BANGALORE, 23 APRIL 2010 - Wipro reported on Friday a strong growth in its IT services revenue for the quarter ended March 31, indicating that it is benefiting from a recovery in demand for offshore IT services.
The business environment is returning to normal, the company said.
Its competitors, Tata Consultancy Services, and Infosys Technologies, also reported growth in revenue and profits this month. The two companies have stepped up hiring in anticipation of a larger demand for their services.
Wipro, which is India's third largest outsourcer, said that its IT services revenue in U.S. dollar terms was $1.17 billion, up 11.5 per cent from the same quarter last year.
IT services revenues for the fiscal year ended March 31 was $4.4 billion, an increase of 1.6 per cent over last year.
The company's results for the quarter are in accordance with International Financial Reporting Standards (IFRS).
Wipro has a diversified business that also includes consumer care, and it does not break out its profits by business segment.
Its IT services business accounted for 75 per cent of total revenue in the year ended March 31.
The company added 5,325 staff in this business in the quarter ended March 31, taking the total number of employees working on IT services to 108,071 as of March 31, 2010.
The company's IT services business added 27 new clients in the quarter.
The recovery for Indian outsourcers is steady, as is evident from their results in the last few quarters, according to analysts. However, most of the expenditure on outsourcing is still aimed at cutting costs, rather than at investments in new technologies for revenue growth, said Siddharth Pai, a partner at outsourcing consultancy firm, Technology Partners International (TPI), earlier this week.
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