Wipro calls US debt deal good for Indian IT sector

Kolkata: Hailing the US debt deal as a step forward, a top Wipro official said today that the move is likely to have a positive impact on Indian IT companies in the long run. “I cannot comment on the short term, but in medium to long term it will have a positive impact on the Indian IT companies. The US-based companies or organisations will have more cost management in mind,” Wipro executive director and CFO Suresh C Senapaty said in Kolkata on the sidelines of a CII organised seminar.[caption id=“attachment_53610” align=“alignleft” width=“380” caption=“Wipro chief financial officer Suresh Senapaty. Jayanta Shaw/Reuters”]  [/caption] The plan passed in the US has raised the debt ceiling by $2.1 trillion and cut government spending by $2.4 trillion over a decade. Senapaty hopes that the situation would force companies to call for greater efficiency with higher investment in technology which would help the domestic IT industry. He further stated he does not expect squeezing of margins for the Indian IT industry. “Margin for us is not really a percentage of sales, it is what we make per person. On that basis Indian companies are not ahead of global companies. Global companies still have per person margin higher than that of Indian companies,” he said. Asked about Wipro being unable to match industry leaders in performance in the first quarter of the current fiscal, Senapaty said the company would attain growth in the next two to three quarters after the recent restructuring. “There has been restructuring in January which is touching our sales personnel a lot. Because of this reorientation we are not able to catch up on growth in the short term, but as we go forward in a quarter or two we should be able to catch up,” he said. PTI