Bengaluru/Mumbai: Software services exporter Wipro Ltd on Wednesday called out its healthcare services business in the United States as a challenge as uncertainties over Obamacare meant insurers are holding off on big technology expenditure.
The healthcare market accounts for nearly 13 percent of Wipro’s IT sales and reform of the sector in the United States, its biggest market, remains in prospect given the hostility of President Donald Trump and many Republicans to the Affordable Care Act, commonly known as Obamacare, despite a failed 2017 push to repeal it.
Senate Republican Leader Mitch McConnell said last week Republicans could try again to repeal Obamacare if they win enough seats in U.S. elections next month.
Bengaluru-headquartered Wipro has previously said uncertainty around Obamacare has pushed healthcare insurance clients to defer major investments.
The company, which posted a 13.8 percent fall in quarterly profit after taking a hefty one-off charge, will get more clarity around the business of HealthPlan Services (HPS), its unit proving technology solutions to insurance firms, as people in the United States enroll for insurance towards year-end, Chief Executive Abidali Z Neemuchwala said.
“In the health segment, we continue to see a challenge, primarily driven by uncertainty of the HPS business due to the Affordable Care Act,” Neemuchwala told a news conference, adding that the company was also looking at other opportunities in the healthcare sector.
However, he did not give any details on the scale of the impact of these uncertainties.
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Updated Date: Oct 25, 2018 10:45 AM