The Hindu Business Line : ValueLabs plans to expand services, markets

Hyderabad, Dec. 25 Information technology services provider ValueLabs plans to increase its focus on remote infrastructure management services. It will also enter new markets to tackle the impact of global economic downturn.

“There are some essential services that will continue to do well even in a slowdown. As the infrastructure needs to be maintained we see it as ever-green and will increase our focus on this area,” Mr Arjun Rao, Chief Executive Officer of the Hyderabad-based ValueLabs, told Business Line.

The Rs 120-crore (last fiscal) company has not lost any major customers or projects, he claimed. The reason for focus on new areas is to prepare for the future. “We are quite comfortable. Even if new projects don’t come, we can manage to grow by 35 per cent this year,” he said.

ValueLabs has about five clients in remote infrastructure management out of its 100 customers. It hopes to drive significant business from this segment in next one-two years.

With over 60 per cent of its revenue coming from the US, ValueLabs is also in the process of expanding to new markets. There would be more focus on West Asia, the UK and Australia (operations to begin soon).

“In fact, we could predict a possible downturn three years ago and have been preparing for the worst. Though it is fairly a tight-rope act, we are trying to make sure that you are the last man standing,” Mr Rao said.

The company will go ahead with its previously announced plans of investing Rs 150 crore in a second facility in Hyderabad. “In addition, we are looking at acquisition opportunities. We want companies strong in service areas and those with good client base, but are not doing well,” he said.

ValueLabs, which has 1,500 professionals on its rolls, has no lay off plans. “We are definitely optimising the workforce. There may be little decrease in increments besides cost-cutting measures but not retrenchment,” Mr Rao said.

Its current bench size is at 10 per cent. “We have manpower buffer of 5 per cent for project-specific and company specific assignments and this will continue,” Mr Kiran Kumar, Senior Vice-President (Global Delivery), ValueLabs, said.