RelQ targets quality growth

Rukmini Priyadarshini

BANGALORE, Oct. 23

RELQ, a Bangalore-based software validation and verification company, is looking to grow through acquisitions, increased business and wider reach.

The company is currently in talks with large IT services companies in the US and within the country in this connection.

It is also looking to acquire two software testing service companies in the US and France and has started a 100 per cent subsidiary in Singapore to cater to the Asia-Pacific market.

Mr Prakash Mutalik, President, told Business Line said that the company had already made a foray into V&V services for the aerospace industry.

``The company has been organised into four growth silos -- Internet software, banking and finance, real-time embedded systems and aerospace.''

According to Mr Prabhakar Valivati, Director, RelQ is increasing business reach and is pursuing opportunities in Singapore, Australia, Belgium and Ireland.

``In the last two months, we opened the Singapore subsidiary and also a test centre in Chennai.''

Over the next 6-8 months, RelQ is also planning to establish lower cost test centres in other countries, notably China and Vietnam.

This is part of RelQ's move to raise profit margins to 30 per cent and become the largest V&V company in head count, technology and cost leadership, according to Mr Mutalik.

As part of the head count growth, RelQ planned to have a workforce of 350 people by March and expected to grow to 500 next year, Mr Mutalik said.

The company recently entered into an alliance with tool vendor, Cyrano, for marketing the former's services alongwith its own tool.

``The potential revenues from this alliance could be $3-5 million annually,'' said Mr Mutalik, adding that relationships with tool vendors would enable RelQ to access the latter's customers.

``We are also planning to enter into strategic marketing relationships in Singapore, the US and Europe with tool vendors among others,'' Mr Valivati said. The company has also kicked off its channel partner programme.

As part of achieving topline growth, Mr Mutalik said that RelQ was planning to set up a dedicated offshore testing team for a large mobile phone company; it had already set up such centres for Intel, Citibank and Hitachi.

``We are also focusing on technical and productivity improvements and to this end, we have developed a tool set that automated test case generation,'' said Mr Mutalik.

RelQ is also building a knowledge engine; the prototype is ready and offers 25-75 per cent productivity improvements, according to Mr Mutalik.