Despite a challenging year, Wipro is cautiously optimistic about the coming financial year, thanks to a growing focus on artificial intelligence (AI) among clients seeking to cut costs. Suzanne Dann, head of the Americas 2 business, revealed an increased emphasis on AI in client conversations at the World Economic Forum in Davos. This trend, particularly in cloud-migrating companies, offers opportunities for improved productivity and efficiency.
Americas 2, encompassing banking, insurance, and Canada, contributed significantly to Wipro’s third-quarter revenue.However, India’s fourth-largest IT firm faces headwinds. Their recent quarterly revenue forecast hinted at a potential decline for the first time in three years.
Srini Pallia, CEO of Americas 1 covering retail, healthcare, and Latin America, sees 2024 as a “pivotal year” for generative AI adoption, mirroring analysts’ predictions of hockey stick-like growth in the sector. His region contributes nearly a third of Wipro’s revenue.
Amidst speculation about future leadership, Pallia dismissed reports of him and Dann being in the running to succeed CEO Thierry Delaporte as mere “speculations.” He also addressed the lack of mega-deals this year, attributing it to a shift towards smaller contracts shared by multiple IT companies. Despite this, Pallia expressed confidence in Wipro’s “good pipeline” of future opportunities.
The recent resignation of Stephanie Trautman, Chief Growth Officer and head of the large deals team, adds another layer to the evolving landscape at Wipro. While challenges remain, a burgeoning focus on AI paints a cautiously optimistic picture for the Indian IT giant’s future.
Wipro’s net profit falls 12% in third quarter
Recently, Wipro posted a nearly 12 per cent decline in consolidated net profit at Rs 2,694.2 crore in the third quarter ended December 2023 amid a “cautious” demand environment and clients making conservative investments. The consolidated revenue from operations of Wipro also fell 4.4 per cent to Rs 22,205.1 crore during the December quarter, as against Rs 23,229 crore a year ago. This is the fourth straight quarter when Wipro recorded decline in its IT services revenue.
Wipro said that it expects de-growth or almost flat growth in revenue in the next quarter, thereby indicating a lower growth for the company for the fiscal on a year-on-year basis. The company reported a profit of Rs 3,052.9 crore in the quarter ended December 31, 2022.
Americas 2, encompassing banking, insurance, and Canada, contributed significantly to Wipro’s third-quarter revenue.However, India’s fourth-largest IT firm faces headwinds. Their recent quarterly revenue forecast hinted at a potential decline for the first time in three years.
Srini Pallia, CEO of Americas 1 covering retail, healthcare, and Latin America, sees 2024 as a “pivotal year” for generative AI adoption, mirroring analysts’ predictions of hockey stick-like growth in the sector. His region contributes nearly a third of Wipro’s revenue.
Amidst speculation about future leadership, Pallia dismissed reports of him and Dann being in the running to succeed CEO Thierry Delaporte as mere “speculations.” He also addressed the lack of mega-deals this year, attributing it to a shift towards smaller contracts shared by multiple IT companies. Despite this, Pallia expressed confidence in Wipro’s “good pipeline” of future opportunities.
The recent resignation of Stephanie Trautman, Chief Growth Officer and head of the large deals team, adds another layer to the evolving landscape at Wipro. While challenges remain, a burgeoning focus on AI paints a cautiously optimistic picture for the Indian IT giant’s future.
Wipro’s net profit falls 12% in third quarter
Recently, Wipro posted a nearly 12 per cent decline in consolidated net profit at Rs 2,694.2 crore in the third quarter ended December 2023 amid a “cautious” demand environment and clients making conservative investments. The consolidated revenue from operations of Wipro also fell 4.4 per cent to Rs 22,205.1 crore during the December quarter, as against Rs 23,229 crore a year ago. This is the fourth straight quarter when Wipro recorded decline in its IT services revenue.
Wipro said that it expects de-growth or almost flat growth in revenue in the next quarter, thereby indicating a lower growth for the company for the fiscal on a year-on-year basis. The company reported a profit of Rs 3,052.9 crore in the quarter ended December 31, 2022.