Wipro to foray into African markets, focus on services

BANGALORE: Wipro Infotech, the India and Middle-East arm of Wipro, is spreading its wings to the African continent even as it looks to increase the services component of its business.

Morocco and Ethiopia are the first African markets that the $5 billion technology services major company plans to tap into, CEO Anand Sankaran said.

Wipro Infotech has grown at around 50% in the last two quarters, with a strong foothold in India and a growing presence in Saudi Arabia. Wipro Infotech���s key customers in India include the Future Group, HDFC Bank, Aircel and Vijaya Bank.

The company has seen ���good traction��� in the major markets. It has won a large order from the Saudi Arabian airline.

Wipro Infotech will deliver IT services to the telecom major Aircel for enhancing its revenues.

Mr Sankaran said the projects bagged by Wipro have been largely transformational, involving either the implementation of new systems or an overhaul of existing ones.

Wipro Infotech derives most of its revenues from hardware products. The IT services component, which currently accounts for about a third of sales, should contribute 40% to the turnover by the end of March 2009, Mr Sankaran said.

Retail, real estate and Banking, Financial Services and Insurance (BFSI) companies will be cautious about technology spending, given the challenging economic environment, but the government and the power sector are likely to generate more orders, he added.