LTI bets big on UAE market, eyes $200 million revenue

LTI bets big on UAE market, eyes $200 million revenue from Injazat tie-up

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L&T Infotech (LTI), which extended an alliance with Abu Dhabi-based Injazat recently, is eyeing a significant share of the UAE digital services market to the tune of USD 200 million in six years of the partnership.

In the first week of December, LTI extended its existing partnership with the UAE company under which it roll out a service delivery model.

Through the partnership, LTI will provide Injazat's customers with a hybrid of delivery approaches including onshore, best-shore and cloud, apart from further advancing Injazat's wider digital delivery ecosystem.

The deal builds on the ongoing over-two-year-old relationship between the two and consolidates Injazat's position as the premier multi-cloud service provider in the region.

"We will jointly go to the market to sell IT services in the region. We expect over 750 million AED (Emirati dirham) or USD 200 million incremental revenue to come from this six-year deal," Sudhir Chaturvedi, president (sales) and executive board member at LTI, told PTI in an interaction.

While Injahat will benefit from scaled up operations by leveraging LTI's digital and cloud expertise, LTI stands to benefit by the opportunities offered in enabling new businesses, including government organisations moving to cloud.

Chief Executive and Managing Director Sanjay Jalona said the USD 200 million revenue potential makes this partnership the largest in the region in recent years.

"This also paves the way for a geographical shift in our focus as also that of the entire domestic software industry as our revenue focus otherwise has been mostly North America and Europe," Jalona said.

LTI is also planning to scale up hiring for this new business opportunity as it aims to transform existing clients of Injazat to what it terms as a best-shore delivery model to tap the new-age digital services demand.

While refusing to offer a revenue or profit guidance as a policy, Jalona said, "We have been the industry growth leader for long, and we can safely say an engagement of this nature should certainly help us maintain that position."

Jalona also said LTI is committed to make further investments in capabilities that are required to ensure a smooth transition of businesses in the region to the new delivery model.

Chaturvedi said Injazat has been providing IT services in the UAE for the past 14 years, and partnership with LTI is part of its plans to offer next generation cloud and digital services.

LTI has been working with Injazat for the past couple of years, servicing some of its clients, he said. But, this deal takes our partnership to a higher level, he added.

Stating that there is potential for expansion of this deal further, Chaturvedi said, "We expect an upside from cloud projects, ERP and digital transformation projects and a joint go-to-market for the Abu Dhabi region."

He added that the focus will also be on vertical stack solutions leveraging our expertise.

Jalona said LTI will hire more people for providing these services, as one of the major reasons for this partnership is to enable Injazat to scale and offer more cloud and digital services by transforming the current delivery models to the future delivery models.

Founded in 1997 by Larsen & Tubro, LTI's more than 32,000 employees serve over 400 clients across 32 countries.

The LTI counter was trading at Rs 3,334, up over 0.81 per cent, on the BSE.