BFSI, tech clients spending more on cost-optimisation deals: Wipro chairman

Macroeconomic environment remains challenging, impacting client spending: Rishad Premji

Wipro’s clients in the banking, financial services, and insurance (BFSI) and technology sectors are putting money in cost-optimisation deals and reducing discretionary spending, said Rishad Premji, chairman of the IT services firm, on Wednesday.  

BFSI is Wipro’s largest vertical and contributed nearly 35 per cent to total revenues in FY23. The technology sector contributed 11.4 per cent.

“The macroeconomic environment last year was challenging and continues to remain so even as the pandemic receded, the Ukraine war entered its second year and global interest rates continue to remain high. These factors have impacted client spending, especially towards the second half of FY23,” said Premji at the company’s 77th annual general meeting held virtually.

“We were well prepared for this change. Our strong portfolio of solutions on both sides of growth as well as efficiency has helped us react quickly and permanently to these developments. I am happy to share with you that we ended the year with strong order bookings with a growth of 28 per cent from last year (FY22),” Premji said.

Artificial intelligence (AI) will be a key focus area for Wipro. “Last many months, you will have noticed that there is a sharp uptick in conversations around AI, especially around generative AI… ChatGPT and Dall-E are now front and centre in everyday conversations about the future of technology…at Wipro, we are incredibly excited about the possibilities that AI brings and I believe we have been investing ahead of the curve to understand and leverage the power both inside Wipro as well as to create multiple solutions for our clients,” he said.

Also Read: Wipro to invest $1 bn in AI over 3 years, launches new platform for tech

Wipro committed to invest $1 billion over the next three years to advance its AI capabilities. As part of this investment, it launched Wipro ai360, an innovation ecosystem that will integrate AI in every platform, tool, and solution used internally and offered to clients.

Responding to a question by a shareholder, Premji said Wipro will continue to be a services-focussed company but will have more “productised services” in the future. He said there are “tremendous opportunities” for IT services and India has a huge advantage in terms of its talent base. “It is the responsibility of companies like ours to invest and train that talent.”