LTIMindtree gets ₹792 cr contract from IT dept to overhaul PAN services

LTIMindtree has bagged a ₹792 crore contract for the PAN 2.0 project of the income tax department, making it one of the largest government projects to be handed over to the mid-tier IT company aiming to break into the top league.

 

The project aims to modernise taxpayer registration through advanced e-governance. With expenditure earmarked at ₹1,435 crore, it re-engineers the PAN/TAN services to offer seamless digital experiences and streamline and modernise the process of issuing and managing PAN and TAN.

 

As part of the project, which goes live in 18 months, multiple platforms and portals would be consolidated. Allotment, updates and corrections, Aadhaar-PAN linking, re-issuance requests, and online PAN validation will be part of the platform.

 

“We have been awarded this prestigious PAN2.0 project which looks to enhance the PAN issuance process and security through technology-driven innovation,” LTIMindtree said in a statement.

 

PAN-related services are spread across three different platforms: the e-Filing Portal, UTIITSL Portal, and Protean e-Gov Portal. With the implementation of PAN 2.0, all these services will be integrated into a single, unified portal. The Cabinet Committee on Economic Affairs (CCEA) approved the PAN 2.0 project in November.

 

 

The company will be the managed service provider (MSP), developing, implementing, operating, and maintaining the project. The tenure of the project was not immediately known. E-Protean, which partners with the government for public digital infrastructure and is involved in tax information network (TAN), GST, central recordkeeping agency (CRA), and revenue management system (RMS), managed the project earlier.

 

The deal will be a boost for CEO and managing director Venu Lambu, who has been banking on large deals to push revenue in an uncertain macroeconomic environment. While government contracts come with its fair share of challenges, the deal will lift the total contract value for LTIMindtree for this financial year.

 

The deal also comes in the backdrop of the company signing a $450 million project with an agribusiness customer for seven years to implement an AI-powered operating model to deliver application management, infrastructure support, and cybersecurity services.

 

IT services providers are banking on mid and large sized cost-take-out and efficiency improvement deals at a time when the discretionary spending environment has been weak. Customers are looking at tightening their spending and saving the last dollar rather than spending on new-age technologies.

 

 

Mid-tier companies stand to gain in this environment because they are often more aggressive in chasing deals at margins which are difficult for large companies to manage.

 

Separately, LTIMindtree also said it appointed Gururaj Deshpande as its chief delivery officer who will report to Lambu. Deshpande was previously with EY as global operations and product delivery leader for client technology and Infosys.

 

In his new role, Deshpande will work to strengthen client delivery, accelerating account level AI integration and building differentiated domain capabilities.