Wipro Reports Higher Q2 Profits, Sales - InformationWeek
IT Leadership // IT Strategy
12:29 PM
Moving UEBA Beyond the Ground Floor
Sep 20, 2017
This webinar will provide the details you need about UEBA so you can make the decisions on how bes ...Read More>>

Wipro Reports Higher Q2 Profits, Sales

Results indicate offshoring's appeal for businesses looking to reduce costs in tough times.

Indian outsourcer Wipro reported solid second quarter performance, a sign that U.S. businesses continue to look to offshore outsourcing as a means to reduce expenses during the recession.

Wipro said Wednesday that second quarter revenues increased 6% year-over-year, to $1.3 billion. Net income jumped 31% to $224 million, while earnings per share also climbed 31%, to $0.15. The company said it expects to earn $1.04 billion from IT services alone in the third quarter.

"We are starting to see the first signs of stability in the business as ramp downs start to taper off and volumes start to stabilize," said Wipro chairman Azim Premji, in a statement. "We are adapting ourselves to the new reality with continued investments in value creation, go-to-market, and driving significant operational productivity," said Premji.

Wipro also reported that its workforce, which is almost exclusively based in India, has grown to more than 98,000 employees.

Other signs indicate that India's tech services economy is defying the downturn. IBM last week stated that its revenues from the country grew modestly in Big Blue's most recent quarter. By contrast, sales were down sharply across the board in most other regions.

It's not all good news for the outsourcing industry, however.

Market watchers at Technology Partners International released a report earlier this week that showed that the number of outsourcing contracts worth more than $25 million inked in the first half fell 11% compared with the first half of 2008. Total contract value was off 22%.

"Companies have been more tentative and tactical about making sourcing decisions as they try to navigate these challenging economic times," said TPI's Mark Mayo, in a statement.

InformationWeek Analytics and DarkReading.com have published an independent analysis of security outsourcing. Download the report here (registration required).

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll