IT Companies Embrace Startup Tactics, Introduce Chief Growth Officers

In response to a cautious market and tighter client budgets, IT companies are adopting a strategy borrowed from startups and e-commerce: the creation of a new C-suite role known as the chief growth officer (CGO).

Major firms like HCLTech, Tech Mahindra, LTIMindtree, and Wipro have recently appointed CGOs. Similarly, mid-tier and smaller companies such as Persistent Systems, Xoriant, and Innover have also followed suit.

The CGO role combines elements of sales, marketing, and operations, aiming to enhance growth visibility amidst global economic challenges where clients increasingly prioritize immediate returns on investments.

Stephanie Trautman, appointed as Wipro’s chief growth officer in 2021, exemplified the role’s significance, with Wipro highlighting that the position would drive accelerated growth ambitions.

According to Nachiket Deshpande, COO of LTIMindtree, successful transformation now demands collaboration across various capabilities with ecosystem players. This underscores the CGO’s mandate to integrate diverse capabilities alongside partnership ecosystems, further amplified by trends in cloud computing and AI.

Ramkumar Ramamoorthy from Catalincs, a growth advisory firm, emphasized the expanding channels of growth beyond traditional sales and marketing, stressing the criticality of collaboration with hyperscalers, startups, and advisory firms.

LinkedIn recently identified the Chief Growth Officer role as the fastest-growing job in the US, underscoring its rising prominence within the C-suite. This role harmonizes functions like sales, marketing, product development, and solutions, aligning closely with strategy and corporate development to identify and capitalize on new business opportunities.

Anshuman Das, co-founder of Careernet and Longhouse Consulting, noted that while CGOs traditionally thrived in digital commerce startups with clear metrics like app downloads or user acquisitions, their adaptation into the IT industry focuses on revenue growth through offerings, partnerships, and geographical expansions.

Munira Loliwala, AVP at TeamLease, highlighted that CGOs, integral to achieving over 50% of CEOs’ key result areas related to growth, report directly to the CEO office. This shift reflects a strategic investment to innovate beyond traditional hierarchical structures and foster transparent, direct leadership models.

Overall, the timing reflects IT companies’ need to capitalize on emerging digital technologies such as AI, 5G, IoT, and Quantum Computing, shaping these opportunities rather than merely participating through conventional proposals. This integration role is pivotal in navigating dynamic market conditions and driving sustainable, long-term growth strategies.