JOIN USEven though Wipro didn’t start the new financial year with a bang, CEO T K Kurien is optimistic that there will be a turnaround in fortunes in the coming two quarters.
Kurien said there is a churn happening in the technology and buying model of customers. “It is not a roaring start to the quarter, but we expect to see Q2, Q3, and Q4 improving and the second half will be more result-oriented than the first half.
Our IT services revenues are in line with our guidance,” he said. Kurien added, “However, there is lots of work to do.” Kurien said the industry is undergoing changes requiring a very different level of operational efficiency. He emphasised the importance of process simplification, automation and artificial intelligence as key levers of change. The CEO said Wipro brought in organisational level changes by bringing in a new chief operating officer (COO). “The COO structure has helped the company to offer integrated services and also for enhancing internal business efficiency,” he said.
While the company finds a stable demand environment and large deals are competitive, Kurien said there is pressure on pricing in new deals. “The commoditised business model is clearly witnessing pricing pressure. But we have enough arsenals with us that the pricing drop will not reflect on the margin side,” he said.
On the vertical business performance, he said energy and utilities, along with BFSI and manufacturing, will gain momentum. “The drop in energy business was 33 per cent last year. Now I see momentum gaining in the sector and growth in the second quarter onwards. In healthcare, where the company witnessed some turbulence, we will see growth coming back in the second quarter,” he said.