LTIMindtree’s share price fell 3.81% to ₹4,296.95 as of 10:24 AM, amid concerns over reports suggesting that Citigroup plans to reduce its reliance on external IT contractors. Citi, which is one of LTIMindtree’s top clients, is reportedly looking to cut external IT contractors from 50% to 20% while expanding its in-house workforce to 50,000 employees. If implemented, this shift could impact LTIMindtree’s revenue from the banking giant, triggering investor concerns.
The stock opened at ₹4,428.20, touched a high of ₹4,445.00, and fell to a low of ₹4,239.00. It had previously closed at ₹4,467.05, with a trading volume of 4,65,646 shares. The decline reflects market anxiety over the potential loss of business from Citi, which is reportedly restructuring its IT strategy to strengthen risk management, data governance, and regulatory compliance.
While Citi has not made an official announcement, reports suggest that cost optimization and risk mitigation are the key drivers behind the move. Citi’s recent challenges, including a $22.9 million fraud event involving external contractors and a $136 million fine for regulatory lapses, have increased scrutiny on its IT operations. The bank is also said to be considering reducing its external IT suppliers from 144 to 50, further indicating a major shift in outsourcing strategy.
Given LTIMindtree’s exposure to Citi, investors are closely watching for management’s response on the potential revenue impact and any strategic measures to mitigate risks. The broader market sentiment on IT stocks could also be influenced if other global financial institutions adopt similar cost-cutting measures.
Disclaimer: Stock market investments are subject to risks. Investors are advised to conduct their due diligence before making any decisions.
