Cyient bets on AI, localisation, to power next phase of growth

Hyderabad: Artificial intelligence (AI), evolving geopolitics, and new delivery models are fundamentally transforming the global engineering and technology services industry, said Sukamal Banerjee, Executive Director & CEO, Cyient, underscoring that the Hyderabad-based company is adapting through innovation, localisation, and outcome-driven partnerships.

The CEO addressing the media here on Wednesday, said Cyient is taking a balanced approach — improving areas that lagged earlier while building new capabilities aligned with emerging technologies and client demands. “We are trying to build partnerships that create new opportunities and help us deliver better outcomes. Our go-to-market mix is changing, both in terms of service offerings and markets,” he said.

AI, he emphasised, is reshaping the way engineers work by automating routine tasks and boosting efficiency. “Tasks that took two hours now take 15 minutes. The grunt work is being automated, allowing people to focus on creativity and problem-solving,” he said.

While AI is improving productivity and work-life balance, the CEO acknowledged that its impact varies across experience levels. Senior professionals benefit more from automation tools, whereas fresh graduates may need retraining to stay relevant.

Cyient has rolled out internal AI tools across departments such as HR and finance to eliminate repetitive processes. Externally, AI has been integrated into mechanical, plant, and data engineering projects. The company’s innovation initiative, IdeaTree, encourages employees to identify repetitive activities that can be automated using AI, strengthening the company’s culture of innovation.

“AI has become a co-pilot for engineers. The challenge is to adapt our workforce quickly so that no one is left behind,” he noted. Geopolitical developments — from trade conflicts to changing visa policies — are presenting both risks and opportunities, the CEO observed.

Recent discussions around H-1B visa fee hikes in the United States, for instance, created temporary concerns in the IT sector. However, Cyient remains largely insulated. “We have only six H-1B visas. About 90 per cent of our delivery in each geography is handled by local talent. So, immigration changes don’t impact us significantly,” he clarified.

Instead, these global shifts are opening new frontiers. Defense and mining sectors, in particular, are witnessing increased demand due to geopolitical realignments, though mining remains volatile amid China’s counter-strategies.

On talent dynamics, the CEO said Cyient adds around 1,000 employees every quarter, translating to roughly 4,000 gross hires annually, though net headcount growth remains modest due to attrition. The company’s attrition rate stands at about 15 per cent, aligning with industry averages. Around 85–90 per cent of new hires are lateral, but Cyient plans to increase the share of freshers to 25–30 per cent as new projects ramp up.