IGate Re­jigs Sales Model, Sharp­ens Biz Fo­cus on Growth Push

The Economic Times - - Companies - OUR BUREAU

In­fosys vet­eran and iGate’s new chief ex­ec­u­tive Ashok Ve­muri is re­vamp­ing the sales struc­ture at the com­pany and ex­it­ing non-core businesses and ac­counts in a bid to boost growth at the US-listed in­for­ma­tion tech­nol­ogy ser­vices firm. The firm would have di­rec­tor-level client-en­gage­ment man­agers for all strate­gic ac­counts and the man­agers would be based in the same city as the client head­quar­ters, rather than at iGate lo­ca­tions clos­est to the client, Ve­muri said at an in­vestor event in New York last week. “The client-ac­count man­ager will be the sin­gle point of con­tact for a client for ev­ery­thing from de­liv­ery to sales and will ‘walk the cor­ri­dors’ to see how we can boost en­gage­ment,” Ve­muri said. He added the com­pany would fo­cus more on grow­ing its busi­ness with ex­ist­ing clients and would not in­vest in new clients un­less the deals had long-term po­ten­tial. “Our top 100 clients are go­ing to be the en­gine of growth. We are go­ing to be spend­ing more on time farm­ing and min­ing. Now we have more strin­gent ac­count and deal qual­i­fi­ca­tion process. We want to be more cau­tious in in­vest­ing in new deals.” For the quar­ter ended March 31, iGate earned $4 mil­lion per ac­tive client ac­count, up from $3.5 mil­lion a year ago. The com­pany has 295 clients over­all. iGate is also ex­it­ing non-core mar­kets and sub-scale clients into the fo­cus at­ten­tion on its largest mar­kets — the US and Europe. “We have ac­tively been look­ing to dis­en­gage with clients in non-spe­cific ge­ogra­phies. 80% of this is done. I have told my team that if you spend just 30 sec­onds a year on those clients, you’re spend­ing 30 sec­onds too much.” iGate’s moves, though likely to sup­press short-term rev­enue growth, found favour with some an­a­lysts. “iGate is in­creas­ing its fo­cus on key ge­ogra­phies of the US, Canada, Western Europe, Aus­tralia & Ja­pan, while ex­it­ing non-core ge­ogra­phies of Sin­ga­pore, Mid­dle East and In­dia. IGTE's over­all client ra­tio­nal­i­sa­tion ef­forts are 80% com­plete, and we be­lieve it could lead to ac­cel­er­a­tion in IGTE's rev­enue growth in the mid/long-term,” Ja­son Kupfer­berg, a New York­based an­a­lyst with bro­ker­age Jef­feries, said. Mar­gins, too, will take a slight hit in the short-term as iGate in­vests in prod­ucts and plat­forms.

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