IGate Rejigs Sales Model, Sharpens Biz Focus on Growth Push
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.