The company, which has become India’s fifth largest IT service provider by market capitalisation following the amalgamation, may seek to rationalise real estate in case of duplication within the same cities, but for larger cities like Bengaluru, it would focus on setting up more satellite offices over the long term, chief executive Debashis Chatterjee told ET.
The midcap IT service providers from the L&T Group stable said on Monday that they had received the necessary approvals to operate as a single, merged entity.
“Real estate is only one aspect of synergies, but there are also revenue synergies and cost synergies… you don’t need two facilities in the same city, side by side. Revenue synergies will be more focused in the initial days whereas real estate synergies will happen over a longer period,” said Chatterjee.
The company was not considering relocating employees but would seek to expand further in tier 2 locations, he said.
“We have centres in locations like Coimbatore and Kolkata. As much as possible, we don’t want people to change cities and will continue with the strategies the two companies had. But we will also look at opportunities where we can rationalise real estate, which will happen over the next several quarters,” he said.
The company is considering more satellite offices in Bengaluru to further reduce commute times.
LTIMindtree will also stick to existing hiring plans; however, hiring of freshers will likely be delayed due to integration processes, said Chatterjee.
The company has announced a new management structure that includes executives from both companies.
Venugopal Lambu (Mindtree) and Sudhir Chaturvedi (LTI) will head markets for the new company. Vinit Teredesai (Mindtree) has been appointed its chief financial officer and Nachiket Deshpande (LTI) as the chief operating officer.
“The hiring plans for the individual companies are now combined into one single company’s hiring plans. The hiring plans typically depend on the overall pipeline of demand that we have and the kind of growth that we are chasing. So, as of now, I don’t think there is any significant change to that plan that we had as individual companies,” he added.
It will have more clarity on these plans during the quarterly results.
“…specific numbers may change again depending on the scenario, and there could be a little delay in some cases, but at an overall level it stays constant. The philosophy is very clear that going to campus is an integral part of our overall growth strategy and we are not going to dishonour any offers,” Chatterjee added.