Wipro plans big bets on digital services to double revenue | Reuters

BENGALURU The new boss of Indian IT services firm Wipro Ltd is betting on digital and automation services to stem a decline in market share and double revenue over the next four years. Abidali Neemuchwala, who took over the reins at India's third-largest software services exporter in February, told a post-earnings press conference that the company plans to boost revenue to $15 billion by fiscal 2020, from $7.7 billion in the 2015-16 financial year.

Reuters April 20, 2016 23:15:11 IST
Wipro plans big bets on digital services to double revenue
| Reuters

Wipro plans big bets on digital services to double revenue
 Reuters

BENGALURU The new boss of Indian IT services firm Wipro Ltd is betting on digital and automation services to stem a decline in market share and double revenue over the next four years.

Abidali Neemuchwala, who took over the reins at India's third-largest software services exporter in February, told a post-earnings press conference that the company plans to boost revenue to $15 billion by fiscal 2020, from $7.7 billion in the 2015-16 financial year.

The revival plan, first outlined in an internal company memo in February, comes as Wipro grapples with shrinking margins and falling profits.

The Bengaluru-based company has lagged larger domestic rivals Infosys and Tata Consultancy Services (TCS) in switching to high-margin digital services as tight competition has pressured fees for routine IT services.

Neemuchwala said initiatives to improve digital sales would include merging the company's consulting business with its digital services business and setting up new training schemes for employees.

Wipro reported a 1.6 percent drop in net profit for its fiscal fourth quarter, from a year ago, to 22.35 billion rupees ($338 million) on Wednesday, missing analysts' estimates of 23.43 billion rupees.

Both TCS and Infosys produced forecast-beating fourth-quarter earnings this month.

Neemuchwala said Wipro's margins would rise to 23 percent by 2020 as more of its revenue comes from digital contracts that include services such as big data, artificial intelligence and automation.

In the fourth quarter, its margins contracted by 10 basis points to 20.1 percent - the fourth successive quarterly contraction.

For the current quarter, Wipro said it expected revenue at its IT services business to be between $1.90 billion and $1.94 billion.

The company separately approved a 25 billion rupee share buyback.

($1 = 66.2100 Indian rupees)

(Reporting by Anya George Tharakan and Rishika Sadam; writing by Himank Sharma; Editing by Jane Merriman and Susan Fenton)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

also read

World Bamboo Day 2021: All you need to know about day observed to conserve and promote bamboo industry
World

World Bamboo Day 2021: All you need to know about day observed to conserve and promote bamboo industry

The day is marked by the World Bamboo Organisation, which aims to protect natural resources and the environment at large. The organisation also intends to ensure sustainable utilisation of bamboo

India committed to combat biggest global challenge in climate change, says Environment Minister Bhupender Yadav
World

India committed to combat biggest global challenge in climate change, says Environment Minister Bhupender Yadav

Bhupender Yadav said the partnership between India and the US will help strengthen climate action.

Completing 10,000 steps a day is an arbitrary number, walking 7,000 steps is good enough
science

Completing 10,000 steps a day is an arbitrary number, walking 7,000 steps is good enough

The World Health Organization recommends adults get at least 150 minutes of moderate-intensity exercise a week (or 75 minutes of vigorous exercise).