News / Infinite Computer rejigs business, to focus on product engineering, messaging
Nov 19, 2013

BANGALORE: Mid-sized software services firm Infinite Computer Solutions has reorganised its business to focus more on product engineering and messaging. The company, which counts IBM and Verizon as its clients, will now have three major business lines — services, product engineering and messaging.

"Our goal is to balance traditional IT services — application development, maintenance and infrastructure services — with the new age services," said Upinder Zutshi, managing director and CEO of Infinite. When it went public in 2010, about 85% of revenue came from ADM (application development and maintenance) and infrastructure services. This is now down to about 62% of revenue, he said. 

In product engineering, the company follows a model that is becoming popular, where it takes over an existing product or platform and maintains it on behalf of the vendor. The deal includes people takeover and re-badging as well as making enhancements. 

The company currently has 12 products and platforms under management. Because revenue is linked to sales and is not effort-based, it helps to delink revenue growth from people addition. 

The board is also evaluating the potential of unlocking value in its mobility solutions subsidiary through a US listing. But the proposal is still in early stages, Zutshi said. The subsidiary has three products — Rich Communication Suite, Personal Messaging Cloud and Enterprise messaging. 

The GSMA, an association of mobile operators, is supporting a rich communication platform that can work across operators and deliver video, files and chat in addition to text and voice messages to offset loss from SMS and MMS revenue. Infinite's RCS suite is accredited by the GSMA and is currently being piloted with one of the large operators in the United States, Zutshi said. 

The subsidiary has revenues of around $40 million and RCS is expected to start contributing to revenues by 2014. The company is watching the response to Mavenair, which makes similar products and listed on the NYSE the same day as Twitter, as one of the pointers to evaluate the appetite for its mobility related businesses. 

The company, which reported second-quarter revenues of Rs 476 crore, could see a short-term impact from a vendor consolidation exercise among its top five clients, analysts with Crisil Research recently said. However, in the long term, the company expects to benefit by signing an enterprise level agreement with the client, they added.

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