Wipro bullish on healthcare, services

Written by Pragati Verma | Updated: Oct 28 2009, 06:01am hrs
Wipro seems to have clicked on new models of outsourcing to come out with robust earnings and outlook this quarter. Suresh Vaswani, joint CEO of its IT business, analyses and dissects the segments leading the recovery during a chat with Pragati Verma. Excerpts:

Your earnings numbers and guidance seems to suggest recovery is rolling in. Is it bringing in new models of outsourcing

We are seeing economic recovery and a strong positive environment. Customers are in active discussion mode and are looking for serious cost transformations and a strong partnership approach. They are not looking for vendors but strong partnerships. We are offering them 'skin in the game' approach. Now, we proactively create opportunities with our existing and new customers. While we continue to chase the IT contracts floating in the market we don't necessary wait for requests for proposals (RFPs), we ourselves propose IT upgrades and ideas to clients.

Earlier, Infosys suggested that they gained from global M&As, especially in the BFSI sector. How big are your gains

Yes, a significant part of the growth comes from M&As in the finance sector globally. As companies acquire others and consolidate their operations, they are rationalising their applications and this is opening up significant opportunity for us. At the same time, recovery is broadbased and across sectors, but if I have to single out a few sectors, I would say we have seen opportunity in healthcare and services; energy and utility, and manufacturing and retail.

Government contracts are also becoming a big focus area for IT companies. Can they dilute margins

Government contracts are very prestigious. Take Employees' State Insurance Corporation contract, for instance. It will probably get attention from topmost authorities. These are top class in terms of innovation and service delivery. Government deals do not dilute our margins and you need the right models and cost structure for these deals. Government projects come within an acceptable margin range. We have also won deals from governments in India, Middle East, US, Europe and Australia.