LTIMindtree wins ₹3,000 crore CBDT deal for AI-led tax analytics platform

The seven-year contract will modernise India's national tax analytics platform using AI, digital architecture and data analytics to deliver real-time insights for policymakers, the company said

LTIMindtree said it bagged a contract worth Rs 3,000 crore from the Central Board of Direct Taxes (CBDT) to build an AI-powered programme for the modernisation of India’s national tax analytics platform.

 

The seven-year deal enables digital transformation, leveraging advanced digital architecture and data analytics, to deliver real-time insights for policymakers, the company said in a statement.

 

This is the second big government project for the company this financial year, after the Rs 792 crore deal from the Income Tax Department for the PAN 2.0 project. The project aims to modernise taxpayer registration through advanced e-governance. With expenditure earmarked at Rs 1,435 crore, it re-engineers the PAN and tax deduction and collection account number (TAN) services to offer seamless digital experiences and streamline and modernise the process of issuing and managing PAN and TAN.

 

 

The deal will be a boost for chief executive officer 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 challenges, the deal will lift the total contract value for LTIMindtree for this financial year.

 

LTIMindtree has been signing large deals this financial year. In October, it signed a $100 million deal with a US chemicals company, a $450 million project with an agribusiness company, and a $580 million project with a media and entertainment company.

 

Information technology services providers are banking on mid-sized and large cost take-out and efficiency improvement deals at a time when the discretionary spending environment has been weak. Customers are looking to tighten their spending and save costs rather than spend on new-age technologies.

 

Mid-tier companies stand to gain in this environment because they are often more aggressive in pursuing deals at margins that are difficult for larger companies to manage.