Comprehensive SWOT Analysis of LTI – An Indian Multinational Information Technology Services

Services by LTI

LTI offers the following services to its clients globally –

• Information technology
• Consulting
• Outsourcing

Competitors of LTI

Here are the top 5 competitors of LTI

• Accenture
• Tata Consultancy Service (TCS)
• Wipro
• IBM
• Deloitte

Now that we know important facts about LTI, we can look into SWOT analysis of LTI. 

SWOT Analysis of LTI 

A SWOT analysis examines the strengths, weaknesses, opportunities, and threats that a firm faces. SWOT Analysis is a tried-and-true tool that enables a company like LTI to compare its business and performance to that of its competitors.

It will give us a strategic analysis of its internal and external environment, which is crucial for understanding the SWOT Analysis of LTI.

To better understand the SWOT analysis of LTI, refer to the infographics below:

Below is an explicit guide to the SWOT analysis of LTI.

Strengths of LTI

LTI has numerous strengths that help it to thrive in the marketplace. Some of the strengths of LTI are

• Strong Team of Employees: LTI consists of a team of more than 40,000 employees who work rigorously to enable effectiveness in their client’s business and inject technology operation into it.
• Key Milestones: LTI has achieved enormous milestones without letting any stone unturned. Past milestones are many but recently in 2021 the company has achieved a global ranking of the fastest-growing brand in finance IT service.
• Client Base: LTI a global digital consulting company has a mesmerizing client base of 475 members. The company has operations in 33 countries including India, Canada, Spain, the United States and many other countries. Such a strong record in itself works as the biggest strengths of the company.
• Diversified Revenue Stream: As LTI deals with many different IT-related sectors like consulting, IMS, MS, etc leads to diversity in the revenue stream.
• Company Financial Stability: Since the last 5.5 years, the growth rate of LTI boosted and gone up to 336.7% of returns on Nifty 500.
• High level of Client Satisfaction: LTI has a customer-focused approach. It has loyalty programs for its clients. Clients are loyal because of its customer-focused approach. It has a good environment for employees and a shift in culture that is guided by the management.
• Renowned Reputation: LTI is one of the world’s biggest firms and has had high revenue due to its focus on consultancy, operational services, management, digital, technology and high standards and morals which leads to its high performances.

Weaknesses of LTI

Weaknesses are aspects of a business or brand that can be worked upon. Here are some of the weaknesses of LTI:

• Dependence on the Mature Market: LTI majorly deals in mature markets where there is less amount of growth and lack of innovation.
• High Client Concentration: As there is high customer concentration the benefits will be high but at the same, the risk factor also increases because if that customer leaves out then it will lead to a huge loss.
• Inefficient Use of Shareholders Fund: LTI is not that efficient in terms of using or utilizing shareholder funds that leads to a lack of customer transparency and trust
• Lack of Growth: The company has been in this industry for a while and as compared to other IT sector companies like TCS, Wipro, etc, the growth is very low.
• Innovation: LTI has been unable to compete in terms of innovation with the sector’s best businesses despite spending more on research and development than the industry average.
• Lack of Coordination: Due to several sectors working simultaneously there can be a lack of communication and coordination in teams. LTI has been trying to serve several mid-size companies as well but faces stiff competition which can further lead to slower growth.
• Dependence on Consultancy: Consultancy is a major source of revenue in LTI, despite having different sector works which can be bad for companies long run. 
• Investment in R&D: LTI has not been able to compete with the leading players in the industry in terms of innovation and R&D. It has come across as a mature firm looking forward to bringing out products based on tested features in the market.

Opportunities for LTI

Opportunities are potential areas of focus for a company to improve results, increase sales, and, ultimately, profit. Some of the opportunities for LTI are

• Emerging Markets: Due to the engaging global market with globalization. This brings out the greatest opportunities of managing the data like transactions, details, history, etc.
• Cloud Computing Technology: Using cloud computing technology made it easy to manage and handle the data. This helps in accessing data in a quick and systematic manner.
• Increase in Digitalization: Increase in Digitalization leads to switching traditional businesses to digital business thus leading to more clients and opportunities of expanding business.
• Expanding Customer Base: LTI can gain from the acquisition of smaller consulting and financial companies by expanding its customer base.
• Attract and Retain Talent: Everybody looks forward to working at firms where employees have a good working environment, LTI can use it to select the best of human resource available. 
• Constant Requirement of Services: With regular changes in the various policies and the growing scale of businesses, the demand for audit, tax and advisory services will never be zero.

Threats to LTI

Threats are environmental factors that can be harmful to a company’s growth. The following are some of LTI’s threats: 

• Exposure to Foreign Markets: Globalization brings opportunities, but at the same time, it also brings a threat of being replaced by a foreign business. 
• Bigger MNCs Entering India: Entering big size multinational companies into the domestic market will lead to grabbing the attention of the clients. Hence, it will be hard for a domestic company to sustain its standing in front of big companies. 
• Lack of Visibility: LTI is not that visible as compared to its competitors in the market, so this leads to decrease in clients reliability.
• Government Policies: Government Policies are the major factors that affect the business of a company like LTI.
• Strong Competitors: There are lots of competitors in the market. When there is already competition from established players in the industry, then ultimately it will continue to diminish LTIs market share.
• Knowledge Centers: This can have a counter effect on consulting firms’ business when firms constitute their in-house knowledge centers.

This ends our comprehensive SWOT analysis of LTI. Let us conclude our learning below.