Phil Fersht — CEO and Chief Analyst, HFS Research[00:05]
Welcome to our conversation today, Mr. Krishna Sudheendra. I’m Phil Fersht, obviously, the CEO and Chief Analyst at HFS Research, but I’m joined by one of our highest-growth service provider leaders, Krishna Sudheendra, who’s joining me today. And he leads a company called UST, or UST Global. And I think you’re just UST now, right? Just UST. I’d love to hear a bit more about maybe you yourself, Krishna, who not all our viewers will be that familiar with. So maybe a bit more about yourself, your upbringing, and how you came to run a big services shop like UST.
Krishna Sudheendra — CEO, UST[00:52]
Fantastic. Thank you, Phil, once again, for the opportunity to discuss with you. And, interestingly, right from the beginning, when I started my career — that’s when the technology industry and IT industry, this was way back in ’95, was just about opening up — I took a job with GE, which was setting up one of their largest R&D facilities. At that time I used to be in India, and I was one of the first few employees to join the R&D centers, and it was called the John F. Welch Technology Center. From there, very quickly, I moved to IT and technology services. And the last 20 years, I’ve been with UST. I started off with UST as a CFO, and about 4 years back took charge of being the CEO of the company, and, more importantly, being the proud and passionate member of the family, with an ability to transform lives using technology.
Phil Fersht — CEO and Chief Analyst, HFS Research[02:07]
So tell me a bit more about the company that you’ve built, and what is it that you feel sets you apart from other IT service providers?
Krishna Sudheendra — CEO, UST[02:20]
Yeah, thanks, Phil. This is something which is very profound for us. 23 years back, when the company was formed, our founder chairman, Mr. G.A. Menon, saw the power of technology — what technology can do to the world in the next century. This was 23 years back, and he set us a mission, which is larger than ourselves, a mission to transform lives of our customers, of the people in the communities in which we operate, and all by using technology. He said technology can make a huge transformational effect. From that day onwards, whether it’s our customers, whether it’s our people, whether it’s the communities in which we operate, this is something which we hold very close to our heart. How can we always be a partner of significance for all these stakeholders, and how can we make a transformation in their lives? That’s how we started, and today I’m proud to tell you we are roughly $1.7 billion in revenue in about 30 countries, about 35,000 associates working all through the globe, and really making a difference to our customers. One of the key tenets of UST, really, when it comes to transformation, is how can we be a partner of significance and how can we be a true long-term partner to our customers as well as employees. And we pride ourselves with one of the longest tenures — in terms of average tenure with our customers — in the industry.
Phil Fersht — CEO and Chief Analyst, HFS Research[04:02]
Well, it’s interesting to hear that background and where things are shifting. And as we come off of the pandemic last year, we’re having some interesting times in services in general. What do you think our industry is going to look like — if we look out 5 years, do you think the current services industry, the India-centricity of delivery, how do you think that’s going to look in 5 years’ time compared to what it is now?
Krishna Sudheendra — CEO, UST[04:32]
Yeah, I mean, Phil, as you rightly said, the pandemic, though it was interesting, I think it was really a silver lining for technology and technology companies in many ways. It really brought digital and technology to the forefront of everything we do. We have seen how much the customer has changed using technology, and it was all forced, or probably really pushed, by the pandemic. And I think 5 years from now, I would see every company, every industry being significantly changed due to technology. Technology used to be the backbone; now technology is the front and center of most companies. I mean, today, banks are technology companies, retail is becoming technology. Every company is driven and emphasized with technology. Now, if you look at ourselves, technology is evolving at such a pace — 5G, at the same time silicon, IoT embedded in everything that we do, AI disrupting, and we have seen what ChatGPT has done in the last two months. Quantum is around the corner, cloud and genomics. All of these technologies are coming together, and I think 5 years from now, every company is going to look very, very different. Of course, the next 2 to 3 years is going to be a lot of optimization, a lot of leveraging of what has been invested during the pandemic in terms of technology. But I think every company is going to look at how can I reach my consumers better using technology, how can I help my consumers better using technology, how can I create more distribution channels, how can I change what people consume better? I think all of those are going to change every single industry. And as a company, Phil, though we have been a technology company, our business is all about solving customer problems and enabling businesses. So we look forward to applying these technologies and helping our customers achieve that.
