Persistent Systems has charted an impressive growth trajectory, establishing itself as a formidable player in the IT sector. This success is not merely a result of technological prowess but is deeply rooted in its strategic approach to talent acquisition and management. This podcast delves into the insights from their leadership on the company’s dynamic hiring engine, skill transformation strategies, and the vital role of data in driving decisions. Discover how Persistent is shaping the future of talent acquisition while maintaining its reputation as a trusted digital engineering partner on a global scale.
Our new episode of the podcast welcomes Varun Gautam, the Head of Talent Management and Talent Acquisition at Persistent Systems. He combines a wealth of experience with a confident and versatile management approach. With a proven track record in Business HR, he excels in enabling organizations to generate revenue while overseeing HR and staffing functions. He partners closely with senior leadership to align headcount growth strategies with business objectives, ensuring Persistent Systems remains a leader in talent acquisition.
What’s driving Persistent’s growth amid the tough phase for IT services post-COVID, and how is the company managing to pull this off?
Persistent Systems has been around for 30-35 years, and while it wasn’t created overnight, it thrives today because of the people, or “superheroes,” working together. Under the leadership of Chairman Anand Deshpande, and the management team, the company has seen tremendous success. Recently, Persistent concluded a quarter with $328 million in revenue, showing 16% YOY growth, and a TTM revenue of $1231 million. With an EBIT of 14% and a market cap nearing $8 billion, the company is firmly positioned as a trusted digital engineering partner, leveraging its deep technical and domain expertise for a competitive edge.
Can you provide more details about the hiring engine, scale of operation, number of countries, and business metrics?
Yes, it’s a dynamic landscape. Talent acquisition and management are crucial since we’re in the services business, driven by people. We recruit around 8,000 people annually, including both contingent and full-time resources. We operate in over 30 countries, and as we grow, this gets refreshed every quarter. While there are challenges, there’s no shortage of opportunities. Our TA engine covers 30 countries, 8,000 people, and a wide range of IT skill sets.
What’s the right TA engine to set up when hiring across 30 countries? How do you structure your team to avoid revenue leakage from demand to closure?
The IT services business is demand-driven, making the talent supply chain dynamic. There’s no one-size-fits-all strategy; recruitment must be customized based on regional challenges. For example, our approach in India differs from North America or Latin America and Europe. We create location-specific recruiting strategies with local teams to connect better with candidates and employees while delivering value to customers.
Some customers have region-specific needs, while others are global, requiring a single partner across regions. The rapidly changing tech landscape adds complexity, but it’s exciting to stay ahead. The past five years, especially with COVID, have been interesting and challenging for the global talent industry.
What work have you done in skill transformation or skill intelligence to keep up with the changing market demands?
As a Talent Supply Chain Head, my main concerns revolve around the rapidly changing skill dynamics in our industry, which shift every five years. The last five years have been particularly challenging, and the road ahead looks uncertain, especially regarding how these changes impact our business models. With a workforce of 23,000 at Persistent, we must prioritize skill development to stay competitive and meet customer needs.
To address this, we have an in-house learning initiative called Persistent Digital Academy (PDA). Every new employee goes through a tailored PDA journey based on their background, experience, and skills, with the system recommending personalized learning paths. We also leverage automation to monitor skill demand and employee progress, ensuring our skill inventory remains up-to-date and competitive.
An example of our engagement strategy is the company-wide event called Semicolon, a 24-hour hackathon that fosters enthusiasm among employees and customers alike. The participation levels are impressive, demonstrating the effectiveness of our learning system and skill strategy. Notably, our chairman, Dr. Deshpande, actively engages with employees, often walking around at night to discuss ongoing projects and offer support. It’s a testament to our culture of learning and collaboration.
What role does data play in aligning stakeholders and building partnerships with the business?
Data and analytics are essential for running any function today, including recruiting. In my role, 90% of decisions are data-driven, relying on credible and hygienic data to guide our actions. Transparency and ethics are core values in our organization, and we utilize data-driven transparency to enhance our operations.
