Wipro chief sees more growth in IT services

Wipro chairman Azim Premji said clients were looking at spending more on information technology (IT) in markets such as America, where the economy is a little better.

“We continue to see a volatile economic environment but the economic prospects for our main countries of export are a little better. And, clients are looking to spend on (information) technology, as tech is becoming a major differentiator,” he told shareholders of the IT major at the annual general meeting on Wednesday.

Premji’s optimism comes as India’s IT services sector is seen as struggling to post higher growth, due to underlying technology shifts towards digital and cloud, automation taking over low-level jobs and growing protectionism in developed markets.

“Over the past year, we saw further evidence of drastic change in expectations and experiences of consumers and business models. Digital is the central element driving this change,” he said. “We believe IT services companies are key to deliver digital to enterprises.”

On Thursday, Wipro will announce its June quarter results, showcasing its performance in a quarter that has seen marginal growth among peers. Tata Consultancy Services, largest in the sector, reported muted numbers for the quarter, with slower growth from clients in banking and financial services and retail. Infosys saw better performance, with improved utilisation of its workforce and marginal growth from customers.

Premji said Wipro was investing to address the opportunities offered by the shift to digitalisation. “We strongly believe our success will depend on our ability to redefine and align ourselves with the new global paradigm and the disruptive developments in our industry,” he explained.

Beside financial capital for its stakeholders, he said Wipro was also creating social, environmental, intellectual and human value.

“We strongly believe our success will depend on our ability to redefine and align ourselves with the new global paradigm and the disruptive developments in our industry” AZIM PREMJI, Wipro chairman