We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
78,797 News Articles

India's Wipro benefits from recovery in offshoring

Wipro's IT services business grew by 4.8 percent year-on-year in the fourth quarter

Wipro's fourth-quarter IT services revenue grew 4.8 percent year on year, reflecting an overall recovery in offshoring to India.

The Indian outsourcer said Friday revenue from IT services in the quarter was US$1.58 billion, as its customers "leverage technology to drive revenues and productivity."

The company has forecast that revenue from IT services could reach $1.6 billion in the current quarter.

IT services accounted for 78 percent of the total revenue of the company, which also has other businesses such as in consumer care and lighting.

Revenue growth in the IT services business was higher in rupees at 13 percent year on year, because of the depreciation of the Indian rupee against the dollar.

The IT Services business had 142,905 employees, after an increase of 2,336 staff in the quarter. It added 50 new customers in the quarter.

Wipro decided in November to move its non-IT businesses out of the company to give it a higher focus on IT services. The plan is expected to come into effect from its next fiscal year, starting April 1.

The company's Indian competitors, including Tata Consultancy Services, the largest outsourcer in the country, and Infosys, the second-largest, have also reported good results in the wake of an improved outlook for offshore outsourcers.

Revenue at TCS increased by 14 percent year on year to nearly $3 billion, while net profit of $652 million was up 14.8 percent from a year earlier.

The offshore market for outsourced services is expected to grow by 12 to 15 percent this year, as more customers are expected to increase IT spending, said Sudin Apte, principal analyst and CEO of Offshore Insights.

Wipro's overall revenue grew in rupees by 10 percent, while net profit grew 18 percent. The company does not break out net profit for its IT services business.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com


IDG UK Sites

Android One vs Android Silver vs Google Nexus: What is the difference?

IDG UK Sites

Apple updates MacBook Pro line-up: Price cuts & spec boosts for 6 MacBook Pro models

IDG UK Sites

Long live the internet fridge: the Internet of Things is coming

IDG UK Sites

How Prometheus' colourist Juan Ignacio Cabrera gave a tense, edgy feel to Chosen