Deloitte plans to have around 30% of its workforce operating from India within the next four years, with an estimated total employee count ranging from 150,000 to 160,000, as the country figures prominently in the firm’s global growth plans, according to Romal Shetty, CEO, Deloitte South Asia. The recently appointed CEO has outlined an ambitious strategy for the company, aiming to surpass Rs 20,000 crores in revenue and increase the number of partners to over 1000 within the next four years. In an exclusive chat with Vinod Mahanta, Shetty talks about his aggressive growth plans, the IL&FS overhang, reviewing the firm’s audit portfolio, UP’s trillion-dollar economic transformation project, and why there is no logic in splitting audit and advisory services into separate companies. Edited excerpts:
Considering the shift from audit and tax to advisory services that occurred under your predecessor, how do you see the firm growing in the next 3–5 years? So, we are at about Rs 8,000 or so crore as of now. In four years, the idea is to cross Rs 20,000 crore in revenue and have over 1,000 partners (580 current). The overall workforce in India for Deloitte is projected to be around 150,000–160,000 employees in the same period.
Deloitte India, which serves the Indian market, will employ about 50,000 people. Combined, we already have 100,000 people in India. At any point in time, we have 1000-1500 people working at USI (Deloitte US-India) and vice versa, depending on the skills required. In my view, close to 30% of Deloitte’s global workforce will be based in India in the next four years. Our goal is to become the undisputed leader in professional services, distinguished by our quality, brand, well-being, and scale.
Deloitte and PwC are neck and neck in the Big Four pecking order after EY in India. How soon do you think Deloitte India will be within shooting distance of EY India?
Over the last four or five years, we have consistently grown by over 30 percent overall and last year we grew over 40 per cent overall as a firm. The consulting business that I led, grew about 12 times in 5 years, and profitability grew 70 times. Deloitte India was the fastest growing member of the network in the world, and we continue to do that even now. Growth from Rs 8,000 to Rs 20,000 crore is a significant clip. Punit (Renjen, ex-Global CEO) once said that Deloitte India revenues could be a rounding error in Deloitte’s global balance sheet. What I am saying is that how can we be a top five firm within the Deloitte Network globally.
Deloitte has used acquisitions—a large part of the KPMG consulting practice and a big BMR tax team—to grow quite effectively in India. Are you looking at any new acquisitions? If so, in what areas?
Deloitte is a shy firm, and we don’t talk much about our acquisitions, but the fact is that we have closed 19 acquisitions in the past three to four years. Digital transformation is a key focus area for us, particularly in the realm of artificial intelligence (AI), including generative AI. ESG is a pathway to Net Zero, and we feel that while many have expressed commitment to ESG, the specific strategies to attain these goals have yet to be fully determined. We are also looking for assets that can help us operate or run companies—a capability that we want to add to our "Imagine, Deliver, Run" concept. We are also looking at cutting edge cyber companies.
ED recently searched Deloitte’s premises regarding the IL&FS case, and the case is sub-judice. How are you dealing with the IL&FS overhang that the continuing IL&FS investigation has created?
The IL&FS case is sub-judice, so I won’t speak on it. These matters will take time. But one thing is clear: we will cooperate with the regulatory authorities and and ensure that whatever information they require will be promptly provided. We have nothing to hide. We believe we have done the work as per accounting standards and principles. Every year, we are constantly improving our client acceptance and engagement procedures.
Read more at: https://economictimes.indiatimes.com/industry/services/consultancy-/-audit/nearly-30-of-deloittes-global-workforce-will-be-based-out-of-india-in-the-next-four-years-romal-shetty-ceo-deloitte-south-asia/articleshow/101318296.cms
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