Wipro's Revenue Growth Continues to Slide | News | ChannelWorld.in

PARTNER HOTLINES

Wipro's Revenue Growth Continues to Slide

Added on Nov 05, 2012 by John Ribeiro IDG News Service (Bangalore Bureau)

On November 3rd, Wipro announced its IT services business grew only 4.6 percent in U.S. dollar terms in the quarter ending Sept. 30, a much slower rate of growth reflecting a weak global economy.

The Indian outsourcer said revenue from IT services in the quarter was US$1.54 billion. The Bangalore-based outsourcer had posted revenue growth of 16 percent for the same quarter a year prior. It forecasted revenue for the next quarter to be closer to $1.6 billion. 

Wipro's Indian competitors have also been affected by slow growth in the market for outsourcing services. Infosys, the second largest outsourcer, blamed continuing global economic uncertainties for a slide in year-on-year revenue growth in U.S. dollar terms in the quarter, which declined to 2.9 percent from 16.7 percent a year earlier.

India's largest outsourcer, Tata Consultancy Services, did better, with growth only falling to 13 percent in the quarter compared to 26 percent in the same period last year.

Wipro said  that its board decided to demerge its non-IT businesses such as in consumer care, lighting, hydraulics and medical diagnostics into a new company to provide more focus for its IT business. Infosys and TCS are pure-play IT services companies.

The demerger will help improve profit margins, said Suresh Senapaty, Wipro's chief financial officer, in a conference call on November 2.

But analysts think that moving out the small non-IT businesses from the company will alone not help. The company needs to focus on using technology to solve business problems, rather than just emphasize on technology, cost-cutting, and increased productivity, said Sudin Apte, principal analyst and CEO of research firm Offshore Insights.

IT services accounted for 79 percent of Wipro's total revenue in the quarter. The company added 2,017 employees in its IT services business in the quarter, taking the total number of staff to 140,569.

IT services revenue grew 23 percent in rupee terms from the same quarter a year earlier, largely because of the depreciation of the Indian rupee against the dollar. The company's revenue growth in rupee terms was 17 percent.

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

EDITOR'S PICK

How to Work with Millennials

Millennials – they're disobedient, they ask too many questions and I can't relate to them. Does this sound like you? If so, it's high time you made working with this fearless, tech-savvy age group a top priority, because if they're not working with you, they're with your competitors, and you're going to lose valuable competitive advantage.

Profile: Microsoft's Phil Goldie

Microsoft's partner boss discusses Cloud, wine and M&A.

5 Freshly-funded Cloud Computing Companies Worth Watching

Investors made a crowd around the cloud this week, investing $175 million in companies focused on everything from storage to the WAN to the supply chain.

Tech Chat

Collaborating To Outcome Based World: Priyadarshi Mohapatra, Avaya

Priyadarshi Mohapatra, Managing Director, India and SAARC, Avaya, on how IT is transitioning from a keep-the-lights-on role to one that enables customers to deliver results.

The Dawn of the Digital Age: Akhilesh Tuteja, KPMG

The development of digital infrastructure will be a key growth driver for technology and solution providers. 

Paradigm Shift from End-Users to User-First : Parag Arora,Citrix

Parag Arora, Area Vice President and India Head, India Sub-continent, Citrix, says new technologies will force organizations to take a user-first approach in 2015.

Mobile and Cloud Are Gamechangers of the Future: Karan Bajwa, Microsoft

Karan Bajwa, Managing Director, Microsoft India, says, in  2015, organizations will adopt a mobile-first and cloud-first strategy to get ahead of competition.

A Network for the Internet of Everything : Dinesh Malkani,Cisco

Dinesh Malkani, President, India and SAARC, Cisco, talks about IoT and the significant technology transitions in the networking world.

Moving to the Third Platform: Jaideep Mehta, IDC

Cloud and mobility are the two technologies that will fuel the rapid adoption of the third platform in India.

Envisaging a Holistic Security Strategy For 2015: Sanjay Rohatgi,Symantec

Sanjay Rohatgi, President–Sales, Symantec India, says the company has a set of holistic solutions in place to secure organizations from security threats. 

