Bangalore: Even as Indian software services firms see technology spending stabilizing in the US, their largest market, a hint of caution is still evident. Wipro Ltd, the third largest India information technology firm, expects growth to pick up slowly and then accelerate early next year, according to Girish Paranjpe, joint chief executive of Wipro Technologies Ltd, the information technology arm of Wipro. Edited excerpts:
With indications of an economic recovery in the US, what do clients ask you now?
Stability ahead: Girish Paranjpe says the healthcare, media, telecom and energy sectors are the growth sectors of the future. Hemant Mishra / Mint
Clients are still cautious... My belief is many clients are holding back the money they have till the end of this calendar year. At that point, they will take a look and say that this is not so bad, ...and maybe I should spend for the future, and hopefully that should start things rolling.
Does that mean you will ramp up in the last quarter of this fiscal?
I am still betting on the first quarter of next year, because they (clients) will reset budgets for next year.
Is there less work for Indian companies?
Overall, demand has shrunk. I don’t think they are picking on offshore vendors and saying that I don’t want to spend on you.
In which segments are you seeing growth?
We are seeing growth in healthcare, media and telecom service providers and in energy and utilities. Those are the growth sectors of the future. Some of the sectors, (that will) probably stabilize in two to three quarters—financial services and manufacturing. I think there are some secularly challenged sectors— telecom equipment and technology—which may take some more quarters (to recover).