Our team consists of a couple of hundred people, and we’ve defined 19 parameters to evaluate our function. Out of these, 11 are core KPIs, while the remaining 8 are indicative of overall health. We provide real-time feedback through monthly scorecards, ensuring transparency for all team members. Each person receives a stack ranking based on their performance, motivating those in the top percentile to maintain their position and those in the bottom to improve.
All team members, regardless of their role, are measured against the same 11 KPIs, reinforcing accountability. While there may be some regional customization, our approach integrates both quantitative and qualitative aspects to effectively manage our talent supply chain.
What drives Persistent’s public recognition in the TA community, and is this linked to the foundation of the metrics you use?
The transparency and detailed data we publish greatly contribute to our hiring process. While it makes conversations easier—sometimes even unnecessary, as the data can speak for itself—it also presents challenges. Data is influenced by human perspectives; the same data can look positive from one angle but reveal different insights from another. Our analytical team often challenges assumptions, fostering a culture of continuous improvement and learning.
Regarding recognition, our “Life at Persistent” initiative drives unique programs. For example, to celebrate reaching a billion-dollar milestone, we offered employees a choice of gifts: a bike, headset, or travel bag. Approximately 10,000 employees chose bikes, which led to the creation of a Guinness World Record logo made from these bikes. This initiative not only boosted pride among employees but also helped us grow our LinkedIn following to over a million in six months, as employees shared their experiences online. Overall, these efforts have positively impacted our talent brand and team morale, and I prioritize engaging personally with each team member to strengthen our connection.
What’s the thought process behind organizing conferences not just for TA, but also for your technology and assessment partners?
First, I’d like to clarify that this isn’t just about my signature; it’s a collective effort from a large team that brings these ideas to life. It requires significant planning and collaboration. While we’re a couple of hundred strong, working in silos won’t fuel growth; partnerships are essential.
Every partner we work with deserves respect, and if someone chooses to collaborate with Persistent, there’s a reason behind it. We strive to cultivate deep, mutual relationships, steering clear of terms like “vendor” as we focus on engagement and respect. Conflicts may arise, but we aim to resolve them amicably without losing sight of our goals.
Our consistent high growth—17 quarters of sequential growth—is not solely the result of our workforce; it relies heavily on partnerships. We recently hosted a global partner event, bringing together various types of partners, from technology and assessment to staffing and digital. This event showcased our commitment to collaboration, highlighted by our chairman volunteering to be the keynote speaker.
Additionally, we integrated our Persistent Foundation into the event, which supports underprivileged children. Their performances deeply moved attendees, reminding us of our social responsibility. We aim for transparency in our operations, sharing insights about partner selection and program structure. Overall, our objective is to foster strong partnerships that benefit everyone involved.
What advice do you have for TA managers aiming to advance their careers, and what key skills should they focus on?
I may not have all the wisdom to guide others, but a few simple principles have worked for me. I started my career with an MBA in sales, always aspiring for business development, but talent acquisition found me, leading to 22 years in HR and talent supply chain. The key takeaway is consistency—it applies across all functions. Be honest with yourself and maintain a humble approach; the law of gravity holds true—what goes up must come down. There’s no secret formula, just hard work, focus, humility, and a bit of luck. Stay consistent, and good things will follow.
How do you stay driven and hungry at the peak of your professional success?
The motivation largely comes from the people around you and the environment you’re in. At Persistent, the passion driving our business plays a significant role. Our success in winning awards like those from Brandon Hall and Forbes is due to our highly intelligent talent marketing team. It’s not just one individual driving this; it requires a collective effort. While I may have a vision, my talent marketing team must align with that, and the larger talent supply chain needs to deliver stellar results for us to have a compelling story to tell. Achieving recognition, especially from Forbes, is a significant milestone and a cherished moment for all of us.
