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Wipro sets new revenue goals

Calcutta, June 27: Infotech major Wipro has set a goal of netting $ 1 million in annual revenues from every new client within twelve months of bagging the first assignment. The goal is part of the company’s strategy to increase the penetration of its global infotech services and products, and winning new clients in Europe and Asia.

Wipro had 288 active clients in 2002-03, of which 27 contributed more than $ 5 million in IT services revenue. Forty seven companies generated sales in the range of $1 million to $3 million, while 21 notched up between $3 million and $5 million. An encouraging trend is that while the number of companies in the $1-3 million range fell from 49 in 2002 to 47 in 2003; clients in the $3-5 million range increased from nine in 2002 to 21 in 2003.

Wipro is, however, concerned that new immigration laws in the US will crimp revenues this fiscal. The company, with a turnover of Rs 4285 crore, reported a 3 per cent fall in net income in 2002-03 against a 29 per cent increase in the previous fiscal.

“Restrictions on immigration may affect our ability to compete for and provide services to US clients. This will hit growth and reduce revenues,” a spokesperson said.

In 2003, Wipro’s global IT services and products division accounted for 67 per cent of its revenues, of which 64 per cent (Rs 2004.8 crore) came in from the US.

An encouraging sign is that most US companies want to outsource software development of IT projects to countries like India, Russia, and even Ireland and Canada. According to IDC estimates, 70 per cent of large US companies ranked India as the preferred destination for outsourcing IT services.

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