Wipro Tech scouting for BPO buy: Vaswani

Ahead of the slight recovery in IT spending, the country’s third largest software exporter, Wipro Technologies, on Tuesday said it is looking for an acquisition in the BPO space, which is likely to be the next engine of growth for the IT industry. “The economy has improved. The IT demand situation is certainly improving. The deal pipeline is good, the demand environment is building up," Wipro Technologies joint CEO Suresh Vaswani said on the sidelines of the India Economic Summit. He added the company is looking at acquisitions in the BPO space. “BPOs have strong performance... BPOs will drive growth for the IT industry. Acquisition is part of our strategy and we keep looking at it, he said.”

The company had recently reported a 5% year-on-year jump in revenues for IT services, which contributes 72% to the company’s overall revenues and stood at Rs 4,996 crore. Wipro had then said that the growth in volumes has been broad-based instead of coming from one particular vertical. The company had also increased its revenue guidance for the third quarter ending December 31, 2009. In the present quarter, revenues from IT services are expected to be in the range of $1,092 million to $1,113 million, an increase of 2.5 to 4.5%.

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