Phil Fersht — CEO and Chief Analyst, HFS Research[06:51]
Excellent. And do you think we’ll still be paying for services the same way? As we look at the talent supply, we look at the needs of clients, we look at a constricting economy in many countries, right? Do you think that the industry is going to change how we charge for services, how we partner with clients, how we nurture talent? Do you think that’s going to start to take on a very different lens in the coming years?
Krishna Sudheendra — CEO, UST[07:24]
Absolutely, Phil, I firmly believe that the commercial models are going to change. We’re already seeing multiple changes. What used to be T&M — I think the whole industry thrived on T&M for a long time — now it’s going to be more gain sharing. How can you save me money by applying automation, and I’m willing to share a part of that? So it’s going to be gain-sharing models. It’s going to be faster go-to-market. I mean, don’t build me something for 2 years; show me something that I can take to market in the next 2 to 3 months. And please share the risk in doing so. I think those models are going to emerge — already emerging — and I think those models are going to stay, where the customer wants faster go-to-market, something that’s more reliable, something that they can quickly engage their customers with. And obviously the commercial models are also going to change accordingly. So no longer is it the inflation-led T&M, where you keep asking for increases. I think inflation has already taught us that that party is not going to last for long.
Phil Fersht — CEO and Chief Analyst, HFS Research[08:39]
Interesting. And how do we become more exciting for our younger generation? I know you talk a lot about EX transformation and what a must it is for businesses, but we need to become more attractive and exciting an industry for our own people, right? What do you think we need to do to make services sexy again, to make us delight clients with our own EX capability?
Krishna Sudheendra — CEO, UST[09:11]
Yeah, I think, Phil, it’s a very important question. We all battled the great resignation; we all went through those challenges. People are not just about money or career. I think there’s a lot more to the people and associates that work with us. Very importantly, if I put 4 things together: one is, people want a purpose that’s larger than themselves. They want to be passionate and to make a change to this world. And I would add, they need the empathy to understand others, and to have somebody who could understand themselves. And last, they want to make sure that they are always innovating and trying to do something different. So these are the four things that I feel are going to be essential. Of course, above all is how do you engage people in making sure that these things are there. From our perspective, how can we create a purpose that’s larger — you know, the mission of transforming lives — passionate about solving customer problems, business problems; empathy to listen and understand; and creating and building ecosystems where they can constantly innovate. If we provide these — of course, pay and flexibility and understanding and empathy all go along with it — but once you provide this kind of an environment, I think you will be able to attract. Of course, technology will come and go and will change; we’ll continue to keep evolving and changing. But I think these four tenets, if we look at it, then we will be able to hire and retain the best talent.
Phil Fersht — CEO and Chief Analyst, HFS Research[11:04]
OK. So what are your ambitions for the firm UST in the future? What do you hope we’re talking about in 23 years’ time that would make you feel like you’ve achieved some of the ambitions that you set out?
Krishna Sudheendra — CEO, UST[11:19]
I would probably first paint a longer-term picture, Phil. The mission of transforming lives I talked about — we had a goal of touching and transforming 3 billion lives. We have probably touched about 1.4 billion lives. Now, of course, there’s a long way to transform, right? We even count our customers, and customers’ customers, and everyone. So I think our goal, in the long journey, is how do we continue to make a difference and continue that mission of transforming lives. Now, if I have to look at a 2- to 3-year goal, I think the key is how do we continue to serve our customers. And obviously, from tactical targets, we want to double our size, both organic and inorganic put together, and really make a difference to our people and the communities we operate in. I think that’s how I look at it.
Phil Fersht — CEO and Chief Analyst, HFS Research[12:17]
OK, good, excellent. Well, it’s been good learning about your company and the ethos and what sets you apart and some of your views. So I look forward to sharing this with our network, Krishna, and hopefully we’ll get to meet up soon and not just chat over these video calls all the time, right?
Krishna Sudheendra — CEO, UST[12:39]
Thank you, Phil. Look forward to meeting you in person. And I think, you know, it was a great conversation — loved the opportunity.
Phil Fersht — CEO and Chief Analyst, HFS Research[12:39]
OK, thank you, Krishna.
Krishna Sudheendra — CEO, UST[12:50]
Thank you. Cheers. Take care.
