With an aim to beat IBM India and emerge as the market leader in the $6.1 domestic IT services industry by 2012, Wipro Infotech, the India and West Asia arm of Wipro Technologies, is banking on expansion of verticals like small and medium business (SMBs) and engineering, construction and transport (ECT). The company is expecting a growth of 25% in the domestic market this year against 20% in 2009.
?The growth will come from large transformational deals in banking , financial services and insurance (BFSI) and government vertical. We plan to expand in our SME and ECT business which currently contributes less than 5% each to our domestic revenues,? said Anand Sankaran, senior vice-president and business head, India , middle east and Africa.
Comparing the IT services revenues and all the non-products sold in the market, excluding BPO services ? the gap between IBM and Wipro domestic revenues has been decreasing over the years. As per estimates of first half of 2010, the two have a gap of only $20 million, against $125 million for FY 2008.
Sankaran expects ECT to contribute 10% revenues by 2012 and highlighted that it is a vertical which the company has designed only for Indian market and it does not exist in foreign markets.
Domestic SMB is also a $4.5 billion market for the Indian infotech industry. ?Small businesses contribute 5 million per month to our business, but I expect it to contribute 10 million a month by 2012. We also cater to 15 customers right now, which would increase to 30 by March 2011.? The firm currently gets its major business from telecom, government and BFSI which gives it 20-25% revenue each.