Wipro slowly laying foundation in infra management space

Written by P P Thimmaya | Bangalore | Updated: Oct 2 2014, 05:51am hrs
Indias third-largest IT services exporter, Wipro, has emerged as a credible contender for large deals in the infrastructure management services (IMS) segment, valued at $200-500 million, challenging the dominance of global biggies such as IBM and Hewlett-Packard, the company said.

Talking to FE, GK Prasanna, chief executive, global infrastructure services, Wipro, said, We are now a contender for large deals and have a seat at the table. We are also winning a share of them. He further added, We are winning market share against legacy players in every geography.

IMS has become one of the key growth areas for the $86-billion Indian IT services export industry, and this is being reflected in the earnings of all the IT majors. Now, even in the global market that is dominated by the likes of IBM, Hewlett-Packard, Accenture and CSC, Indian players have mounted a significant challenge.

IMS accounts for 25% of Wipro's revenue and has been recording a steady growth rate over the last few quarters. At the end of the first quarter of FY15, this segment recorded sequential growth of 5%, higher than the company's overall average of 1.2%.

Wipro, over the last few years, has invested in its IMS business from creation of intellectual property (IP) and strengthening the sales and marketing engine to expanding the range of offerings, which has enabled it to drive stronger traction.

Prasanna said the companys order pipeline was very robust, both in terms of deal size and the kind of engagement it has with customers. Customers are coming to us for the right reasons which go beyond cost arbitrage and we are working with marquee names across geographies, he remarked.

Wipro, in the recent past, has won a few significant deals with a strong IMS component. The $1.2-billion, 10-year contract with ATCO of Canada and $400-million deal with Takeda of Japan are a few examples. The Wipro chief executive expressed confidence about maintaining the current growth rate, adding, I feel good about our offerings.

Though the US remain the largest market for Wipro's IMS business, the company is finding strong traction in continental Europe and Australia. Now it plans to expand into Africa and Latin America. However, the growth rate of its IMS business lags compared to peers like Infosys and TCS.

Prasanna said, Our momentum has got way better and there is still some catching up to do and doing better in terms of growth rates.