https://www.youtube.com/watch?v=XUVXA8F0Q9c
Summary
This insightful conversation with Nitin Rakesh, CEO of Syntel Inc., explores the nuanced journey of growing a technology services company from a mid-sized firm to a near-billion-dollar global enterprise. Nitin splits his time between Mumbai and New York, yet maintains a clear strategic vision rooted in both U.S. and Indian markets, emphasizing a customer-centric approach and focused specialization in industry verticals such as banking, financial services, and healthcare. The discussion reveals that the key to sustainable growth lies not only in acquiring new clients but also in deeply understanding and growing existing strategic accounts by aligning with their business goals, rather than merely selling technology services. Nitin explains that success in the IT services industry requires a disciplined focus—avoiding the trap of being a “jack of all trades, master of none.” Instead, Syntel positions itself as a specialist player that invests deeply in select verticals where it can innovate and drive value. This strategy contrasts with large, diversified IT service providers who often struggle to maintain agility and differentiation. The conversation also highlights the importance of innovation, customer intimacy, and execution balance, especially in a public company context where quarterly financial discipline meets the need for long-term strategic bets. Nitin shares his entrepreneurial mindset, noting that innovation is always possible and essential, but must be intentional and paired with strong execution. He stresses that every employee in an organization should be responsible for sales and customer satisfaction, underscoring that leadership is about aligning vision, empowering teams, and making strategic bets. For smaller companies and entrepreneurs, the message is clear: focus, discipline, and a willingness to embrace innovation and risk are critical to carving out a niche and growing sustainably.
Highlights
- Nitin Rakesh leads Syntel with a clear focus on customer-centric innovation and specialization.
- Syntel targets a select number of verticals, notably banking, financial services, and healthcare, to build deep expertise.
- The company’s top 30 customers generate 90% of its revenue, reflecting a focused client acquisition and growth strategy.
- Differentiation is key: Syntel positions itself as a specialist rather than a generalist IT services provider.
- Innovation balanced with disciplined execution is essential for sustainable growth, especially as a public company.
- Building long-term “customers for life” relationships is central to Syntel’s mission and strategy.
- Nitin champions an entrepreneurial mindset within large organizations and advises smaller firms to focus on innovation and disciplined growth.
Key Insights
Global footprint with local intimacy: Despite being an India-centric offshore delivery company, Syntel maintains strong roots and leadership presence in the U.S., ensuring proximity to customers and a deep understanding of their business context. This hybrid model enhances customer trust and responsiveness, crucial for long-term strategic partnerships.
Focused vertical specialization drives competitive advantage: Nitin stresses that Syntel deliberately chooses a few industry verticals and specific sub-segments within them (e.g., cards and payments within banking) to build deep capabilities, intellectual property, and leadership. This focus enables the company to innovate and create tailored solutions, setting it apart from large, broad-based competitors who risk being too diffuse and slow.
Selective client acquisition and growth: With only about 100 active customers but a revenue near $1 billion, Syntel’s client base is highly concentrated. The top 30 clients generate 90% of revenue, highlighting a deliberate strategy of investing heavily in fewer, high-value relationships. This model fosters deeper collaboration, trust, and mutual growth, rather than chasing volume.
Sales and account management synergy: Syntel’s sales structure balances “hunter” roles (new client acquisition) with “farmer” roles (account management and growth), ensuring continuity and proactive expansion within accounts. This dual approach helps avoid the common pitfall of losing momentum after initial sales and fosters sustained revenue growth.
Innovation as a corporate core competence: Innovation at Syntel is not accidental but a strategic imperative. Nitin emphasizes that innovation requires deliberate investment, risk-taking, and stepping back from daily operations to gain perspective. This mindset is vital to staying relevant in a market disrupted by technology and changing customer needs.
Execution is as critical as innovation: While innovation is revered, execution is worshipped at Syntel. The CEO highlights the delicate balance between making visionary long-term bets and delivering consistent quarterly results as a public company. This dual focus ensures the company remains financially disciplined while positioning itself for future growth.
Entrepreneurial mindset within large organizations: Nitin’s career reflects an entrepreneurial spirit even within large corporate structures, underscoring that innovation and business creation are possible at any scale. For smaller firms and startups, he advises focusing on white spaces, customer needs, and specialization, while being prepared to invest time and effort into building capabilities and scaling operations.
Conclusion
Nitin Rakesh’s conversation provides a comprehensive framework for building and scaling a technology services company with sustainable growth. His emphasis on customer-centricity, focused specialization, disciplined client acquisition, innovation, and execution balance offers valuable lessons for CEOs, executives, and entrepreneurs alike. In an industry often marked by commoditization and margin pressures, Syntel’s strategic clarity and operational discipline stand out as a model for success.
Contributor:
Nick Vaidya, MS, MBA, PhD (c)
Email:
nick@8020strategy.com
LinkedIn:
linkedin.com/in/nickvaidya
YouTube:
youtube.com/channel/UC9OPMJeujF-ImmsFV1OfrHg
Nick Vaidya is a Wiley Best-Selling author and a regular columnist for Forbes India and The CEO Magazine. He has worn many hats — from University Faculty to CEO/CXO roles across startups, SMBs, and a unicorn — and has also led Strategy and Pricing teams for $8B product line at a Fortune 10 company. Today, Nick helps SME CEOs scale their businesses using his proprietary framework, which focuses on transforming the way meetings are conducted — driving cultural shifts and accelerating organizational growth.
