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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags outsourcingbusiness issuesservicesfinancial resultsoffshoringwiproinfosysTata Consultancy Services

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

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?