Indian IT Vendors Benefit From Outsourcing Trend
Wipro is the third biggest IT vendor in India, one of the top outsourcing countries for Western companies. Wipro announced that its services added 20 percent - $1.4 billion – in the last quarter ending in March 31, 2011.
The results point to a high demand from overseas firms for offshore activity, reports pcworld.
Services in the IT sector accounted for 76percent of Wipro’s total revenue in the same quarter. This figure was up 18 percent to a formidable $1.83 billion in terms of year ago figures. Wipro is also into non-IT services such as lighting and consumer care. However, it does not separate profits based on separate business segments that it runs. The net profit, in total, added by a mild 14 percent to $300 million in comparison to last year’s figures.
Meanwhile, Wipro’s IT segment revenue was up $5.2 billion, which is up about 19 percent in comparison with the previous fiscal year. Forecasting revenue for next year, next quarter revenue ending on June 30 is expected to reel in approximately $1.4 billion.
According to analysts, Indian IT firms are benefiting from a wave of U.S. and European firms counting low cost offshoring activity that will sustain their flat IT budgets. Despite Wipro’s impressive figures, it is still behind India’s biggest outsourcer, Tata Consultancy Services, TCS, which reported Q1 figures of $2.2 billion in revenue – a 33 percent spike over last year’s figures. Meanwhile, its net profit was up 25.4 percent in terms of year ago figures. HCL, another Indian outsourcing giant, took in revenues of 33.5 percent with a corresponding net profit of 35 percent.
Tags: Outsourcing , Wipro , Offshoring , Percent
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