Infotech Enterprises, the 20-year-old engineering services company, has just got a new name. Cyient, it will be from May after getting all passing through statutory procedures. BVR Mohan Reddy, Founder, Chairman and Managing Director, in an exclusive interview to Business Line after the board’s decision to change the name, explains what triggered the name change, challenges for the domestic industry and growth prospects.

Brand Infotech has got a good recall value among the IT industry and clients. What actually triggered the firm to get a new name?

I agree that the brand has evolved over the last two decades. We could make a mark in the market we are operating in. But the name looks too generic. Several firms in India and abroad have the word ‘infotech’ either as a prefix or suffix. You get undue credit or discredit when you have that word in your name. We believe that neither scenario is good. We have decided that it is time for us to change the name. It is not about changing the name. It is about getting a unique identity that reflects what we do. The new name Cyient rhymes with client and science both are very important to us.

How tough or easy to spread the word on the new brand?

It is quite task. It is a big challenge considering the reach we have across the globe. We have about 12,000 employees, 300 active customers and 4,500 customer touch points. We have approved a multi-million dollar budget to spread the word. We have received over 500 responses, most of them being positive. There are a few people who didn’t like the idea, though. We have explained to our analysts. We convened a meeting across the world at the same time slot.

You have just closed one acquisition. Sometime back you said you were looking at two acquisitions. Another acquisition on cards this year?

Mergers and acquisitions process is a continuous process. For the acquisition we made, we had considered 114 potential candidates but selected two LoIs to pick one. We have a cash reserve of ₹720 crore at the end of 2013-14 and the size of the target is actually not a constraint for acquiring it. Firms of different sizes come to the funnel from which we pick one or two for acquisition.

What’s the outlook for the IT industry and for the company for 2014-15? Do you think economic uncertainties in the West are gone?

The IT industry will grow better than it did last year. It expects to close the year at a growth rate of 12 per cent.

We at Infotech are confident of growing higher than the industry growth rate. We have a good order backlog and a good pipeline of orders. The global uncertainties seem to be over and the recovery of economies continues. But unlike in the past, it is not going to be a linear model. They are talking about new models such as outcome-based outsourcing and differed revenue model. As we re-brand the company, we are coming out with a message – designing tomorrow, together.

IT industry is quite upset about the contribution to revenues from domestic market in India. What are the reasons for this sluggish growth?

I feel that governance is the key challenge. We require more transparent mechanism to make projects successful. We need to bring in expertise. Lack of good governance leads to vested interests coming and spoil the party.

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