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Abhrajit Gangopadhyay

BANGALORE, Dec. 17

THE energy and utilities division is likely to contribute close to 30 per cent of revenues to the enterprise solutions business of software major Wipro Ltd in the current financial year, the President-Enterprise Solutions, Mr Sudip Banerjee, said.

The enterprise segment contributed 60 per cent to Wipro Technologies' September quarter revenue. Wipro Technologies is the global information technology arm of Wipro.

"Performance of the energy and utilities vertical has been on track,'' Mr Banerjee said. Over 1,000 engineers work in the energy and utilities vertical. The two other growth drivers for the enterprise business will be retail and manufacturing, he added. While retail is likely to contribute close to 29 per cent of enterprise revenue, manufacturing is likely to account for 28 per cent.

``There is good traction in these areas from new wins,'' Mr Banerjee said. Moreover, old-relationships have not witnessed any ramp-downs, he added. Clients like General Motors are on the expansion spree, where close to 268 Wipro engineers were writing codes for the auto-major as on September end. Declining to detail the size of manpower efforts in that account, Mr Banerjee said, "We have grown over that".

The company is currently witnessing a sustained volume growth as more business pours in from global players, desperate to cut costs in a shrinking economy.

``October-November trend is also robust... the momentum is there,'' Mr Banerjee said. Wipro reported a 12 per cent volume growth in the September quarter.

Meanwhile, the integration of the energy practices division of American Management Systems, which Wipro bought recently is likely to be completed by January-end. ``Effects of the merger will be noticed from the fourth quarter,'' Mr Banerjee said. Wipro has already made offers to the 90 professionals of AMS and they are likely to get back to the company by mid-January.

Though pricing pressure has bottomed to a narrow range and with the hiring engine on, Wipro sees its operating margins stable and in line with past reported figures. Rupee appreciation against dollar accounted for close to 130 basis point drop in margins. However, the company expects to better its margins through increasing utilisation levels in the next quarters.

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