L&T Tech to employ 2,500 Indians in FY18, step up US hiring
By Rob 0
New Delhi: L&T Technology Services Ltd (LTTS), the IT services arm of engineering major Larsen & Toubro Ltd, will hire 2,500 Indians across verticals in the financial year ending March 2018, a top company executive said.
“Telecom and Hi-tech (comprising of semi conductors and consumer electronics) and transportation are the two verticals that will be driving growth. Additionally, we also see industrial products growing this financial year,” said Paneesh Rao, chief human resources officer at LTTS, in an exclusive interview with Mint.
Talking about the impact of automation of jobs at LTTS, given the IT sector is reeling from job losses, Rao said, “Comparing us to a purely IT company is not fair. We are a purely engineering services company. We are a designing company, and we support design till production. A design cannot be automated… we need human brains working on it. To that extent, we are excluded from the automation impact.”
LTTS got listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in September 2016. The company has a total headcount of over 11,000 employees across the globe. More than 1,700 employees are based out of the US and more than 8,750 employees are based across six delivery centres in India. The company also has six delivery centres in the US.
LTTS had total revenues of Rs324.83 crore for FY17. Revenues from US comprise 62.9% of overall revenue or approximately Rs204.32 crore for FY17. Indian revenues constitute 7.9% of annual revenues, the company said.
Not just in India, the company is also stepping up hiring in the US. The company acquired US-based design services provider Esencia Technologies Inc. in May 2017. LTTS will be paying $ 15 million upfront for the proposed acquisition and another $ 12 million in four years. “We will add over 100 engineers in the US post the completion of the acquisition,” Rao said.
In 2014, the acquisition of the engineering services division of Dell added over 200 US locals to the company. “We also plan to rope in American recruiters in our team to step up American hiring locally in the US,” Rao said, adding that local hiring numbers will depend on the overall business growth.
Rao emphasized on the company’s intent to hire fresh graduates over lateral hiring. “Last year, out of the 2,500 people we hired, close to 50% of our hiring were fresh graduates… The number of fresher hiring should only increase and it would be a dream to see that we hardly hire people laterally from the market, but grow people from within—by hiring more freshers than experienced people in the coming future.”
Rao added that the company also intends to increase salaries at the entry level this financial year, by up to 20%.
First Published: Wed, May 17 2017. 10 33 AM IST