‘New deals may come through in H2’
Girish S Paranjpe, co-chief executive and member of the board at India’s third-biggest software exporter Wipro, sees new business opportunities during the current economic crisis.
By Pankaj Mishra, ET Bureau |
BANGALORE: Girish S Paranjpe, co-chief executive and member of the board at India���s third-biggest software exporter Wipro, sees new business opportunities during the current economic crisis and says that the company���s financial customers will start outsourcing new contracts only by the second half of 2009.
You derive almost 26% of revenues from banking customers. What kind of impact do you see on business because of the financial crisis in US and Europe?
Banking customers accounted for around 14% of our revenues almost five years ago. The good news is that consolidation is already done and no more bank failures will be permitted. However, many banks are still repairing their balance sheets.
Tech spending is not top priority. They are also deciding on which assets to sell. It should take another 1-2 quarters for these customers to start awarding contracts for integrating their operations or even streamlining back office systems. We are in talks with CIOs of these banks. These deals when awarded, could be anywhere between $50 mn to $100 mn and above.
What is happening with bundled contracts, where you were expecting customers to award their IT and BPO contracts together?
Well, bundled deals are back because customers are looking to reduce the cycle time and even make some productivity gains by awarding IT and BPO contracts to one vendor. In fact, this quarter we have won around $100-mn contract, which includes both IT and BPO.
At a time when customers are tightening their budgets, where do you see growth coming from?
You derive almost 26% of revenues from banking customers. What kind of impact do you see on business because of the financial crisis in US and Europe?
Banking customers accounted for around 14% of our revenues almost five years ago. The good news is that consolidation is already done and no more bank failures will be permitted. However, many banks are still repairing their balance sheets.
Tech spending is not top priority. They are also deciding on which assets to sell. It should take another 1-2 quarters for these customers to start awarding contracts for integrating their operations or even streamlining back office systems. We are in talks with CIOs of these banks. These deals when awarded, could be anywhere between $50 mn to $100 mn and above.
What is happening with bundled contracts, where you were expecting customers to award their IT and BPO contracts together?
Well, bundled deals are back because customers are looking to reduce the cycle time and even make some productivity gains by awarding IT and BPO contracts to one vendor. In fact, this quarter we have won around $100-mn contract, which includes both IT and BPO.
At a time when customers are tightening their budgets, where do you see growth coming from?
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We are seeing some new opportunities. For instance, we acquired a Tennessee-based 200-people platform BPO company almost six months ago for around $10 mn. This business could grow more because customers in mortgage and securities segments are looking for platform-based solutions. Download
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