IT Spend Moving to Change Phase... Feel Good About it
In a chat with ET NOW, Wipro CEO Abidali Neemuchwala says the company has a good set of capabilities, and in the long run it has the ability to execute well and deliver results. Edited excerpts: Let us start with your Q1 guidance and we were hoping for a better guidance. We were hoping for a fresh start considering that markets always do relative numbers and we have heard good things from your peer competitors. The Q1 guidance we have given is based on what we see right now and we are seeing a large number of opportunities which makes us optimistic about the 1-, 2-, 3% guidance. At the same time we are seeing some softness in certain areas. It includes our energy and utilities businesses — a significant part of our business. It includes certain parts of our banking and financial services (BFSI) business, especially in Europe. We have incorporated all of that in terms of giving the guidance.
So obviously, we do believe that we have a good strategy. We have a good set of capabilities and in the long run, we have the ability to execute well and deliver results.
So as we start FY17, what are the big headwinds and tailwinds for Wipro? Which of your existing headwinds can become tailwinds going forward? Rather than talking in terms of headwinds and tailwinds, let me tell you what is happening in the environment that we see. Across our customers, we are seeing that the total IT spend is not going up significantly. But what is definitely happening is the IT spend is moving from what is the run part of customers business, it is moving to the change or the digital transformation phase. I feel very good about it because on the run part, a higher level of industrialisation and automation which we call hyper-automation is required. A certain level of service consumption-based model, cloud-enabling kind of activities are happening and we are very well placed in these areas.
On Digital Play Digital is becoming mainstream. With our capability to not only advise and consult on digital but also bringing in design through our Designit acquisition and then execute on Agile, DevOps on the security and cloud area, especially with some of the local investments we have made — irrespective of our digital pod in New York or London or other parts of the world where we are able to get clients together, do customer journey engineering and deliver on the strategy and design piece.
Some of the local centres we are setting up are in Mountain View, California in the US and in the UK as well. With acquisitions in Germany for German workforce and through localisation in various other parts of the world, we are able to deliver with Agile as well. These are the op- portunities that I see.
Obviously, in certain sectors and areas, time and again we see some softness which converts into headwinds that I would not worry about too much right now.
I think we are focussed on having a good strategy. We have identified six strategic themes and we are executing them, investing in IT. I think we are very well differentiated in terms of capturing market share, in terms of what is going on in the market.