Wipro reaps the fruits of acquisitions

BANGALORE: One of the striking features in the Wipro M&A strategy has been its decision to adopt the ���string of pearls��� (acquisition) strategy. And this seems to be paying off. At a media interaction after the announcement of the company���s third quarter results, Wipro officials said that during the last 12 months revenues from acquisitions have risen higher than that in the organic front.

While on the one hand acquisitions have helped Wipro increase its suite of offerings, on the other they helped bring in more customers. On a year-on-year (Y-o-Y) basis, Wipro���s revenue from customers with billing in excess of $ 20 million have risen by 50%, while their number increased to 39 from 26 in the third quarter of FY06. Wipro CFO Suresh Senapaty said that the IT giant is now using its suite of products to service more and more clients. ���The ramp up in the contribution is due to our ability to mine the clients better, a strategy which should continue even in the quarters ahead,��� he said.

So is Wipro, which has largely made sub $60 million acquisitions, now readying for large-sized buyouts? ���We pursue both organic and inorganic routes for growth. Our wins have made us confident of looking at bigger acquisitions,��� said Mr Senapaty. He says that Wipro has had a successful track record in integrating the buyout companies, notably in the HR front. ���Some of the senior officials in the companies we have bought out have now come on board at senior level in Wipro. Besides this, we are also able to put Wipro staffers in the acquired companies,��� says Girish Paranjpe, president of the financial services business.