.
Industry in flux
LTIMindtree's potential leadership change mirrors broader industry trends. Tata Consultancy Services appointed K Krithivasan as CEO after Rajesh Gopinathan's sudden departure, Infosys veteran Mohit Joshi took over Tech Mahindra, and Wipro CEO Thierry Delaporte's term ends in July 2025.
Challenges and opportunities
Chatterjee's successor will inherit the task of fully realising the synergies from the L&T Infotech-Mindtree merger and navigating a challenging economic climate. Analysts highlight the need for improved execution to unlock the merger's true potential.
Industry shake-up expected
Experts anticipate intensified competition as new leaders implement their growth strategies. With the IT industry stuck in a low-growth rut, these changes could spur portfolio shuffles, renewed focus on AI and cloud, and stricter efficiency and margin measures. "It will be good for the industry to have a shake-up of sorts," says Hansa Iyengar, a principal analyst at Omdia Research.
The choice of LTIMindtree's next CEO will be closely watched, not only for its impact on the company but also for its potential to signal broader trends in the Indian IT landscape. With new leadership potentially bringing fresh perspectives and strategies, the industry could be poised for a much-needed shake-up.
(With Reuters inputs.)
Published February 13th, 2024 at 11:18 IST