‘Besides China, No One Can Match the Scale That India Offers’: Romal Shetty, CEO of Deloitte South Asia
‘Besides China, No One Can Match the Scale That India Offers’: Romal Shetty, CEO of Deloitte South Asia
Romal Shetty, CEO of Deloitte South Asia, says innovations coming out of India are being replicated globally, and the country holds great strategic value for the Big 4 firm Romal Shetty, 48, the CEO of Deloitte South Asia, says it is an exciting time to be in India for a Big 4 consulting firm as a lot of innovation and transformation is happening in the country that is being replicated worldwide. The team in India constitutes 25% of Deloitte’s global workforce, and Shetty says the firm has big hiring plans. In an interaction with Siddharth Zarabi, Managing Editor of Business Today TV, Shetty talks about the next big sectors in India, AI, and more. Edited excerpts:
Q: You are one of the youngest CEOs in the professional services space. How has the going been so far?
A: Deloitte in India has about 120,000 people, of whom over 28,000 service the local market, while 90,000-plus serve the global markets. So, nearly 25% of the global workforce of Deloitte is in India. The country is a strategic area for Deloitte globally because we support our global clients on transformation programmes from here.
I think this is one of the most exciting times to be in India. At Deloitte, we have significant growth plans for our India business. We plan to hire 40,000-50,000 people over the next four to five years.
Traditionally, global best practices were usually adopted in India. But now a lot of the innovation and transformation happening out of India is being leveraged globally. It is an exciting time, and to have the privilege of leading this firm at a time like this is a God-sent opportunity.
Deloitte in India… has a fairly large economic impact on the regions we operate in. But more importantly, it’s also about the impact that we’re making on our clients across the world.
Q: Could you shed light on the key areas contributing to Deloitte’s business in India?
A: While we are doing well across all our businesses—assurance, tax risk advisory, financial advisory, and consulting—our focus is on a few emerging areas, mostly driven by technology. For starters, we believe that the next round of growth and transformation will come from artificial intelligence (AI) infused in different aspects of business and industry. Our focus also extends to digital and cloud technologies as companies today migrate to the cloud not just for cost efficiency, but also to enable a change in their business models. And finally, the one thing I am really proud of is the world-class India Stack that we built as a country.
At Deloitte we believe in the potential of the India Stack to transform business models for our clients, not only in the private sector, but also in the government. The other critical area of focus is cyber, which, with ubiquitous digitisation, becomes vulnerable to more risks. We work across a broad spectrum, especially with emerging sectors such as semiconductors and space, where we focus on growth by bringing investments into the country, while enhancing capabilities built within India.
Besides these tech-driven sectors, agriculture or agritech is another priority sector. We are working with farmers and artisans to improve their productivity and reach, thereby servicing both ends of the spectrum.
Q: Is India on the cusp of a transformation when it comes to its capacity as a manufacturing destination?
A: Absolutely. As I talk to clients, one of the prevailing topics I often hear is the ‘China+1’ strategy wherein companies believe they must move and diversify their supply chains. It is not that everything is moving to India—but we see a significant uptick, especially where scale is required. Besides China, no other country in the world can match the scale that India can offer.
The advent of smart manufacturing is another driver. The convergence of software, electronics, and manufacturing expertise has created a unique opportunity for India. The ability to manufacture efficiently, more digitally, in smart factories, and at scale is key to this opportunity. Many companies from Japan, the US and Europe are moving their manufacturing operations into India, which indicates a definite and ongoing shift.
The PLI (production-linked incentive) scheme has helped and is playing a critical role. We have a huge domestic consumption base, and we are reducing our dependence on export markets. It is my dream to see trade fostering economic ties within South Asia, the Middle East, and Africa. We are talking about creating a global market with close to 3-3.5 billion people, with the potential to grow over the next five to 10 years. Trade in this area will be quite phenomenal.
Q: Are Indian companies shaping up for the AI challenge?
A: Definitely, we see a lot more interest. Three topics are most prevalent in the agenda of every organisation’s board: AI, ESG, and cyber. While some of them are still in the early stages and taking a more measured approach, more progressive companies are well ahead on their AI journey.
