Wipro's IT services business posts slow growth in difficult market

A slow market and currency volatility affected the company's IT services business

Indian outsourcer Wipro reported slow revenue growth in its IT services business, reflecting a continued volatility in the outsourcing market.

The company said Friday that revenue for its IT services in the first quarter was US$1.6 billion, up by 3.2 percent from the same quarter last year. For its fiscal year ended March 31, revenue was $6.2 billion, a 5 percent increase from the previous fiscal year.

Wipro and other Indian outsourcing companies are contending with an uncertain market for outsourcing, with wild swings in customer demand from quarter to quarter, analysts said.

Cross-currency volatility also affected Wipro's financial performance, the company said.

Wipro's IT services revenue grew higher in rupees at 13 percent in the quarter and 19 percent for the year . The company does not break out profit figures for its IT business.

To focus more on its IT services business, Wipro announced last year a demerger of its non-IT businesses in consumer care and lighting, which came into effect on March 31.

The company added 2,907 staff in the quarter, taking the total to 145,812 employees, and added 52 new customers.

It has forecast IT services revenue of up to $1.6 billion in the current quarter.

India's largest outsourcer, Tata Consultancy Services, reported earlier this week that its revenue in the first quarter increased by 14.8 percent year-on-year to $3 billion, while net profit in the quarter grew 13 percent to $663 million. India's second largest outsourcer, however, reported profit fell by about 4 percent year-on-year to $444 million, even as revenue grew 9.4 percent to $1.9 billion, citing volatility in the outsourcing market, and delays in customer purchase decisions.

While growth is returning to the market, in the short-term outsourcers are seeing big market shifts from one quarter to another, said Siddharth Pai, president for Asia-Pacific for Information Services Group.

Wipro's earnings numbers are based on international financial reporting standards (IFRS).

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

Join the PC World newsletter!

Error: Please check your email address.

Tags business issuesservicesoffshoringoutsourcinginfosysfinancial resultswiproTata Consultancy Services

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?