Wipro aims to ensure that every new client acquired through its global infotech services division, Wipro Technologies, accounts for over $1 million in annual revenues within a year.
The company also intends to increase its share of business among its existing clients by expanding the range of IT solutions and by increasing its knowledge of industry segments and individual clients businesses so as to understand the specific requirements of the clients properly.
The company has in its annual report stated that it plans to significantly grow its global IT services business. For this, it will aggressively push its research and development services and focus on high growth technologies such as embedded software and also high growth markets such as telecommunications, mobile communications and the Internet.
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Significantly, Merill Lynch had, in a recent report on core technology services, identified Wipro Technologies and HCL Technologies as two firms that were ideally poised to exploit the growing market for core technology services more than any other Indian software company. Wipro draws about 54 per cent of its revenues from core technology related practices.
The core technology services market for Indian companies is expected to be in the range of $800 million to $1 billion in this financial year. Core technology services are defined by Merill Lynch as revenues that are derived from the R&D and not IT budgets of customers. They, according to the report, include revenues from the development of high-end software and hardware solutions, especially in the area of communications.
In its annual report, Wipro has also stated that it intends to increase the number of its clients through a dedicated sales team and to increase the company's presence in Europe and Asia.
On the question of acquisitions in the US, the company has stated that it is not averse to looking at strategic alliances that will help it grow its business and brands. Significantly, the company stated that the acquisition strategy would be driven by the fact whether a significant portion of the work could be relocated to India.
The annual report of the company states, "In pursuing acquisitions, we will focus on companies whose significant portion of work can be moved to India to leverage our low-cost offshore delivery model and realise higher margins."
Wipro chairman and managing director Azim Premji has in his letter to shareholders said Wipro intends to become one of the five most admired brands in the country.
The company plans to aggressively build brand awareness among clients both domestically and internationally and believes that it can leverage the strength of an international brand name across all its businesses.