Wipro sees demand environment steady for IT services

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SME Times News Bureau | 24 Oct, 2014
Indian IT bellwether Wipro Ltd is upbeat on growth prospects in this fiscal, as demand environment remains steady for IT services worldwide.

"The demand environment continues to hold steady. In north America, we see discretionary spending return. In continental Europe, we see opportunities for growth given lower levels of outsourcing penetration," Wipro chief executive T.K. Kurien told reporters here Wednesday.

Discretionary spending is the amount enterprises budget in a year on new projects resulting in more outsourcing of their IT services to global software vendors like Wipro as against non-discretionary spending made on operating and maintaining their existing IT infrastructure services.

The global software major, however, expects temporary cutback in discretionary expenses from certain industry segments owing to structural changes in the third (Oct-Dec) and fourth quarter (Jan-March) of this fiscal (FY 2015).

"We also see a good deal of momentum in large deals led by infrastructure services and strong traction in the energy and utilities business, as evident from 6.9 percent sequential growth and 5.7 percent sequential growth in health care and life sciences in second quarter (July-Sep) of this fiscal (2014-15)," Kurien asserted.

Among service lines, the outsourcing firm had seen an impressive 8.1 percent sequential growth in global infrastructure services and improved opportunities in back office (BPO) and product engineering services.

"In terms of strategic bets, we see great potential in digital and open source, as they become critical for our customers in the development of their technology roadmaps," Kurien said after the company announced financial results for second quarter.

The city-based company's digital agenda includes re-architecting value chains and reimaging business offerings to meet the demanding consumer needs.

"We are working with our clients to provide a fluid end-user experience along with transforming their operations to increase self-serve, straight-through-processing rates and lowered cost and cycle times," Kurien added.