NIIT in quest of new image for software business

Updated: Jan 25 2002, 05:30am hrs
In a move to distinguish its software services from its training business, NIIT is planning to create a separate identity for its software services division with a new brand name.

The company has asked its advertising agency, Rediffusion to work on creating a new identity for its software services business. Rediffusion has been retained by the company for its software business while education-related work is done by another agency, Contract Advertising.

The brief was to create a new brand in a way that a separate brand could be evolved without losing the existing brand value of NIIT. It could be either a sub-brand or an extension of existing brand, sources said, adding that a separate identity will help the company position itself as a focused player in the software services market while competing with other software companies.

Moreover, the two businesses have totally different markets and target customer segments. While the education division operates in the domestic market and caters to retail consumers, software services are offered to corporate clients in the global marketplace, a senior company official said requesting anonymity.

When contacted by The Financial Express, NIIT spokesman Sanjiv Kataria neither confirmed nor denied the companys plans to launch a new brand name for software division. We keep working on our brand. It is a continous process, he said.

Mr Kataria, though, strongly denied any move on to split the two businesses into two separate entities.

However, the industry experts indicate that the move might be just a beginning of a larger and long term strategy to separate the two businesses. Though the two businesses have some synergy in terms of technology and skills, they are different in terms of market dynamics and business strategy. It may be a good idea if company plans to forge equity alliances with partners in respective businesses in future, said an industry analyst.