Wipro bets big on Latin America, Asia Pacific; expects strong growth in the region
Country's third largest software firm Wipro is betting big on emerging geographies like Asia Pacific, Latin America and Africa and expects to see strong growth in the region despite slowdown in the US and Europe.
"About 6-7 years back, the emerging geographies and focus markets contributed just 3-4 per cent.
"Today its 16-17 per cent of our global IT-BPO revenues come from these regions. That speaks of how business has grown here and how committed we are to these markets," Wipro IT business Chief Sales and Operations Officer (Emerging Markets and Focus Countries) Rajat Mathur told PTI.
He added that Latin America has shown strong growth in the last few quarters.
Mathur added that though ratio of revenue contribution from various geographies may not change significantly, but emerging markets are showing faster rates of growth with strong demand across various sectors.
He declined to comment on revenue details as the company is in the silent period and will announce its results later this month.
Wipro's IT services revenue stood at USD 1.5 billion for the quarter ended March 31, 2012, while its revenue for 2011-12 stood at USD 5.9 billion.
Wipro has three delivery centres in Latin America -- Curitiba, Rio de Janeiro and New Mexico City and has about 850 people.
"We focus on verticals like retail, consumer products, banking, telecom, oil and gas, and mining. In some of these verticals, we have seen growth of 12-14 per cent and in the next few years, we are bullish on these sectors, especially mining and oil and gas," Mathur said.
Indian IT companies like TCS, Infosys and Wipro have been increasing their focus on emerging geographies as clients in US and Europe facing economic slowdown are slashing their IT budgets.
The US and Europe make up about 85 per cent of the revenues for the USD 100 billion Indian IT-BPO industry.
Talking about the opportunities, he said there is a strong demand for IT and BPO services in the region.
"Deal sizes span across 100 million to half a billion, but there are those typical USD 10-25 million deals as well. Small deals could be in the range of USD 2-10 million. We would chase USD 50-100 million," Mathur said.
Asked about acquisitions in the region, he said the company is constantly on the lookout.
"Wipro is very aggressive when it comes to acquisitions. We would look at companies which have a strong cloud, analytics or mobility offering," he added.
Source: Economic Times