ManagementWipro expects US IT spend to rise by 2-3%
Wipro, India’s third largest IT services provider, is seeing an improvement in the prospects for the IT sector. The company expects IT spends in the US to go up in 2010.
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“The situation continues to look good,” said Suresh Senapathy, CFO of Wipro on the IT sector. “IT spends will be up by 2-3 per cent in the US for 2010,” he said.
Indian software services exporters rely on the United States and, on an average, 70 per cent of their revenues comes in from US-servicing multinationals across various verticals, including financial institutions, airlines, technology and automobile sectors.
The Indian software services sector had been on tenterhooks during the past 18 months and had resorted to cutting billing rates to keep alive their engagements with US companies.
The indication by Wipro’s CFO that that there will be a 2-3 per cent increase in IT spends in the US will come as a morale booster for the sector, which is looking at clocking in total exports of $50 billion during the current financial year.
After the US market, Indian software services exporters derive the next major chunk of their business from the European Union.
Senapathy further added that Wipro is increasingly looking at India and China as the two growth markets in the coming years.
He also said that the trend of clients wanting more services for the same amount of money continues to prevail, although pricing was stable. However, he expects the currency market to remain volatile.
The company is learnt to be looking at more opportunities to work with airports, like the current project it has with the Delhi airport (DIAL).
Wipro has signed a 10-year outsourcing agreement with DIAL to provide IT infrastructure and services at the Indira Gandhi International Airport in New Delhi.