Beating the Bad Guys: Sivarama Krishnan, PwC

Organizations will need to turn inwards to establish robust information security strategies.

Building Capabilities for a Digital Tomorrow: Alok Ohrie,Dell

Alok Ohrie, President and Managing Director, Dell India, on the company’s investments to build end-to-end solutions and delivery capabilities for a digital world.

SLIDESHOWS

CEO Comebacks: For Better or for Worse?

We bring to you six global CEOs who made the idea work, or not.

Datacenters in the Weirdest Places

A peek into some of the most unusual datacenter locations in the world. Here are 13 datacenters that are built in unusual locations like mines, ships, trucks and even a nuclear collidor. Taking about common wisdom, eh?

12 LinkedIn Mistakes IT Pros Make

LinkedIn is the go-to place for IT pros to market themselves, connect with co-workers, find former colleagues, and meet-up with like-minded folks. Take a few minutes now to make sure your profile showcases your accomplishments, and skills. Here are some common mistakes to avoid.

ChannelWorld Survey: State of the Market 2014

Partners poll their sentiments, expectations, pain points, and challenges for the coming year.

6 Leaders Who Headed for an Abrupt Exit

The abrupt exit of top leaders of Indian and global tech companies this year, with many of them citing ambiguous reasons, surprised the technology world.

FAST TRACK

Kamtron Systems

Transitioning towards a service-oriented company will boost our growth, believes Kavita Singhal, director, Kamtron Systems.

TIM Infratech

Delivering ‘best of breed’ technologies to enterprises is key to success, says Monish Chhabria, MD, TIM Infratech

Mudra Electronics

A vendor-agnostic strategy helped us sustain business, says Bharat Shetty, CMD, Mudra Electronics.

Systematix Technologies

Our USP is a customer-friendly approach backed by services, says Akhilesh Khandelwal, Director, Systematix Technologies.

CorporateServe Solutions

Our ability to turnaround complex ERP projects in record time is what gets us customer referral, says Vinay Vohra, Founder & CEO, CorporateServe Solutions.

KernelSphere Technologies

We are emerging as an end-to-end systems integrator, says Vinod Kumar, MD, KernelSphere Technologies.

Uniware Systems

We constantly validate emerging technologies for first-mover advantage, says Vergis K.R., CEO, Uniware Systems.

Astek Networking & Solutions

An innovative approach helps us stay successful, says Ashish Agarwal, CEO, Astek Networking & Solutions.

CSM Technologies

Our approach is backed by innovation and simplicity, says Priyadarshi Nanu Pany, CEO, CSM Technologies.

EMC PARTNER SHOWCASE

Partnering for Profitability

Atul H. Gosar, Director, Network Techlab, shares how the company’s association with EMC has provided it with a competitive edge and a wide customer base, leading to increased profitability.

Sponsored Content

Promising Pipeline

Venkat Murthy, Prime Mover, 22by7 Solutions, shares how EMC brings in competitive edge by enabling technology, GTM and lead generation, helping 22by7 acquire new customers and retain old ones.

Sponsored Content

Powerful Performance

Deepak Jadhav, Director, VDA Infosolutions, says initiatives by EMC around training and certification have helped the company’s staff improve its performance and enhance customer experience.

Sponsored Content

Performance Booster

Rajiv Kumar, CEO, Proactive Data Systems, says that the solution provider’s association with EMC has helped expand its customer base and added value to existing offerings.

Sponsored Content

Pursuit of Profitability

Santosh Agrawal, CEO, Esconet Technologies, shares insights on how the systems integrator’s association with EMC has spelled sustained success over the years.

Sponsored Content

Non-Performance is Not an Option

Nitin Aggarwal, Director, Trifin Technologies, shares insights on how the association with EMC has helped the system integrator stand out and empowered its personnel to deliver consistent performance.

Sponsored Content

SOCIAL MEDIA @ CW India
SIGNUP FOR OUR NEWSLETTER

Signup for our newsletter and get regular updates.