Strong Outsourcing Sales Drive Wipro Earnings

Bolstered by the growing volume of IT work U.S. businesses are shipping to low-cost countries, Indian IT service provider Wipro Technologies reported strong financial results for its fourth quarter and fiscal year ended March 31.

For the year, Wipro's revenue increased 39% to $1.87 billion. Net income rose 58% to $363 million, and per-share earnings climbed 58% to 52 cents. For the quarter, revenue increased 30% to $526 million, net income jumped 37% to $103 million, and earnings per share gained 36% to 15 cents.

Wipro officials said the company's annual results were boosted by strong outsourcing sales to Western businesses. Such sales increased 40% to $1.39 billion. Looking ahead, Wipro said it expects sales of IT products and services to total about $395 million in the current quarter. The outlook does not factor in sales from Wipro's relatively small consumer-care and lighting businesses.

Wipro is the latest major Indian IT services vendor to report booming sales. India's four largest outsourcing companies--Wipro, Infosys Technologies, Satyam Computer Services, and Tata Consultancy Services--have reported average sales growth of 39.2% for the most recent fiscal year.