If you rename a person on Skype, does the other person get to know the new name?

I changed the name of one of my contacts and was wondering if it updates on their end or if they know what I've set on mine.

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Renaming a contact's display name will only change the display on your end. They will not know what you've set for them unless you tell them. They too can also set your display name that appears on their client to whatever they wish and you won't know.

Can I change my Skype Name?

*Your friends can change the way your name is displayed in their Skype, so the display name you see for yourself isn’t necessarily the one they see for you. You can also change a contact’s name: just right-click on it in your contact list and choose Rename. This only changes the name in your Skype, not theirs.

This allows you to better organise things on your end without having to upset your contacts or cause havoc with numerous people changing the display names of everyone in their contacts list.

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Renames to your contacts are stored in your skype account, on the cloud. This can be seen by renaming a contact on one computer and accessing your skype account on another computer
The new name will appear for you. However, this new name will not appear to the contact that you've renamed as it is part of your online Skype settings.

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