Q: Do you see original work happening in the country in the AI space?
A: In terms of tech innovation, Silicon Valley has been the flagbearer (even though a lot of those initiatives were driven by Indians). But that is now changing. As I alluded to earlier, the India Stack was created locally, [as were] GSTN (the Goods and Services Tax Network) and digital payments… I don’t see why you will not see an Indian company come up with new, paradigm-changing technology or products. While currently a lot of work on AI is being done in the West, Indian companies are also trying to build large language models. I see India at the forefront of innovation leveraging these technologies for use cases and products.
Q: What is Deloitte doing in this space to better serve its clients?
A: Deloitte has built AI Centres of Excellence in three to four countries across the world, and India is where we build prototypes… solutions around scale, practical deployment and on solving the most critical issues using AI. We have moved away from the thought process that as Deloitte, we can solve every problem in the world. Instead, we are now making an impact by creating an ecosystem, from students to start-ups, to academia, and are working with partners like Google, Meta, SAP, Oracle, and AWS (Amazon Web Services). We are bringing it all together at these centres where people can collaborate and solve problems.
Q: Is AI a business opportunity for Indian companies to serve global markets?
A: There are two parts to it: using AI to help clients with better customer reach, product design, and automation, which equals a 30-35% benefit, and secondly increasing efficiency by at least 30%. To be honest, nobody can yet say with authority what all is possible [using AI]. But clients are looking at those aspects to say, how can I be more productive? Productivity is on top of the minds of all CEOs, including in India.
Q: Some 20 years ago, the sunrise sectors included technology, media, and telecom, among others. What will be the big upcoming sectors in India?
A: I believe that the space sector is poised to become one of the largest in terms of value, although the growth won’t happen overnight, and could take five to 10 years. [Then,] semiconductors are essential components in virtually every electronic device, and as global connectivity expands beyond the current 4%, the demand for these chips will soar, driving significant value in the industry. The manufacturing sector, particularly in electronics, also presents a substantial opportunity. Many countries rely heavily on imports for electronics, but if we can start manufacturing a lot more in India, the potential for growth is immense. The services sector will continue to play a critical role in generating high-quality employment opportunities for the country.
Q: Is it correct that you don’t have an HR position?
A: We have a position called Chief Happiness Officer, along with a Chief People and Experience Officer. I prefer engaging with talent issues with ‘heart’ and do not ascribe to the term ‘HR’ for people.
Happiness isn’t just about feeling good; it’s about physical health, mental well-being, and embracing diversity, in various aspects like gender and financial background. For example, we have a programme called ‘Heartland’ where, as Deloitte, we hire from Tier III, IV [locations] and make opportunities available to young, talented people who may not have had the same exposure as those from the metros. In Tripura, we have recently integrated students into our workforce. Similarly, we are trying to educate the children of our housekeeping and security staff, give them an internship and finally, a job at Deloitte.
I believe true innovation comes from the youth. When they’re happy and engaged, when they find joy and purpose in what they do, their true potential is unleashed. When their energy gets channelised, we will see innovations happen.
I run a programme called ‘Mics not Muted’, where I go across the country and have met about 7,000 people. The format enables an open conversation with the objective to break hierarchies because that sometimes stifles innovation. We also try to instil a sense of purpose in what we do. This sense of purpose drives real magic.
Happiness is not an esoteric term of just people being happy. It impacts productivity, attendance, and even new product development. We have a concept called ‘Backbenchers’. These are a bunch of very smart folks, who are driving a lot of the people initiatives and transformation across the firm. We’re also breaking silos and bringing business expertise into internal functions. For example, our Chief People and Experience Officer is also a digital customer experience expert. Because we believe, understanding and connecting with our people is key to motivating them.
Q: In a country as large and as diverse as India, where do your people come from?
A: In the past, our workforce mainly consisted of individuals from the major cities, with backgrounds such as chartered accountancy, and institutions like the IITs and IIMs being the primary focus. However, things have changed. We’re actively seeking talent from non-traditional backgrounds. What’s impressive is the incredible drive and passion we’re seeing in individuals from smaller cities and towns. They’re making a significant impact and difference within our organisation.
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