IT service company Wipro is optimistic about its growth prospects in FY25, driven by increased client investments in areas such as Artificial Intelligence (AI), Generative AI (GenAI) implementation, and digital transformation. This positive outlook comes even as the company faces slowing growth.
In its recent 20-F filings with the US Securities and Exchange Commission, Wipro highlighted, “The IT services industry is expected to accelerate and drive decisions in fiscal year 2025 based on investments made by clients in key areas such as Artificial Intelligence (AI), Generative AI implementation, cost optimisation, operational excellence, digital transformation, vendor consolidation”.
Despite the optimistic view, Wipro acknowledged the current challenges, including a cautious approach by businesses towards technology investments amid economic uncertainty, high inflation, interest rates, and geopolitical tensions.
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“The macroeconomic environment has led to reduced discretionary spending. However, we anticipate that spending will gradually improve in fiscal year 2025 as enterprises continue to prioritise cost takeout and operational excellence initiatives,” Wipro said in the report.
In FY24, Wipro’s revenue declined by 3.8% year-on-year to Rs 89,760 crore. The company’s revenue guidance stands at between -1.5% and 0.5% for the quarter ending June.
Further, the company noted varying client behaviours across different sectors with the financial services, hi-tech, and telecom sectors showing softer client activity, while the consumer goods and manufacturing sector investing cautiously due to cost pressures and weak consumer spending. On a brighter side, Wipro identified healthcare and automotive sectors as areas of strong growth.
Wipro also mentioned that enterprises are increasingly focusing on sustainability and resilience, emphasizing the importance of globalizing operations to leverage cost advantages, access talent, and innovation opportunities.
In the IT products segment, Wipro is faceing pricing pressures due to tight competition. The company said, “In our IT Products segment, we continue to experience pricing pressures due to increased competition among IT companies”.
Additionally, the report said “We provide IT products as a complement to our IT services offerings rather than selling standalone IT products. Our focus continues to be on consulting and digital engagements, with a more selective approach in bidding for system integration engagements”.
From: financialexpress
Financial News
