India’s third-largest IT outsourcer, Wipro, announced Wednesday that its revenue had grown by 30 percent and profits by 28 percent in its fiscal year that ended March 31, as it saw strong growth across all its businesses.
Other leading Indian outsourcers, including Infosys Technologies and Tata Consultancy Services, have also reported strong revenue and profit growth as offshore outsourcing to India is booming.
India’s software and services exports are likely to have grown by 32 percent to US$23.4 billion in the fiscal year, according to data released in February by the National Association of Software and Service Companies in Delhi.
Wipro posted revenue of Rupees 106.11 billion (US$2.39 billion at the exchange rate on the last day of the fiscal year) and profits of Rupees 20.27 billion for the year. Wipro has both a domestic and export business. Its Global IT Services and Products business, which handles most of the offshore outsourcing work, posted revenue of Rupees 80.51 billion, up by 33 percent over the previous year.
The results are based on U.S. generally accepted accounting principles.
In its fiscal year, Wipro added 11,885 staff in its offshore outsourcing business, taking total headcount to 53,742 employees as of March 31. Wipro competes for staff with Indian outsourcers and multinational services companies such as IBM and Accenture that have set up operations in India to take advantage of the country’s low-cost engineering staff.
The company also made two acquisitions during the year. In December, it acquired mPower Software Services, an IT services company in Princeton, N.J., and its development center in Chennai, India. Focused on the payment systems space, mPower had global payment company MasterCard International of New York as its main customer. Wipro now plans to increase the number of services it offers MasterCard. The company also acquired NewLogic Technologies, a privately held Austrian semiconductor intellectual property and design services company, with an eye to the European market for system-on-a-chip design services.
A key win for Wipro was its selection in February as one of the suppliers to General Motors.
-John Ribeiro, IDG News Service
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