Mumbai: Wipro Ltd, India’s No. 3 software services exporters, expects to see the positive impact of the recent organisational restructuring after three quarters, said the newly appointed chief executive of its IT business.
New York-listed Wipro is seeing strong demand for outsourcing services, and is focusing to win more deals in the emerging markets. T.K. Kurien told reporters in a conference call on Tuesday.
Wipro said on Monday that it had reorganised key IT outsourcing business, less than three weeks after it surprised the markets by replacing the chiefs of the business and naming Kurien as the new chief executive.
“This is a longer-term play for us because what we believe is that we are, by doing this, positioning ourselves for future growth,” Kurien said, referring to the organisational changes.
“Our fundamentals are sound...the reason why we are doing this is to make ourselves future ready,” he said. “I don’t see the impact of this for at least three quarters.”
Wipro has been struggling to keep up with its local and global peers such as Tata Consultancy Services, Infosys Technologies and Cognizant Technology Solutions Corp in winning big outsourcing contracts.
Cognizant, which forecast strong 2011 results on Monday, expects to maintain margins and grow organically at a pace faster than its key competitors, underlining a gradual recovery in technology spending.
Cognizant president R. Chandrasekaran said on Tuesday the firm was looking to buy companies with revenue of between $20 million and $80 million, preferably those in the consulting space.
Wipro’s IT business, which develops software applications, integrates IT systems and manages call centres for clients such as Citi, Cisco and Credit Suisse, accounts for about three-quarters of its revenue.
Bangalore-based Wipro, majority owned by Azim Premji, the world’s 24th richest billionaire according to Forbes, also makes computer hardware, consumer care products and electric bulbs.
Kurien said that Wipro was not seeing significant pressure on the prices for its services amid a rebound in demand.
India’s $60 billion software services sector had to battle demand for price cuts few quarters ago, as clients cut back on outsourcing in a sluggish global economy.