IT major Wipro is focusing on areas like cloud, analytics and mobility solutions to boost its business in India’s domestic market.
A top company official says that “Over this financial year, especially in the last six months that is between July and December, we are seeing a gentle slowdown in overall procurement.”
“Moving head, we believe that as we get into the next year, we would see services market growth in India of around 15 per cent,” Wipro Senior Vice President and Business Head (India, Middle East and Africa) Anand Sankaran said.
Sankaran added that the Indian IT market can be pegged at about USD 25 billion, of which IT services would account for about USD 8-10 billion and the balance being products.
The company is braced up to counter the slowdown in demand by focusing on 3-4 areas, he said.
“Our focus is providing beyond the IT services that a company requires. We have been working on creating competency around 3-4 areas like variabalisation of IT, which becomes exceedingly important in a constrained world. Then there is cloud, mobility and analytics that we are focusing on,” he added.
He said while IT services have grown at a fast pace in the region of 20-22 per cent in the last nine months y-o-y, there will be an impact of the delayed decision making by corporates and government, especially on the IT products side.
“Services still growing at a fast pace whereas the products business has slowed down. A lot of the large products and discretionary spending across market segments have been pulled back whether it is government, banking, corporates etc,” he said.
Sankaran added that while services market growth in India could be around 15 per cent, the product market growth would be much lower, “probably high single digit or just about touching double digit growth”.
He said customers are looking at cloud and mobility solutions to enhance their productivity.
“Mobility and cloud have become important focus areas for most industry segments and so we have been working on a lot on these areas,” he added.
Citing an example, Sankaran said that a year ago, the company had less than 150 people working on mobility solutions, the number now stands at over 1,500.
“Analytics is another area. The focus is not just analysing details but how that can be put to use to increase the performance of business,” he said.
Wipro’s IT services revenue stood at USD 1.5 billion in Q3 FY’12, posting a year-on-year increase of 12 per cent. IT services constitute 76 per cent of the company’s revenue.
IT Products revenue, on the other hand, grew two per cent year-on-year to USD 170 million and accounted for nine per cent of the total revenue.