LTIMindtree announces digital transformation contract extension with Absa Bank

IT services firm LTIMindtree has announced a multi-million dollars contract extension with African financial services group Absa Bank. The partnership extension builds on the 17-year-old collaboration for digital transformation between the two firms.

LTIMindtree will act as a one-stop shop for Absa Bank's IT needs, providing services to bolster its digital infrastructure. This includes deploying cutting-edge solutions in digital transformation, Applied AI, Cloud acceleration, data-driven decision-making, and core banking modernisation.

According to Johnson Idesoh, Group Chief Information and Technology Officer at Absa Group over the protracted period, LTIMindtree has delivered tangible business value. Further, process optimisation and the application of advanced technology like automation and generative AI, have helped lower the total cost of ownership by 46% over the last 5 years. 

“Through this renewal, we will continue to deliver best-in-class core banking solutions, encompassing digital, branch, and payment technologies for Absa's customers. These solutions span multiple markets and focus on increased localisation,” said Sudhir Chaturvedi, President & Executive Board Member, LTIMindtree.

To be sure, LTIMindtree shared its quarterly financial results on Wednesday. The revenue from the banking, financial services and insurance (BFSI) sector has grown from 35.1% to 35.2% sequentially. However, on a yearly basis, it dropped by 37.5%.

Overall, LTIMindtree reported a 1.53% decline in net profit for the June quarter, compared to ₹1,152 crore in the same period last year. However, on a sequential basis, net profit rose by 3%. The firm's revenue from operations increased to ₹9,142 crore in Q1 FY25 from ₹8,702 crore in Q1 FY24, marking a 5% year-on-year growth.