Bengaluru: Engineering services firm L&T Technology Services (LTTS) has seen an increase in smaller deals from the same set of clients, its top executive said, even as global firms turn cautious about committing large deals due to an uncertain global environment. “There are a few deals we’re working on right now. These transformational deals will help us with growth next year. We recognise that there are a lot of things we need to prove to the market,” LTTS’ chief executive Keshab Panda told ET.
Earlier this month, LTTS said it had won a contract from Airbus India to build and test avionics software for their plane projects. The firm has certified labs for both civil and military electronics. LTTS posted second-quarter results that were in line with expectations but cut its revenue growth outlook for the second time this year on challenges in its semiconductor vertical.
The company is expected to grow in the longer term as offshoring in engineering services is still nascent, but the near term is challenging due to account-specific issues. “If I have a problem, I have it temporarily. Do I have all the bullets to fire to come back to that? Is it possible? Of course, it is possible,” Panda said. “Fact of the matter is that economic slowdown in the US and China is having some impact. Decision making is delayed. Today, it is wait and watch.”
Besides the US-China trade spat, India’s $137 billion software export industry faces challenges of growing protectionism from their main markets, such as the US. The engineering R&D segment is, however, growing faster as global firms look to Indian firms to cut the time required to develop a product and bring it faster to market.