New Delhi: Wipro Technologies Ltd said on Tuesday that it is looking for an acquisition in the business process outsourcing (BPO) space, which is likely to be the next engine of growth for the information technology (IT) industry.

Future prospects: Suresh Vaswani says BPO will drive growth for the IT industry. Rajkumar / Mint

“The economy has improved. The IT demand situation is certainly improving. The deal pipeline is good, the demand environment is building up," joint chief executive officer Suresh Vaswani told reporters on the sidelines of the India Economic Summit. “BPO has strong performance... BPO will drive growth for the IT industry. Acquisition is part of our strategy we keep looking at it."

The company is also optimistic about the current quarter.

“We have given a fairly strong guidance for this quarter which is substantially more than what we gave last quarter," Vaswani said.

He added that “all sectors are likely to grow, including banking, financial services and insurance".

About the pricing pressure faced by Wipro, he said customers are not looking at price discounts but at substantial change in cost structure. “We are doing more fixed-price projects, which now form 40% of the contracts we have," Vaswani said. “The fixed price models give both our customers and us a win-win situation."